IVT achieves profitability before restructuring costs
CALGARY, March 8 /CNW/ - Inventronics Limited (IVT:TSX Venture), a
designer and manufacturer of custom enclosures for the communications,
electronics and other industries in North America, today announced its 2005
year-end financial results.
For the year ended December 31, Inventronics recorded a net loss of
$1,323,000 or 7 cents per share in 2005 compared to a net loss of $2,620,000
or 38 cents per share in 2004. For the three months ended December 31,
Inventronics reported a net loss of $142,000 or 1 cent per share in 2005
compared to a net loss of $1,886,000 or 27 cents per share in 2004.
The 2005 loss was entirely attributable to restructuring charges of
$1,390,000 related to the debt restructuring approved by the shareholders on
March 8, 2005. Before the restructuring costs, profit for the year was
$67,000.
Inventronics' EBITDA before restructuring costs increased to $1,186,000
in 2005, compared to $403,000 in 2004. Selling and administrative expenses
were reduced to $722,000 in 2005 from $984,000 in 2004.
Sales were $17,669,000 in 2005 compared to $13,706,000 in 2004 - a 29%
increase resulting from a recovering telecom sector and new customer sales.
Infrastructure spending in Inventronics' core markets of
telecommunications and electronics has begun to increase at a modest annual
rate. In addition, the Corporation's emphasis on growing sales outside its
core markets is continuing. Inventronics' number of non-telecom customers is
gaining momentum, and increases in sales to these customers are projected for
2006.
"Our profit of $67,000 (before restructuring costs) is small, but marks
an important turning point," said Dan Stearne, Inventronics' President and
CEO. "Our loss of $142,000 in the fourth quarter was the result of incurring
costs required to ramp-up the operations to a level of activity not seen in
more than four years. This increased and growing sales activity is expected to
carry on through 2006 as telecom spending continues to grow and as we continue
to gain new customers."
About Inventronics
Inventronics Limited designs and manufactures custom enclosures and other
products for an array of customers in the telecommunications, electronics,
electric utilities and computer services industries in North America. The
Corporation owns its ISO 9001-registered production facility in Brandon,
Manitoba and has head offices in Calgary, Alberta.
Shares of Inventronics trade on the TSX Venture Exchange under the symbol
"IVT." For more information about the Corporation, its products and its
services, go to www.inventronics.com.
The Corporation's full 2005 annual financial results will be filed with
SEDAR at www.sedar.com by April 15, 2006.
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Selected Financial Information:
Three Months Ended Year Ended
Income Statement Highlights Dec 31, Dec 31, Dec 31, Dec 31,
2005 2004 2005 2004
Sales $ 5,498 $ 3,310 $ 17,699 $ 13,706
EBITDA before restructuring
charges 105 (155) 1,186 403
Restructuring charges - (1,258) (1,390) (1,258)
Net loss $ (142) $ (1,886) $ (1,323) $ (2,620)
Loss per share:
Basic before restructuring
charges $ (0.01) $ (0.09) $ - $ (0.20)
Basic $ (0.01) $ (0.27) $ (0.07) $ (0.38)
Balance Sheet Highlights December 31, 2005 December 31, 2004
Working capital $ 230 $ (673)
Capital assets 6,148 6,586
Long-term debt (excluding current
portion) 3,980 4,669
Shareholders' equity $ 2,351 $ 1,404
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