Broadview Press Inc.
TSX VENTURE : BDP

Broadview Press Inc.

August 24, 2005 12:50 ET

Broadview Press Posts Better Bottom Line, Better Cash Flow

CALGARY, ALBERTA--(CCNMatthews - Aug. 24, 2005) - Broadview Press Inc. (TSX VENTURE:BDP)

Broadview Press Inc. Posts Quarterly Results at June 30, 2005

Closing Share Price: $0.18 (at June 30, 2005)
Shares issued: 10,975,607 (at June 30, 2005)

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

Broadview Press Inc. (TSX-V: BDP) is pleased to report increased revenue, lower expenses, and an improved bottom line in the second quarter. Broadview's financial results have improved in both Q1 and Q2 when compared to 2004.

In the second quarter, net sales were up 1 per cent, and operating expenses were down 9 per cent when compared to the second quarter of 2004. Further, cost of goods sold as a percentage of net sales was 57 per cent, an improvement over 63 per cent in the second quarter of 2004.

Through the first six months of the year, net sales were up 12 per cent, and operating expenses were down 8 per cent when compared to the first six months of 2004. Further, cost of goods sold as a percentage of net sales was 56 per cent, an improvement over 61 per cent through the first six months of 2004.

Broadview's business is seasonal, and losses are typically posted in the first and second quarters, as the company invests in promotional efforts that result in significant third and fourth quarter sales. The improvements in revenue and expenses have resulted in improvements to the bottom line as well. In the second quarter, Broadview posted a net loss of $234,173, versus a net loss of $289,456 in the second quarter of 2004. Through the first six month of the year, Broadview has posted a net loss of $379,335, compared with a net loss of $489,073 through the first six months of 2004.

Perhaps the most important improvement in Broadview's financial results is in its cash flow performance. In the second quarter, Broadview's net cash outflow from operations was $421,183, an improvement from $632,578 in the second quarter of 2004. Through the first six months of the year, Broadview's net cash outflow from operations was $131,323, a dramatic change from the first six months of 2004, when its net cash outflow from operations was $809,962.

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

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

Broadview Press Acquires the Assets of Garamond Press

On July 15, subsequent to the end of the second quarter, Broadview Press acquired the assets of Garamond Press Ltd., a smaller, privately held Canadian publisher of higher education books in the social sciences. As this is an area where Broadview is currently well established, the books can be incorporated into the Broadview list with minimal extra expense, and the books will benefit from Broadview's larger sales force and marketing efforts. The company expects that the acquired assets will increase its net sales by up to $250,000 per year.

Recognition for Broadview Books

A History of Science in Society: From Philosophy to Utility, by Andrew Ede and Lesley Cormack, was named a Finalist in the Alberta Book Awards Scholarly Book of the Year category.

The Meanings of "Beauty and the Beast," by Jerry Griswold, has been chosen as a Finalist for the Mythpoeic Society's Scholarship Award for Myth and Fantasy Studies. The winner will be announced in late August.

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.

Contact Information

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