Log In | Become a Member | Contact Us


Leading printing executives into the future

Connect on Twitter | Facebook | LinkedIn

Featured:     European Coverage     Production Inkjet Analysis

Invesprint Corporation Announces Sales Increase in Q3

Monday, March 28, 2005

Press release from the issuing company

(Toronto, Ontario) Invesprint Corporation on March 14, announced its results for the third quarter ended January 31, 2005. On December 10, 2004, the Company announced that its subsidiary, Jonergin Pacific, Inc. (“Jonergin Pacific”) had ceased operations and had reached a full and final settlement with all of its secured lenders. In addition, the Company was fully released from its guarantee obligations to these lenders. In the following commentary and attached financial statements, Jonergin Pacific is treated as a discontinued operation and comparative figures have been restated. The Company’s only remaining operating business is the Jonergin Division. Sales for the third quarter of fiscal 2005 were $3.4 million compared to $3.2 million in the third quarter of fiscal 2004. Sales for the nine months ended January 31, 2005 were $10.9 million compared to $11.8 million in the same period last year. Year to date, the lower level of sales in fiscal 2005 reflects the very competitive environment in which the Company continues to operate. Consolidated gross margin expressed as a percentage of sales was 12.6% in the third quarter this year compared to 13.7% in the same period last year. Selling, general and administrative expenses were 12% lower than in the second quarter last year and 32% lower year-to-date. Administrative expenses include both Jonergin and corporate expenses. Administrative expenses for the first nine months of fiscal 2004 include severance expense of $74,000 related to the closing of the corporate office in Toronto. The loss from continuing operations for the third quarter was $173,000 ($0.03 per share) compared to a loss of $227,000 ($0.04 per share) for the third quarter of fiscal 2004. The net loss for the third quarter was $1,527,000 ($0.29 per share) compared to a net loss of $609,000 ($0.12 per share) in the same period a year ago. For the nine months ended January 31, 2005 the loss from continuing operations was $539,000 ($0.10 per share) compared to a loss of $825,000 ($0.15 per share) in the same period last year. The net loss (including loss from discontinued operations) for the first nine months of fiscal 2005 was $2,755,000 ($0.52 per share) compared to a net loss of $2,642,000 ($0.50 per share) last year. Jonergin Pacific’s operating loss and costs associated with the closure totaled $1,354,000 in the third quarter and $2,216,000 for the nine months ended January 31, 2005. These amounts are shown as “loss from discontinued operations” in the financial statements. As previously announced, on February 25, 2005, the Company entered into a support agreement pursuant to which Metro Label Group Inc. will cause a wholly owned subsidiary to offer to acquire all of the outstanding common shares of Invesprint for a cash consideration of $1.20 per share by way of a public takeover bid. The equity value of the acquisition, assuming that all 5,333,600 Invesprint common shares outstanding are tendered to the offer, is approximately $6.4 million, which implies a total enterprise value of approximately $9 million. The Board of Directors of Invesprint has unanimously agreed to support the offer and will recommend that Invesprint shareholders tender their shares. Invesprint’s Board of Directors has received an opinion from its independent financial advisor, The Hathaway Corporation, that the offer is fair to Invesprint’s shareholders from a financial point of view. The offer documents are expected to be mailed to all shareholders within the next ten days.

 

 

SHARE

Email Icon Email

Print Icon Print

Become a Member

Join the thousands of printing executives who are already part of the WhatTheyThink Community.

Copyright © 2016 WhatTheyThink. All Rights Reserved