International Road Dynamics Inc.

International Road Dynamics Inc.

April 10, 2007 13:38 ET

IRD Announces Strong Growth in First Quarter 2007

SASKATOON, SASKATCHEWAN--(CCNMatthews - April 10, 2007) - International Road Dynamics Inc. (IRD) (TSX:IRD) announced today results for the three months ended February 28, 2007.


- Sales up 31%

- Significant increase in profitability

- Growing service and maintenance business enhances stability of cash flows

- Positive outlook

Sales in the first quarter of fiscal 2007 rose 31.2% to $8.3 million from $6.3 million last year. The increase is due primarily to accelerating business in the US market resulting from the passage of the Federal Transportation Bill in late 2005, a large data collection contract with Transport Canada, and the installation of truck pre-clearance sites in Alberta. Over 70% of the Company's sales are denominated in US dollars. During the first quarter of 2007, the Canadian dollar weakened slightly against the U.S. dollar compared to the first quarter of 2006. This has not significantly impacted the Company's results.

"We were pleased to see the impressive revenue growth in our North American markets, as our product sales, weigh station, data collection systems and in-vehicle driver management - GPS systems business all continued to increase through the first quarter of fiscal 2007," commented Mr. Terry Bergan, President and CEO. "We also generated solid growth in sales of our specialized in-vehicle driver management - GPS systems, and look for continued increases through the year from both existing and new private sector fleet operators in our targeted niche markets."

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 weigh-in-motion systems of more than 3,000 systems throughout North America, South and Central America, Europe, Asia, Africa and Australia.

The gross margin improved significantly in the first quarter of fiscal 2007 to 33.6% of sales from 26.2% of sales in the first quarter of fiscal 2006. The improvement in gross margin is due primarily to increased sales of higher-margin proprietary IRD products and increased service business compared to the prior year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $865,000 in the first quarter compared to a loss of $17,000 for the same period last year. The Company generated net earnings of $387,000 or $0.03 per common share for the three months ended February 28, 2007 compared to a net loss of $110,000 or ($0.01) per common share for the same period last year.

IRD's balance sheet remained strong at the end of the first quarter with working capital of $9.6 million compared to $10.0 million at the end of last fiscal year. Shareholders equity stood at $15.7 million or $1.13 per common share.

"We are off to a strong start and expect this will continue through the balance of fiscal 2007 and going forward," Mr. Bergan concluded. "Our US business is seeing the benefits of increased infrastructure spending after three years of delays, and we expect our overseas business will grow as the awarding of significant toll road systems orders in India was delayed from the first quarter. We also anticipate that our service and maintenance business will continue to expand going forward, enhancing the stability of our cash flows."

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

Three months ended February 28, 2007 2006
(in $,000 except per share amounts)
Sales 8,296 6,324
EBITDA 865 (17)
Net Earnings 387 (110)
Net Earnings per Common Share (basic) $ 0.03 $ (0.01)
Working Capital 9,624 7,071
Shareholders' Equity per Share $ 1.13 $ 0.99
Common Shares Outstanding 13,886 13,843

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)