Sales Revenue Up 20%, Profitability Continues
CALGARY, Aug. 16 /CNW/ - Inventronics Limited (IVX:TSXV), a designer and
manufacturer of custom metal enclosures for the communications, electronics
and other industries in North America, today announced its 2006 second-quarter
financial results.
Inventronics reported sales of $5.087 million for the second quarter of
2006, compared to second-quarter sales of $4.187 million in 2005. The increase
in sales reflects a strengthening telecommunications market and growing sales
to new customers.
The net earnings for the quarter ended June 30, 2006 were $102,000, or 2
cents per share, compared to net earnings of $157,000, or 4 cents per share
for the same quarter in 2005. For the 6 months ended June 30, 2006 sales were
$10,148,000 and net earnings were $501,000, or 11 cents per share versus sales
of $7,800,000 and a loss of $1,299,000, or a 36-cent per share loss in the
same period a year ago. Margin improvements reflect manufacturing efficiencies
and greater capacity utilization from increasing sales.
"Our balance sheet is stronger than it has been in years, sales growth is
continuing as planned and we expect to continue to be profitable," said Dan
Stearne, President and CEO. "Earnings for the quarter were lower than last
year because of a further devaluation of the US dollar and consulting costs
incurred to identify possible strategic partners."
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
"IVX." For more information about the Corporation, its products and its
services, go to www.inventronics.com.
Inventronics' 2006 second-quarter results will be filed with SEDAR at
www.sedar.com by August 28, 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 1 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 forward-looking 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 Six Months Ended
Income Statement
Highlights June 30, June 30, June 30, June 30,
2006 2005 2006 2005
Sales $ 5,087 $ 4,187 $ 10,148 $ 7,805
EBITDA 347 414 1,001 679
Net earnings $ 102 $ 157 $ 501 $(1,299)
Earnings per share
- Basic 2 cents 4 cents 11 cents (36) cents
Balance Sheet Highlights June 30, 2006 December 31, 2005
Working capital $ 773 $ 230
Capital assets 6,102 6,148
Long-term debt
(excluding current portion) 3,980 3,980
Shareholders' equity $ 2,849 $ 2,351
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