Normiska Posts 644% Increase in Revenue
• Record shipments of peat and pine bark
• Raised $630,000 through the issue of 663,158 common shares in exchange for special warrants
• Plans to expand VIL Vermiculite and Fort Frances bog
• Survey at Thunder Bay bog under way
Toronto, Ontario (September 18, 2000) – Normiska Corporation (CDN: NORP) today reported its third quarter results for the nine months ending July 31, 2000. Revenue rose 644% to $4.8 million, from $752,747 for the nine months of fiscal 1999. Operating profit for the nine months was $768,371 compared with a loss of $14,618 for the same period one year ago. Net profit was $157,196, or $0.02 per share, compared to a loss of $221,690 or $0.04 per share, in 1999.
Revenue for the three months ended July 31, 2000 was $2,326,930 compared with $295,716 for the corresponding period of the prior year. Operating profit was $269,272 compared to a loss of $29,358 a year earlier. Net after tax income was $47,744 as compared to a loss of $109,143 the previous year. Much of this growth was due to the acquisition of VIL Vermiculite in February.
“We are pleased with these results,” said David Graham, President and CEO. “We’re in the early stage of implementing our growth strategy and these results demonstrate our significant potential. We will continue to increase the production capacity of our existing facilities and we are in the process of bringing potential assets closer to the production stage. We intend to aggressively grow profitable sales both organically and through acquisition opportunities.”
During the quarter, peat and pine bark volumes in Fort Frances continued to reach record levels. The Company received a $200,000 grant from Human Resources and Development Canada to expand its baling and packaging line. The Fort Frances peat bog is being expanded by 100 acres and the initial survey on the 3600-acre Thunder Bay peat bog commenced earlier this month. The results of this survey will determine whether or not the Thunder Bay bog goes into production.
With regard to vermiculite and perlite, it has been determined that with a modest investment, output capacity can be increased by as much as 30% over the next 12 months. Scoping studies relating to the construction of a second vermiculite and perlite facility in Southwestern Ontario will be completed in two months.
Normiska has filed an application for listing on the Canadian Venture Exchange.
About Normiska
Normiska Corporation is a leading supplier of high quality horticultural materials across Canada and throughout the midwest and northeastern United States. Products include sphagnum peat moss, composted pine bark, vermiculite, perlite and bark mulches. The Company has production facilities in Fort Frances, Ontario and Lachine, Quebec. Customers include professional greenhouse and nursery operators, landscapers and large
blenders of national brand name horticultural mixes. Currently, the Company has 6,343,702 common shares issued and outstanding.
This press release may contain forward-looking statements with respect to Normiska Corporation. These statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties include interest rates, currency fluctuations, changes in security prices, market conditions, competitor behavior, prices of raw materials, general economic and other risks detailed from time-to-time in the publicly filed disclosure.
For further information, please contact:
David Graham
President & C.E.O.
or
John Arnold
Chairman & CFO
Normiska Corporation
(905) 212-9555
e-mail: normisk1@on.aibn.com
website: www.normiska.com