Invesprint Announces Results For Q3: Sales Down from 2003
Press release from the issuing company
TORONTO, ONTARIO--Invesprint Corporation today reported financial results for its third quarter and nine months ended January 31, 2004.
Sales for the third quarter of fiscal 2004 were $4.8 million compared to $5.9 million in the third quarter of fiscal 2003. For the nine months ended January 31, 2004, sales were $17.3 million compared to $21.9 million in the same period last year. Year over year results continue to be adversely impacted by the previously announced loss of the Company's largest customer, flat market conditions, and an extremely competitive environment. While significant progress has been made replacing lost business, market conditions have negatively affected the Company's sales and results of operations in fiscal 2004.
Consolidated gross margin for the third quarter was 8.1% of sales, an improvement over the third quarter last year when no margin was earned. Selling, general and administrative expenses were 19.4% lower than in the third quarter last year and 8.8% lower year-to-date. The cost reduction programs implemented in the second and third quarters of fiscal 2004 are beginning to show results, both in improved margins and lower expense levels. The loss from continuing operations before interest expense and income taxes was $787,000 in the third quarter compared to a loss of $2,543,000 in the same period last year.
The loss from continuing operations for the third quarter was $609,000 ($0.12 per share) compared to a loss of $1,684,000 ($0.32 per share) for the third quarter of fiscal 2003. The net loss for the quarter was $609,000 ($0.12 per share) compared to a net loss of $1,718,000 ($0.32 per share) in the same period last year. For the first nine months of fiscal 2004 the loss from continuing operations was $2,334,000 ($0.44 per share) compared to a loss of $1,431,000 ($0.27 per share) in the same period last year. The net loss for the first nine months of fiscal 2004 was $2,642,000 ($0.50 per share) compared to a net loss of $1,030,000 ($0.19 per share) last year.
On December 19, 2003, the Company obtained three year debt financing of $1,332,500 bearing interest at 6.85%. Working capital was $2.9 million at January 31, 2004. The Company believes that cash on hand and cash flow from operations will provide adequate funds for ongoing operations.
Vince Hockett, President and Chief Executive Officer stated: "As evidenced by the Company's year-to-date 2004 financial performance, this year is a rebuilding year. Our third quarter results are beginning to show the fruits of our efforts. In the third quarter we secured a new debt facility which strengthened our cash position, hired a new General Manager for our Montreal facility, strengthened our position with several customers, and saw earlier decisions manifested in improved operating margins. Revenue enhancing and cost control efforts will continue to be the focus of the entire Company and I believe they will improve our operating performance in the future."
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