NEWS RELEASE
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Third Quarter Results Reported By
Fantom Technologies Inc.
Also Declare Dividend
TORONTO, April 24, 2000 - Third quarter results were announced today by Fantom
Technologies Inc. (TSE: FTM; NASDAQ: FTMTF). For the three months ended March
31, 2000 net income was $1.6 million or $0.18 per share (based on 9,099,181
shares outstanding) compared with $4.0 million or $0.44 per share (based on
9,008,802 shares outstanding) for the year-earlier period. Sales were $57.4
million compared with $65.6 million for the year-earlier period.
For the nine months ended March 31, 2000 net income was $8.5 million or $0.94
per share (based on 9,080,971 shares outstanding) compared with $10.9 million or
$1.21 per share (based on 8,997,360 shares outstanding) for the year-earlier
period. Sales were $175.3 million compared with $180.7 million for the
year-earlier period.
Commenting on the Company's results, Fantom Technologies' President & CEO Allan
Millman said, "The third quarter was a challenging period for the Company due to
intensified competitive activity within the bagless segment of the
vacuum-cleaner market. Several competitive bagless systems are now available and
more introductions are expected in upcoming months. Despite the increasing
competition, we were successful in expanding distribution during the quarter and
our products are now featured across the United States at both Wal-Mart and
Sam's Club.
"This is a period of transition for the Company. As our existing product line
matures, we are preparing to introduce exciting new appliances that incorporate
leading-edge, proprietary technology. It all begins this summer with the planned
launch of our first water-treatment entry - the CALYPSO(TM) Microbiological
Water Purifier. Both retailers and industry professionals are applauding this
innovative, counter-top appliance. We intend to follow this, in late fall, with
the introduction of a revolutionary line of floor-care products.
"Several other ground-breaking products are on the drawing boards, all of them
originating from our collaborative R & D efforts with Omachron Technologies,
Inc."
Fantom Technologies also announced today that its Board of Directors declared a
quarterly cash dividend of 5 cents per share payable on June 30, 2000 to
shareholders of record at the close of business on May 31, 2000.
About Fantom Technologies
Fantom Technologies Inc. of Ontario, Canada is a growth-oriented,
household-appliance company, seeking the best ideas in technology that will make
daily living better for consumers. Over the past five years, Fantom has changed
the face of the vacuum cleaner industry in North America with its line of
dual-cyclonic vacuums. The Company is developing several new products based on
proprietary technology and has aggressive plans to expand the markets and
geographic territories in which it competes. Since May 1998, sixty-nine utility
patent applications have been filed for technologies the Company is either
acquiring or exclusively licensing through its association with Omachron
Technologies, Inc.
For more information about Fantom Technologies, visit the Company's web site at
www.fantom.com.
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 words "planned", "intend" 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. The Company does not
intend, and assumes no obligation, to update the forward-looking statements to
reflect actual results, changes in assumptions or changes in other factors
affecting such statements.
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Financial Highlights
(Unaudited, in Canadian Dollars)
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Consolidated Statements of Income
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Nine Months Ended Three Months Ended
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March 31 2000 1999 2000 1999
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Sales $175,321,281 $180,748,331 $57,356,592 $65,628,821
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Cost of Goods Sold $111,757,579 $114,828,728 $37,601,964 $41,663,033
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Gross Margin $63,563,702 $65,919,603 $19,754,628 $23,965,788
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Selling, General & Administrative $49,060,564 $47,371,735 $17,005,093 $17,084,328
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Research and Development Expense $1,044,552 $1,634,875 $108,249 $637,315
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Finance Charges ($96,171) ($40,087) $55,940 $25,244
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Income Before Taxes $13,554,757 $16,953,080 $2,585,346 $6,218,901
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Tax Provisions $5,012,000 $6,099,000 $952,794 $2,233,000
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Net Income $8,542,757 $10,854,080 $1,632,552 $3,985,901
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Earnings Per Share (Basic) $0.94 $1.21 $0.18 $0.44
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Average # of Shares Outstanding 9,080,971 8,997,360 9,099,181 9,008,802
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Earnings Per Share (Fully-Diluted) $0.90 $1.16 $0.18 $0.42
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Financial Highlights
(Unaudited, in Canadian Dollars)
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Consolidated Balance Sheets
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March 31 2000 1999
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Cash $ - $1,148
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Other Current Assets $70,279,259 $71,783,262
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Deferred Development Costs, Net of Amortization $2,886,114 $1,639,016
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Property, Plant & Equipment at Cost $44,506,221 $34,190,818
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Less Accumulated Depreciation ($9,992,990) ($6,668,393)
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Net Fixed Assets $34,513,231 $27,522,425
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Total Assets $107,678,604 $100,945,851
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Bank Indebtedness $5,647,989 $0
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Other Current Liabilities $31,377,826 $37,984,563
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Deferred Income Taxes $3,702,116 $3,855,300
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Deferred Currency-Hedging Exchange Gains $0 $3,136,491
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Share Capital $28,652,827 $27,910,287
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Retained Earnings $38,297,846 $28,059,210
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Total Liabilities & Shareholders' Equity $107,678,604 $100,945,851
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For more information, please contact:
Allan Millman Steve Doorey
President & CEO Vice President, CFO
416-622-9740 Ext. 232 905-734-7476 Ext. 281
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