The net sales of Viisnurk AS for the first quarter of 2002 were 81.8 mil. kroons (5.2 mil. euros) and the economic activities resulted in the loss of 1.1 mil. kroons (70 thousand euros). As compared to the same period of the previous year, the net sales of the company increased by 24%. Viisnurk earned 8.6 mil. kroons (548 thousand euros) of profit in the first quarter of 2001. The difference in the economic results of the compared quarters mainly results from the activities of the Wood Panel Factory, which produced the loss of 6.2 mil. kroons (0.4 mil. euros) in the first quarter of the current year (the factory did not operate in the first quarter of 2001). Such a loss of Viisnurk corresponds to the budget and does not require any adjustment of the annual goals of the company.
Performance of Units
- The net sales of the Furniture Factory for the 1st quarter amounted to 42.1 million kroons (2.7 mil. euros), soaring by 21% on the same period of the previous year. The increase in the sales of the Furniture Factory resulted, first and foremost, from the growth of contract work in furniture production, which formed 43% of the net sales of the 1st quarter (39% in the 1st quarter of 2001). Notwithstanding the growth of sales, the increased role of contract work of lower profitability and changes in the range of products of the respective group have curtailed the profit of the factory. The operating profit of the Furniture Factory amounted to 5.6 million kroons (361 thousand euros) in the 1st quarter, which is 0.4 mil. kroons (25 thousand euros) less than the year before. This year, the factory is paying special attention to more efficient utilization of material and streamlining its procurement network to improve profitability.
- The net sales of the Sports Goods Division for the first quarter amounted to 8.7 million kroons (553 thousand euros) vs 4.6 mil. kroons (296 thousand euros) in the 1st quarter of 2001. The economic activities of the division resulted in the loss of 2.6 mil. kroons (166 thousand euros). The loss resulted from the traditionally slow sales of winter sports goods at the beginning of the year and modest production capacity, because the orders for the next season are placed as a rule at the end of the 1st and the beginning of the 2nd quarters. The current market situation predicts that the estimated output of both skis and hockey sticks in 2002 will exceed that of 2001.
- The net sales of the Wood Panel Factory for the 1st quarter were 10.7 mil. kroons (681 thousand euros), of which external sale formed 40% or 4.2 mil. kroons (271 thousand euros). As compared to the last quarter of 2001, the net sales of the factory have increased approximately by a third. In the first quarter, the operations of the Wood Panel Factory resulted in a loss of 4.5 million kroons (285 thousand euros). The efficiency of the factory has improved significantly on the last quarter; however, it is about a million kroons less than estimated. The inability to meet the estimations results from suspending the launch the third shift, which was planned for the 1st quarter, to the beginning of the 2nd quarter due to the lack of competent workforce and ongoing problems in the yield of sawn timber (the quality of material, training of workers). The Wood Panel Factory aims at starting to generate profit in the third quarter of 2002.
- The net sales of the Softboard Factory were 17.8 mil. kroons (1.1 mil. euros) in the 1st quarter of 2002, which is 10% less than that of the last year. The factory earned 2.6 million kroons (247 thousand euros) of profit, which was 3 mil. kroons (176 thousand euros) less than in the 1st quarter of 2001). Decreased net sales and profit result from the low of the construction industry in the major export markets in Europe, which is clearly perceived by the factory and causes sagging demand and stiffening competition. The Softboard Factory operated only five days a week throughout the 1st quarter due to declined demand. The factory has actively sought new customers (incl. new consumer sectors) and it will continue to operate seven days a week with a non-stop cycle from the beginning of the second quarter.
- Among other activities, which exposed the profit of 1.6 mil. kroons (100 thousand euros) at the net sales of 9 mil. kroons (0.6 mil. euros), the Forestry Centre has improved its results as compared to the last year [the net sales soared by 40% and the profit went up from 49 thousand kroons (3 thousand euros) to 500 thousand kroons (32 thousand euros)]. The profit from operations of the boiler house decreased, first and foremost, due to declining internal consumption and the deficit and high price of wood chips, which are the basic raw material, from 1.6 mil. kroons (102 thousand euros) in the 1st quarter of 2001 to 0.5 mil. kroons (32 thousand euros).
BALANCE SHEET
In th. of In th. of In th. of
In th kroons In th kroons In th euros In th euros
31.3.2002 31.12.2001 31.3.2002 31.12.2001
Cash and bank 363 5 036 23 322
Customer receivables 42 316 52 496 2 704 3 355
Other receivables 2 044 2 215 131 142
Prepaid expenses 5 382 5 449 344 348
Inventories 81 400 74 576 5 202 4 765
Total current assets 131 505 139 772 8 404 8 932
Long-term fin. investments 1 436 1 436 92 92
Tangible assets 215 075 216 043 13 746 13 808
Intangible assets 182 269 12 17
Total non-current assets 216 693 217 748 13 850 13 917
TOTAL ASSETS 348 198 357 520 22 254 22 849
Debt obligations 45 199 47368 2 889 3 027
Customer prepayments 82 1 216 5 78
Supplier payables 32 007 36 793 2 045 2 351
Taxes payable 4 905 5 639 314 360
Accrued expenses 8 945 8 348 572 534
Total current liabilities 91 138 99 364 5 825 6 350
Long-term liabilities 95 479 95 479 6 102 6 102
Total non-current liabil. 95 479 95 479 6 102 6 102
Share capital at par value 44 991 44 991 2 875 2 875
Share premium 11 332 11 332 724 724
Mandatory capital reserve 4 499 4 499 288 288
Retained earnings 101 855 82 472 6 510 5 271
Net profit for the year (1 096) 19 383 (70) 1 239
Total equity 161 581 162 677 10 327 10 397
TOTAL LIABILITIES 348 198 357 520 22 254 22 849
AND EQUITY
INCOME STATEMENT
In th kroons In th kroons In th euros In th euros
I quarter I quarter I quarter I quarter
2002 2001 2002 2001
NET SALES 81 791 66 138 5 227 4 227
Cost of goods sold (72 808) (49 763) (4 653) (3 180)
Gross profit 8 982 16 375 574 1 047
Marketing expenses (4 630) (4 594) (296) (294)
General admin. expenses (2 622) (3 060) (168) (196)
Other income 251 935 16 60
Other expenses (581) (275) (37) (17)
Profit from operations 1 400 9 381 89 600
Financial income 27 28 2 2
Financial expenses (2 523) (842) (161) (54)
NET PROFIT (1 096) 8 567 (70) 548
Basic earnings per share (0,24) 1,90 (0,02) 0,12
Diluted earnings per share (0,24) 1,90 (0,02) 0,12
Andrus Aljas
CFO
+37244 78355