TSX Symbol: CH
TORONTO, Nov. 2 /CNW/ - Century II Holdings Inc. today announced its
financial results for the third quarter ended September 30, 2005. The
Company's operations reflect the business of Information Communication
Services (ICS) Inc. (also referred to as "ICS Courier").
The Company reported net earnings in the third quarter for 2005 of
$988,000 ($0.09 per share) compared with a net loss of $446,000 ($0.04 per
share) for the same quarter in 2004. The year-to-date net earnings for 2005 of
$2,895,000 ($0.25 per share) compare to the prior year's net loss of
$1,017,000 ($0.09 per share).
The Company reported revenues of $20,436,000 in the third quarter of 2005
representing a 6.7% increase in revenues over the third quarter of 2004.
Year-to-date revenues have also increased by 6.7% to $62,002,000 compared to
the previous year. The trackable ICS Next Day(TM) product continues to show
substantial year-over-year growth. The newest product offering, ICS Ground(TM)
has also contributed to the increase in revenue.
Despite inflation in most cost areas and increased volumes, efficiencies
in operations and administrative departments have given rise to a reduction in
expenses for the third quarter. Expenses of $19,530,000 have decreased by 1.4%
compared to the third quarter of 2004. Year-to-date expenses of $59,254,000
have also improved compared to the first three quarters of 2004.
Earnings before interest, foreign exchange gains and losses, income
taxes, and amortization ("EBITDA") for the third quarter of 2005 increased to
$1,272,000 compared with a loss of $251,000 in the third quarter of 2004.
Year-to-date EBITDA at $3,766,000 compares to a loss of $349,000 for the same
period last year.
Cash provided by operating activities in the third quarter of 2005
amounted to $1,018,000 compared to $68,000 in the same period last year. For
the nine months ending September 30, 2005, operating activities have provided
cash of $2,451,000 compared to a use of $929,000 for the same period last
year. 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 third quarter of 2005,
Mr. Geoff Davies, President and Chief Executive Officer of the Company
indicated that the results achieved in the third quarter are a very strong
indication that the improvements in operations and in sales to date have been
effective in establishing a very positive trend in terms of our financial
performance. Mr. Davies also indicated that he is very pleased with the
continued efforts of employees and their contribution to the attainment of
three consecutive quarters of positive results. However, Mr. Davies also
points out that as good as this improvement is, we are not where we need to
be. We must improve our margins to more acceptable levels and we have to
demonstrate that our performance is sustainable.
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, optical, financial,
travel, 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,
regulations, 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.
%SEDAR: 00002281E
