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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August , 2000
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FANTOM TECHNOLOGIES INC.
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(Translation of registrant's name into English)
1110 Hansler Road
Welland, Ontario, Canada L3B 5S1
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F Form 40-F X
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b) : 82-
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
FANTOM TECHNOLOGIES INC.
Date: September 11, 2000 by: "Walter J. Palmer"
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Walter J. Palmer
Secretary
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Item List
1. Press release dated August 28, 2000
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NEWS RELEASE
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Year-End Results Reported By
Fantom Technologies Inc.
~Also Announce Technology Initiative and Declare Dividend
TORONTO, August 28, 2000 - Year-end results were announced today by Fantom
Technologies Inc. Net income for the fiscal year ended June 30, 2000 was $2.1
million or $0.23 per share (based on 9,092,228 shares outstanding) compared with
$14.2 million or $1.58 per share (based on 9,002,060 shares outstanding) for the
previous year. Sales were $207.6 million compared with $242.0 million for the
previous year.
For the three months ended June 30, 2000, the Company recorded a loss of $6.5
million or $0.71 per share (based on 9,126,122 shares outstanding) compared with
net income of $3.3 million or $0.37 per share (based on 9,017,751 shares
outstanding) for the year-earlier period. Sales were $32.3 million compared
with $61.3 million for the year-earlier period.
The Company indicated that financial results in the second half of the fiscal
year, and particularly in the fourth quarter, were adversely affected by
decreased revenues resulting from intense competitive activity within the
bagless segment of the vacuum-cleaner market. All major competitors have now
introduced bagless vacuums in response to widespread consumer demand. This has
resulted in increased "clutter" at retail, a higher level of perceived inter-
changeability of products among consumers, and a cycle of price reductions.
The Company has aggressively reduced costs and repositioned retail price points
to strengthen its core business. In addition, to create added consumer value,
it recently introduced a new "Limited Edition" model of the FURY(R) vacuum and
plans to enhance this and other models in the line in the first half of calendar
2001.
The Company also stated that planned new product introductions are expected to
re-establish its competitive advantage and increase revenues. As previously
announced, shipments of the new FANTOM(R) CALYPSO(TM)
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Microbiological Water-Treatment System are expected to commence this fall, and
shipments of a new full-size wireless vacuum cleaner in the first half of
calendar 2001.
The Company indicated that in the fourth quarter it elected to adopt new
guidelines regarding revenue recognition related to transactions it entered into
with a barter and media company. The Company's decision was based on advice
that comprehensive guidelines issued by the United States Securities and
Exchange Commission in December 1999 regarding revenue recognition were gaining
acceptance in Canada. The relevant transactions occurred in the third and
fourth quarters and principally consisted of the sale of refurbished vacuum
cleaners for a combination of cash and barter credits. The effect of adopting
the new guidelines was to delay revenue recognition beyond the end of the fiscal
year. As a result, the revenue recognition on these transactions that had been
included in the third quarter results was reversed in the fourth quarter. Had
these guidelines been adopted prior to the release of third-quarter results,
third-quarter sales and net income would have been reduced by $7.6 million and
$1.4 million respectively. This impact has been reflected in the reported
fourth-quarter results.
The Company further stated that its strategically-focused applied research
programs are yielding new possibilities in a wide range of scientific fields.
The Company went on to say that it is developing a universal thermal energy cell
that it believes employs several novel concepts that could enable it to operate
efficiently as an electrical generator or as a heat pump. This invention, for
which thirteen utility patent applications have been filed, flows from extensive
R & D work. Potential applications span a broad spectrum of household products
including small appliances such as vacuum cleaners, lawn mowers and leaf
blowers. Additional uses may include portable power generators; portable light
emitters; gas-fired furnaces; and air conditioning, refrigeration, freezing and
cryo-cooling systems. As a next step, the Company plans to embody the
technology in a prototype product and have its performance characteristics
assessed by third parties. This will assist the Company in evaluating the
commercial viability of the energy cell.
Fantom Technologies also announced today that its Board of Directors declared a
quarterly cash dividend of 5 cents per share payable on September 30, 2000 to
shareholders of record at the close of business on September 11, 2000.
