Invesprint Announces Year End And First Quarter Results
Press release from the issuing company
TORONTO, ONTARIO--Invesprint Corporation today reported financial results for the year ended April 30, 2002 and the first quarter ended July 31, 2002.
During 2002, the Company determined that it is appropriate to present its 65% owned investment, Jay Packaging Group, Inc., on a proportionate consolidation basis. Accordingly, the Company's consolidated financial statements now include only the Company's proportionate share of Jay Packaging Group, Inc.'s balance sheet, results of operations and cash flows. The comparative figures as at April 30, 2001, July 31, 2001 and for the year and the period then ended have been presented on the same basis as this change has been applied retroactively. This change in presentation has no impact on previously reported earnings, earnings per share or retained earnings.
Year Ended April 30, 2002
Sales for the year ended April 30, 2002 were $62.7 million compared to $64.7 million last year. Excluding Beckett Corporation, which was sold on July 20, 2000, the sales for fiscal 2001 were $59.2 million. Net earnings for this year were $426,000 ($0.08 per share) compared to $4,357,000 ($0.82 per share) in the prior year. The fiscal 2001 net earnings include pretax gains of $7.3 million on the sale of the Company's investment in ExtendMedia Inc. and $4.7 million on the sale of assets of Beckett Corporation; and a pre-tax loss of $2.6 million resulting from the write-off of the investmentin Arthurs-Jones Clarke Lithographing Limited.
First Quarter Ended July 31, 2002
Sales for the first quarter of fiscal 2003 were $15.6 million compared to $16.3 million in the first quarter of fiscal 2002. Jay Packaging's sales for the quarter were 13.6% less than in the same period last year reflecting the continuing softness in its markets. Combined sales of Jonergin and Jonergin Pacific were similar to last year. Kree Technologies' sales were 5% higher than in the first quarter of fiscal 2002.
Consolidated gross margin was 24.9% of sales compared to 25.9% in the first quarter last year. Jay Packaging's margins were marginally higher, despite the lower sales. Combined margins for the label divisions, Jonergin and Jonergin Pacific, were 27.7%, down from 29.6% a year ago.
Consolidated selling, general and administrative expenses were 1.6% higher. The Company has adopted CICA Handbook Section 3062 for goodwill and intangible assets, effective May 1, 2002. Consequently, no amortization of goodwill was recorded in the first quarter of fiscal 2003. Goodwill amortization expense in the first quarter last year was $186,000. Interest expense was $258,000 in the quarter compared to $366,000 a year ago reflecting lower interest rates and reduced borrowings.
Net earnings for the first quarter were $470,000 ($0.09 per share) compared to $536,000 ($0.10 per share) in the same period last year.
"During fiscal 2002 our operating margins improved significantly" stated Tony Wong, President and Chief Executive Officer. "Operating earnings were $3,528,000 compared to $369,000 a year ago, reflecting better gross margins and good expense control. We continued to pay down debt and at April 30, 2002, our debt/equity ratio was 0.4:1. All our divisions were profitable in the first quarter of fiscal 2003, despite the general slowdown in the North American economy. The wine label sector continues to show promise and we have ordered a third press for Jonergin Pacific, our Napa, California based wholly owned subsidiary which has been operating at capacity for the last nine months. The remainder of fiscal 2003 will be challenging, but our balance sheet is strong and I believe Invesprint will be profitable and produce positive cash flow from operations. The Company and its advisors continue to explore options to enhance shareholder value."
Invesprint 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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