EXHIBIT 4
5255 Yonge Street, Suite 1010
Toronto, Ontario CANADA M2N 6P4
[COMMERCIAL CONSOLIDATORS CORP. LOGO] Tel: (416) 512-8299 Fax: (416) 512-8229
www.commercialconsolidator.com
FOR IMMEDIATE RELEASE (#20-2001) Cusip #: 20162E101
COMMERCIAL CONSOLIDATORS REPORTS RECORD SIX MONTH EARNINGS
TORONTO, OCTOBER 18, 2001 - COMMERCIAL CONSOLIDATORS CORP. (CCZ - CDNX & CJ9 -
FRANKFURT) (the "Company"), is a diversified distributor of business
technologies and consumer electronics to the Americas (North, South and
Central).
Sales revenue increased 48% to $65.3 million for the six months ended August 31,
2001 from $44.1 million for the six months ended August 31, 2000. Net after tax
earnings for the six months increased 22% to $4.10 million, or $0.23 per share,
from $3.35 million, or $0.21 per share, for the same period last year.
The Company's financial results are summarized in the following table:
Six months ended Six months ended
August 31, 2001 August 31, 2000
---------------- ----------------
(in thousands)
Sales $65,315 $44,073
Cost of sales 51,919 34,533
Gross Profit 13,396 9,540
Gross Margin 20.5% 21.9%
Expenses 8,192 5,226
Income - before foreign
exchange, income taxes, and 5,204 4,314
amortization
Income Margin 8.0% 9.8%
Net income $ 4,099 $ 3,354
Net earnings per share (basic) $ 0.23 $ 0.21
</Table>
The increases in sales and earnings for the quarter were driven by continued
growth in our Wireless Products and Integrated Applications Divisions as well as
by the continued integration of our December 2000 acquisition for our Computer
Products Division.
Profit margins remained strong throughout the first six months of fiscal 2002 as
the Company continues to realize the benefits of its diverse product lines in
higher margin value-added products. The decrease in gross profit margin from the
first six months of last year is attributable to the integration of our Computer
Products Division, which historically generates slightly lower gross margins
than the Company's other operating divisions.
"We are pleased with our overall six-month performance" states Commercial
Consolidators Corp.'s Chief Executive Officer, Mr. Guy Jarvis. "Our results
reflect the Company's continued growth as well as our commitment to stringent
cost management and bottom-line profits."
ABOUT COMMERCIAL CONSOLIDATORS CORP.
Commercial Consolidators Corp. is a diversified distributor of business
technologies (cellular phones and accessories, computer systems and components
and proprietary software) and consumer electronics to the Americas (North, South
and Central). The Company has aggressively pursued strategic acquisitions,
satisfying management's primary objectives, namely:
1. Focus on converging communication delivery devices, namely:
televisions, computers, wireless products and proprietary software;
2. Leverage existing supply chain relationships from our expanding revenue
base, to facilitate new distribution channels throughout the Americas;
3. Via acquisitions, provide turnkey solutions to our target customers
through the selective expansion of complimentary product and service
offerings; and
4. Alter our sales mix to focus on higher margin products, while
maintaining an enviable standard of customer service and order
fulfillment.
For further information, please contact investor relations at 1-800-968-1727; or
visit the Company's website at www.commercialconsolidator.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"Guy Jarvis"
/s/ Guy Jarvis
--------------
GUY JARVIS, Chief Executive Officer
THE CANADIAN VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE
INFORMATION CONTAINED HEREIN