AZCAR Technologies Incorporated
TSX : AZZ

AZCAR Technologies Incorporated

March 09, 2009 15:50 ET

AZCAR Announces Financial Results for 2008

MARKHAM, ONTARIO--(Marketwire - March 9, 2009) - Stephen F. Pumple, CEO of AZCAR Technologies Incorporated (TSX:AZZ) today announced record fourth quarter and record annual revenue of C$19.6 million and C$74.1 million respectively in 2008. Revenue growth was primarily generated from AZCAR's UK based subsidiary, Megahertz Broadcast Systems which recorded a C$6.9 million or 53 per cent increase in revenues year over year, resulting from work on several new Outside Broadcast (OB) vehicles. North American revenues were down C$2.9 million as clients delayed the start of projects.



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Consolidated Statement
of Operations 2008 2007 2008 2007
(CDN $000) Three Months Ended Dec. 31 Year Ended Dec. 31
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(unaudited) (unaudited) (audited) (audited)

Revenues 19,604 19,136 74,065 70,026
Cost of goods sold 15,353 16,948 59,449 60,474
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Gross Margin 4,251 2,188 14,616 9,552
Gross Margin % 21.7% 11.4% 19.7% 13.6%
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Operating expenses 4,416 2,059 13,485 9,701
Interest expense 24 106 244 193
Foreign exchange loss (gain) (372) 32 (620) 624
Stock-based compensation 15 20 63 66
Amortization 137 106 464 385
Write down of goodwill - 22 - 22
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4,220 2,345 13,636 10,991
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Income (loss) before income
taxes and minority Interest 31 (157) 980 (1,439)
% of revenues 0.2% (0.8%) 1.3% (2.1%)
Income tax expense (recovery) (197) 508 (163) (308)
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Income (loss) before Minority
Interest 228 (665) 1,143 (1,131)
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Minority Interest - 19 - 37

Net Income (Loss) 228 (646) 1,143 (1,094)
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Earnings per share
Basic (cents) 1.6 (4.2) 7.3 (7.0)
Fully Diluted (cents) 1.6 (4.2) 7.3 (7.0)
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Cash dividends per share
(cents) 0.0 0.0 0.0 0.0
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The increase in net income was due to higher revenues, improved project execution as evidenced by higher gross margins (19.7 per cent vs. 13.6 per cent), efficiencies realized through our internal restructuring and foreign exchange gains.

Operating expenses in 2008 increased by 39 per cent to $13.5 million compared to $9.7 million in the previous year. The increase in operating expenses is primarily due to the internal restructuring combined with the under utilization of our professional staff. The under utilization is the result of improved project execution on existing projects as well as customer delays on scheduled projects for which we had allocated resources. As a result, staff levels were reduced to meet anticipated project workloads.

The significant infrastructure investments made by AZCAR in 2008, including our internal restructuring and rationalization of the Markham and Canonsburg workforce, have had, and will continue to have a positive impact on the Company's operations in 2009. The Company has begun the implementation of a new enterprise MIS system which is expected to add significant efficiencies to the operation of the Company when it is completely installed later this year.

The Company provides the broadcast and new media entertainment industries with professional services, related equipment and materials. Client businesses and applications span the marketplace and include private and public television and radio broadcast, post-production, satellite television, and education markets.

The stock trades on the Toronto Stock Exchange under the symbol: AZZ.

Except for historical information, this news release may contain certain "forward looking statements". Forward looking statements are statements that are not historical facts and are subject to a variety of risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company's expectations and projections.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • AZCAR Technologies Incorporated
    Roger Miller
    Chief Financial Officer
    (905) 470-2545
    (905) 470-2943 (FAX)
    Email: roger.miller@azcar.com