Multi-Glass International Inc., a Canadian producer and distributor of industrial and commercial glass insulation products, today announced its financial results for the first quarter ended March 31, …
Multi-Glass International Inc., a Canadian producer and distributor of industrial and commercial glass insulation products, today announced its financial results for the first quarter ended March 31, 2000. The results include the financial results of the recently acquired Guildfords (2000) Inc. For the same period last year, the comparative results were those of Multi-Glass Insulation Ltd. Sales for the three months ended March 31, 2000 were C$ 13.8 million which were approximately three times higher than the sales for the first quarter ending March 31, 1999 of C$ 4.7 million. Gross margins were 19.5 % compared to 25.2 % for the same period last year. Gross margins were slightly lower as a higher proportion of sales were to large high volume lower margin accounts. Although expenses as a percentage of sales were lower at 22.9 % compared with 24.9 % last year, the Corporation had a pre tax loss of C$ 498,370 compared with a virtual breakeven profit of C$ 15,609 last year. EBITDA was a negative C$ 228,780 and the net loss after tax was C$ 277,215 compared with net earnings of C$ 9,034 last year. Although retained earnings were approximately C$ 87,000 lower than for the quarter ended March 31, 1999, net shareholders“ equity grew to C$ 5.5 million as at March 31, 2000 from C$ 0.8 million last year, principally on account of new equity capital being raised during the year through two private placements and as a result of the shares issued for the acquisition of Guildfords. In addition, working capital increased to C$ 5.0 million as at March 31, 2000 from C$ 1.2 million as at March 31, 1999. During the first quarter, the corporation, through its wholly owned subsidiaries, completed the acquisition of the business assets of Guildfords Limited and two subsidiaries, Guild Contracting Specialties Limited and Dover Insulation Contractors Limited. The effective date of the acquisition was as of December 31, 1999. Guildfords Limited is based in Dartmouth, Nova Scotia. In February 2000 the Corporation, through a subsidiary, completed the purchase of the business assets of Refractory and Insulation Supply Corp. of Bristol, Pennsylvania. “Although we were not able to show profitability for the quarter, the results are close to our original expectations. In addition, the integration of Guildfords and Risco is now being undertaken as planned. Our objective of expanding Multi-Glass International Inc. into a major North American distributor of commercial and industrial insulation products is off to a good start,” said Peter Kelly, president and CEO of Multi-Glass International Inc. He added: “The acquisitions completed in the first quarter are designed to create economies of scale and could add up to approximately C$ 39 million to our revenues this year.”