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CALGARY, Feb. 6 /CNW/ - Inventronics Limited (IVX:TSX Venture), a designer and manufacturer of custom enclosures for the telecommunications, electric transmission, cable and other industries in North America, today announced its unaudited 2008 fourth quarter financial results.
Inventronics reported sales of $1,539,000 for the fourth quarter of 2008, compared to $6,137,000 for the fourth quarter of 2007.
The net loss for the quarter ended December 31, 2008 was $927,000 or 21 cents per share, compared to a profit of $350,000 or 8 cents per share for the same quarter in 2007.
Included in the net loss was $273,000 of severance and other costs incurred in the reorganization of operations done in response to the loss of future revenue. The revenue decrease is the result of the Corporation's largest customer not extending a supply agreement for products into the U.S. which expired on October 15, 2008. Sales to that customer's U.S. operations in the fourth quarter of 2008 were $400,000 and in the fourth quarter of 2007 were $4,171,000.
As at December 31, 2008, Inventronics was in breach of one of the financial covenants with its banker. Inventronics has engaged in discussion with its banker in respect of such breach. Also, Inventronics has agreed with its banker to amend its credit facility to reduce its principle payments for the next 12 months from $50,000 per month to $10,000 per month and has extended the term of the loan for one year from July, 2013 to July 2014, during which extension Inventronics will make monthly payments of $40,000 per month.
About Inventronics
Inventronics Limited designs and manufactures custom enclosures and other products for an array of customers in the telecommunications, electronics, electric utilities and computer services industries in North America. The Corporation owns its ISO 9001-registered production facility in Brandon, Manitoba and has head offices in Calgary, Alberta.
Shares of Inventronics trade on the TSX Venture Exchange under the symbol "IVX." For more information about the Corporation, its products and its services, go to www.inventronics.com.
Selected Financial Information:
(in thousands of dollars, except per share amounts)
Income Statement
Highlights Three Months Ended Twelve Months Ended
Dec 31, Dec 31, Dec 31, Dec 31,
2008 2007 2008 2007
Sales 1,539 6,137 16,695 22,026
EBITDA (755) 577 78 1,385
Net earnings (loss) (927) 350 (785) 465
Basic earnings
(loss) per share (21.1) cents 8.0 cents (17.8) cents 10.6 cents
December 31, December 31,
Balance Sheet Highlights 2008 2007
Working capital 307 735
Capital assets 5,318 5,718
Long-term debt (excluding current portion) 2,855 2,940
Shareholders' equity 2,769 3,513
Disclaimer
This news release contains forward looking information that represents the Corporation's internal projections, expectations, estimates or beliefs concerning, among other things, future operating results and various components thereof or the Corporation's future economic performance. These statements relate to future events or future performance. All statements other than the statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "anticipates", and similar expressions. The projections, estimates and beliefs contained in such forward-looking statements are based on management's assumptions relating to the production performance of Inventronics' assets, the cost and competition throughout the telecommunications industry in 2008, and the continuation of the current regulatory and tax regimes in the jurisdictions in which the Corporation operates, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to exchange rates, costs of production, outlook for sales, and other factors that may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. The Corporation does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise.