Broadview Press Inc.

Broadview Press Inc.

November 28, 2006 18:32 ET

Broadview Press Posts 10% Increase in Organic Sales Growth

Third Quarter Results at September 30, 2006

CALGARY, ALBERTA--(CCNMatthews - Nov. 28, 2006) -

(All figures are in Canadian dollars unless otherwise stated.)

Broadview Press (TSX VENTURE:BDP) reports a net income in Q3 2006 of $236,453 (Q3 2005: $237,894). This represents earnings per share of $0.02 (Q3 2005 earnings per share of $0.02 per share).

The company posted net sales for Q3 2006 of $1,945,393 (Q3 2005 = $1,480,230), with the 31% increase being due to allowing for significantly fewer returns in Q4 2006 than it did for Q4 2005, as shown in the comparative table below:

2006 2005
Actual gross sales for Q3 $ 2,143,212 $ 1,944,974
Projected sales returns in Q4 (234,739) (518,747)
Adjustment of Q3 sales returns
projection (made at the end of Q2) 36,920 54,003
Net sales for Q3 (in CDN $) $ 1,945,393 $ 1,480,230

Please note that the company's allowance for Q4 2005 returns, posted at Sept. 30, 2005, proved to be far too large, and that the company's Q4 2005 results benefited greatly from the resulting adjustment. The company believes its current projection for Q4 2006 returns, posted at Sept. 30, 2006, is a much better projection, meaning that its Q4 2006 results, unlike its Q4 2005 results, are not likely to benefit from a significant adjustment.

Operating expenses (net of government contributions) were up 28% in Q3 2006 as the company increased its sales and marketing efforts, and cost of goods as a percentage of sales increased to 45% from 41% in Q3 2005, due in part to sales of the Broadview Anthology of British Literature, which will have modest margins until its significant pre-publication costs have been expensed.

Broadview's quarterly financial statements, as well as its management discussion and analysis of these results, can be read by visiting Alternately, please contact Craig Lawson (see below) to have these documents sent to you directly.

Broadview Press is an internationally-oriented, Canadian-based publisher of books aimed at the university and college textbook market.

Forward-Looking Statements:

This document contains forward-looking statements involving Broadview's expectations about future financial results and other matters. These statements reflect management's current forecast of certain aspects of Broadview's future business. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical results or current expectations. The words "plan," "expect," "believe," "intent," "anticipate," "forecast," "target," "estimate," "should," "will" and similar expressions identify forward-looking statements. Risk factors include shifts in consumer demand, product schedules, product mix, competitive products and pricing, technological shifts, foreign exchange changes and other variables. Readers are referred to Broadview's other public documents for further discussions of risks and uncertainties. The factors underlying forecasts are dynamic and subject to change. As a result, forecasts speak only as of the date they are given and do not necessarily reflect Broadview's outlook at any other point in time.

Closing Share Price: $0.155 (at November 27, 2006)

Shares issued: 11,096,107 (at November 27, 2006)

Contact Information

  • Broadview Press Inc.
    Michael Harrison
    President and CEO
    Guelph, ON
    (519) 837-0915
    Broadview Press Inc.
    Craig Lawson
    Corporate Affairs Coordinator
    Calgary, AB
    (403) 232-6863