Inventronics Announces 2006 Q2 Results

 

Sales Revenue Up 20%, Profitability Continues

 

Calgary, Alberta – (August 16, 2006)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 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.

 

 

Selected Financial Information:

 

Income Statement Highlights

Three Months Ended

Six Months Ended

June 30, 2006

June 30, 2005

June 30, 2006

June 30, 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˘

4˘

11˘

(36)˘

 

 

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 

 

 

 

 

 

 

11,404

FOR FURTHER INFORMATION PLEASE CONTACT:

 

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