Bestar 2Q revenues drop
By Furniture Today Staff -- Furniture Today, August 28, 2005
Lac-Megantic, Quebec — Ready-to-assemble furniture producer Bestar reported a drop of 8.5% in gross revenues in the second quarter and a 10.8% decline for the six months. The company, which eked out a net profit in both periods, did not report net revenues.
Gross revenues in the latest quarter came to C$9.1 million, measured against C$9.9 million in the comparable 2004 period. In the six months, gross revenues slid to C$19 million from C$21.3 million last year.
Net profits in the second quarter were C$180,000, compared with a loss of C$652,000 in the year-earlier quarter.
For the first half, net income was C$73,000, versus a net loss of C$898,000 in the comparable 2004 period.
The 2004 periods included both income tax benefits and pretax restructuring charges, and the 2005 periods included C$260,000 in pretax investment income.
Bestar CEO Jacques Hetu said, "A gap in the launch date of new products between 2004 and 2005 is the main reason for the decrease in sales. Development and presentation efforts will lead to the renewal of a majority of our product lines sold to our major customers. The renewal process should be completed by early fall.
"The second-quarter results are directly in keeping with the first-quarter results," he said. "They are a direct consequence of rigorous inventory controls management, along with the strict cost controls implemented in regards to our labor force."
| Bestar (a) | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/30 | 2005 | 2004 | Change |
| (a) In Canadian dollars. (b) Gross revenues. |
|||
| Revenues (b) | C$9,055,000 | C$9,895,000 | (8.5%) |
| Operating income | 279,000 | (231,000) | — |
| Net income | 180,000 | (652,000) | — |
| Earnings per share | 0.01 | (0.06) | — |
| 6 months ended 6/30 | 2005 | 2004 | Change |
| Revenues (b) | C$19,003,000 | C$21,298,000 | (10.8%) |
| Operating income | 468,000 | (163,000) | — |
| Net income | 73,000 | (898,000) | — |
| Earnings per share | 0.01 | (0.08) | — |
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Bestar gross revenues down 8.5% in 2Q
Aug 12, 2005 -
Bestar 2Q revenues drop
Aug 29, 2005
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