ZCL Composites Reports Increase in First Quarter Earnings
Edmonton, Alberta - August 20, 2001 - ZCL Composites Inc. reports net earnings for the first quarter ended June 30, 2001 of $387,000 compared to $225,000 for the same period last year. Basic and diluted earnings per share for the first quarter, before and after goodwill charges, was $0.02 as compared to $0.01 last year, after adjusting for costs of the convertible subordinated debenture.
Revenue for the quarter ended June 30, 2001 increased to $6.6 million from $6.5 million for the quarter last year. Operating earnings for the quarter were $904,000 compared to $382,000 last year.
This growth was realized even after additional future income tax expense in the quarter of $145,000, or $0.016 per share, relating to the effect on future tax assets of a reduction in Provincial income tax rates.
The profitable first quarter reflects strong domestic markets, together with the ongoing success in reducing manufacturing costs and overheads. In addition to the buoyant petroleum industry markets, other sectors using the Company¹s products and new products introduced into industrial and consumer markets have contributed to the increased revenue and earnings.
"We had a very strong start to our 2002 fiscal year and are looking to the future with confidence. Costs incurred to restructure our operations impacted our results in the past and are now behind us the benefits are now being realized," said Ven Côté, President. "These positive results are expected to continue over the next year."
ZCL Composites Inc. trades on the Toronto Stock Exchange under the symbol "ZCL" and is Canada¹s largest manufacturer of fiberglass underground storage tanks. ZCL¹s complete fuel storage systems marketed under the "Prezerver" trademark carry a $2 million warranty against pollution.
For further information, contact:
Ven Côté
President & CEO
ZCL Composites Inc.
(780) 466-6648
ven.cote@zcl.com
Tony Barlott
Vice-President & CFO
ZCL Composites Inc.
(780) 466-6648
tony.barlott@zcl.com