Last update: 21.07.2024 07:03 (GMT+3)
Viisnurk FINANCIAL RESULTS 05/28/2004
FINANCIAL RESULTS, 3 MONTHS 2004
The net sales of Viisnurk AS for the three months of 2004 were 105.4 mil.
kroons (6.7 mil. euros) and the net profit 1.3 mil. kroons (0.08 mil.
euros). In the same period of the last year, the net sales totalled 91.2
mil. kroons (5.8 mil. euros) and the net profit 0.6 mil. kroons (0.04 mil.
euros). When compared to the same period of the previous year, the
turnover of Viisnurk has increased by 15%, and profit by nearly 50%.
The earnings of Viisnurk before interest and depreciation, i.e. EBITDA,
amounted to 9.2 mil. kroons (0.6 mil. euros) in the 1st quarter of 2004,
and to 10.0 mil. kroons (0.6 mil. euros) in the 1st quarter of 2003.
During the 1st quarter of 2004 the Supervisory Board of Viisnurk AS
approved a restructuring plan according to which it was decided:
- To sell the Building Materials Division;
- To sell the Sports Goods Division;
- To close down the Wood Division and to sell or rent out its fixed
assets.
The objective of the restructuring plan is to enable concentration of
efforts on to the development of the main activity (furniture production),
and to strengthen the company’s financial position. At present, the
activities concerning the restructuring process are advanced as planned.
Divisional Review
The net sales of the Furniture Division of Viisnurk AS for the 1st quarter
were 42.3 mil. kroons (2.7 mil. euros) and the profit was 1 mil. kroons
(0.06 mil. euros). The figures of the Furniture Division include also the
results of the subsidiary Skano OÜ, which deals with the retail sales of
Viisnurk furniture. Skano OÜ earned 247 thousand kroons (15.8 thousand
euros) profit on its turnover of 1 mil. kroons (0.06 mil. euros). The net
sales of the Furniture Division for the 1st quarter in 2003 were 42.5 mil.
kroons (2.7 mil. euros) and the profit was 5.7 mil. kroons (0.36 mil.
euros).
The economic results of the Furniture Division for the 1st quarter were as
planned. The economic results were positively influenced by a thorough
analysis of the product portfolio costs and revenues, and by implementing
these results primarily for the development of sales of higher
profitability products. At the same time, during the 1st quarter the
Division was continually dealing with technological and purchasing
problems related to the series manufacture of new products introduced at
the end of the last year. At present, the decision has been reached to
terminate the production of problematic products, and a plan has been
developed for further improvement of the Furniture Division’s product
portfolio and for significant reductions in the expenditure.
The economic activities of the Sports Goods Division resulted in the net
sales of 7.5 mil. kroons (0.48 mil. euros) and the loss of 4.6 mil. kroons
(0.29 mil. euros) in the 1st quarter. In the same period last year, the
turnover of the division was 9.2 mil. kroons (0.59 mil. euros) and the
loss 4.9 mil. kroons (0.31 mil. euros).
In the 1st quarter the economic results were affected by small production
capacity, which is due to the seasonality of the division’s activity.
Since beginning of the year the Sports Goods Division has been active in
fulfilling the orders of the new season.
In addition Viisnurk is currently introducing the Sporting Goods Division
to potential buyers as part of the restructuring process.
The net sales of the Building Material Division for the 1st quarter were
26.8 mil. kroons (1.7 mil. euros) and the profit was 5.6 mil. kroons (0.36
mil. euros). Compared to the year before, the turnover of the division has
grown by 12% and profits by 4%. The economic results of the division are
continuously advanced by favourable market situation, which has offered
possibilities for increasing the profitability of the product portfolio.
Potential buyers are currently performing due diligence in the Building
Materials Division and Viisnurk is expecting to receive the final bids in
the middle of June. Upon receiving satisfactory bids the transaction
closing is expected in July.
The net sales of the Wood Division of Viisnurk AS for the 1st quarter were
28.6 mil. kroons (1.8 mil. euros) and its economic activity resulted in
the profit of 217 thousand kroons (13.9 thousand euros). During the same
period in 2003, the turnover of the division was 15.2 mil. kroons (0.97
mil. euros) and the loss 709 thousand kroons (45.2 thousand euros).
Positive economic results were achieved due to an improving market
situation in the beginning of the year, which enabled the division to
increase production capacity and efficiency.
Since April 16 the Wood Panels Division has been closed and Viisnurk is
currently negotiating a sale of the division’s assets with potential
buyers.
During the 1st quarter Viisnurk AS sold its real estates not related to
production for 3.9 mil. kroons (0.25 mil. euros), earning a profit of 3.1
mil. kroons (0.2 mil. euros).
INCOME STATEMENT
consolidated Thou. Kr. Thou. Kr. Thou. eur Thou. eur
1st quarter 1st quarter 1st quarter 1st quarter
2004 2003 2004 2003
RETURN ON SALES 105,441 91,197 6,739 5,829
Cost of production sold (95,292) (79,848) (6,090) (5,104)
Gross profit 10,149 11,349 649 725
Marketing expenses (7,388) (5,616) (472) (359)
General administrative (2,327) (2,709) (149) (173)
expenses
Other income 3,251 374 207 24
Other expenses (521) (602) (33) (38)
Operating profit 3,164 2,796 202 179
Financial income and (1,876) (2,210) (120) (142)
financial expenses
NET PROFIT FOR THE PERIOD 1,288 586 82 37
Basic earnings per share 0,29 0,13 0,02 0,01
Diluted earnings per share 0,29 0,13 0,02 0,01
BALANCE SHEET
consolidated Thou. Kr. Thou. Kr. Thou. eur Thou. eur
31.3.2004 31.12.2003 31.3.2004 31.12.2003
Cash and bank 1,391 1,141 89 73
Customer receivables 44,598 45,005 2,850 2,876
Other receivables 36 115 2 7
Prepayments 4,537 7,127 290 455
Inventories 68,278 63,819 4,364 4,080
Total current assets 118,840 117,207 7,595 7,491
Long-term financial 1,436 1,436 92 92
investments
Real estate investments 1,808 2,535 116 162
Tangible fixed assets 152,021 156,102 9,716 9,977
Intangible fixed assets 3,450 3,716 220 237
Total fixed assets 158,715 163,789 10,144 10,468
TOTAL ASSETS 277,555 280,996 17,739 17,959
Debt obligations 87,202 90,011 5,573 5,753
Customer prepayments 182 219 12 14
Supplier payables 38,212 38,801 2,442 2,480
Taxes payable 6,241 6,956 399 445
Accrued expenses 17,393 17,514 1,112 1,119
Short-term provisions 2,672 3,129 171 200
Total current liabilities 151,902 156,630 9,709 10,011
Non-current debt oblig. 50,160 50,160 3,206 3,206
Total non-current liab. 50,160 50,160 3,206 3,206
Total liabilities
Share capital (nom. value) 44,991 44,991 2,875 2,875
Issue premium 11,332 11,332 724 724
Mandatory capital reserve 4,499 4,499 288 288
Retained profits 13,384 82,223 855 5,255
Net profit for the year 1,287 (68,839) 82 (4,400)
Total equity 75,493 74,206 4,824 4,742
TOTAL LIABILIT. AND 277,555 280,996 17,739 17,959
EQUITY
Andrus Aljas
CFO
+372 447 8355
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