TSX Symbol: CH
TORONTO, May 3 /CNW/ - Century II Holdings Inc. today announced its
consolidated financial results for the first quarter ended March 31, 2006. The
Company's operations principally reflect its investment in Information
Communication Services (ICS) Inc. (operating as ICS Courier).
The Company reported net earnings in the first quarter of 2006 of
$2.7 million ($0.24 per share) compared to $.7 million ($.06 per share) for
the same period last year.
Revenues in the first quarter of 2006 were $23.0 million compared with
$20.4 million in the first quarter of 2005. The Company's ICS Next Day(TM)
guaranteed trackable product demonstrated a revenue increase of 19% in the
quarter compared to the same quarter last year. The recent expansion of the
ICS Ground(TM) product experienced an increase of 36% in revenue compared to
the first quarter of fiscal 2005.
The Company reported earnings before interest, foreign exchange gains and
losses, income taxes, amortization expense ("EBITDA") for the first quarter of
2006 of $3.0 million compared to $0.9 million last year. The improved
performance can be attributed to revenue increases of $2.6 million (or 13%)
against operating expenses increasing a nominal $0.6 million (or 3%).
Cash provided by operations in the first quarter of 2006 was $1.3 million
compared to a $1.3 million use of funds in the same period last year,
representing a $2.6 million dollar improvement. Increased earnings, improved
management of working capital, and the release of funds previously held in
trust to support letters of credit give rise to the increase of the Company's
cash to $14.8 million as at March 31, 2006. Capital expenditures were
$0.2 million.
Commenting on the financial performance of the first quarter of 2006,
Mr. Geoff Davies, President and Chief Executive Officer of the Company, said
that "the results for the first quarter of 2006 are very encouraging with
respect to the continuation of the momentum we began to build in 2005. The
dedication and hard work of the entire ICS team with respect to improving
service levels, increasing productivity, and increasing revenues are key
factors in the continued improvement of our financial performance."
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 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.
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