November 30, 2006 13:18 ET

Option-NFA Inc. Reports Third Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 30, 2006) - Option-NFA Inc. (TSX VENTURE:OPN) announces results for the period ending September 30, 2006.

Total sales for the quarter were down 47% at $3,835,645 compared to $7,304,789 for Q3 2005. Year-to-date sales were down as well at $5,820,291 versus $9,849,894 in 2005. Some of the decrease is anticipated to be made up in the fourth quarter.

Gross margin on all sales has dropped to 25% in Q3 2006 from 28% in Q3 2005. Year-to-date gross margin is 25% in 2006 and 25% in 2005. The drop in gross margin in the third quarter is mainly due to the timing of shipments and revenues, as described last quarter. Fourth quarter sales remaining to ship are of a higher margin then those already realized.

Tighter expense controls reduced overhead by $116,693 in the third quarter, $185,773 year-to-date. All of the overhead items, with the exception of salaries and professional fees, were improved from last year. Both salaries and professional fees were slightly increased and were the direct result of severance payments owing to long term employees.

Income for the first nine months, before interest, income taxes and amortization and depreciation (EBITDA), fell to $241,786 from $1,203,477 and the Net loss was $444,703 compared to a profit of $397,290 in 2005.

Fully diluted income per share was $0.01 in Q3 2006 and $0.07 in Q3 2005.

All figures are Canadian.

The information herein contained should be read in conjunction with the Consolidated Financial Statements and Management Discussion and Analysis for the period ended September 30, 2006, available at www.sedar.com.

About Option-NFA Inc.

Our mission is to continue to build on our reputation for producing the highest quality, best performing products available to the snowboarding consumer.

Option-NFA is a Vancouver based designer and manufacturer of hard goods and clothing for the boardsports markets. The Company has sales offices in Europe, Asia, Australia and North America and its products are endorsed by an elite team of high profile professional snowboarders from around the world. The Company went public in 1999 and trades on the TSX Venture Exchange (TSX-V) under the symbol OPN.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Option-NFA Inc.
    Steve Dewar
    President & CEO
    (604) 255-5594 ext. 121
    Website: www.option-nfa.com