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Invesprint Announces 3Q Results, Labels Division Shows Improvement

Wednesday, March 20, 2002

Press release from the issuing company

TORONTO, ONTARIO--Invesprint Corporation of Toronto today reported financial results for the third quarter ended January 31, 2002. Sales for the quarter ended January 31, 2002 were $17,404,000 compared to $15,373,000 in the third quarter last year. The operating loss for the quarter was $12,000 compared to an operating loss of $469,000 a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $1,677,000 compared to $798,000 in the third quarter last year. The net loss for the third quarter was $270,000 ($0.05 per share) compared to a net loss of $638,000 ($0.12 per share) in the same quarter last year. Results for the third quarter this year were adversely impacted by expenses of $308,000 relating to a leased manufacturing facility in Mississauga, Ontario. As noted in our second quarter financial statements, we became responsible for the lease on this property effective December 7, 2001 as a result of the bankruptcy of the sub-lessee. Expenses incurred to January 31, 2002 were $58,000 and $250,000 has been accrued to provide for estimated lease costs until a new tenant is found. Sales were $58,124,000 for the first nine months of fiscal 2002 compared to $56,407,000 (excluding Beckett Corporation) a year ago. The assets and operations of Beckett Corporation were sold on July 20, 2000. For the first nine months of fiscal 2002, net earnings were $1,209,000 ($0.23 per share) compared to $4,831,000 ($0.91 per share) in the same period last year. The fiscal 2001 net earnings include pretax one-time gains, net of carrying value writedowns, of $10,000,000 and pretaxlosses of Beckett Corporation of $1,070,000. Our label divisions, Jonergin and Jonergin Pacific both recorded improved results compared to last year. For the first nine months of fiscal 2002, combined sales are up 40% and operating profit is substantially higher. Jay Packaging's sales in the third quarter were 12% lower than in the third quarter last year and they had a small operating loss. Year-to-date, Jay's sales are down 18% and very little improvement is expected in the fourth quarter. The slowdown is due to lower levels of orders from Jay's major customers. Kree continues to produce good results. On October 5, 2001, the Board of Directors announced that they had retained the services of Raymond James Limited of Toronto as financial advisors. The company and its advisors continue to explore options to enhance shareholder value. Invesprint Corporation is in the business of visual product identification. Through three divisions with five manufacturing facilities in North America, the Company manufactures prime labels and specialty packaging for many major corporations.

 

 

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