McCoy Corporation
TSX : MCB

McCoy Corporation

March 11, 2005 13:28 ET

McCoy Bros. Inc. Announces Record Fourth Quarter and Year End Profitability


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MCCOY BROS. INC.

TSX SYMBOL: MCB

MARCH 11, 2005 - 13:28 ET

McCoy Bros. Inc. Announces Record Fourth Quarter and
Year End Profitability

EDMONTON, ALBERTA--(CCNMatthews - March 11, 2005) - McCoy Bros. Inc.
(TSX:MCB) ("McCoy" or the "Company") today announced the Company's
fourth quarter and year end results for 2004.

Financial highlights of the fourth quarter and year ended December 31,
2004:



Fourth Quarter Results

------------------------------------------------------------------------
2004 2003
------------------------------------------------------------------------
$ $
------------------------------------------------------------------------
Revenue 23,586,949 8,239,778
------------------------------------------------------------------------
Earnings (loss) from operations 1,131,090 555,527
------------------------------------------------------------------------
Earnings (loss) from Discontinued operations - 63,418
------------------------------------------------------------------------
Net Earnings (loss) 1,131,090 618,945
------------------------------------------------------------------------
Basic Earnings per share 0.06 0.04
------------------------------------------------------------------------
Diluted Earnings per share 0.06 0.03
------------------------------------------------------------------------
Cash flow from operations before net change
in non-cash working capital items 2,155,182 564,761
------------------------------------------------------------------------
Cash flow per share from operations before
changes in non-cash working capital items 0.12 0.03
------------------------------------------------------------------------
------------------------------------------------------------------------

Year end results

------------------------------------------------------------------------
2004 2003
------------------------------------------------------------------------
$ $
------------------------------------------------------------------------
Revenue 52,378,652 30,786,132
------------------------------------------------------------------------
Earnings (loss) from operations 2,343,374 940,354
------------------------------------------------------------------------
Earnings (loss) from discontinued operations - 63,418
------------------------------------------------------------------------
Net Earnings 2,343,374 1,003,772
------------------------------------------------------------------------
Basic Earnings per share 0.13 0.06
------------------------------------------------------------------------
Diluted Earnings per share 0.13 0.05
------------------------------------------------------------------------
Cash flow from operations before net change
in non-cash working capital items 4,415,194 1,565,879
------------------------------------------------------------------------
Cash flow per share from operations before
changes in non-cash working capital items 0.25 0.09
------------------------------------------------------------------------
------------------------------------------------------------------------


Mr. Jim Rakievich, McCoy's President and Chief Executive Officer, said
that nearly 80% of the $15,347,171 increase in fourth quarter revenues
over the same period in 2003 was directly related to the acquisition of
Peerless Limited ("Peerless") at the end of the third quarter. The
acquisition was a significant development in the Company's growth
strategy as the combination of Peerless and McCoy's Scona Trailer
Manufacturing ("Scona") business resulted in McCoy becoming the market
leader in the manufacture of heavy-duty trailers in Western Canada. The
balance of the increase in revenue can be attributed to improved
manufacturing processes leading to increased throughput at both Scona
and Farr Canada.

For the year overall, all three segments, namely Truck & Trailer
Products and Services, Trailer Manufacturing, and Oilfield Products
Manufacturing, saw an increase in revenue. The operations of Peerless
contributed approximately $3 million in revenue to the Truck and Trailer
Products & Service segment and approximately $8.6 million in revenues to
the Trailer Manufacturing segment for the fourth quarter.

Gross profit increased in 2004 over 2003 by 69%, or $7,011,164. The
increase is directly related to the increase in revenues. Cash flow from
operations before net change in non-cash working capital items increased
by $2,849,315 over 2003, a per share increase to $0.25 from $0.09,
primarily as a result of the increased sales.

Mr. Rakievich noted that the implementation of Management's growth
strategy was a key element in the Company's achievements in 2004. The
Company's strengthened financial position and improved business
processes created a solid platform for the Company to exploit
opportunities offered by a strong Western Canadian economy.

In addition to improving processes and completing a significant
acquisition, geographic expansion was implemented with the development
of a new, state-of-the-art facility in Fort St. John, British Columbia.
In October, 2004 the new location opened as the fourth "Real McCoy
Service Centre". This region was an expansion target for McCoy's long
standing truck and trailer service business for some time. The area has
seen several years of growth in the oil and gas and forestry sectors and
many of the Company's Alberta-based customers have expanded their
operations to Fort St John. The new facility was a key step in the
Company's goal of becoming the leader in the specialty heavy-duty truck
and trailer products and service business in Western Canada.

On the operations side, the Company accomplished its goal of
significantly improving the safety of the workplace for our employees.
In 2004, Farr Canada, the major component of the Company's Oilfield
Products Manufacturing segment, became McCoy's fifth location to receive
its "Certificate of Recognition" from Alberta Human Resources. The Real
McCoy Service Centres in Red Deer and Edmonton achieved certification in
2002 and Scona Trailer Manufacturing obtained its certification in 2003.

Mr. Rakievich commented that he expects 2005 to remain strong based on
market indications for the oil and gas, forestry and construction
sectors. He added that the Company will continue to develop its business
strategies aimed at advancing market share in each of the Company's
operating segments and will explore additional growth opportunities
through acquisition and geographic expansion.

The Company has a lengthy history in Western Canada. McCoy's business
has evolved into three major segments: Truck & Trailer Products &
Service, Trailer Manufacturing and Oilfield Products Manufacturing
employing 400 people in Alberta and British Columbia. The Company's
shares are publicly traded on The Toronto Stock Exchange under the
symbol "MCB". More information can be found on the Company's web site at
www.mccoybros.com

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    McCoy Bros. Inc.
    Jim Rakievich
    President and Chief Executive Officer
    (780) 453-8707
    Website: www.mccoybros.com