CALGARY, Nov. 30 /CNW/ - Global Railway Industries Ltd., (TSE:GBI - news): Global Railway Industries Ltd., www.globalrailway.com, ("Global"), a provider of railway products and service equipment, today reported both the three-months and nine-months 2001 financial results for the period ending September 30, 2001.
Highlights:
- Lower 3rd quarter results in 2001 reflect seasonality and downturn in
the economy
- Strong sales visibility for 2002
- Global's Bach-Simpson division has $3 million in back orders for 2002
"Historically the third quarter is the slowest period for our Company as the railway maintenance season comes to an end," says Mike Kohut, President of Global Railway Industries Ltd. "This seasonality which is related to the sale of rail gear products from our Rafna division is reflected in our quarterly financial results and the downturn trend was not unexpected given the weak economic climate in 2001."
Kohut continues, "the positive side to the downturn in 2001 is that the Rafna division has very strong visibility on sales going forward into 2002. From our recent discussions with several of our major railroad customers it appears that they will resume normal spending levels on railway maintenance in 2002. This is not unexpected as maintenance spending can only be deferred and not eliminated."
"Since our acquisition of Bach-Simpson in May of this year, this subsidiary has been profitable and performing very well," said Kohut. "The expectation for this company is that the demand for its railroad instrumentation products will continue to grow in the future given the new long-term contracts we recently announced and contracts currently under bid. To date, Bach-Simpson has product backorders that extend out into year 2004 of which $3 million in sales are already booked for delivery in 2002."
"On November 13, 2001, Global announced a letter of intent to acquire G&B Specialties Inc. ("G&B"). This company's main product line includes track switch layouts, which it supplies to most major railroads and transit operations in North America. G&B will immediately complement our existing operations with its strong organic growth opportunities, which it can cultivate in the short term. The acquisition of G&B will significantly enlarge Global's operations and will allow Global to realize operational synergies within the corporate group," said Kohut.
Financial Highlights (unaudited):
Consolidated 3-months 3-months 9-months 9-months
Financial ended ended ended ended
Statements September 30, September 30, September 30, September 30,
2001 2000 2001 2000
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Revenues $2,060,916 $1,487,902 $5,236,839 $6,198,857
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EBITDA ($27,905) $243,288 $483,693 $2,024,469
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Net earnings ($121,023) $122,883 $210,785 $1,264,323
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Earnings-per-share
Basic: ($0.02) $0.02 $0.04 $0.25
Fully-diluted: ($0.02) $0.01 $0.04 $0.22
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About Global Railway Industries: Global Railway Industries is a fast-growing consolidator of railway equipment manufacturers. The Company is pursuing an aggressive acquisition strategy of industry suppliers that sell railways the equipment they need to run and maintain their operations efficiently. Global Railway Industries Ltd. is a public company whose shares are listed for trading on the Toronto Stock Exchange (TSE) under the symbol "GBI". The Company has a total of 7,205,515 shares fully diluted outstanding. For more information visit www.globalrailway.com and www.investorfile.com.
This news release may contain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties and other factors that could influence actual results are described in documents filed with regulatory authorities. |
