Amisco earnings up 39.5% in 4Q
By Furniture Today Staff -- Furniture Today, February 23, 2004
LISLET, Quebec — LISLET, Quebec — Metal furniture specialist Amisco said sales in its fourth quarter rose 5.7% to C$12.6 million from C$11.9 million in the previous year's final period, as net earnings increased 39.5% to C$1.1 million from C$788,000.
For the year ended Nov. 30, 2003, the company reported a 1.8% slip in sales to C$46.8 million from C$47.7 million the previous year. Net earnings, however, jumped 20.1% to C$3.4 million from C$2.8 million in the prior year, and earnings per share surged 28.6% to 90 Canadian cents because of an ongoing share redemption program.
About 70% of Amisco's sales are to U.S. retailers.
Réjean Poitras, president and CEO, attributed the improved profits to tight control over operating costs. He said the dip in yearly sales was due, in part, to Amisco's discontinuing its office furniture line in the second quarter of 2003.
The company said it was free of long-term debt and had capital stock of C$22 million at the end of the fiscal year, up from C$20.9 million at the end of the prior year.
Poitras said he remains optimistic but cautious about prospects for the coming year, noting that while the sustained boom in the North American real estate market is fuelling sales, China has become a significant competitor.
He said Amisco is meeting the competition by improving productivity and focusing on quality, design, short delivery times, flexibility and competitive prices.
