Printer Friendly

BFD INDUSTRIES REPORTS THIRD QUARTER RESULTS AND CONSOLIDATION OF FACILITIES

 MARKHAM, Ontario, Nov. 19 /PRNewswire/ -- BFD Industries, Inc. (OTC Bulletin Board: BFDI) today reported financial results for the third quarter and nine months ended Sept. 30, 1993.
 For the quarter, revenues decreased to $2,182,744 (U.S.) from $3,176,820, during the comparable 1992 quarter. The net loss for the third quarter was $346,954, or 3 cents a share, compared to a loss of $4,592, or nil cents a share, in the prior year's quarter.
 For the nine months, revenues increased to $7,205,136 from $5,442,791 in the year-ago period. The net loss amounted to $1,599,482, or 14 cents a share, compared to a net loss of $319,117, or 3 cents a share, for the same period a year ago.
 For the quarter there were 11,989,876 weighted average shares outstanding compared to 9,940,305 weighted average shares outstanding for the year-ago quarter. For the nine months there were 11,611,027 weighted average shares outstanding compared to 9,349,825 weighted average shares outstanding for the same 1992 period.
 "The lower revenues are primarily due to a decline in sales of our face shields," said Sheldon Hoffman, BFD's chief executive officer. "Combined sales for these products were $590,000 in the third quarter compared to $1,600,000 for the 1992 quarter. The 1992 quarter benefited from a significant initial inventory build-up by hospitals and other medical and dental professionals as compliance for the OSHA mandate which went into effect in July 1992. We expect revenues for the fourth quarter will range between $2.5 - $3.0 million, or $10 - $12 million on an annualized basis."
 Hoffman said, "The company is taking a number of steps to improve sales and marketing and at the same time reduce overhead expenses, all of which should have a positive impact on the bottom line. The company reported an increased net loss in the quarter just ended largely because of decreased sales and increased interest expenses."
 A key initiative to reduce expenses is the moving of its Atlanta sales office and its manufacturing facilities in Birmingham and Huntsville, Ala., into its Salt Lake City operation. "This reorganization will lower our selling, general and administrative costs as well as improve our gross profits due to the efficiencies to be gained from having these manufacturing lines in one location. We expect these moves to be completed in December 1993," stated Hoffman.
 "Our gross profit amounted to 40.8 percent for the quarter," said Hoffman. "We expect this to improve as we experience those improved efficiencies from our consolidation," commented Hoffman.
 "BFD's working capital is low, but continues to improve," said Hoffman. "It increased to about $210,000 from a deficit of approximately $822,000 at Dec. 31, 1992. This improvement resulted from the cash received from the issuance of common shares during the nine-month period," concluded Hoffman.
 BFD Industries, Inc. develops, manufactures and markets infection control and wound care products for the medical and dental markets. BFD has facilities in Atlanta, Birmingham and Huntsville, Janesville (Wis.) and Salt Lake City.
 BFD INDUSTRIES, INC.
 CONSOLIDATED BALANCE SHEET
 (Unaudited, in U.S. dollars)
 (Restated)
 Sept. 30, 1993 Dec. 31, 1992
 Current assets
 Cash $ 330,459 $1,080,720
 Accounts receivable 620,579 1,521,198
 Recoverable Income Taxes 24,000 ---
 Inventory 1,380,914 1,569,397
 Other 120,572 74,975
 2,476,524 4,246,290
 Property, plant and
 equipment, net of
 accumulated depreciation
 of $291,708
 (1992-$205,146) 915,377 934,254
 Intangible assets,
 net of accumulated
 amortization of
 $805,024 (1992-$484,817) 6,051,027 6,140,716
 Total Assets 9,442,928 11,321,260
 Current Liabilities
 Trade accounts payable $ 746,491 $ 944,445
 Other accounts payable
 and accrued liabilities 281,144 487,852
 Note payable -- related --- 1,574,080
 -- other 800,000 1,925,920
 Loan payable 438,343 ---
 Income taxes payable --- 187,256
 2,265,978 5,119,553
 Funds held in trust --- 621,390
 Deferred income taxes 32,200 32,200
 2,298,178 5,773,143
 Shareholders' Equity
 Capital Stock
 Authorized
 50 million common shares without
 par value
 Issued
 15,342,730 common shares
 (1992-14,038,120) 15,408,368 12,212,253
 Deficit (8,263,618) (6,664,136)
 7,144,750 5,548,117
 Total Liabilities
 and Equity 9,442,928 11,321,260
 BFD INDUSTRIES, INC.
 CONSOLIDATED STATEMENT OF EARNINGS
 (Unaudited)
 For the 3rd Quarter For the nine months
 ended Sept. 30 ended Sept. 30
 1993 1992 1993 1992
 Sales $2,182,744 $3,176,820 $7,205,136 $5,442,791
 Cost of goods
 sold 1,292,275 1,905,200 4,200,163 3,182,259
 890,469 1,271,620 3,004,973 2,260,532
 Expenses
 Selling, general and
 administrative 1,020,651 1,101,259 3,927,149 2,333,546
 Depreciation and
 amortization 137,056 94,784 406,767 165,983
 Interest 124,112 --- 288,196 ---
 Foreign exchange
 (gain)/loss (2,396) 3,075 6,343 (11,178)
 Write-down to market
 of value of marketable
 securities --- 3,431 --- 10,272
 $1,279,423 $1,202,549 $4,628,455 $2,498,623
 Loss before provision
 for income taxes (388,954) 69,071 (1,623,482) (238,091)
 Provision for
 (recovery of)
 income taxes (42,000) 73,663 (24,000) 81,026
 Net loss for
 period ($346,954) ($4,592) ($1,599,482) ($319,117)
 Net loss per share ($0.03) ($0.00) ($0.14) ($0.03)
 Average number of
 shares
 outstanding 11,989,876 9,940,305 11,611,027 9,349,825
 BFD INDUSTRIES, INC.
 STATEMENT OF DEFICIT
 (Unaudited)
 For the nine months ended
 Sept. 30,
 1993 1992
 Deficit, beginning of period ($6,664,136) ($6,239,508)
 Net loss for the period (1,599,482) (319,117)
 Deficit, end of period ($8,263,618) ($6,558,625)
 -0- 11/19/93
 /CONTACT: Sheldon Hoffman, chief executive officer of BFD Industries, 416-479-0654; or Tom Laughran, 708-564-5610, Mark Perlgut, 212-874-6800, or Earle Brown, 813-796-1452, all of The Investor Relations Company, for BFD Industries, Inc./
 (BFDI)


CO: BFD Industries, Inc. ST: Ontario IN: MTC SU: ERN

SM-ML -- DE015 -- 6609 11/19/93 14:53 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 19, 1993
Words:1039
Previous Article:BROWN-FORMAN DECLARES INCREASED QUARTERLY CASH DIVIDEND
Next Article:SOUTH JERSEY INDUSTRIES DECLARES QUARTERLY DIVIDEND
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters