Click here to close now.


News Feed Item

Inscape Announces Fourth Quarter and Annual Results

HOLLAND LANDING, ONTARIO -- (Marketwired) -- 06/26/14 -- Inscape (TSX:INQ) today announced its fourth quarter and fiscal year 2014 annual financial results ended April 30, 2014.

Fiscal year 2014 was a challenging year for the Company. The fourth quarter of fiscal year 2014 had a net loss of $1.5 million or 10 cents per share. The same quarter of last year had a net loss of $1.4 million or 10 cents per share. On an annual basis, the fiscal year ended with a net loss of $7.1 million or 49 cents per share, compared to a net loss of $1.3 million or 9 cents per share in fiscal year 2013. The current year's loss included $2.8 million decrease in the fair value of outstanding hedge contracts as the U.S. spot exchange rate at the end of the year was higher than the average strike price of the hedges. Fiscal year 2014's operating loss before taxes was $6.1 million, compared with an operating loss of $1.6 million a year ago due to an 11.7% decline in sales.

The sales decline from fiscal 2013 to fiscal 2014 was the key driver of the Company's losses and is attributable to several factors: disruption to distribution channels partially caused by the bankruptcy of a major dealer; stagnation in US Government budget approvals; delayed key product launches, as well as significant concentration of resources on the launch of new products for fiscal 2015.

Although resolving these issues will take some time, management is cautiously optimistic about the plans in place to address them. A reinvigorated sales force focusing on key markets across North America, improved brand messaging and training programs, and a back-to-basics approach to communicating our brand to dealers demonstrate management's focus on distribution channels. The US Government has approved budgets for office spaces this year. A focus on sales efforts has begun paying off with an increase in opportunities, and the new product introductions which received five Best of NeoCon Awards (4 Gold and 1 Silver) in the June 2014 trade show. Inscape won the most awards of any manufacturers at NeoCon this year.

"We have a strong financial position and our foundation remains strong," said Jim Stelter, CEO. "Our outlook continues to improve as we actively engage our markets, intensify our marketing efforts, and make more people aware of how we can provide great solutions for them."

Sales in the fourth quarter of fiscal year 2014 at $15.2 million were 5.4% lower than the $16 million for same quarter of the previous year. The annual sales of $66.2 million fell 11.7% from last year's sales of $74.9 million. The drop in the year-over-year sales was mainly caused by a decline in the volume of the office furniture projects by 13.1%, while the moveable wall segment had a 3.9% decrease from last year.

The fourth quarter's gross profit as a percentage of sales was 21.1%, a decrease of 1.4 percentage points from the 22.5% of the same quarter a year ago. The decrease in gross profit percentage was mainly caused by lower realized selling prices, partially offset by lower overheads and better margin on services. The annual gross profit as a percentage of sales decreased 4.2 percentage points from last year's 26.5% to the current year's 22.3%. The reduced gross margin percentage was attributable to lower realized selling prices and decrease in volume, partially offset by lower overheads and variable production costs.

Selling, general and administrative expenses ("SG&A") in the fourth quarter were 35.7% of sales, compared to 33.6% in the same quarter of last year. In terms of dollar amounts, SG&A expense during the current quarter was comparable to the same quarter of last year. SG&A for the year was 31.6% of sales versus 28.6% of last year. The dollar spent was $0.5 million lower than last year. The lower SG&A was attributable to $0.2 million variable selling expenses due to reduced sales volume, $0.3 million lower provision for doubtful accounts accrued in last year relating to the bankruptcy of a dealer, $0.4 million overheads. The lower SG&A was partially offset by a $0.3 write off of a product licence fee during the year.

During the fourth quarter, the Company booked a valuation allowance relating to deferred tax assets accrued during the first three quarters of fiscal 2014. Due to the continued losses in the fourth quarter and the effects of lower accounting income in the previous two years, management deemed it appropriate to charge a valuation allowance for these assets. This adjustment is a non-cash charge to the results and the Company has 20 years in which the assets can be realized against future income, at which point the valuation allowance can be reversed.

At the end of the fiscal year 2014, the company was debt-free with cash and cash equivalents totaling $18.9 million.

                           Inscape Corporation                              
                Summary of Consolidated Financial Results                   
         (Unaudited) (in thousands of Canadian dollars except EPS)          
                                                   Three Months             
                                                  Ended April 30,           
                                                     2014      2013   Change
------------------------------------------------------------------- --------
Sales                                           $ 15,171  $ 16,038     -5.4%
Gross profit                                       3,203     3,614    -11.4%
Selling, general & administrative expenses         5,423     5,390      0.6%
Unrealized loss (gain) on foreign exchange           151       (93)         
(Increase) Decrease in fair value of                                        
 derivatives                                      (1,777)      499          
Investment income                                    (88)     (100)         
Loss before taxes                                   (506)   (2,082)         
Income taxes                                         945      (642)         
Net loss                                        $ (1,451) $ (1,440)         
Basic earnings per share                        $  (0.10) $  (0.10)         
Weighted average number of shares (in                                       
for basic EPS calculation                         14,373    14,373          
for diluted EPS calculation                       14,380    14,383          
                                                   Twelve Months            
                                                 Ended April 30,            
                                                    2014      2013    Change
------------------------------------------------------------------- --------
Sales                                           $ 66,155  $ 74,900    -11.7%
Gross profit                                      14,742    19,852    -25.7%
Selling, general & administrative expenses        20,890    21,413     -2.4%
Unrealized gain on foreign exchange                 (389)      (95)         
Decrease in fair value of derivatives              2,825       989          
Investment income                                   (374)     (394)         
Loss before taxes                                 (8,210)   (2,061)         
Income taxes                                      (1,118)     (805)         
Net loss                                        $ (7,092) $ (1,256)         
Basic and diluted earnings per share            $  (0.49) $  (0.09)         
Weighted average number of shares (in                                       
for basic EPS calculation                         14,373    14,375          
for diluted EPS calculation                       14,380    14,452          

