-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Afa2nJcXbpgfx8GIb8lL1+xN0McmlUPMfMLqIxWN1j57rSna447Qg89c+73cXPpc NVz5p+yBj0rLocpixBFusw== 0001047469-99-023434.txt : 19990615 0001047469-99-023434.hdr.sgml : 19990615 ACCESSION NUMBER: 0001047469-99-023434 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990608 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FANTOM TECHNOLOGIES INC CENTRAL INDEX KEY: 0000864300 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC HOUSEWARES & FANS [3634] IRS NUMBER: 980103552 FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 000-26308 FILM NUMBER: 99642112 BUSINESS ADDRESS: STREET 1: 1110 HANSLER RD STREET 2: P O BOX 1004 CITY: WELLAND ONTARIO CANA STATE: A6 BUSINESS PHONE: 3016587581 MAIL ADDRESS: STREET 1: 1110 HANSLER ROAD, PO BOX 1004 STREET 2: WELLAND CITY: ONTARIO FORMER COMPANY: FORMER CONFORMED NAME: IONA APPLIANCES INC DATE OF NAME CHANGE: 19950710 6-K 1 FORM 6-K CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION FANTOM TECHNOLOGIES INC.
Nine Months Ended Three Months Ended March 31 (Unaudited) March 31 (Unaudited) 1999 1998 1999 1998 CASH PROVIDED BY (USED FOR): Operations: Net income $ 10,854,080 $ 7,197,316 $ 3,985,901 $ 2,873,508 Items not requiring cash: Depreciation 1,673,492 1,013,703 585,716 396,478 Deferred tax provision 1,117,867 1,047,000 680,986 303,000 Amortization of deferred development costs - 159,723 (51,049) 159,723 Change in non-cash operating working capital (12,935,375) (2,888,025) (4,286,054) (987,100) Increase in currency hedging exchange gains 3,737,019 - 2,768,960 - - -------------------------------------------------------------------------------------------------------------------------- 4,447,083 6,529,717 3,684,460 2,745,609 Financing: Payments on capital leases (194,102) (194,287) (55,837) (65,934) Issuance of common shares and warrants 912,697 224,998 73,250 186,000 Dividends paid (810,502) - (540,409) - - -------------------------------------------------------------------------------------------------------------------------- (91,907) 30,711 (522,996) 120,066 Investments: Additions to property, plant and equipment (8,700,055) (5,549,403) (3,671,925) (836,472) Change in non-cash working capital relating to investments 521,010 - 540,233 - Additions to deferred development costs (784,781) (1,596,723) (29,941) (1,596,723) - -------------------------------------------------------------------------------------------------------------------------- (8,963,826) (7,146,126) (3,161,633) (2,433,195) Increase (Decrease) in cash position (4,608,650) (585,698) (169) 432,480 Cash position at beginning of period 4,609,798 4,698,156 1,317 3,679,978 - -------------------------------------------------------------------------------------------------------------------------- Cash position at end of period $ 1,148 $ 4,112,458 $ 1,148 $ 4,112,458 - -------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------
[GRAPHIC] [LOGO] F A N T O M T E C H N O L O G I E S I N C . HEAD OFFICE AND CANADIAN MANUFACTURING FACILITY: 1110 Hansler Road, P.O. Box 1004 Welland, Ontario L3B 5S1 Voice: (905) 734-7476 Fax: (905) 734-9955 UNITED STATES MANUFACTURING FACILITY: 102 Corporate Blvd., Carolina Center Business Park West Columbia, South Carolina 29169 Voice: (803) 739-1151 Fax: (803) 939-0730 TORONTO SALES OFFICE: Suite 414, 1 Eva Road, Toronto, Ontario M9C 4Z5 Voice: (416) 622-9740 Fax: (416) 626-0674 TORONTO STOCK EXCHANGE: FTM NASDAQ: FTMTF WEBSITE: www.fantom.com E-MAIL: fantom@fantom.com TRANSFER AGENT & REGISTRAR: CIBC Mellon Trust Company 320 Bay Street, P.O. Box 1, Toronto, Ontario M5H 4A1 FANTOM-Registered Trademark- and CYCLONE XT are trademarks of FANTOM TECHNOLOGIES INC. [GRAPHIC] TO SHAREHOLDERS FOR THE NINE MONTHS ENDED MARCH 31, 1999 [LOGO] FANTOM TECHNOLOGIES INC. THIRD QUARTER REPORT TO SHAREHOLDERS FOR THE NINE MONTHS ENDED MARCH 31, 1999 We are pleased to advise that, once again, the Company had a record-breaking quarter, the fifth in a row. For the three months ended March 31, 1999 (Q3 fiscal 1999), net income rose 39% from the year-earlier period to $4.0 million. Earnings per share increased to 44 cents (based on 9,008,802 shares outstanding) from 32 cents (based on 8,927,275 shares outstanding) for the same period in the previous year. Revenue increased 26% to $65.6 million. For the nine months ended March 31, 1999, net income rose 51% from the year-earlier period to $10.9 million. Earnings per share increased to $1.21 (based on 8,997,360 shares outstanding) from 83 cents (based on 8,722,830 shares outstanding) for the same period in the previous year. Revenue grew 45% to $180.7 million. At its April 15, 1999 meeting, the Board of Directors declared a regular, quarterly cash dividend of 3 cents per share payable on June 30, 1999 to the shareholders of record at the close of business on May 31, 1999. All vacuum products performed well in the quarter and contributed to the outstanding results. The highlight of the quarter was the launch of the new FANTOM-Registered Trademark- CYCLONE XT-TM- upright. This powerful and sleek-looking machine has many new features and benefits: It operates with two motors, one to rotate the brush, the other to create airflow, thereby improving the vacuum's cleaning performance through the specialization of tasks. The brush motor can be turned off for cleaning bare floors. Importantly, it automatically shuts off when an object jams it, thus saving the belt from breaking. It also shuts off when the vacuum is rotated to the upright, locked position, saving wear and tear on the carpet as the user cleans with the wand. The machine has an ergonomically-positioned carrying handle, a re-designed collection bin, and an easy-access, tool-storage compartment at the top. Shipments of the CYCLONE XT-TM- upright commenced at the beginning of March and early responses from end-users have been positive. With the addition