TSX Symbol: CH
TORONTO, May 2 /CNW/ - Century II Holdings Inc. today announced its consolidated financial results for the first quarter ended March 31, 2007. 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 2007 of $2.1 million ($0.18 per share) compared to $2.7 million ($0.24 per share) for the same period last year. Earnings before income tax expense of $1.1 million were $3.2 million. This represents an improvement of $0.5 million or 17.3% in pre-tax earnings compared to last year. Comparisons of net earnings are distorted as a result of the reversal of the Company's tax valuation allowance in the second quarter of 2006. There was no income tax expense in the first quarter of 2006.
Revenues for the first quarter of 2007 were $24.0 million compared with $23.0 million in the first quarter of 2006 and $21.7 million in the previous quarter. Revenue increased 4.7% over the prior year's quarter. Net of capital expenditures of $0.5 million the Company's available cash position increased by $1.6 million to $20.8 million at March 31, 2007.
Commenting on the financial performance for the first quarter of 2007, Mr. Geoff Davies, President and Chief Executive Officer of the Company, said that "the pre-tax earnings improvement in excess of 17% is a very real indication that the focus on customer service and cost controls continues to generate very positive improvements in the Company's financial performance. This continued improvement greatly enhances the Company's ability to invest in its operations and grow." Mr. Davies adds that "the success to date is very much a result of the dedication and commitment of the entire team."
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, travel, optical, dental and hearing appliance 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, 2006 and in the subsequent reports filed by the Company with the Ontario Securities Commission.
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