Carbiz Inc.
OTC Bulletin Board : CBZFF

Carbiz Inc.

June 14, 2007 14:01 ET

Carbiz Inc. Announces First-Quarter Results

SARASOTA, FLORIDA--(Marketwire - June 14, 2007) - Carl Ritter, Chief Executive Officer of Carbiz Inc. (OTCBB:CBZFF) ("CarBiz" or the "Company"), announced results for the company's first-quarter ended April 30, 2007. CarBiz is pleased to report that total revenue for the first quarter increased by $122,828, or approximately 16% compared to the same period last year.

CarBiz continues to concentrate on the CarBiz Auto Credit division, which contributed $270,606 in sales, an increase compared to the same period last year. The software and consulting division produced better than expected results with $609,980 in total revenue.

Operating expenses increased by $3,502. While overall operating expenses increased due to SB-2 expense, personnel expense and selling expense decreased by a total of $27,764 as a result of lower advertising and sales commissions expense. Net income for the three month period ended April 30, 2007 was $760,173, compared to a net loss of $(234,829) for the same period last year. While operational results for the period showed improvement compared to the prior year, much of the difference in net income was the result of the quarterly adjustment in the fair value of outstanding warrants and other derivative instruments, which generated a non-cash gain of $678,815.

Also during the quarter, CarBiz closed two funding transactions. On February 28, 2007, the Company sold $2,500,000 of secured convertible debentures to Trafalgar Capital Specialized Investment Fund, Luxembourg. Of this amount, $1,750,000 was released as of April 30, 2007. On March 23, 2007, the Company entered into a Loan and Security Agreement with Colossus Capital Fund, L.P. for a credit facility with a maximum commitment of $10 million, expiring on March 23, 2011. The initial amount of the credit facility is $5 million. At April 30, 2007, the Company had total outstanding borrowings under the credit facility of $249,000.

Mr. Ritter says, "As a result of the funding transactions, we are well positioned to continue increasing our Auto Credit division sales over the next year, and to accomplish our previously announced plan to expand to 15 CarBiz Auto Credit locations by 2010. At the same time, our software and consulting business continues to deliver improved results."

This press release contains a summary of the information disclosed in the Company's Form 10-Q-SB for the quarterly period ended April 30, 2007. Please refer to that filing for complete financial and other information for such period.

Three months ended April 30, 2007 compared to the three months
ended April 30, 2006

% of % of
----- -----
April 2007 Revenue April 2006 Revenue
----------- ------- ---------- -------
Revenue $ 880,586 100 $ 757,758 100.0
Cost of sales $ 415,954 47.2 $ 437,225 57.7
Gross profit $ 464,632 52.8 $ 320,533 42.3
Gain on debt forgiveness $ 391,337 44.4 $ -
Operating expenses $ 678,815 77.1 $ 675,313 89.1
Operating income (loss) $ 177,154 20.1 $ (354,780) (46.8)
Interest expense $ (89,508) 10.2 $ (35,438) (4.7)
Gain (loss) on derivative
instruments $ 678,621 77.1 $ -
Minority interest
income (loss) $ (6,094) (0.7) $ 10,197 1.3
Net income (loss) from
continuing operations $ 760,173 86.3 $ (380,021) (50.2)
Net income (loss) from
discontinued operations $ - 0.0 $ 145,192 19.2
NET INCOME (LOSS) $ 760,173 86.3 $ (234,829) (31.0)
Income (loss) per common
share (1) $ 0.01 $ (0.01)
Total assets $ 1,922,316 $ 1,127,676
Long-term liabilities $ 22,270 $ 250,994

(1) Fully diluted loss per share does not differ from basic loss per share
for any of the above-noted periods as the conversion or exercise of any
potentially dilutive securities would be anti-dilutive.

About CarBiz

Based in Sarasota, Florida, CarBiz Inc. is a leading provider of software, training and consulting solutions to the United States automotive industry. CarBiz's suite of business solutions includes dealer software products focused on the "buy here - pay here", sub-prime finance and automotive accounting markets. CarBiz also operates "buy here - pay here" dealerships in Florida through its CarBiz Auto Credit division that are wholly-owned or joint venture companies. Capitalizing on expertise developed over 10 years of providing software and consulting services to "buy here - pay here" businesses across the United States, CarBiz entered the market in 2004 with a location in Palmetto, Florida. CarBiz has added two more credit centers since - in Tampa and St. Petersburg - and CarBiz seeks to expand its operations in Florida in the future. For more information about CarBiz and its services, visit CarBiz's web site:

Forward-Looking Statements

All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future growth plans and objectives of CarBiz. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements as a result of known and unknown risks, uncertainties and other factors. Such factors that could cause actual results and future events to differ from those anticipated in such statements include, but are not limited to, the market acceptance of CarBiz's Auto Credit Centers, CarBiz's ability to measure the default rate of its borrowers, competition, the impact of any changes in applicable government regulation and general economic conditions. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. CarBiz assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

Contact Information

  • Carbiz Inc.
    Jennifer Downey
    Software Operations Manager
    (941) 952-9255, ext. 1203