Carbiz Inc.
OTC Bulletin Board : CBZFF

Carbiz Inc.

September 11, 2009 09:40 ET

CarBiz Inc. Announces Second-Quarter Earnings

SARASOTA, FLORIDA--(Marketwire - Sept. 11, 2009) - CarBiz Inc. (OTCBB:CBZFF) delivered second-quarter earnings in the amount of $4,417,892. Revenue grew by 46% compared to the same period last year.

Operating income for the quarter was $1,405,848 as compared to an operating loss of $1,116,753, in the same period last year. A summary of the results is below and more detail can be found in the 10Q that was filed earlier today.

Three months ended Three months ended
July 31, 2009 July 31, 2008
------------------- -------------------
TOTAL REVENUE $ 12,819,380.0 $ 8,783,948.0
TOTAL COST OF SALES 7,288,277 5,375,682
------------------- -------------------
GROSS PROFIT 5,531,103 3,408,266
TOTAL OPERATING EXPENSE 4,125,255 4,525,019
------------------- -------------------
OPERATING INCOME (LOSS) $ 1,405,848 $ (1,116,753)

INTEREST AND OTHER EXPENSES (1,060,237) (1,877,114)
DERIVATIVE INSTRUMENTS 4,709,781 2,010,476
------------------- -------------------
NET PROFIT FOR THE PERIOD $ 4,417,892 $ 1,530,838

As at July 31, 2009 As at Jan. 31, 2009
Cash and cash equivalents $ 818,625 $ 674,624
Accounts Receivable, net 281,782 85,649
Notes receivable, net 16,971,792 19,944,398
Net investment in leases 11,479,037 -
Inventory 5,116,750 2,923,696
Property plant and equipment 693,050 596,415
Deferred financing costs and
prepaid interest 4,019,712 625,197
Other assets 553,386 333,046
TOTAL ASSETS $ 39,934,134 $ 25,183,025
Accounts payable and
accrued liabilities $ 3,841,360 $ 4,527,041
Notes payable 28,228,580 41,492,765
Capital leases - 2,620
Convertible debentures 569,584 2,110,443
Derivative liabilities 7,807,054 11,796,217
Other liabilities 153,240 1,985
-------------------- -------------------
TOTAL LIABILITIES $ 40,599,818 $ 59,931,071

COMMON SHARES 20,818,928 19,364,233
ADDITIONAL PAID-IN CAPITAL 7,727,647 6,788,937
COMPREHENSIVE LOSS (385,197) (385,197)
ACCUMULATED DEFICIT (28,827,062) (60,516,019)
TOTAL EQUITY $ (665,684) $ (34,748,046)

TOTAL LIABILITIES AND EQUITY $ 39,934,134 $ 25,183,025

Paul Whitley Named Chief Operating Officer

In other corporate news, CarBiz CEO Carl Ritter is pleased to announce the promotion of Paul Whitley to the position of Chief Operating Officer. Paul was previously the director of finance for the company.

Mr. Ritter said, "Paul is a great addition to the executive team. His focus will be in the area of corporate finance and collections and his experience will help CarBiz to further improve its operations."

About CarBiz Inc.

Leveraging two decades of industry experience, CarBiz operates 25 Buy-Here Pay-Here (BHPH) credit centers throughout the United States. The company also provides training, consulting, performance groups and management services for dealers seeking to improve their BHPH programs.

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. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any of our future results or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to the following: (i) whether we are successful in implementing our business strategy; (ii) our ability to increase revenues in the future and to continue as a going concern; (iii) our ability to obtain additional financing on terms favorable to us, if at all, if our operating revenues fail to increase; (iv) our ability to attract and retain key personnel; (v) the impact on the market price of our common shares of the concentration of common share ownership by our directors, officers and greater than 5% shareholders, which may delay, deter or prevent actions that would result in a change of control; (vi) the significant fluctuation of the market price of our common shares; (vii) costly difficulties we may face in the assimilation of the operations, technologies and products of companies that we may acquire in the future; (viii) the adequacy of our insurance coverage to cover all losses or liabilities that may be incurred in our operations; (ix) our dividend policy; (x) the impact on our financial position, liquidity and results of operations if we underestimate the default risk of sub-prime borrowers; (xi) general economic conditions; (xii) general competition; (xiii) our ability to comply with federal and state government regulations; (xiv) potential infringement by us of third parties' proprietary rights; (xv) defects in our products; (xvi) our compliance with privacy laws; (xvii) our ability to obtain adequate remedies in the event that our intellectual property rights are violated; (xviii) our ability to develop and market on a timely and cost-effective basis new products that meet changing market conditions, and (xix) the risk factors identified in our most recent Annual Report on Form 10-K, including factors identified under the headings "Description of Business," "Risk Factors" and "Management's Discussion and Analysis or Plan of Operation." Although we believe that expectations reflected in these forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or other future events. Moreover, neither we nor anyone else assumes responsibility for the accuracy and completeness of these forward-looking statements. We are under no duty to update any of these forward-looking statements. You should not place undue reliance on these forward-looking statements.

Contact Information