Inventronics Announces 2007 Q1 Results

 

Continued Strength of Sales and Earnings

 

Calgary, Alberta – (May 24, 2007) – Inventronics Limited (IVT:TSXV), a designer and manufacturer of custom metal enclosures for the communications, electronics and other industries in North America, today announced its 2007 first-quarter financial results.

 

Inventronics reported sales of $5.131 million for the first quarter of 2007, compared to first-quarter sales of $5.061 million in 2006.  This level of sales reflects a strong telecommunications market and growing sales to new customers compared to the same quarter in the previous year when unusually large orders were sold to one Canadian customer.

 

The net earnings for the quarter ended March 31, 2007 were $256,000 or 6 cents per share, compared to $398,000 or 9 cents per share for the same quarter in 2006. The difference is the result of a larger proportion of sales to United States customers in 2007 which attract a lower level of profit.

 

“The profits earned in this quarter reflect a normal mix between Canadian and United States denominated sales unlike the same quarter last year when one large project resulted in very high Canadian sales,” said Dan Stearne, President and CEO.  “This level of sales and profitability is expected for the balance of 2007.”

 

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 “IVT.” For more information about the Corporation, its products and its services, go to www.inventronics.com.

 

Inventronics’ 2007 first-quarter results will be filed with SEDAR at www.sedar.com by May 23, 2007.

 

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

 

 

Mar 31, 2007

Mar 31, 2006

 

 

 

 

 

Sales

 

 

$ 5,131 

$ 5,061 
EBITDA

 

 

 490 

653 

Net earnings

 

 

$    256 

$    398 

Earnings per share – Basic

 

 

6˘

9˘

 

 

Balance Sheet Highlights

March 31, 2007

December 31, 2006

 

 

 

Working capital

$      700 

$  (2,918) 

Capital assets

5,785 

5,941  

Long-term debt (excluding current portion)

3,200 

-  

Shareholders’ equity

$   3,285 

$    3,023  

 

 

 

 

 

 

11,404

FOR FURTHER INFORMATION PLEASE CONTACT:

 

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