In a statement issued with the report, President & Chief Executive Officer Randolph French stated: "Total sales for the six month period ending March 31, 2001 have decreased over the same period last year. Part of this drop is a result of a downturn in commercial print sales due to several significant jobs the previous year not repeating in 2001. At the same time, advertising revenues have increased during period, mitigating against the decline in print sales for an overall decline of 2%.
Cost of sales decreased by 4%, making possible an improvement in gross profit of $103,795 despite the decline in sales. The company continues its efforts to reduce cost and is committed to further improving operating efficiencies.
General and administrative expenses have increased by 15%, primarily as a result of a more conservative approach being taken with regard to the accrual of commission expenses. This, together with a decrease in rental and other income, result in the decrease in profit to $52,268.
The company is examining opportunities for diversifying its base as part of an ongoing effort to compensate for an ever changing market place."
Financial Highlights for the six months, ended March 31 2001:
2001 $ 2000 $
Sales 4,785,216 4,865,295
Cost of sales 2,810,023 2,993,897
Gross profit 1,975,193 1,871,398
General and administrative expenses
1,770,482 1,530,625
Profit/(loss) from operations
(24,795) 118,015
Interest and finance charges
(45,655) (51,016)
Rental & other income
122,718 144,087
Net profit/(loss)
$52, 268.00 $211,086.00
Net profit per common share
$0.08 $0.38