BFD INDUSTRIES REPORTS RESULTS
BFD INDUSTRIES REPORTS RESULTS MARKHAM, Ontario, July 23 /PRNewswire/ -- BFD Industries Inc.
announced today that the notes to the company's unaudited financial statements for the quarter ended March 31, 1992, disclosed that the company did, on May 14, 1992, close the acquisition of Alpha Pro Tech, Inc. (Alpha), with effect from Jan. 1, 1992. As described in the management discussion and analysis accompanying such financial statements, the acquisition was accounted for on a pooling of interest basis, pending the advice of the company's auditors.
Management has now completed discussions with the company's auditors regarding the purchase and, after researching the appropriate accounting treatment for same, the auditors have advised the company to account for the acquisition utilizing the purchase method of accounting, with effect from May 1, 1992. Accordingly, the operating results of Alpha will only be included for periods subsequent to April 30, 1992 and, accordingly, will be reflected in the company's financial statements for the period ended June 30, 1992. In accordance with Canadian generally accepted accounting principles, the financial statements for the second quarter will include unaudited pro forma supplemental information reflecting the operating results of the company as though the acquisition of Alpha was effected on Jan. 1, 1992. The appropriate accounting treatment of the acquisition of Alpha requires that the company's sales for the first quarter ended March 31, 1992, be restated from U.S.$2,165,619 to U.S.$408,603 and that net income be restated from U.S.$132,374 to a net loss of U.S.$225,275, to reflect its operating results on an unconsolidated basis. An amended quarterly report for the period ended March 31, 1992, is currently being prepared and will be mailed and filed with the appropriate regulatory authorities shortly. Based on management's best estimate, the pro forma financial information for the period ended March 31, 1992, will reflect sales of U.S.$2,165,619 and net income of U.S.$67,374 which is to be compared to the previously reported net income of U.S.$132,374; the difference of U.S.$65,000 in net income results from the amortization of the estimated goodwill to be recorded on the acquisition under the purchase method of accounting. Similarly, previously disclosed sales for the interim period ended June 30, 1992, were reported on a pro forma basis. The company designs, manufactures and markets a family of patented eye and face shield products for healthcare, industrial and consumer applications. The company's products are used throughout the world by hospitals, clinics, and dental and medical practices to protect healthcare professionals from infectious diseases. These eye and face shield products, manufactured at the company's U.S. plant in Birmingham, Ala., are anti-fogging, distortion free and 100 percent optically clear. The company's shields are extremely comfortable, lightweight, and above all, disposable, to eliminate any chance of cross contamination. Alpha Pro Tech, Inc., the wholly-owned subsidiary of the company, is a leading supplier of surgical and dental face masks, which are manufactured at its facilities in Salt Lake City, Utah. Alpha's Magic Arch Positive Facial Lock mask is ranked number one by an independent research facility. As well, Alpha is the largest manufacturer of medi- pads in the United States. The medi-pads are manufactured in its Janesville, Wis., facility. This press release was prepared on behalf of the board of directors by the undersigned who accepts full responsibility for its contents. ON BEHALF OF THE BOARD Irving Bronfman, Director The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. -0- 7/23/92 /CONTACT: Sheldon Hoffman of BFD Industries, 416-479-0654/ CO: BFD Industries Inc. ST: Ontario IN: SU: ERN
PS -- NY043 -- 2403 07/23/92 10:34 EDT
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|Date:||Jul 23, 1992|
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