"Sales are up, marginally, by $10,500 or 0.4% over the prior year. Net Income for the year, compared to the year ending March 31, 2000, excluding the prior year's write off for the discontinued operations of $100,000, was down by $10,000 or 2.5%. The decline in Net Income resulted from lower gross margins this year, which were offset to a large extent by lower administrative and selling expenses incurred, year over year. On a direct comparison, including the prior year write off, reported profit for the year was up by $90,000, or 30.5%. Cash Flow, for the year, was down by $133,000, or 24.6%, due mainly to higher receivables from increased sales and higher inventories at year end this year.
Above average rainfall, for three quarters of the year, had an impact on sales during that period, however, stronger sales volumes in the last quarter enabled us to offset the earlier deficit. Sales results for the initial quarter of this year, through June 30, 2001, are most encouraging and we are guardedly optimistic for improved results at year end.
We are pleased to advise that the work permit for Bruce Quayle, our Technical/Production Manager, was renewed in April. With his experience and knowledge, Bruce is able to assist our customers in many areas. On a regular basis, he is available to solve problems, to make product recommendations and to assist in drawing up painting specifications, which in the long term leads to significant savings for our valued customers.
The results achieved would not have been possible without the hard work and dedication by our valued staff and we thank them for all their efforts. In addition, we express our sincere thanks to our loyal customers for their continued support of locally manufactured products."