TSX Symbol: CH
TORONTO, May 2 /CNW/ - Century II Holdings Inc. today announced its
financial results for the first quarter ended March 31, 2005. The Company's
operations reflect the business of ICS Courier.
The Company reported net earnings in the first quarter of 2005 of
$644,000 ($0.06 per share) compared with a net loss of $549,000 ($0.05 per
share) in 2004. The Company attributed the improvement in the net earnings to
improved efficiencies and an increase in both volumes and tariffs.
The Company reported revenues of $20,350,000 in the first quarter of 2005
representing a 5.9% increase in revenues over the first quarter of 2004
despite the fact that the first quarter of 2005 experienced two less business
days than the first quarter in 2004. This increase is a direct result of
measures implemented late last year to bolster ICS Courier's market share. The
trackable ICS Next Day(TM) product continues to show year-over-year growth.
ICS Courier completed an agreement with Document IP Limited ("IPG"), pursuant
to which ICS became, effective March 1, 2005, the designated provider of
courier services (other than same day) for IPG's membership. The purchase
price of $200,000 was capitalized to Intangible Assets.
The Company also reported significant improvement in its operating
results as earnings before interest, foreign exchange gains and losses, income
taxes, and amortization ("EBITDA") for the first quarter of 2005 increased to
$944,000 compared with a loss of $335,000 in the first quarter of 2004 (an
improvement of $1,279,000 or 380%). A 14% reduction in corporate overhead
costs also contributed to increasing EBITDA in the first quarter of 2005
compared with a year ago.
The Company reported net earnings for the first quarter of 2005 of
$644,000 ($0.06 per share) compared with a net loss of $549,000 ($0.05 per
share) in the first quarter last year. This is the second consecutive first
quarter to show significant improvement.
Cash used in operations in the first quarter of 2005 amounted to
$1,243,000. The change is a result of increased accounts receivables from a
stronger revenue stream combined with the reduction in accounts payable and
accrued liabilities. Cash decreased for the period by $1,321,000 leaving cash
available of $8,476,200 at March 31, 2005. The Company also has a $350,000
unused line of credit, and $1,371,000 of cash held in trust supporting its
credit facility. Although the Company has no formal dividend policy at this
time, it will review the possibility of any future distributions once it has
attained an appropriate level of sustainable self-supporting financial
performance.
Commenting on the financial results for the first quarter of 2005, Mr.
Geoff Davies, President and Chief Executive Officer of the Company indicated
that "the first quarter showed improvement towards our goals of profitability
at the operating level and to become cash self-sufficient by the end of the
year. We will continue to focus on costs and operating efficiency in the
second quarter in order to sustain the progress made to date."
About Century II Holdings Inc. (TSX Symbol: CH)
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Century II Holdings Inc. is a publicly listed holding company whose
wholly owned subsidiary, ICS Courier, operates a fixed route courier business
servicing in excess of 35,000 accounts in the insurance, financial, travel,
optical and dental business sectors across Canada.
Certain statements in this press release constitute forward-looking
statements. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance and achievements of the Company to be materially different from
future results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, competition
and technological changes. These factors and other risks and uncertainties are
discussed in the Company's Annual Report for the year ended December 31, 2004
and in the subsequent reports filed by the Company with the Ontario Securities
Commission.
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