Strong Profits Led by Increasing Canadian Sales
CALGARY, April 26 /CNW/ - Inventronics Limited (IVT:TSXV), a designer and
manufacturer of custom metal enclosures for the communications, electronics
and other industries in North America, today announced its 2006 first-quarter
financial results.
Inventronics reported sales of $5.061 million for the first quarter of
2006, compared to first-quarter sales of $3.618 million in 2005. The increase
in sales reflects a strengthening telecommunications market, growing sales to
new customers and unusually large orders from one Canadian customer in the
quarter.
The net earnings for the quarter ended March 31, 2006 were $398,000 or
1.8 cents per share, compared to a net loss of $1.456 million or 13 cents per
share for the same quarter in 2005. Margin improvements reflect manufacturing
efficiencies and greater capacity utilization from increasing sales.
"The profits earned in this quarter reflect the result of work done in Q4
of 2005 to enhance our capacity, and the effect of more sales denominated in
Canadian dollars," said Dan Stearne, President and CEO. "In this quarter, 50%
of sales were denominated in Canadian dollars, compared to 33% for all of last
year. While this trend to a higher percentage of Canadian sales is consistent
with our strategy, one large project has had a greater impact in this quarter
than is anticipated in subsequent quarters."
About Inventronics
Inventronics Limited designs and manufactures custom enclosures and other
products for an array of customers in the telecommunications, electronics,
traffic controls, electric utilities and computer services industries in North
America. Inventronics' enclosures are sophisticated products that function as
permanent packaging to address a variety of customer concerns including
security, protection from the outside environment, ventilation and thermal
management, noise abatement, aesthetics and styling, electromagnetic
compatibility and component integration. The Corporation owns its ISO 9001-
registered production facility in Brandon, Manitoba, and has sales and
corporate 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.
Inventronics' 2006 first-quarter results will be filed with SEDAR at
www.sedar.com by May 30, 2006.
Disclaimer
This news release contains forward looking information that represents
the Corporation's internal projections, expectations, estimates or beliefs
concerning, among other things, future operating results and various
components thereof or the Corporation's future economic performance. These
statements relate to future events or future performance. All statements other
than the statements of historical fact may be forward-looking statements. In
some cases, forward-looking statements can be identified by terminology such
as "may", "will", "should", "expects", "projects", "plans", "anticipates", and
similar expressions. The projections, estimates and beliefs contained in such
forward-looking statements are based on management's assumptions relating to
the production performance of Inventronics' assets, the cost and competition
throughout the telecommunications industry in 2006, and the continuation of
the current regulatory and tax regimes in the jurisdictions in which the
Corporation operates, and necessarily involve known and unknown risks and
uncertainties, including risks and assumptions relating to exchange rates,
costs of production, outlook for sales, and other factors that may cause
actual performance and financial results in future periods to differ
materially from any projections of future performance or results expressed or
implied by such forwardlooking statements. Accordingly, readers are cautioned
that events or circumstances could cause results to differ materially from
those predicted. The Corporation does not undertake to update any forward-
looking information in this document whether as to new information, future
events or otherwise.
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Selected Financial Information:
Three Months Ended
Income Statement Highlights Mar 31, Mar 31,
2006 2005
Sales $ 5,061 $ 3,618
EBITDA 653 264
Net earnings $ 398 $(1,456)
Earnings per share - Basic 1.8 cents (13) cents
Balance Sheet Highlights March 31, 2006 December 31, 2005
Working capital $ 778 $ 230
Capital assets 5,996 6,148
Long-term debt (excluding current portion) 3,980 3,980
Shareholders' equity 2,747 $ 2,351
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