International Road Dynamics Inc.

International Road Dynamics Inc.

March 28, 2006 10:14 ET

IRD Announces First Quarter 2006 Results

SASKATOON, SASKATCHEWAN--(CCNMatthews - March 28, 2006) - International Road Dynamics Inc. (TSX:IRD) (IRD) announced today results for the three months ended February 28, 2006.

Sales in the first quarter of fiscal 2006 were $6.3 million compared to $7.2 million last year. The decrease is due primarily to lower business volumes in the Company's North American markets compared to the prior year period, as a result of the previously disclosed delay in implementing the new transportation infrastructure spending in the United States. Sales in last year's first quarter also included a large Canadian installation. The Company's first fiscal quarter is typically its slowest of the year.

IRD remains the world's largest provider of Weigh-In-Motion systems and solutions for the global Intelligent Transportation Systems (ITS) market. The Company has an installed base of more than 2,500 systems throughout North America, South and Central America, Europe, Asia and Australia.

As a result of lower sales volumes to cover fixed operating costs, gross margin declined to 26.2% of sales from 30.2% in last year's first quarter. Administrative and marketing expenses were marginally lower in the first quarter of fiscal 2006 due to cost control measures.

As a result of the reduced sales, earnings before interest, taxes, depreciation and amortization (EBITDA) was a loss of $16,614 in the first quarter of fiscal 2006 compared to earnings of $332,724 last year. The Company generated a net loss of $109,776 or $0.01 per common share for the three months ended February 28, 2006 compared to net income of $88,474 or $0.01 per common share in the first quarter of 2005.

IRD's balance sheet remained strong at the end of the first quarter with working capital of $7.1 million compared to $7.8 million at the end of fiscal 2005. Long-term debt was reduced while shareholders equity stood at $13.7 million or $0.99 per common share.

"While we have experienced a slow start to the new year, we expect our sales volumes will pick up significantly as we progress through the balance of fiscal 2006," commented Terry Bergan, President and CEO. "The passage of the new funding commitment for investment in ITS solutions by the US government should result in solid growth in our US markets beginning later in the year. This growth will be underpinned by our strong and growing presence in our international markets, our expanding service and maintenance business, and our ongoing research and development initiatives."

Financial Highlights (financial statements are available on the Company's web site

Three Months
Period Ended February 28, 2006 2005
(in $000's except per share amounts)

Sales 6,324 7,167
EBITDA (17) 333
Net Earnings (110) 88
Net Earnings per Common Share (basic) $ (0.01) $ 0.01
Working Capital 7,071 7,483
Shareholders' Equity per Share $ 0.99 $ 0.94
Common Shares Outstanding 13,834 13,766

Certain statements in this discussion may include "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of International Road Dynamics Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this discussion, such statements use such words as "may", "will", "expect", "anticipate", "project", "believe", "plan", and other similar terminology. The risks and uncertainties are detailed from time to time in reports filed by the Corporation with the securities regulatory authorities in applicable provinces and territories of Canada. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of the Corporation to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

As used herein, "EBITDA" means earnings before interest, income taxes, depreciation, and amortization, and includes gains or losses from foreign exchange and gains or losses from the Company's equity investment in PAT Brazil. EBITDA is not a recognized measure under Canadian generally accepted accounting principles ("GAAP"). Management believes that EBITDA is a useful supplemental measure to net earnings (loss), as it provides investors with an indication of operating performance prior to debt service, capital expenditures and income taxes. Investors should be cautioned, however, that EBITDA should not be construed as an alternative to net earnings (loss) determined in accordance with GAAP as an indicator of the Corporation's performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. The Corporation's method of calculating EBITDA may differ from the methods by which other companies calculate EBITDA and, accordingly, EBITDA may not be comparable to measures used by other companies.

IRD is a highway traffic management technology company specializing in supplying products and systems to the global Intelligent Transportation Systems (ITS) industry. IRD is a North American company based in Saskatoon, Saskatchewan with sales and service offices throughout the United States and overseas. Private corporations, transportation agencies and highway authorities around the world use IRD's products and advanced systems to manage and protect their highway infrastructures.

The Company's shares trade on the Toronto Stock Exchange under the symbol IRD.

Contact Information

  • International Road Dynamics Inc.
    Terry Bergan
    President & CEO
    (306) 653-6600 or U.S. (303) 355-5998
    International Road Dynamics Inc.
    Francine Senecal-Lepage
    Investor Relations
    (306) 653-6603
    (306) 653-6609 (FAX)