RoaDor Industries Ltd.
TSX VENTURE : RDR

RoaDor Industries Ltd.

January 12, 2007 15:41 ET

RoaDor Industries Ltd. Announces Financial Results for Fiscal Year Ended September 30, 2006

VAUGHAN, ONTARIO--(CCNMatthews - Jan. 12, 2007) - RoaDor Industries Ltd. ("RoaDor")(TSX VENTURE:RDR), announces financial results for the year ended September 30, 2006.

Sales for the year ended September 30, 2006 were $1,331,673 versus $1,322,245 for the year ended September 30, 2005; a 3% increase over 2005. This was well below management targeted sales. This was primarily due to lower than anticipated sales growth in the 4th quarter, and reduced sales in the 3rd quarter. The primary reason for the disappointing sales growth is the overall impact of the sales force expansion efforts taking longer than anticipated, and consuming more of management's resources in order to get this network up and running than was originally expected. The reduced sales in the 3rd quarter 2006, and the lower than expected sales growth in the 4th quarter are directly attributable to the two major foundation-building investments: move to new premises which management believes will quadruple our production capacity and the expansion of our sales representation by 8x, adding 33 new sales agents.

We continue to see significant growth in our customer base with numerous new trial programs in place particularly in the United States. These trials have proceeded well with increasing acceptance and customers now specifying RoaDor as their standard door including the 2nd largest dairy in the United States, the largest wine and spirits distributor in the United States south east and a major drug store chain in the United States.

These successes amongst others have accelerated the need to have local and regional parts distributors to supply replacement parts and aftermarket door replacement kits to be available locally. An initiative has commenced to establish a distributor / dealer network throughout the United States. This is only now possible to implement with our expanded US sales representation. We have established 6 dealers / distributors in the key US north east and are in discussion with others throughout the US. A key distributor agreement was just signed in August 2006 with North East Great Dane who is reported to be the largest Great Dane trailer dealer in North America. Implementation of this is commencing. RoaDor management is optimistic about this significant potential opportunity to work closely with a major player to better support our growing customer base as well as establishing new customers through their network.

Gross profit for the 4th quarter was $94,922 or 30.49 %( 4th quarter 2005 - $87,769 or 31.28%), a slight decline from the comparative period in the prior year. While the company's gross profit has continued to be affected by the decline in value of the US dollar, the majority of the decline in gross profit in the 4th quarter 2006 is attributed to product mix. Gross profit overall for fiscal 2006 was improved over the prior year at 32.23% (2005 - 28.93%), largely due to a shift in product mix over the prior year, partially offset by the continued decline in the US dollarThe company incurred a loss from operations of $306,642 (2004 - $506,762). The reduced loss is due to the increased sales, which was partially offset by an increase in expenses, and reduced scientific research and development grants.

The company incurred a loss from operations in the 4th quarter of $235,809 (2005 - $120,252); and a loss for the year of $589,241 (2005 - $306,642). The overall increase in sales and gross margin was offset by an increase in operating expenses.

A complete financial statement and management's discussion and analysis can be found on the SEDAR web site: www.sedar.com.

About RoaDor Industries Ltd:

RoaDor has developed, patented and commercialized polyvinyl chloride (PVC) roll-up doors designed specifically for the commercial truck, van and trailer industry. Marketed and sold under the RoaDor name, they represent a major improvement over the traditional wood or aluminum doors. RoaDor roll-up doors are approximately half the weight and eliminate the major industry problems such as paint peeling and delamination, roller and hinge rusting and doors which are difficult to operate. The commercial truck, van and trailer market represents a large opportunity. In the United States alone there are 6.5 million vehicles with roll-up doors currently on the road and in excess of 200,000 new vehicles produced into this market each year.

RoaDor now has a complete line of roll up doors for the commercial truck, van and trailer industry. Noted for their light weight, these insulated doors share the benefits of the dry freight door, at approximately 50% of the weight of conventional doors, exceptional ease of operation, durability, and low maintenance. The excellent thermal efficiency and interlocking panel system provide superior freight protection. Numerous end users have stated that the ease of operation will help them reduce driver fatigue and compensation claims.

Further information on RoaDor can be found on the company's web site: www.roador.com.

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

Contact Information

  • RoaDor Industries Ltd.
    Debra Farquharson
    Chief Financial Officer
    (905) 532-0891 ext226
    or
    RoaDor Industries Ltd.
    51A Caldari Road, Units 3&4,
    Vaughan, ON
    Toll Free: 1-877-263-9153
    (905) 532-0895 (FAX)
    Website: www.roador.com