Fareport Capital Inc.

Fareport Capital Inc.

June 27, 2005 12:48 ET

Fareport Capital Inc. Reports Improved Results in Third Quarter

TORONTO, ONTARIO--(CCNMatthews - June 27, 2005) - Fareport Capital Inc.(TSX VENTURE:CAB) today reported improved financial performance in the third quarter of fiscal 2005 and progress toward achieving its strategic initiatives.

During the third quarter of fiscal 2005 revenues rose by 9% to $2,464,842 and the net loss declined by 84% to $43,398 after including an $80,000 provision for professional and legal expenses associated with legal claims being investigated by the Company. In the comparable period in 2004, Fareport reported a net loss of $272,750 on revenues of $2,253,601.

Fareport generated revenues of $7,268,777 during the nine months ended April 30, 2005, a 19% increase from revenues of $6,099,331 in 2004. On a year-to-date basis the Company also reported a 50% reduction in the net loss of $558,537 or ($0.02) per share compared to a net loss of $1,120,126 or ($0.03) per share in the previous year.

"I am very pleased that for the first time in Fareport's operating history the Company achieved positive cash flow of $86,063 in the third quarter of this year," commented Lou Elmaleh, President and Chief Executive Officer. "With a focused vision now in place and several expansion initiatives underway, we are confident that with proper execution Fareport can evolve into a major force within the personal transportation services industry."

Fareport continues to make progress in new business development, improving operating efficiencies and implementing various cost reduction measures. The taxi fleet has grown to over 320 cabs and several major accounts have recently come on stream. In addition, the Company is working on several technological projects which will place our operations in the forefront of the taxi industry.

Looking ahead, building on a well-established foundation and focusing on improving Fareport's revenues and reducing operating costs will allow the Company to become solidly profitable and attract the investment capital required for future growth and development. Management expects that Fareport's financial condition will continue to strengthen with strong growth in revenues and cash flows over the next twelve months.

The Board of Directors recently granted 275,000 incentive stock options to two directors and six employees of the Company. The options were granted at an exercise price of $0.10 per common share and are exercisable over a period of five years, subject to a four month hold period and vesting provisions.

The Board of Directors also authorized the issuance of 500,000 treasury common shares representing a $25,000 performance bonus payable to the Chief Executive Officer for fiscal 2004. The bonus was approved in recognition of Mr. Elmaleh's achievements during the past year including the negotiation and resulting elimination of a $12 million preferred share liability as well as, the acquisition and integration of the Trax transportation/shuttle operation. The issuance of these shares has been approved by regulatory authorities and is subject to a four month hold period expiring October 16, 2005.

Fareport Capital currently operates the Crown Taxi and Olympic Taxi brokerages and dispatch operations in the city of Toronto. The Crown Taxi division dispatches to over 300 vehicles. In addition, through its Crown Transportation and Trax Shuttle Service divisions, the Company offers charter transportation services. Fareport is an innovator in the fragmented North American taxi brokerage business. In addition, to its new business development initiatives which include acquiring and consolidating brokerage operations in the greater Toronto area and providing vehicle financing to taxicab operators, Fareport, has within the past two years become one of the first taxi companies in North America to install wireless point-of-sale terminals in its entire fleet, enabling customers to make debit or credit card payments in its taxis.

Fareport cannot guarantee that any forward-looking statements contained in this news release will materialize. Nor is it possible for Fareport to commit itself to updating information about risks and other factors pertaining to its business that might appear in this or any other public disclosure documents.

Neither the TSX Venture Exchange, nor any other Regulatory Authority has approved or disapproved of the contents of this news release.

Contact Information

  • Fareport Capital Inc.
    Lou Elmaleh
    President and Chief Executive Officer
    (416) 750-1167