Inventronics Announces 2005 Financial Results

 

IVT achieves profitability before restructuring costs

 

Calgary, Alberta – March 8, 2006 – 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.

 

 

 

 

Selected Financial Information:

 

Income Statement Highlights

Three Months Ended

Year Ended

Dec 31, 2005

Dec 31, 2004

Dec 31, 2005

Dec 31, 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 

 

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

Dan J. Stearne, President and CEO                        (403) 265-4880, dstearne@inventronics.com