BlueStar Battery Systems Announces Second Quarter Results
BlueStar Battery Systems International Corp. (Vancouver, B.C.) announced revenues for the six months ending on March 31, 2000, as $63.1 million. This compares to $82.4 million for the same period last year.Revenue for the second quarter was decreased 29 percent at $27.7 million. The result for the second period in 1999 was $38.8 million. The decrease in revenues for the period ending March 31, 2000, could be attributed to the result of a decision by the company's management to discontinue a major customer agreement at the end of March 1999, the continued rationalization of the company's suppliers and customers, and generally overall unfavorable market conditions resulting from unseasonably warm weather during the second quarter of the fiscal year.Earnings before interest, taxes, depreciation and amortization (EBITDA) was $2 million for the six-month period, as compared to $3 million for the same period in 1999. EBITDA was $0.2 million for the three-month period ending March 31, 2000, as compared to $1.4 million for the same period in 1999, resulting from the lower revenue and one-time administrative costs resulting from financing and restructuring activities."While the second quarter is traditionally a slower period for the BlueStar distribution organization, weather conditions and a larger than expected decline due to the discontinuation of a major customer agreement in 1999 led to disappointing quarterly revenues and operating results that were lower than originally anticipated," said Marty R. Kittrell, executive vice-president of finance and administration for BlueStar and board of directors member."However, gross margins have continued to improve as the organization rationalizes its customer and strategic alliances. Gross margin increased to 17.5 percent for the second quarter of fiscal 2000, as compared to 14.4 percent for the corresponding period of 1999."