Growth in Sales, Growth in Profit
CALGARY, Nov. 17 /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 third-quarter
financial results.
Results for Third Quarter and Nine Months Ended September 30, 2006
Inventronics reported sales of $5,563,000 for the third quarter of 2006,
compared to third-quarter sales of $4,396,000 in 2005. The net earnings for
the quarter ended September 30, 2006 were $269,000, or 6 cents per share,
compared to net earnings of $138,000, or 5 cents per share for the same
quarter in 2005. For the 9 months ended September 30, 2006 sales were
$15,711,000 and net earnings were $769,000, or 17.5 cents per share versus
sales of $12,201,000 and a loss of $1,162,000, or 6 cents per share loss in
the same period a year ago.
Revenue for the third quarter and for the nine months have continued to
exceed the same periods in the prior year. Capital spending in the North
American communication industry is the largest contributor to this revenue
growth, as the major telecommunication companies adapt and build out their
networks to support internet (DSL and VDSL), voice over internet protocol
(VOIP) and television services. This results in revenues to Inventronics since
the company designs and supplies many of the outdoor enclosures used to house
equipment and connections required to implement these new technologies and to
bring fibre optic networks closer to the telco's customers. Sales to new
customers is also contributing to revenue growth particularly in Alberta.
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 third-quarter results will be filed with SEDAR at
www.sedar.com by November 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 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 Nine Months Ended
Income Statement Highlights Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
Sales $ 5,563 $ 4,396 $ 15,711 $ 12,201
EBITDA 514 406 1,515 1,084
Net earnings $ 269 $ 137 $ 769 $ (1,162)
Earnings per share - Basic 6 cents 3 cents 18 cents (30) cents
Balance Sheet Highlights Sept. 30, 2006 December 31, 2005
Working capital $ 589 $ 230
Capital assets 6,074 6,148
Long-term debt (excluding
current portion) 3,500 3,980
Shareholders' equity $ 3,118 $ 2,351
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