Innovo Group, a sales and marketing organisation designing and selling craft canvas and stonewashed products and imported consumer products to the retail and premium markets through its subsidiary Innovo Inc, today announced results for the three-month period ended August 31, 2000.
Third Quarter Fiscal 2000 Results
For the third quarter of fiscal 2000, the company experienced a net loss of $288,000 or $0.04 per share, compared to net income of $1,042,000 or $0.17 per share for the corresponding period last year.
Net sales for the second quarter decreased $3,810,000 from $7,389,000 in 1999 to $3,579,000 in 2000. This decrease is primarily the result of a large $2.5m premium order that was placed with the company in 1999 but not repeated in 2000. Nasco Products International, the company's international subsidiary, also ceased operations due to a lack of demand for licensed products in the European markets.
Consequently, the company's revenues reflect the negative impact of the closure. Furthermore, the company had limited production capabilities during the entire third quarter due to a labour shortage thus resulting in the company not being able to meet some customer demand for its domestically made products. The company believes that, once fully implemented, its production arrangements with Commerce Investment Group, LLC will allow the company to meet customer demand going forward.
Significant Changes in the Third Quarter
During the third quarter of 2000, the company took significant steps to improve the company's operational and financial structure. It completed a transaction with Commerce Group, LLC which has resulted in the company being able to cease domestic manufacturing and to close its domestic manufacturing and distribution facility. Since September 4, Commerce has been distributing products manufactured in its Mexican facilities that were formerly manufactured and distributed by the company. Commerce is also distributing out of its Los Angeles distribution centre the company's products imported from the Orient.
Third Quarter Fiscal 2000 Results
For the third quarter of fiscal 2000, the company experienced a net loss of $288,000 or $0.04 per share, compared to net income of $1,042,000 or $0.17 per share for the corresponding period last year.
Net sales for the second quarter decreased $3,810,000 from $7,389,000 in 1999 to $3,579,000 in 2000. This decrease is primarily the result of a large $2.5m premium order that was placed with the company in 1999 but not repeated in 2000. Nasco Products International, the company's international subsidiary, also ceased operations due to a lack of demand for licensed products in the European markets.
Consequently, the company's revenues reflect the negative impact of the closure. Furthermore, the company had limited production capabilities during the entire third quarter due to a labour shortage thus resulting in the company not being able to meet some customer demand for its domestically made products. The company believes that, once fully implemented, its production arrangements with Commerce Investment Group, LLC will allow the company to meet customer demand going forward.
Significant Changes in the Third Quarter
During the third quarter of 2000, the company took significant steps to improve the company's operational and financial structure. It completed a transaction with Commerce Group, LLC which has resulted in the company being able to cease domestic manufacturing and to close its domestic manufacturing and distribution facility. Since September 4, Commerce has been distributing products manufactured in its Mexican facilities that were formerly manufactured and distributed by the company. Commerce is also distributing out of its Los Angeles distribution centre the company's products imported from the Orient.
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