Vancouver, BC – Option-NFA Inc. (CDNX:OPN) is pleased to announce record second quarter and first half revenue for the period ended June 30, 2001.
Revenue for the three months ended June 30, 2001 was a second quarter record $948,626 compared to $387,275 for 2000, an increase of 145%. Revenue for the first half was also a record at $2,525,348, an increase of 74% over the first half of 2000.
Snowboard sales grew by 61% and NFA Streetwear sales grew by a very encouraging 179% versus the first half of 2000.
Gross Profit for the quarter was $296,923, up from $96,721 in 2000. Gross Profit was up for the first half as well, increasing by 85% to $633,826.
The first half is a relatively low revenue period for the company; consequently expenses, as a percent of sales, are higher than full year targets. However, all of the major expense categories showed improvement over last year. Advertising and promotion totaled $577,264 or 23% of sales compared to $344,181 or 24% in the first half of 2000. Similarly wages and salaries decreased to 21% of sales in the half versus 23% in the first half of 2000.
Total overhead, for the first half, increased to $1,378,201 from $889,931 but decreased to 55% of sales from 61% for the first half of 2000.Loss for the half, before interest, income tax expense, amortization and depreciation, (EBITDA) was $744,375 compared to $546,997 for 2000. This is right on budget.
Interest costs were $25,000 higher than plan for the first half; as a result, the net loss for the half was also $25,000 higher than plan at $980,620 versus $727,323 for the first half of 2000. This is within 3% of forecast.
Net loss per share for the half was $0.12 compared to $0.09 for the first half of 2000 based on the weighted average number of shares outstanding for the period.
The company’s first half is characterized by high marketing and manufacturing costs which, when combined with modest revenue, create early year losses. The performance for the first half is consistent with the company’s business plan and is on track to exceed our year 2000 results.
About Option-NFA Inc.Option-NFA is a Vancouver based manufacturer and designer of hard goods and clothing for the snowboard and skateboard markets. The Company has sales offices in Europe, Asia, Australia and North America and its products are endorsed by an elite team of high profile professional snowboarders and skateboarders from around the world. The Company went public in 1999 and trades on the Canadian Venture Exchange (CDNX) under the symbol OPN.
For further information, please contact:
Geoff PowerPresident & CEOOPTION-NFA INC.604 255-5594 ext. 127
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.