Inventronics Limited
TSX VENTURE : IVX

April 28, 2011 17:32 ET

Inventronics Announces 2010 Annual Financial Results

CALGARY, ALBERTA--(Marketwire - April 28, 2011) - Inventronics Limited ("Inventronics" or the "Corporation") (TSX VENTURE:IVX), a designer and manufacturer of custom enclosures for the telecommunications, electric transmission, cable television and other industries in North America, today announced its audited 2010 annual financial results.

For the year ended December 31, 2010, Inventronics reported a net loss of $606,000, or 13.8 cents per share, on sales of $4,938,000 compared to a net loss of $304,000, or 6.9 cents per share, on sales of $8,563,000, for fiscal 2009. The net loss for 2009 included reorganization expenses totalling $226,000 with no comparative expenses during 2010.

For the three month period ended December 31, 2010, Inventronics reported a net loss of $159,000, or 3.6 cents per share, on sales of $1,067,000 compared to a net loss of $439,000, or 10.0 cents per share, on sales of $583,000, for the final quarter of 2009.

At December 31, 2010, Inventronics was not in compliance with two of three covenants related to its long-term debt facility making its long-term loan callable. Inventronics' lender is in the process of conducting its annual review and has indicated its willingness to work with Inventronics on a 'business as usual' basis pending the outcome of the ongoing financial results. Under generally accepted accounting principles, Inventronics had reclassified as a current liability at December 31, 2010 the portion of its debt scheduled to be paid subsequent to the one-year period from its December 31, 2010 balance sheet date. Inventronics is not in default with respect to any payment of loan principal or interest. Inventronics ability to continue as a going concern is dependent upon its ability to attain profitable operations and generate funds therefrom, and to obtain borrowings from third parties sufficient to meet current and future obligations. Should Inventronics' lender demand repayment of its lending facilities, Inventronics' ability to continue as a going concern will be dependent upon its ability to secure alternative means of financing.


Selected Financial Information
Income Statement Highlights
(in thousands of dollars, except per share amounts)
Three Months EndedTwelve Months Ended
Dec. 31
2010
Dec.31
2009
Dec.31
2010
Dec.31
2009
Sales1,0675834,9388,563
EBITDA, before Reorganization costs31(242)169734
Net loss(159)(439)(606)(304)
Basis loss per share(3.6) cents(10.0) cents(13.8) cents(6.9) cents
Balance Sheet Highlights
(in thousands of dollars)
As atDecember 31
2010
December 31
2009
Working capital(2,258)323
Capital assets4,1134,702
Long-term debt, excluding current portion-2,564
Shareholders' equity1,8552,461

About Inventronics

Inventronics Limited designs and manufactures custom enclosures and other products for an array of customers in the telecommunications, electric utility, cable television, electronics and computer services industries in North America. The Corporation owns its ISO 9001-registered production facility in Brandon, Manitoba.

Shares of Inventronics trade on the TSX Venture Exchange under the symbol "IVX." For more information about the Corporation, its products and its services, go to www.inventronics.com.

Disclaimer

This news release may contain forward looking information that represents the Corporation's internal projections, expectations, estimates or beliefs concerning, among other things, future operating results and various components thereof or the Corporation's future economic performance. These statements relate to future events or future performance. All statements other than the statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "anticipates", and similar expressions. The projections, estimates and beliefs contained in such forward-looking statements are based on management's assumptions relating to the production performance of Inventronics' assets, the cost and competition throughout the telecommunications industry and the continuation of the current regulatory and tax regimes in the jurisdictions in which the Corporation operates, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to exchange rates, costs of production, outlook for sales, and other factors that may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted. Except as otherwise required under applicable securities laws, the Corporation does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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