THIRD QUARTER 1997
For
the period ended July 31, 1997
Press Release
Message to Shareholders
Middlefield Bancorp is now positioned
to grow through its new merchant banking mandate. Funds available for
investment have been augmented by the recent establishment of an investment
loan facility with a major chartered bank. The Company now has a solid capital
base to take advantage of merchant banking opportunities.
Continuing exposure to quality investments will be one of the keys to building shareholder value. In this respect, Middlefield Bancorp will benefit from its extensive network of investment sources, which is complemented by the experience and expertise of its board of directors, management and larger shareholders.
Financial
Third quarter financial results were significantly
higher than 1996. Revenue for the 9 months ended July 31, 1997 reached $9.9
million, an increase of 36% over the same period last year. Net earnings were
$1.3 million or $0.20 per share fully diluted, a 73% increase over the 9 months
ended July 31, 1996.
The H.E.R.O. Industries division has been successful not only in increasing its sales to existing customers but also in expanding its customer base to include clients in eighteen countries outside North America. Responding to the diverse requirements of its global client base, H.E.R.O. has successfully innovated new products and services to ensure the success of its export program. In addition, H.E.R.O. has reduced its operational and overhead costs while maintaining its unwavering attention to product quality. H.E.R.O. is actively seeking to increase its market share in its various product areas, including through acquisition.
Middlefield Bancorp trades on the Toronto Stock Exchange under the symbol "MBN".
For further information, contact:
Dean Orrico
Vice
President
(416) 362-0714
| BALANCE
SHEETS As at July 31 [unaudited] |
1997 |
1996 |
|
| |
|||
| Assets | (000's) | (000's) | |
| Current assets | |||
| Cash | $ 937 | $ 146 | |
| Marketable securities | 7,261 | 825 | |
| Receivables | 2,538 | 2,666 | |
| Inventory | 1,779 | 1,967 | |
| Prepaids | 101 | 130 | |
| |
|||
| 12,616 | 5,734 | ||
| Property and equipment | 369 | 382 | |
| Other assets | 531 | 550 | |
| |
|||
| $ 13,516 | $ 6,666 | ||
| |
|||
| Liabilities | |||
| Current liabilities | |||
| Bank indebtedness | $ - | $ 205 | |
| Payables and accruals | 1,127 | 822 | |
| Income taxes | 646 | 395 | |
| Current portion of term debt | 213 | 286 | |
| |
|||
| 1,986 | 1,708 | ||
| Term debt | - | 213 | |
| |
|||
| 1,986 | 1,921 | ||
| Shareholders' Equity | |||
| Capital stock | 8,637 | 3,220 | |
| Contributed surplus | 7 | 7 | |
| Retained earnings | 2,971 | 1,603 | |
| |
|||
| 11,615 | 4,830 | ||
| Common shares in treasury | (85) | (85) | |
| |
|||
| 11,530 | 4,745 | ||
| |
|||
| $ 13,516 | $ 6,666 | ||
| |
|||
| STATEMENTS OF EARNINGS AND RETAINED EARNINGS | |||
| For the nine months ended July 31 [unaudited] | 1997 | 1996 | |
| |
|||
| (000's) | (000's) | ||
| Revenues | $ 9,913 | $ 7,288 | |
| Operating income before the undernoted: | 2,421 | 1,352 | |
| Research | 97 | 124 | |
| Interest | 22 | 53 | |
| Amortization | 20 | 16 | |
| Depreciation | 66 | 55 | |
| |
|||
| Earnings before income taxes | $ 2,216 | $ 1,104 | |
| Provision for income taxes: | |||
| Current | 666 | 333 | |
| Deferred | 289 | 142 | |
| |
|||
| 955 | 475 | ||
| |
|||
| Net earnings | 1,261 | 629 | |
| Retained earnings, beginning of period | 1,710 | 974 | |
| |
|||
| Retained earnings, end of period | $ 2,971 | $ 1,603 | |
| |
|||
| STATEMENTS OF CHANGES IN FINANCIAL POSITION | |||
| For the nine months ended July 31 [unaudited] | 1997 | 1996 | |
| |
|||
| (000's) | (000's) | ||
| Operating | |||
| Net earnings | $ 1,261 | $ 629 | |
| Deferred income taxes | 289 | 142 | |
| Depreciation and amortization | 86 | 71 | |
| |
|||
| 1,636 | 842 | ||
| Decrease in non-cash operating working capital | (6,523) | (1,081) | |
| |
|||
| (4,887) | (239) | ||
| |
|||
| Investing | |||
| Increase in development costs | (82) | (22) | |
| Purchase of property and equipment, net of disposal proceeds | (74) | (50) | |
| Other assets | (243) | (136) | |
| |
|||
| (399) | (208) | ||
| |
|||
| Financing | |||
| Repayment of term debt | (215) | (214) | |
| Issue of capital stock | 5,417 | - | |
| |
|||
| 5,202 | (214) | ||
| |
|||
| Net increase (decrease) in cash | (84) | (661) | |
| Cash, beginning of period | 1,021 | 602 | |
| |
|||
| Cash, end of period | $ 937 | $ (59) | |
| |
|||
Corporate Profile
Middlefield Bancorp Limited is a Canadian
corporation engaged in merchant banking. It is dedicated to the creation of
shareholder value through the prudent selection, acquisition and management of
investment opportunities. Middlefield Bancorp's board of directors and
management include highly experienced and successful individuals who have
committed their own capital to the Company. The Company's common shares are
listed on the Toronto Stock Exchange under the symbol "MBN".
| Head Office 1 First Canadian Place 58th Floor P.O. Box 192 Toronto, Ontario M5X 1A6 Tel: 416-362-0714 Fax: 416-362-7925 Auditor Auditor Arthur Andersen & Co. Corporate Counsel Ogilvy Renault |
Directors Thomas I.A. Allen, Q.C. Partner, Ogilvy Renault Peter A. Braaten Director, Middlefield Group Murray J. Brasseur Director, Middlefield Group George S. Dembroski Vice-Chairman, RBC Dominion Securities Limited Thomas C. Laurie Vice-President, RBC Dominion Securities Inc. A. Gordon Stollery Chairman, Northstar Energy Corporation Charles B. Young Deputy Chairman, Canary Wharf Limited |