Printer Friendly

FAR WEST INDUSTRIES INC. REPORTS THIRD QUARTER 1993 RESULTS

 VANCOUVER, British Columbia, Nov. 4 /PRNewswire/ -- Far West reports the first profitable quarter in two years. Although 1993 third quarter sales of $2,554,022 were 21 percent below 1992 sales of $3,240,592, the gross margin improvement which commenced in the first quarter of 1993, combined with a dramatic reduction in overhead expenses, resulted in a net income of $233,161, or $0.06 per share, for the quarter compared with a net loss of $54,312, or $0.01 per share, for 1992.
 Sales for the first nine months of 1993 were $5,187,014 compared to $5,209,719 for the same period in 1992 and the gross margin increased from 19 percent in 1992 to 27 percent for 1993. Overhead expenses, including administration, sales and shipping, declined by 28 percent from $1,604,748 in 1992 to $1,157,674 for 1993. Interest on both long term debt and the current operating loan for 1993 was $161,910 compared to $232,052 for 1992. The net income for the first nine months of 1993 was $27,032, or $0.01 per share, compared to a net loss of $871,556, or $0.20, for 1992. In addition, the income before depreciation was 337,613 in 1993 compared to a loss before depreciation of $535,534 for 1992.
 Balance sheet quality also improved with total debt declining by 42 percent from 5,001,402 at Sept. 30, 1992, to $2,873,464 at Sept. 30, 1993. The sale of a surplus plant in October 1993 for proceeds of approximately $500,000 will facilitate a further debt reduction in the fourth quarter. Far West will retain ownership of a modern 60,000-square-foot manufacturing plant, warehouse and administration offices, with room for expansion as well as a 7,000-square-foot factory retail outlet, all of which is located on four acres of prime industrial property with highway exposure, in Vernon, British Columbia.
 The Far West Gore Tex outerwear collection enjoys a strong reputation for quality and value and continues to represent the largest percentage of our sales. The Fall 1993 line included several styles of cotton jackets with W.L. Gore's new lining called "THE WINDSTOPPER." Very popular in Europe, this lining is achieving market acceptance in Canada. This lightweight fabric is completely windproof and combined with its high breathability characteristics it transforms a cotton jacket into a product that can be worn comfortably in adverse weather conditions. Also offered as part of Far West's cotton program are a selection of cotton pants and shirts for both men and women which compliment the popular rugged outdoor theme.
 The current outlook is for the third quarter trend to continue through the fourth quarter. Spring 1994 Canadian orders should be slightly ahead of 1993 reflecting the modest economic recovery in Canada.
 Nine Months to Sept. 30, 1993 Year ago
 Revenue $5,187,014 $5,209,170
 Income(loss) 27,032 (871,556)
 Earnings(loss) per share 0.01 (0.20)
 Three Months to Sept. 30, 1993 Year ago
 Revenue $2,554,022 $3,240,592
 Income(loss) 233,161 (54,312)
 Earnings(loss) per share 0.06 (0.01)
 Figures in brackets are losses.
 The company is involved in the design, manufacture and distribution of sports wear and Gore Tex outerwear in Canada and Sweden. The reduction in losses is attributed to reductions in overhead expenses and manufacturing costs. All products are produced in Canada.
 -0- 11/4/93
 /CONTACT: F.G. Robinson, president, 604-542-0237/
 (FWT.)


CO: Far West Industries Inc. ST: British Columbia IN: TEX SU: ERN

JB-MF -- LA039 -- 1017 11/04/93 18:50 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 4, 1993
Words:606
Previous Article:CITADEL HOLDING REPORTS THIRD QUARTER RESULTS
Next Article:GERRY RICH NAMED EXECUTIVE VICE PRESIDENT-MARKETING FOR MGM/UA DISTRIBUTION
Topics:

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