INVESPRINT CORPORATION ANNOUNCES RESULTS FOR THIRD QUARTER
Press release from the issuing company
March 30, 2001 (Toronto, Ontario) Invesprint Corporation today reported financial results for the third quarter of fiscal 2001. Sales for the quarter ended January 31, 2001 were $15,373,000 compared to $17,392,000 in the third quarter last year. The loss from operations for the quarter was $469,000 compared to operating earnings of $837,000 a year ago. Earnings before interest, taxes, depreciation and amortization were $798,000 for the third quarter of fiscal 2001 compared to $1,702,000 a year ago. The comparative figures for fiscal 2000 shown above do not include Beckett Corporation, which was sold on July 20, 2000. The net loss for the third quarter was $638,000 ($0.12 per share) compared to $319,000 ($0.06 per share) in the same quarter last year.
Sales, excluding Beckett, were $56,407,000 for the first nine months of fiscal 2001 compared to $56,516,000 a year ago. For the first nine months of fiscal 2001, net earnings were $4,831,000 ($0.91 per share) compared to a net loss of $124,000 ($0.02 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 pretax losses of Beckett Corporation of $1,070,000.
The economic slowdown in the United States has had an effect on our operating divisions and their key clients. About eighty-five percent of our revenues are generated in U.S. dollars. We are implementing the measures that we feel are necessary to address the current economic uncertainty.
Jonergin Pacific is now in full operation with two Sanjo presses. The start-up costs associated with the second press have been fully expensed as incurred. Pacific has a good book of business from a diverse mix of brand name clients. The new Napa facility is ideally suited to further expansion as market conditions warrant. We recently secured long-term financing for the second press on attractive terms. As a result, we will use the proceeds to reduce our operating credit facility in Canada.
Invesprint has a sound balance sheet that will enable us to comfortably ride out the current period of business uncertainty. Our process to enhance shareholder value has been successful to a point. In the past year we have reduced debt very significantly and at the same time expanded our strategic investment in the California marketplace through Jonergin Pacific. Our equity investment which now approaches US$4.3million, has made our combined label operations more visible and more profitable. The new facility in Napa is located in the heart of the largest wine-producing region in the United States. This has given both Jonergin plants vastly improved access to major West Coast wineries. In operation for fifteen months, Pacific is now generating positive cash flow.
The current price of Invesprint stock does not recognize the underlying value of our assets. We remain committed to delivering value back to our stockholders.
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