Inscape Announces First Quarter Results

ID: 1457067
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(businesspress24) - HOLLAND LANDING, ONTARIO -- (Marketwired) -- 09/08/16 --

Inscape (TSX: INQ) today announced its first quarter financial results ended July 31, 2016.

Sales in the first quarter were 57.9% higher than the same quarter of last year. Increase in sales volume was achieved in all business segments, including West Elm Workspace with Inscape that was introduced in the second quarter of last year.

"It is gratifying to deliver the fourth consecutive quarter of growth over the previous periods," said Jim Stelter, CEO. "I remain confident in our plan and the ability to provide continued growth in both the top line and profitability. We are benefiting from the team''s focus on our strategic objectives. The increase in committed distribution partners has made a positive impact on opportunities and market awareness."

Financial Results

The first quarter of fiscal year 2017 ended with a net loss of $1.5 million or 11 cents per share, compared with a net loss of $5.0 million or 35 cents per share a year ago. With the exclusion of the unrealized derivative loss and other unusual items to be discussed below, the current quarter would have an adjusted income of $0.2 million compared with the same quarter of last year''s adjusted loss of $2.8 million. The improvement of $3.0 million was mainly a result of higher sales volume, the addition of West Elm Workspace with Inscape which was introduced in the second quarter of last year, better U.S. exchange rate, improved U.S. currency hedge contracts and management of fixed overheads.

Adjusted income (loss)

The following is a reconciliation of income (loss) before taxes calculated in accordance with GAAP to the non-GAAP measure of adjusted income (loss), which does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers:

The first quarter gross profit as a percentage of sales at 28.9% was 8 percentage points higher than the 20.9% for the same quarter of last year, representing an increase of 38.3%. The improvement in gross profit percentage was due to better overhead absorption with higher sales volume and favourable U.S. exchange rates; partially offset by unfavourable realized selling prices and additional overheads for the West Elm division.

SG&A for the quarter was 29.2% of sales, compared with the same quarter of last year''s 41.2%. The current quarter''s expense of $7.1 million was $0.8 million higher than the same quarter of last year, of which $0.5 million was variable SG&A relating to higher sales volume. The remaining $0.3 million increase in SG&A consists mainly of increased investments in fixed selling and marketing expenses, severance obligation, accrued bonuses; partially offset by reduced payroll and trade show expenses.

At the end of the first quarter of fiscal 2017, the company was debt-free with cash and cash equivalents of $5.6 million and short-term investments of $4.5 million.

Financial Statements

First Quarter Call Details

Inscape will host a conference call at 8:30 AM EST on Friday, September 9, 2016 to discuss the company''s quarterly and annual results. To participate, please call 1-888-227-8942 five minutes before the start time. A replay of the conference call will also be available from September 9, 2016 after 10:30 AM EST until 11:59 PM EST on September 16, 2016. To access the rebroadcast, please dial 1-800-558-5253 (Reservation Number 21816669).

Forward-looking Statements

Certain of the above statements are forward-looking statements that involve risks and uncertainties. Actual results could differ materially as a result of many factors including, but not limited to, further changes in market conditions and changes or delays in anticipated product demand. In addition, future results may also differ materially as a result of many factors, including: fluctuations in the company''s operating results due to product demand arising from competitive and general economic and business conditions in North America; length of sales cycles; significant fluctuations in international exchange rates, particularly the U.S. dollar exchange rate; restrictions in access to the U.S. market; changes in the company''s markets, including technology changes and competitive new product introductions; pricing pressures; dependence on key personnel; and other factors set forth in the company''s Ontario Securities Commission reports and filings.

ABOUT INSCAPE

Inscape, an award-winning designer and manufacturer of office furniture, has been initiating change in workspace design for over 125 years. With an emphasis on quality, innovation, technical design and unparalleled delivery and service, Inscape has been consistently awarded for its design.

Inscape collaborates with leading European partners and manufactures their designs in North American facilities. Our systems, storage, seating and wall solutions delight users, foster agility and empower technology in the workplace. Flexible and designed for sustainability, Inscape products enable easy customization and readily adapt to keep pace with changing needs in the workplace.

For more information, visit .

Contacts:


Inscape Corporation
Jim Stelter
Chief Executive Officer
(905) 836-7676



More information:
http://www.richardhaight.net http://www2.marketwire.com/mw/frame_mw?attachid=3053742 http://www.inscapesolutions.com/



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Date: 09/08/2016 - 14:30
Language: English
News-ID 1457067
Character count: 3680
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Firma: Inscape Corporation
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Stadt: HOLLAND LANDING, ONTARIO
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