MONTREAL -- Frisco Bay Industries (NASDAQ: FBAY) reported net earnings of $296,662, or 12 cents per share, for the quarter ended Oct. 31, compared to a year-earlier loss of $363,945, or 16 cents per share.
For the nine months ended Oct. 31, Frisco Bay generated net earnings of $1,124,038, or 48 cents per share, an improvement over last year's loss for the corresponding period of $612,880, or 27 cents per share.
According to Frisco Bay, the turnaround in earnings was the result of increased sales and improved gross margins on product sales. Partially offsetting the favorable factors were higher selling expenses to support the sales growth and increased interest expense on capital lease obligations, the company reported.
Revenues for the quarter, at $10,402,877, were 34 percent higher than revenues of $7,791,060 recorded in the corresponding period of the previous year. For the nine month period, revenues increased by 24 percent to $31,370,925, compared to revenues of $25,282,707 last year.
The increase in revenues was primarily due to an increase in the number of ATM transactions and increased product sales, according to Frisco Bay.
"All our product lines must provide an opportunity for ongoing revenue after the initial sale," said Ron Waxman, vice-chairman and chief operating officer. "In fact, in the case of our white-label ATM business, we own and operate numerous machines to maximize the future revenue flow from this business. With more than 10 million transactions a year and growing, this
strategy is a total success as evidenced by our results."
