Inventronics Announces 2006 Q3 Results

 

Growth in Sales, Growth in Profit

 

 

Calgary, Alberta – (November 17, 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 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.

 

 

Selected Financial Information:

 

Income Statement Highlights

Three Months Ended

Nine Months Ended

Sept. 30, 2006

Sept. 30, 2005

Sept. 30, 2006

Sept. 30, 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˘

3˘

18˘

(30)˘

 

 

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 

 

 

 

 

 

 

11,404

FOR FURTHER INFORMATION PLEASE CONTACT:

 

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