Carbiz Inc.

Carbiz Inc.

June 02, 2006 08:30 ET

Carbiz Inc. Announces Year-End Results

SARASOTA, FLORIDA--(CCNMatthews - June 2, 2006) - Carl Ritter, Chief Executive Officer of Carbiz Inc. (TSX:VENTURE:CZ) ("Carbiz" or the "company"), announced the company's results for the year ended Jan. 31, 2006. Revenue increased by 31% or U.S. $1,057,648, compared to the prior year. This was a result of software and consulting revenue growth of 14% or U.S. $297,727 and an increase in auto sales from the Carbiz chain of dealerships of 152% or U.S. $902,124.

Cost of sales grew by U.S. $790,186, a result of the cost of the additional vehicles sold through the chain of dealerships in Florida.

Operating expenses were reduced by U.S. $196,919 compared to the prior year. This reduction was accomplished while the company continued to absorb one-time legal and audit expenses of U.S. $139,407 directly related to its U.S. registration statement and desired quotation of the Over-The-Counter Bulletin board (OTC:BB).

According to Ritter, "Carbiz made material progress this past year. While working toward the effectiveness of its U.S. registration statement, the company continued to grow revenues aggressively and reduce its operating costs at the same time. The fact that operating costs were substantially reduced while absorbing one-time costs related to the registration statement sends a clear message about our commitment to cost control and efficiency."

All figures are U.S. Year Ending Year Ending
Jan. 31, 2006 Jan. 31, 2005
Revenue $4,417,199 $3,359,551
Cost of sales $2,276,692 $1,486,506
Operating expenses $2,703,650 $2,900,569
Operating (loss) ($563,143) ($1,027,524)
Interest income (expense) ($153,161) ($126,908)
Amortization/Depreciation ($122,689) ($515,126)
Minority interest $8,667 $0
Net (loss) ($830,326) ($1,669,558)
Loss per common share ($0.02) ($0.04)

Fiscal 2005 Restatement

On Oct. 12, 2004, the Company completed a Convertible Debenture financing (the "Debentures") which is described in Note 11 in the accompanying financial statements. The Company determined that the Debentures were financial instruments that contained both a debt and equity component. In measuring and accounting for the allocation between debt and equity, the Company incorrectly allocated a portion of the proceeds to equity and recorded accretion expense during the year relating to a contingent event, which resulted in a required restatement for the year ended Jan. 31, 2005.

As a result of this restatement, the equity portion of the convertible debentures has decreased from $794,523 to $Nil, the long-term debt portion of the convertible debentures has increased from $480,428 to $1,252,614, interest and other expenses has decreased from $171,722 to $149,385, and net loss for the year has decreased from $1,981,293 to $1,958,956. The loss per share (basic and diluted) remains unchanged at $0.05 per share.

About Carbiz

Based in Sarasota, Florida, Carbiz is a leading provider of software, training and consulting solutions to the U.S. automotive industry. Carbiz's suite of business solutions includes dealer software products focused on the "buy-here, pay-here", sub-prime finance and automotive accounting markets. Carbiz also operates a chain of "buy-here pay-here" dealerships in Florida which are wholly-owned and joint venture companies. For more information about Carbiz and its services, visit Carbiz's web site:

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Carbiz Inc.
    Jennifer Downey
    Media Contact
    (941) 952-9255, ext. 1203
    Carbiz Inc.
    Stanton Heintz
    Chief Operating Officer
    (941) 952-9255, ext. 1501