International Road Dynamics Inc.
TSX : IRD

International Road Dynamics Inc.

April 23, 2008 10:42 ET

IRD Announces First Quarter 2008 Results

SASKATOON, SASKATCHEWAN--(Marketwire - April 23, 2008) - International Road Dynamics Inc. (TSX:IRD) (IRD), the world's largest provider of Weigh-In-Motion systems and solutions for the global Intelligent Transportation Systems (ITS) market, today announced its results for the three months ended February 29, 2008.

Sales for the first quarter of fiscal 2008 ended February 29, 2008 were $6.9 million compared to $8.3 million for the same period last year.

Revenues in the United States rose 10.4% to $3.8 million from $3.5 million in the prior year period due primarily to increased revenue from in-vehicle driver management-GPS systems and the continuation of an 8 year contract to provide transponder administration services for the North Carolina Department of Transportation which started operation in the third quarter of fiscal 2007.

Overseas sales in the first quarter of fiscal 2008 were $2.2 million compared to $3.4 million last year due to decreased sales volumes in China, India and Chile. Management believes that recent new contract awards in India and Chile, as well as its recent acquisition of Xuzhou-PAT Control Technologies Limited in China in the first quarter of 2008, will generate increased sales volumes in the Company's overseas markets through the balance of the year and going forward.

Canadian sales were $0.9 million in the first quarter of 2008 compared to $1.4 million in the prior year. The decrease is due primarily to the delivery and installation of two large data collection and truck pre-clearance site contracts completed in the first quarter of fiscal 2007.

"We are excited about the new orders recently received and the momentum in our off-shore markets. Our results in the first quarter were impacted by cyclical nature of our business however, we remain optimistic that the increased level of orders recently received will generate improved results in the latter part of fiscal 2008 and going forward," commented Terry Bergan, President and CEO.

The Company's service and maintenance contract revenues remained strong in the first quarter of fiscal 2008. This base of recurring revenue is expected to provide a significant portion of the Company's total revenues going forward. Recent awards and renewals include additional value added data services consistent with the Company's strategy to become an Application Services Provider (ASP) for data collection, in-vehicle driver management-GPS systems and other service contracts.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $0.2 million in the first quarter compared to $0.9 million for the same period last year. Gross margins as a percentage of sales were marginally lower in the first quarter compared to the prior year period due to the negative impact resulting from the decline in the value of the U.S. dollar and a sales mix in the period that included a smaller proportion of higher margin IRD products than the prior year.

Administrative and marketing expenses in the quarter were relatively flat compared with the prior year. Research and development costs were maintained at the same level as the previous year as the Company continues an active program of technology development aimed primarily at adding to the functionality of products developed over the past few years. Amortization expense increased primarily due to the commencing of the amortization of the Company's new manufacturing facility completed in the fourth quarter of fiscal 2007 and the amortization of equipment costs for the North Carolina transponder project beginning in the third quarter of fiscal 2007.

The Company generated a net loss of $0.2 million or $0.01 per common share for the three months ended February 29, 2008 compared to net earnings of $0.4 million or $0.03 per common share for the same period last year.

Working capital at the end of the first quarter of 2008 was $5.1 million compared to $9.3 million at the end of November 2007. The change is primarily the result of an increase in the current portion of long-term debt to $5.1 million at February 29, 2008. This increase is due to the inclusion as current portion of long-term debt of a $3.5 million non-revolving loan facility and $.75 million of vendor loans used to acquire Xuzhou-PAT Control Technologies Limited during the quarter. The Company anticipates that $4 million of these loans will be converted to a fixed-term loan in December 2008 under the $4 million loan facility currently in place.

"During and subsequent to the quarter we were awarded new toll contracts in India, a US $3.7 million order to supply and install border security devices in Mexico through our Chilean subsidiary, and a number of other orders for our off-the-shelf product in China. We are confident that revenues from these contracts and additional new business, combined with continued solid demand for our weigh station, data collection and IVS systems technologies, will generate enhanced growth and profitability going forward," Mr. Bergan concluded.

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



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Three Months
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Period Ended February 29 and February 28
2008 2007
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(in $,000 except per share amounts)
Sales $ 6,932 $ 8,296
EBITDA 164 865
Net Earnings (Loss) (156) 387
Net Earnings per Common Share (basic & fully diluted) ($ 0.01) $ 0.03
Working Capital 5,140 9,265
Shareholders' Equity per Share $ 1.20 $ 1.20
Common Shares Outstanding 13,940 13,930
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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 investments.. 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.

IRD is listed on the TSX - trading symbol - IRD

Contact Information

  • International Road Dynamics Inc.
    Terry Bergan
    President & CEO
    (306) 653-6600 or U.S. (303) 355-5998
    or
    International Road Dynamics Inc.
    Francine Senecal-Lepage
    Investor Relations
    (306) 653-6603
    (306) 653-6609 (FAX)
    Email: irdir@irdinc.com
    Website: www.irdinc.com