Carbiz Inc.

Carbiz Inc.

January 03, 2005 14:36 ET

Carbiz Inc. Announces Third-Quarter Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CARBIZ INC.

TSX VENTURE SYMBOL: CZ

JANUARY 3, 2005 - 14:36 ET

Carbiz Inc. Announces Third-Quarter Results

SARASOTA, FLORIDA--(CCNMatthews - Jan. 3, 2005) - Carl Ritter, Chief
Executive Officer of Carbiz Inc. (TSX VENTURE:CZ) ("Carbiz"), announced
the company's third-quarter results. Revenue for the third quarter
increased by 17 percent compared to the same period last year. The
increase was primarily due to the incremental revenue increase from the
Carbiz Auto Credit division, which contributed $255,453 in sales and
$21,315 in operating profit for the third quarter.

Operating expenses increased year-to-year based on fees related to
pursuit of a listing on the U.S. OTC-BB, as well as reporting changes
resulting from adoption of the CICA issued handbook Section 3870,
Stock-Based Compensation and Other Stock-Based Payments. Included in the
former are legal fees and accrual for professional fees in connection
with U.S. tax and legal work.

According to Mr. Ritter, "Our auto-credit business will continue to
increase over the next quarter in both sales and profit and revenues
from the TaxMax division will begin to be reflected in the fourth
quarter. The majority of expenses for the OTC-BB application will be
absorbed by the end of the fiscal year, providing Carbiz an opportunity
to reflect results based primarily on operations in the first quarter
rather than the addition of several one-time or unique expense items."



Q3 financial summary

---------------------------------------------------------------------
For the 3 For the 3 For the 9 For the 9
months ended months ended months ended months ended
October 2004 October 2003 October 2004 October 2003
---------------------------------------------------------------------
Revenue $ 900,355 $ 765,886 $ 3,221,829 $ 3,251,821
---------------------------------------------------------------------
Gross Profit 446,629 373,376 1,764,004 1,655,449
---------------------------------------------------------------------
Operating
expenses 1,120,177 641,205 3,028,116 2,075,582
---------------------------------------------------------------------
Operating
loss (673,548) (267,829) (1,264,112) (420,133)
---------------------------------------------------------------------
Interest
income
(expense) (29,985) (48,570) (114,469) (144,616)
---------------------------------------------------------------------
Amortization/
Depreciation (64,319) (116,493) (554,884) (348,145)
---------------------------------------------------------------------
Net loss $ (767,852) $ (432,892) $ (1,933,465) $ (912,894)
---------------------------------------------------------------------

---------------------------------------------------------------------
Current
Assets $ 1,331,804 $ 281,608
---------------------------------------------------------------------
Capital
Assets 692,387 1,542,931
---------------------------------------------------------------------
Intangible
Assets 23,507 35,085
---------------------------------------------------------------------
Total Assets $ 2,047,698 $ 1,859,624
---------------------------------------------------------------------
Current
Liabilities $ 2,691,042 $ 1,156,410
---------------------------------------------------------------------
Long-term
Debt 579,863 681,974
---------------------------------------------------------------------
Preferred
Shares 230,504 324,167
---------------------------------------------------------------------
Share Capital
& Con. Surplus 27,525,506 26,031,856
---------------------------------------------------------------------
Deficit (28,979,217) (26,334,483)
---------------------------------------------------------------------
Total Liabilities
+ Shareholders'
Equity $ 2,047,698 $ 1,859,624
---------------------------------------------------------------------


Based in Sarasota, Florida and Toronto, Canada, Carbiz is a leading
provider of Internet and software solutions to the North American
automotive industry. Carbiz's suite of business solutions includes
dealer software products focused on the finance, sub-prime finance and
"buy-here, pay-here" markets. Carbiz has 40 full-time employees and
provides finance solutions, lead generation, Internet capability and
training services. Carbiz supports more than 3,000 dealers with a
recurring revenue model, in addition to individual product sales. Carbiz
also provides a tax refund service and refund anticipation loans at a
facility in Clearwater, Florida that employs 90 people on a seasonal
basis.

In 2004, the Carbiz began leveraging its industry knowledge and software
products into company-owned credit centers, which are used-car
dealerships that offer financing to customers with poor credit. Carbiz
opened its first two credit centers in Palmetto and St. Petersburg,
Florida in 2004. The company intends to open a third credit center in
the Tampa, Florida area in early 2005. Each credit center originates,
funds, manages and collects loans for vehicles sold to customers.

For more information about Carbiz and its services, visit Carbiz's web
site: www.carbiz.com.

Forward-Looking Statements

All statements, other than statements of historical fact, in this news
release are forward-looking statements that involve various risks and
uncertainties, including, without limitation, statements regarding the
future plans and objectives of Carbiz. There can be no assurance that
such statements will prove to be accurate. Actual results and future
events could differ materially from those anticipated in such
statements. These and all subsequent written and oral forward-looking
statements are based on the estimates and opinions of management on the
dates they are made and are expressly qualified in their entirety by
this notice. Carbiz assumes no obligation to update forward-looking
statements should circumstances or management's estimates or opinions
change.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Heidi Smith Communications, Inc.
    Media Contact:
    Heidi Smith
    (941) 504-2803
    or
    Carbiz Inc.
    Company Contact:
    Carl Ritter, Chief Executive Officer
    (941) 952-9255, ext. 1014
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.