Post by
Possibleidiot01 on Oct 26, 2024 7:37am
earnings MD+A
Looks like the housing start environment bit them ecept for one important item - FastTube up 120%.
Company points out interest reductions should help housing starts.
Not a completely negative after hours special news release IMO.
FAB-FORM INDUSTRIES LTD.
Management Discussion and Analysis
For the year ended 30 June 2024
(In Canadian Dollars rounded to nearest dollar)
Page 2 of 17
FAB-FORM INDUSTRIES LTD.
Management Discussion and Analysis
For the year ended 30 June 2024
(In Canadian Dollars rounded to nearest dollar)
Page 3 of 17
Fab-Form Industries Ltd. ("Fab-Form” or the “Company”) is a leading enviromentally conscious concrete formwork manufacturer located in
Vancouver, BC Canada. Since its inception in 1986, the Company has invented, developed, and commercialized foundation products that are
more sustainable for the building industry.
The history of the Company shows a continuous effort to develop new products that invoke the Company’s growth. Fab-Form focuses on
innovative solutions that provide the lowest cost to the contractor. See key new product milestones on page 2.
As always, thank you, board members, shareholders, and progressive dealers and contractors for your continued support and commitment.
This management discussion and analysis (“MD&A”) covers the operations of Fab-Form Industries Ltd. for the year ended June 30, 2024. The
audited financial statements for the year ended 30 June 2024 together with this MD&A are intended to provide investors with a reasonable basis
for assessing the financial performance of the Company.
HIGHLIGHTS: YEAR ENDED 30 JUNE 2024
Profitability Revenue: $4,681,956 – A decrease of 18%
compared to the previous year ended 30 June
2023. Gross Profit: $1,694,408 – a 24%
reduction compared to 2023. Operating
Income: $887,466, a 38% decline compared to
2023. Net Profit: $771,875, a 29% reduction
compared to the previous year ended 30 June
2023.
Higher interest rates led to a dramatic slowdown in the housing sector,
which is reflected in a fall in sales and profitability. A 25-basis point
reduction occurred in June 2024 with further reductions of 25 points, July
24th, and September 4th, 25 points. It is anticipated that these three
reductions should have a favorable effect on Canadian sales. A similar
interest rate environment is occurring in the USA.
Gross margins were reduced to 36% due to lower sales of high margin
products. Fab-Form continues to focus on minimizing costs on all
products, either through production automation or material efficiencies.
During the fiscal year, Fab-Form re-focused its marketing efforts on the
improved Fast-Tube® to target the retail customer across North America.
Fast-Tube® is now available in 12-foot sections with diameters of 8",
10", 12", 14", and 16". The first online sale was made March 8, 2024,
with a new Fast-Tube® website launched at the end of February. Using
social media as the main marketing tool allowed FBF to reach a large
customer base in a shorter time period. As a result, Fast-Tube® sales in
Q4 increased by 120%, a harbinger of significant market potential.
Operations Several changes have been planned for the
production of Fast-Tube during Q4 ending
June 2024. The design and development
team commenced their work on automation
of Fast-Tube cutting machine to reduce the
machine run time. Also, substantive work has
been completed on FT polymer machine.
FAB-FORM INDUSTRIES LTD.
Management Discussion and Analysis
For the year ended 30 June 2024
(In Canadian Dollars rounded to nearest dollar)
Page 4 of 17
HIGHLIGHTS: YEAR ENDED 30 JUNE 2024
Liquidity Cash generated from operations during the
year ended 30 June 2024 was $1,371,410.
Total liquid funds increased to $4,104,629
from $3,055,358 at the end of 30 June 2023
The cash flow position remains healthy, with 67% of the total assets
representing cash and cash equivalents and short-term investments. The
Company continues to invest the excess cash flows in interest-bearing
instruments.
The Company is committed to improving the usability and quality of all
products. Ongoing research and development of new products is a very
high priority.
SELECTED ANNUAL INFORMATION
The following table presents selected financial information for each of the most recent four fiscal years
30 June 2024 30 June 2023 30 June 2022 30 June 2021
$ $ $ $
Revenue 4,681,956 5,710,975 5,434,743 3,448,075
Net earnings 771,875 1,086,547 1,097,411 412,794
Basic and diluted earning per common share 0.084 0.122 0.121 0.047
Total assets 6,057,534 5,204,367 4,434,162 3,292,127
Long-term debt - - - -
Dividend - - - -
SELECTED QUARTERLY INFORMATION
The following table presents selected financial information for each of the most recent eight quarters:
For the periods ending 30 June 2024
$
31 March
2024
$
31 December
2023
$
30 September
2023
$
Revenue 1,372,664 748,002 1,020,614 1,540,676
Net earnings 222,348 85,157 107,372 356,998
Basic and diluted earning per common share 0.024 0.009 0.012 0.039
Total assets 6,057,534 5,848,486 5,671,498 5,727,761
Long-term debt - - - -
Dividend - - - -
FAB-FORM INDUSTRIES LTD.
Management Discussion and Analysis
For the year ended 30 June 2024
(In Canadian Dollars rounded to nearest dollar)
Page 5 of 17
For the periods ending 30 June 2023
$
31 March
2023
$
31 December
2022
$
30 September
2022
$
Revenue 1,883,990 707,075 1,004,813 2,115,097
Net earnings 370,672 111,922 135,853 468,100
Basic and diluted earning per common share 0.040 0.012 0.015 0.052
Total assets 5,204,367 4,847,278 4,759,632 5,258,785
Long-term debt - - - -
Dividend - - - -
We look forward to working with all the stakeholders to reach our growth objectives. We continue to thank all our shareholders,
employees for their trust in our Company and products.
Sincerely
Sgd Sgd
Joseph Fearn Vishwanath Kumar
President and CEO Chief Financial Officer
25 October 2024 25 October 2024