AZCAR Technologies Incorporated
TSX : AZZ

AZCAR Technologies Incorporated

November 15, 2006 15:15 ET

AZCAR Announces Results for the Third Quarter of 2006

MARKHAM, ONTARIO--(CCNMatthews - Nov. 15, 2006) - Stephen F. Pumple, President & CEO of AZCAR (TSX:AZZ), announced third quarter revenues of C$15.6 million, compared to C$13.5 million in Q3 2005. However, AZCAR experienced several customer driven project delays and cost overruns which reduced the planned revenues and margins in Q3. These delayed projects were pushed back to Q4 and together with new business secured and current opportunities have resulted in a significant backlog for Q4 2006 and a substantial backlog into 2007. The stronger Canadian dollar and the greater proportion of lower margin equipment sales to higher margin service revenue continue to adversely affect the Company's income.



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2006 2005 2006 2005
Three Months Ended Sept 30 Nine Months Ended Sept 30
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(CDN $000) (unaudited) (unaudited) (unaudited) (unaudited)

Revenues 15,634 13,541 47,892 46,505
Cost of goods sold 13,418 10,548 39,744 38,956
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Gross Margin 2,216 2,993 8,148 7,549
Gross Margin % 14.2% 22.1% 17.0% 16.2%
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Operating expenses 2,404 2,023 7,435 5,712
Stock-based
compensation 11 16 28 38
Amortization 80 75 226 203
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2,495 2,114 7,689 5,953
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Income (loss) before
income taxes and
Minority Interest (279) 879 459 1,596
% of revenues (1.8%) 6.5% 1.0% 3.4%
Income tax expense
(recovery) (88) 420 174 701
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Income (loss) before
Minority Interest (191) 459 285 895
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Minority Interest (7) (31) 1 (97)

Net Income (Loss) (184) 490 284 992
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Earnings per share
Basic (cents) (1.2) 3.2 1.8 6.4
Fully Diluted (cents) (1.1) 2.9 1.7 6.0
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Cash dividends per
share (cents) 0.0 0.0 0.0 0.0
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The higher operating expenses reflect the impact of the Procom acquisition and the addition of staff for the Atlanta office together with sales representatives in Seattle, Los Angeles, Dallas and Chicago.

AZCAR is an independent technology integration company providing digital media technology solutions for the broadcast and telecommunications industries, broadcast ministries, higher education institutions, and multi-purpose sports and entertainment venues. AZCAR provides consulting, engineering, systems design, integration, project management and the supply of related materials, equipment and software. The Company's business operates through the parent company and its subsidiaries. The stock trades on the Toronto Stock Exchange under the symbol: AZZ.

This review contains Management's discussion of the AZCAR's operational results and financial condition, and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2005, and the related "Management's Discussion and Analysis" (MD&A).

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 ext. 244
    Email: roger.miller@azcar.com