Financial Statements

Fourth Quarter Call Details

Inscape will host a conference call at 8:30 a.m. on Friday, June 27, 2014 to discuss the company's quarterly and annual results. To participate, please call 1-800-381-7839. A replay of the conference call will also be available from June 27, 2014 after 10:30 a.m. until midnight on July 4, 2014. To access the rebroadcast, please dial 1-800-558-5253 (Reservation Number 21718745).

Forward-looking Statements

Certain of the above statements are forward-looking statements that involve risks and uncertainties. Actual results could differ materially as a result of many factors including, but not limited to, further changes in market conditions and changes or delays in anticipated product demand. In addition, future results may also differ materially as a result of many factors, including: fluctuations in the company's operating results due to product demand arising from competitive and general economic and business conditions in North America; length of sales cycles; significant fluctuations in international exchange rates, particularly the U.S. dollar exchange rate; restrictions in access to the U.S. market; changes in the company's markets, including technology changes and competitive new product introductions; pricing pressures; dependence on key personnel; and other factors set forth in the company's Ontario Securities Commission reports and filings.


Inscape makes smart workspaces. For over a century, we have collaborated with our clients to provide customized solutions based on their individual needs. Our meticulously engineered system, storage and wall products provide unparalleled flexibility to create unique applications at a lower cost of ownership. Easy reconfiguration and seamless integration with other products means our smart applications will work today and tomorrow. And they look fabulous.

For more information, visit

Inscape Corporation
Matthew Posno
Chief Financial Officer
905 836 7676
905 836 5037 (FAX)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Scott Guthrie's keynote presentation "Journey to the intelligent cloud" is a must view video. This is from AzureCon 2015, September 29, 2015 I have reproduced some screen shots in case you are unable to view this long video for one reason or another. One of the highlights is 3 datacenters coming on line in India.
In his session at @ThingsExpo, Tony Shan, Chief Architect at CTS, will explore the synergy of Big Data and IoT. First he will take a closer look at the Internet of Things and Big Data individually, in terms of what, which, why, where, when, who, how and how much. Then he will explore the relationship between IoT and Big Data. Specifically, he will drill down to how the 4Vs aspects intersect with IoT: Volume, Variety, Velocity and Value. In turn, Tony will analyze how the key components of IoT ...
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, foc...
Recently announced Azure Data Lake addresses the big data 3V challenges; volume, velocity and variety. It is one more storage feature in addition to blobs and SQL Azure database. Azure Data Lake (should have been Azure Data Ocean IMHO) is really omnipotent. Just look at the key capabilities of Azure Data Lake:
The cloud has reached mainstream IT. Those 18.7 million data centers out there (server closets to corporate data centers to colocation deployments) are moving to the cloud. In his session at 17th Cloud Expo, Achim Weiss, CEO & co-founder of ProfitBricks, will share how two companies – one in the U.S. and one in Germany – are achieving their goals with cloud infrastructure. More than a case study, he will share the details of how they prioritized their cloud computing infrastructure deployments ...
Interested in leveraging automation technologies and a cloud architecture to make developers more productive? Learn how PaaS can benefit your organization to help you streamline your application development, allow you to use existing infrastructure and improve operational efficiencies. Begin charting your path to PaaS with OpenShift Enterprise.
Decisions about budgets and resources are often made without IT even having a seat at the table. As technologist we understand the value of DevOps - but do your business counterparts? If they don't, your DevOps initiatives could lose funding before they start. In her session at DevOps Summit, Jeanne Morain, Strategist / Author at iSpeak Cloud, LLC, will provide insights on how to bridge the gap between business and technology leaders. Attendees will learn prescriptive guidance on balancing wor...
The modern software development landscape consists of best practices and tools that allow teams to deliver software in a near-continuous manner. By adopting a culture of automation, measurement and sharing, the time to ship code has been greatly reduced, allowing for shorter release cycles and quicker feedback from customers and users. Still, with all of these tools and methods, how can teams stay on top of what is taking place across their infrastructure and codebase? Hopping between services a...
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
Today, we are in the middle of a paradigm shift as we move from managing applications on VMs and containers to embracing everything that the cloud and XaaS (Everything as a Service) has to offer. In his session at 17th Cloud Expo, Kevin Hoffman, Advisory Solutions Architect at Pivotal Cloud Foundry, will provide an overview of 12-factor apps and migrating enterprise apps to the cloud. Kevin Hoffman is an Advisory Solutions Architect for Pivotal Cloud Foundry, and has spent the past 20 years b...
While testing is often ignored when it comes to DevOps - it could be the most important aspect of achieving true DevOps success. Without rethinking automated testing from the ground-up, the entire DevOps productivity gain cannot be realized. Large tech companies build their own rapid test automation that runs in minutes across functional, performance, security and other tests. In his session at DevOps Summit, Kevin Surace, CEO of Appvance, will discuss how we learn from these real-world succe...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
SYS-CON Events announced today that has been named a "Bronze Sponsor" of SYS-CON's @DevOpsSummit Silicon Valley, which will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. provides open-source software ELK turned into a log analytics platform that is simple, infinitely- scalable, highly available, and secure.