of this product, consumers can now choose from four FANTOM-Registered Trademark- vacuums - three uprights and one canister - with different features and at different price points. The introduction of the FANTOM-Registered Trademark- CYCLONE XT-TM- vacuum is being supported with new long-form (30-minute) and short-form (60-second) direct-response television commercials. The long-form infomercial began airing in the United States and Canada in mid-March, and the short-form spot commenced airing in mid-April. We are continuing to work aggressively on the development of new household appliances and stay targeted to introduce two new products in the first half of calendar 2000, one in the floor-care area and the other in the water-treatment field. As of this report, twenty-eight utility patent applications have been filed for technologies the Company is either acquiring or exclusively licensing through its association with Omachron Technologies, Inc. The foregoing information includes certain statements relating to the Company which are forward-looking statements under Section 21E of the United States Securities Exchange Act of 1934. The word "targeted" and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements are based on assumptions made by, and information available to, the Company. However, there are important factors that could cause actual results to differ materially from those in such forward-looking statements including, among others, the contingencies arising from the uncertainties which are inherent in the development of new technology and the unanticipated costs and time delays which often arise in the process of developing new products based on innovative technology. On behalf of the Board, KENNETH KELMAN ALLAN D. MILLMAN, CHAIRMAN OF THE BOARD PRESIDENT AND CHIEF EXECUTIVE OFFICER MAY 6, 1999 CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS FANTOM TECHNOLOGIES INC.
Nine Months Ended Three Months Ended March 31 (Unaudited) March 31 (Unaudited) 1999 1998 1999 1998 Sales $ 180,748,331 $ 125,082,625 $ 65,628,821 $ 52,124,311 Cost of goods sold 114,828,728 80,162,124 41,663,033 33,889,815 - ---------------------------------------------------------------------------------------------------------------------------- 65,919,603 44,920,501 23,965,788 18,234,496 Expenses: Selling, general and administrative 47,371,735 33,569,647 17,084,328 13,639,484 Research and development expenses 1,634,875 - 637,315 - Finance charges (40,087) 25,538 25,244 26,504 - ---------------------------------------------------------------------------------------------------------------------------- 48,966,523 33,595,185 17,746,887 13,665,988 - ---------------------------------------------------------------------------------------------------------------------------- Income before income taxes 16,953,080 11,325,316 6,218,901 4,568,508 Income taxes 6,099,000 4,128,000 2,233,000 1,695,000 - ---------------------------------------------------------------------------------------------------------------------------- Net income 10,854,080 7,197,316 3,985,901 2,873,508 Retained earnings at beginning of period 18,015,632 7,698,105 24,343,625 12,021,913 Dividends (810,502) - (270,316) - Retained earnings at end of period $ 28,059,210 $ 14,895,421 $ 28,059,210 $ 14,895,421 - ---------------------------------------------------------------------------------------------------------------------------- Net income per share - Basic* $ 1.21 $ 0.83 $ 0.44 $ 0.32 - ---------------------------------------------------------------------------------------------------------------------------- - Fully Diluted $ 1.16 $ 0.78 $ 0.42 $ 0.31 - ----------------------------------------------------------------------------------------------------------------------------
*Basic net income per share has been calculated using the weighted average number of common and series 1, class A preferred shares outstanding during the respective periods. For the nine months ended March 31, these were 8,997,360 shares for 1999 and 8,722,830 shares for 1998. For the three months ended March 31, these were 9,008,802 shares for 1999 and 8,927,275 shares for 1998. FINANCIAL INFORMATION IN THIS REPORT IS EXPRESSED IN CANADIAN DOLLARS, UNLESS OTHERWISE NOTED. CONSOLIDATED BALANCE SHEETS FANTOM TECHNOLOGIES INC.
March 31 (Unaudited) 1999 1998 ASSETS Current assets: Cash $ 1,148 $ 4,112,458 Trade accounts receivable 45,072,832 31,803,125 Other receivables 2,958,179 1,707,249 Inventories 20,817,899 11,875,980 Prepaid expenses 2,706,152 2,201,227 71,556,210 51,700,039 Deferred development costs, net of amortization 1,639,016 1,437,000 Property, plant and equipment, at cost 34,190,818 21,828,981 Less accumulated depreciation (6,668,393) (4,618,096) - ------------------------------------------------------------------------------------- 27,522,425 17,210,885 - ------------------------------------------------------------------------------------- $ 100,717,651 $ 70,347,924 - ------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 28,428,635 $ 17,509,874 Other payables and accruals 8,910,029 8,218,536 Currency hedging exchange gains 600,528 - Current portion of capital lease obligations 45,371 265,891 - ------------------------------------------------------------------------------------- 37,984,563 25,994,301 Capital lease obligations, Less current portions - 37,414 Long term deferrals: Income taxes 3,627,100 2,473,200 Currency hedging exchange gains 3,136,491 - Shareholders' equity: Share capital 27,910,287 26,947,588 Retained earnings 28,059,210 14,895,421 - ------------------------------------------------------------------------------------- 55,969,497 41,843,009 - ------------------------------------------------------------------------------------- $ 100,717,651 $ 70,347,924 - ------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------
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