Hearthlist Digest #107 - Wednesday, February 11, 1998 CFM Majestic Posts Results by Craig Issod <[email protected]>
(back) Subject: CFM Majestic Posts Results From: Craig Issod <[email protected]> Date: Tue, 10 Feb 1998 20:27:19 -0400 Alternative Energy Retailer (Feb) printed an article on CFM Majestics 1997 fiscal year....I assume the article must have a misprint. The listing claims sales of 250 million and a GROSS PROFIT of 159 Million.....hey, at these margins I'm headed quickly for the Hearth manufacturing business! Alas, I assume that the Gross Profit is mistaken and supposed to be labeled "Cost of Sales" or something similar. Netherless, CFM released their figures for the quarter ending Dec 31, 1997 today. The company continues to be profitable, although sales growth almost is non-existent. An increase from 77.4 million to 78.7 million. This small increase is tempered by the acquisition of Harris Systems, whose sales are included in the later figure. Therefore, it would seem that the Majestic and VC operations recorded little or no increase...and may even have been lower than the previous year. In addition, since prices have increased, unit volume is almost surely the same or lower. Poor winter weather in certain parts of the country has probably affected many hearth manufacturers and retailers. However, one would think that CFM's entry into many different and additional distribution channels should have pumped up their numbers. In addition, I'm not certain if CFM has "buy back" agreements with Home Depot, etc that could affect the next quarter (end March 31). One fact remains, the hearth business continues to be worth being in. This is good news for all of us. Despite a non-existent winter here in the Mid-Atlantic, most retailers are still reporting a reasonable year. Now if only CFM could get (and keep) a plan, follow through, keep their employees happy and even come out with one of those corporate "Mission Statements"...then I might even be a buyer of the stock! After all, fire is one thing that will continue to be a "need" for a large percentage of families in the world. ------------------------------------------------------ Craig Issod HearthNet at http://www.hearth.com [email protected] Everything your Hearth Desires ------------------------------------------------------ Buddha says "avoid error" ------------------------------------------------------