TSX Symbol: CH
TORONTO, March 23 /CNW/ - Century II Holdings Inc. today announced its consolidated financial results for the fourth quarter and fiscal year ended December 31, 2006. The Company's operations principally reflect its investment in ICS Courier.
The Company reported net earnings in the fourth quarter of 2006 of $0.3 million ($0.03 per share) bringing fiscal 2006 net earnings from operations to $6.9 million ($0.60 per share). In 2005 the Company reported net earnings in the fourth quarter and fiscal year of $0.7 million ($0.07 per share) and $3.6 million ($0.32 per share), respectively. Revenues from the fourth quarter of 2006 were $21.7 million compared with $21.2 million in the fourth quarter of 2005. Revenue in the fourth quarter was impacted by the fact that the Christmas Holiday scheduling in 2006 resulted in a three day business week the last week of December. Operating expenses in the fourth quarter reflect the impact of the increase in labour costs associated with collective agreement renewal terms. The timing of annual price increases is such that there was a lag in terms of providing for these cost increases.
Revenues for fiscal 2006 totaled $89.9 million compared with $83.2 million in fiscal 2005. The Company's ICS Next Day(TM) guaranteed trackable product demonstrated a revenue increase of 15% in fiscal 2006 over last year and accounted for 53% of total revenue in 2006 compared with 50% in 2005. There is a very deliberate strategy to continue to grow the ICS Next Day(TM) revenues. ICS Everyday Economics(TM), the Company's traditional high-volume, low cost fixed-route product accounted for approximately 35% of total revenues for fiscal 2006 compared with 39% in fiscal 2005.
The improvement in earnings for 2006 is attributed to an 8% increase in revenues compared to a 5% increase in operating expenses.
Cash provided by operations in 2006 was $8.4 million compared to $5.8 million in 2005. The Company's available cash position increased by $5.7 million to $19.1 million at December 31, 2006. The Company no longer has cash held in trust to support issued letters of credit for courier fleet leasing activities and corporate credit cards.
Commenting on the financial performance of 2006, Mr. Geoff Davies, President and Chief Executive Officer of the Company, said that "the earnings improvement in excess of $3 million or $0.28 in earnings per share in 2006 is extremely encouraging. The resulting strength in our balance sheet gives us the opportunity to continue to invest in technologies for continued efficiencies and to look at investments that will add shareholder value."
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 structured route courier business servicing in excess of 35,000 accounts largely in the insurance, financial, optical, dental and hearing appliance 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 information on the Company can be found in the Management Discussion and Analysis, Management Information Circular and the Annual Information Form which are available on SEDAR at www.sedar.com.
%SEDAR: 00002281E