MONTREAL, Nov. 14 /CNW Telbec/ - Algo Group Inc. (TSX: AO) today
announced results for its third quarter ended September 30, 2007.
Sales from continuing operations for the three months ended September 30,
2007 amounted to $4.3 million compared with $8.3 million in 2006, a decrease
of $4.0 million. Sales for the nine months ended September 30, 2007 amounted
to $13.4 million compared with $22.6 million in 2006, a decrease of
$9.2 million. The decrease relates primarily to the ladies fashion and the
sportswear divisions while the home furnishings sales results improved over
the last year.
The net profit for the quarter was $3.2 million or $0.02 per share
compared to the same period in 2006 when the loss was $1.0 million ($0.01 per
share). During the quarter, several gains, recorded as unusual items totalling
$4.6 million, were included in the net profit. The gains relate to debt
forgiveness on the GMACCF revolving bank loans, termination of a license
agreement and the sale of an equity interest in a subsidiary. Excluding the
unusual items, the operating loss for the third quarter was $1.8 million
($0.01 per share) compared to the 2006 loss of $0.6 million ($0.01 per share).
For the nine months ended September 30, 2007, the net profit was
$0.8 million or $0.00 per share compared with a loss of $4.5 million
($0.03 per share) in 2006. Excluding the unusual items, the loss was
$4.4 million ($0.03 per share)
Discontinued operations generated a small profit in both the latest
quarter and the nine months ended September 30, 2007 related primarily to the
reversal of certain provisions and foreign exchange gains.
<<
SELECTED ANNUAL AND QUARTERLY CONSOLIDATED FINANCIAL INFORMATION
(Thousands of dollars except per share amounts)
-------------------------------------------------------------------------
For the 9 months ended For the 3 months ended
September 30 September 30
-------------------------------------------------------------------------
2007 2006 2007 2006
-------------------------------------------------------------------------
Sales $ 13,442 $ 22,601 $ 4,296 $ 8,258
-------------------------------------------------------------------------
Profit (loss)
from continuing
operations before
unusual items (4,394) (4,316) (1,849) (642)
-------------------------------------------------------------------------
Unusual items 4,570 - 4,570 -
-------------------------------------------------------------------------
Profit (loss)
from discontinued
operations 672 (205) 496 (416)
-------------------------------------------------------------------------
Net profit (loss) 848 (4,521) 3,217 (1,058)
-------------------------------------------------------------------------
Net profit (loss)
per share basic
and diluted from
continuing
operations $ (0.00) $ (0.03) $ 0.02 $ (0.01)
-------------------------------------------------------------------------
Net profit (loss)
per share basic
and diluted $ (0.00) $ (0.03) $ 0.02 $ (0.01)
-------------------------------------------------------------------------
Weighted average
number of shares
outstanding 170,258,995 155,973,281 170,258,995 155,258,995
-------------------------------------------------------------------------
>>
Cost of sales and expenses for the nine months ended September 30, 2007
decreased to $16.8 million in 2007, compared to $25.8 million in 2006. The
cost of sales and expenses for the quarter ended September 30, 2007 decreased
to $5.8 million from $8.6 million in 2006. This variance relates to lower
sales volume offset by inventory provisions in the ladies fashion division.
Sector Review
Ladies Fashion Apparel sales for the nine months ended September 30, 2007
decreased from $6.5 million in 2006 to $2.1 million in 2007. During the prior
year, the sales during the third quarter were $1.8 million compared to nominal
sales in the third quarter of 2007. This segment's viability is currently
under review;
Sportswear sales for the nine months ended September 30, 2007 were
$5.5 million lower than the prior year at $9.7 million as compared with
$15.2 million in 2006. During the latest quarter, the sales were $3.1 million
or $3.3 million lower than the same period in the prior year;
Home Furnishings contributed $1.6 million of sales for the nine months
ended September 30, 2007, up from $1.0 million of sales for the same period
last year.
ALGO GROUP PROFILE
------------------
Algo Group Inc is a Canadian importer of ladies' fashion apparel, as well
as men's, boy's and children's sportswear that is marketed throughout North
America. The Company also imports home furnishings that it markets to
retailers in North America, and holds licenses to sell various brands
including Levi's Home in Canada and the United States. Algo also will begin
marketing the Phat Farm brand in Canada beginning Spring 2008.
Forward-looking statement
Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for the Company's Fashions and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
results.
For further information: Algo Group Inc.: Ken Labelle, C.A., Chief Financial Officer, (514) 908-7804; Investor Relations: Maison Brison: Rick Leckner, (514) 731-0000
announced results for its third quarter ended September 30, 2007.
