Trailmobile Canada reports fiscal results

March 1, 2002
Trailmobile Canada Ltd has announced its first-quarter fiscal results for the three months ended Dec 31, 2001. Revenues in the first quarter of fiscal

Trailmobile Canada Ltd has announced its first-quarter fiscal results for the three months ended Dec 31, 2001.

Revenues in the first quarter of fiscal 2002 totaled $16.4 million and represent a $0.9 million increase over the fourth quarter of fiscal 2001. First-quarter revenues fell by $5.0 million when compared with the first quarter of fiscal 2001. A slight improvement in gross profit margins for the first quarter of fiscal 2002 was due to a higher percentage specialty to fleet production.

The company recorded a net loss of $2.8 million for the first quarter. Most of the loss is the result of the Chapter 11 bankruptcy filing in the United States by Trailmobile Trailer LLC. A $2.4-million provision was charged in the quarter relating to monies due from Trailmobile Trailer Canada Ltd, a subsidiary of Trailmobile Trailer LLC.

The company's majority shareholder announced a cash offer Feb 1, 2002, to purchase all outstanding common shares of the company. The takeover bid was filed Feb 1, 2002, and the offer expires at 4 pm March 28, 2002.