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About Fantom Technologies
Fantom Technologies Inc. of Ontario, Canada is a growth-oriented, household-
appliance company, seeking the best ideas in technology that will make daily
living better for consumers. Fantom has changed the face of the vacuum cleaner
industry in North America with its line of dual-cyclonic vacuums. The Company
is developing several new products based on proprietary technology and has
aggressive plans to expand the markets and geographic territories in which it
competes. Since May 1998, eighty-five utility patent applications have been
filed for technologies the Company is either acquiring or exclusively licensing
through its association with Omachron Technologies, Inc. Of these, sixteen have
already been allowed by the United States patent office.
For more information about Fantom Technologies, visit the Company's web site at
www.fantom.com.
The foregoing information includes certain statements relating to the Company
which are forward-looking statements under Section 21E of the United States
Securities Exchange Act of 1934. The words "plan", "expected", "believes" and
similar expressions, as they relate to the Company or its management, are
intended to identify forward-looking statements. Such statements are based on
assumptions made by, and information available to, the Company. However, there
are important factors that could cause actual results to differ materially from
those in such forward-looking statements including, among others, the
contingencies arising from the uncertainties which are inherent in the
development of new technology and the unanticipated costs and time delays which
often arise in the process of developing new products based on innovative
technology. The Company does not intend, and assumes no obligation, to update
the forward-looking statements to reflect actual results, changes in assumptions
or changes in other factors affecting such statements.
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Financial Highlights
(Unaudited, in Canadian Dollars)
<TABLE>
<CAPTION>
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Consolidated Statements of Income
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Year Ended Three Months Ended
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<S> <C> <C> <C> <C>
June 30 2000 1999 2000 1999
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Sales $207,646,115 $242,045,457 $ 32,324,834 $61,297,126
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Cost of Goods Sold $135,507,033 $155,492,659 $ 23,749,454 $40,663,931
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Gross Margin $ 72,139,082 $ 86,552,798 $ 8,575,380 $20,633,195
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Selling, General & Administrative $ 66,793,648 $ 63,116,152 $ 17,733,084 $15,744,417
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Research and Development Expense $ 2,212,574 $ 1,359,072 $ 1,168,022 ($275,803)
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Finance Charges ($152,140) ($75,826) ($55,969) ($35,739)
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Income (Loss) Before Taxes $ 3,285,000 $ 22,153,400 ($10,269,757) $ 5,200,320
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Tax Provisions $ 1,230,000 $ 7,971,000 ($3,782,000) $ 1,872,000
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Net Income (Loss) $ 2,055,000 $ 14,182,400 ($6,487,757) $ 3,328,320
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Earnings Per Share (Basic) $0.23 $ 1.58 ($0.71) $ 0.37
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Average # of Shares Outstanding 9,092,228 9,002,060 9,126,122 9,017,751
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Earnings Per Share (Fully-Diluted) - $ 1.51 - $ 0.35
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</TABLE>
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<PAGE>
Financial Highlights
(Unaudited, in Canadian Dollars)
<TABLE>
<CAPTION>
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Consolidated Balance Sheets
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June 30 2000 1999
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<S> <C> <C>
Cash & Short Term Deposits $ 0 $ 9,439,206
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Other Current Assets $ 63,393,973 $ 58,284,583
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Advance Receivable Against New Technology $ 951,150 $ 0
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Deferred Development Costs, Net of Amortization $ 4,140,494 $ 2,062,177
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Property, Plant & Equipment at Cost $ 46,375,735 $ 36,496,545
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Less Accumulated Depreciation ($10,823,358) ($7,486,406)
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Net Fixed Assets $ 35,552,377 $ 29,010,139
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Total Assets $ 104,037,994 $ 98,796,105
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Bank Indebtedness $ 6,332,500 $ 0
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Other Current Liabilities $ 29,954,494 $ 32,320,844
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Deferred Income Taxes $ 7,408,605 $ 3,926,274
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Deferred Currency-Hedging Exchange Gains $ 0 $ 3,482,790
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Share Capital $ 28,988,827 $ 27,949,287
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Retained Earnings $ 31,353,568 $ 31,116,910
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Total Liabilities & Shareholders' Equity $ 104,037,994 $ 98,796,105
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</TABLE>
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For more information, please contact:
Allan Millman Steve Doorey
President & CEO Vice President, CFO
416-622-9740 Ext. 232 905-734-7476 Ext. 281
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