Sales from continuing operations for the three months ended September 30,
2007 amounted to $4.3 million compared with $8.3 million in 2006, a decrease
of $4.0 million. Sales for the nine months ended September 30, 2007 amounted
to $13.4 million compared with $22.6 million in 2006, a decrease of
$9.2 million. The decrease relates primarily to the ladies fashion and the
sportswear divisions while the home furnishings sales results improved over
the last year.
The net profit for the quarter was $3.2 million or $0.02 per share
compared to the same period in 2006 when the loss was $1.0 million ($0.01 per
share). During the quarter, several gains, recorded as unusual items totalling
$4.6 million, were included in the net profit. The gains relate to debt
forgiveness on the GMACCF revolving bank loans, termination of a license
agreement and the sale of an equity interest in a subsidiary. Excluding the
unusual items, the operating loss for the third quarter was $1.8 million
($0.01 per share) compared to the 2006 loss of $0.6 million ($0.01 per share).
For the nine months ended September 30, 2007, the net profit was
$0.8 million or $0.00 per share compared with a loss of $4.5 million
($0.03 per share) in 2006. Excluding the unusual items, the loss was
$4.4 million ($0.03 per share)
Discontinued operations generated a small profit in both the latest
quarter and the nine months ended September 30, 2007 related primarily to the
reversal of certain provisions and foreign exchange gains.
<<
SELECTED ANNUAL AND QUARTERLY CONSOLIDATED FINANCIAL INFORMATION
(Thousands of dollars except per share amounts)
-------------------------------------------------------------------------
For the 9 months ended For the 3 months ended
September 30 September 30
-------------------------------------------------------------------------
2007 2006 2007 2006
-------------------------------------------------------------------------
Sales $ 13,442 $ 22,601 $ 4,296 $ 8,258
-------------------------------------------------------------------------
Profit (loss)
from continuing
operations before
unusual items (4,394) (4,316) (1,849) (642)
-------------------------------------------------------------------------
Unusual items 4,570 - 4,570 -
-------------------------------------------------------------------------
Profit (loss)
from discontinued
operations 672 (205) 496 (416)
-------------------------------------------------------------------------
Net profit (loss) 848 (4,521) 3,217 (1,058)
-------------------------------------------------------------------------
Net profit (loss)
per share basic
and diluted from
continuing
operations $ (0.00) $ (0.03) $ 0.02 $ (0.01)
-------------------------------------------------------------------------
Net profit (loss)
per share basic
and diluted $ (0.00) $ (0.03) $ 0.02 $ (0.01)
-------------------------------------------------------------------------
Weighted average
number of shares
outstanding 170,258,995 155,973,281 170,258,995 155,258,995
-------------------------------------------------------------------------
>>
Cost of sales and expenses for the nine months ended September 30, 2007
decreased to $16.8 million in 2007, compared to $25.8 million in 2006. The
cost of sales and expenses for the quarter ended September 30, 2007 decreased
to $5.8 million from $8.6 million in 2006. This variance relates to lower
sales volume offset by inventory provisions in the ladies fashion division.
Sector Review
Ladies Fashion Apparel sales for the nine months ended September 30, 2007
decreased from $6.5 million in 2006 to $2.1 million in 2007. During the prior
year, the sales during the third quarter were $1.8 million compared to nominal
sales in the third quarter of 2007. This segment's viability is currently
under review;
Sportswear sales for the nine months ended September 30, 2007 were
$5.5 million lower than the prior year at $9.7 million as compared with
$15.2 million in 2006. During the latest quarter, the sales were $3.1 million
or $3.3 million lower than the same period in the prior year;
Home Furnishings contributed $1.6 million of sales for the nine months
ended September 30, 2007, up from $1.0 million of sales for the same period
last year.
ALGO GROUP PROFILE
------------------
Algo Group Inc is a Canadian importer of ladies' fashion apparel, as well
as men's, boy's and children's sportswear that is marketed throughout North
America. The Company also imports home furnishings that it markets to
retailers in North America, and holds licenses to sell various brands
including Levi's Home in Canada and the United States. Algo also will begin
marketing the Phat Farm brand in Canada beginning Spring 2008.
Forward-looking statement
Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for the Company's Fashions and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
results.
For further information: Algo Group Inc.: Ken Labelle, C.A., Chief Financial Officer, (514) 908-7804; Investor Relations: Maison Brison: Rick Leckner, (514) 731-0000
