TSX Symbol: CH
TORONTO, March 22 /CNW/ - Century II Holdings Inc. today announced its
consolidated financial results for the fourth quarter and fiscal year ended
December 31, 2005. The Company's operations principally reflect its investment
in ICS Courier.
The Company reported net earnings in the fourth quarter of 2005 of
$0.7 million ($0.07 per share) bringing fiscal 2005 net earnings from
operations to $3.6 million ($.32 per share). In 2004 the Company reported net
losses in the fourth quarter and fiscal year of $.8 million ($0.07 per share)
and $1.8 million ($.16 per share), respectively.
Revenues from the fourth quarter of 2005 were $21.2 million compared with
$19.1 million in the fourth quarter of 2004. Revenues for fiscal 2005 totaled
$83.2 million compared with $77.2 million in fiscal 2004. The Company's
ICS Next Day(TM) guaranteed trackable product demonstrated a revenue increase
of 15% in fiscal 2005 over last year and accounted for 50% of total revenue in
2005 compared with 46% in 2004. There is a very deliberate strategy to
continue to grow the ICS Next Day(TM) offering. ICS Everyday Economics(TM),
the Company's traditional high-volume, low cost fixed-route product accounted
for approximately 39% of total revenues for fiscal 2005 compared with 43% in
fiscal 2004.
The Company reported earnings before interest, foreign exchange gains and
losses, income taxes, amortization expense and write-down of goodwill
("EBITDA") for the fourth quarter of 2005 of $1.1 million compared to a loss
of $0.7 million last year. EBITDA profit for fiscal 2005 was $4.8 million
compared to a loss of $1.1 million, an improvement of $5.9 million over 2004.
The improved performance can be contributed to revenue increases of
$6.1 million or 7.9% year-over-year against operating expenses increasing a
nominal $0.2 million. Amortization for the year for property and equipment was
$1.1 million compared to $1.3 million in 2004. The decrease arises from a
combination of reduced spending and certain assets being completely written
off by the end of 2004.
Cash provided by operations in 2005 was $5.8 million compared to a
$1.0 million use of funds in 2004. After capital expenditures, the purchase of
certain courier routes from Docucorp Systems Inc., scheduled repayments of
long-term debt and capital lease obligations, the Company's available cash
position increased by $3.7 million to $13.5 million at December 31, 2005. The
Company continues to have $1.4 million of cash held in trust supporting issued
letters of credit for courier fleet leasing activities and corporate credit
cards.
Commenting on the financial performance of 2005, Mr. Geoff Davies,
President and Chief Executive Officer of the Company, said that "it is very
encouraging to experience four consecutive quarters with such substantive year
over year improvement. Revenues were up 7.9% to $83.2 million while operating
expenses increased only nominally, resulting in an earnings improvement of
$5.9 million. After foreign exchange gains and interest income, earnings per
share increased $0.48 over 2004. While we have established some very positive
momentum in 2005 we must continue to focus on cost reductions and
opportunities to increase revenues. The cash flow generated in 2005 will allow
us to continue to make needed investments in technology and infrastructure to
improve our operations and maintain our momentum."
About Century II Holdings Inc. (TSX Symbol: CH)
-----------------------------------------------
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 largely 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
any 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, 2005
and in the subsequent reports filed by the Company with the Ontario Securities
Commission.
%SEDAR: 00002281E
