Integrated Paving Concepts Inc.
TSX : IPA

Integrated Paving Concepts Inc.

November 03, 2005 13:17 ET

Integrated Paving Concepts Inc.: 2005 Third Quarter Financial Results

SURREY, BRITISH COLUMBIA--(CCNMatthews - Nov. 3, 2005) - Integrated Paving Concepts Inc. (TSX:IPA) releases today, unaudited summary financial results for the three and nine month periods ending September 30, 2005.



Summary Financial Information (Unaudited)

Three Months Nine Months
Ended Ended
September 30 September 30
In 000's 2005 2004 2005 2004
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Revenue $ 4,508 4,614 11,068 10,849
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Gross Profit 2,575 2,698 6,260 6,301

Earnings before depreciation,
interest and income taxes 662 915 483 1,137
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Net earnings $ 317 475 108 495
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Earnings per share - basic $ 0.05 0.07 0.02 0.07
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Total revenues for the third quarter were down 2% compared to the third quarter of 2004. On a year to date basis, revenues have increased 2% over 2004.

The Company is exposed to risk due to fluctuations in the exchange rates of the U.S. dollar and to a lesser extent, the euro. Compared to 2004 exchange rates, there was a negative impact on 2005 revenue for the quarter of $385,000 (i.e. if the exchange rates were the same as in 2004, revenue would be $385,000 higher). On a year to date basis the negative impact of the stronger Canadian dollar compared to 2004 is $897,000. Adjusting for the fluctuations in exchange rates, revenue growth would have been 6% and 10% over 2004 for the quarter and nine month periods respectively. This growth is primarily from the growth in sales of DuraTherm and the initial implementation of new Driveway Impressions franchises.

The Company's earnings for the three months ended September 30, 2005 decreased by $158,000 over the same 2004 period. For the nine months ended September 30, 2005, earnings decreased by $387,000 over the same period in 2004. This is largely due to the increase in foreign exchange losses and the increase in salaries, wages and fees due to the addition of new senior management during the first quarter of 2004 and the strategic addition of new staff to facilitate the achievement of corporate goals.



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Revenue (in thousands)
For the three months ended September 30
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Other
North America Europe International
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2005 2004 % 2005 2004 % 2005 2004 %
change change change
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Applied
Products 2,912 2,991 (3%) 578 493 17% 193 183 5%
Equipment
& Tooling 495 679 (27%) 221 80 176% 75 147 (49%)
Other 30 31 (3%) 3 7 (57%) 1 3 (67%)
Total 3,437 3,701 (7%) 802 580 38% 269 333 (19%)
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Revenue (in thousands)
For the nine months ended September 30
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Other
North America Europe International
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2005 2004 % 2005 2004 % 2005 2004 %
change change change
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Applied
Products 6,438 6,406 0% 1,264 1,139 11% 851 674 26%
Equipment
& Tooling 1,527 1,653 (8%) 465 360 29% 223 429 (48%)
Other 275 142 94% 23 25 (8%) 2 21 (90%)
Total 8,240 8,201 0% 1,752 1,524 15% 1,076 1,124 (4%)
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"We are particularly pleased with the market acceptance of DuraTherm, and the positive impact it is having on our results. With the project backlog and interest level in this new offering we see the potential for significant growth in the future," stated Clark Quintin, President and Chief Executive Officer.

At September 30, 2005, the Company's financial position remains strong with $4.3 million (September 30, 2004 - $4.0 million) in working capital and $1.2 million (September 30, 2004 - $2.1 million) in cash and cash equivalents. This reduction in cash is primarily due to increased accounts receivable offset somewhat by increased accounts payable. Accounts receivable has increased as DuraTherm sales are largely in the government market segment as part of larger construction projects, which typically have a longer collection cycle.

About Integrated Paving Concepts

Integrated Paving Concepts Inc., founded in 1992 and based in BC, Canada, provides innovative decorative paving processes and products. The Company has two basic product lines, StreetPrint Pavement Texturing™ (StreetPrint) and StreetPrint DuraTherm™ (DuraTherm), and all revenue is derived from the sales of Applied Products, Equipment & Tooling and associated services related to these product lines. The Company's products are marketed through its Licensed Applicator and franchisee networks throughout North America, and Master Licensees in countries throughout the world. The Company is committed to continued product and market development for decorative asphalt applications.

The shares of Integrated Paving Concepts Inc. trade under the symbol IPA on the Toronto Stock Exchange.

Full financial results and management discussion and analysis are available at www.sedar.ca and on the Company's website at www.streetprint.com.

Integrated Paving Concepts Inc.

Janice Stasiuk, Chief Financial Officer & Corporate Secretary

Contact Information