|Delta, BC, February 20, 2003, WestBond Enterprises Corporation ("WestBond") is pleased to announce that net income for the nine month period ended December 31, 2002 increased by 292% over the same period last year to $172,959 or $0.02 per share. For the three months ended December 31, 2002, the net income was $76,010 or $0.01 per share, an improvement of 497% over the same quarter in the previous year.
Sales for the nine month period totalled $2,700,968, compared to $1,982,253 last year, representing an increase of 36%. All product categories showed healthy increases over last year and the gross profit increased by 63% as operating efficiencies continued to improve.
The company is looking forward to the start up of the new machines that have been under construction for the last several months. One of the machines is expected to commence operations in early March
2003 while the other machine should be commissioned over the following three months. The new equipment will allow WestBond to substantially diversify its product line and will result in greater gains in market share of the Personal Hygiene line.
The outlook for the next 12 months for WestBond appears very positive. The addition of the new products will position the company in a market that very few converters can service. Not only are the products of the highest quality, but WestBond's service level will offer small to medium sized distributors the ability to compete on a more profitable level. Year end sales are still projected by management to be close to $4 million.
The following summary financial information has been extracted from the interim consolidated financial statements for December 31, 2002, which are available in pdf format on the SEDAR website at www.sedar.com. Please contact the company if you would like a printed copy.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
3 months ended Dec. 31, 9 months ended Dec. 31,
2002 2001 2002 2001
Sales $955,960 $685,493 $2,700,968 $1,982,253
Gross Profit 324,504 172,923 891,870 547,163
Selling expenses 73,389 39,159 209,523 128,564
General and admin expenses 131,075 110,902 407,715 343,953
Income before tax 120,040 22,862 274,632 74,646
Future income tax expense 44,030 10,136 101,673 30,549
Net income 76,010 12,726 172,959 44,097
Net income per share 0.01 0.00 0.02 0.00
Operating activities 160,822 53,729 210,533 196,801
Investing activities (59,621) (38,488) (364,244) (127,830)
Financing activities (103,601) 59,298 215,968 12,855
(Decrease) increase (2,400) 74,539 62,257 81,826
Financial Position Dec. 31, 2002 Mar. 31, 2002
Current assets $970,210 $695,014
Plant and equipment 1,358,392 1,073,816
Future income tax assets 38,369 140,042
Total assets 2,366,971 1,908,872
Current liabilities 706,837 530,793
Term loans 263,910 154,814
Shareholders' equity 1,396,224 1,223,265
WestBond is located in Delta, British Columbia and is a leading converter of disposable paper products used for personal hygiene in medical and industrial markets.
For further information, please contact:
Gennaro Magistrale, President, at (604) 940-3939
Doren Quinton, Investor Relations, at (250) 319-9765
WestBond is listed on the TSX Venture Exchange and trades under the symbol "WBE"
Certain statements in this press release may constitute "forward looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results,
performance or achievements expressed or implied by such forward looking statements. When used in this press release, such statements use such words as "may", "will", "expect", "believe", "plan" and other similar terminology.
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