Pan Terra Industries Inc.
TSX VENTURE : PNT

Pan Terra Industries Inc.

August 02, 2005 08:14 ET

Pan Terra Fiscal Results and Corporate Developments

CALGARY, ALBERTA--(CCNMatthews - Aug. 2, 2005) - Pan Terra Industries Inc. (TSX VENTURE:PNT) is pleased to announce it has filed its 2005 fiscal year results for the period ending March 31, 2005. The Company grew the revenue of its Bluebird Division from $15.3 million to $22.9 million Cdn. Revenue growth was entirely organic due primarily to the expansion of the underground business, as no acquisitions were completed in fiscal year 2005. The most recent fiscal year has been a transitional period for the company which included one time expenses including restructuring costs, goodwill and future tax provisions. However, Pan Terra recognized corporate cost savings estimated by management of approximately $1.4 million Cdn, and an extensive organizational transition following the AGM of September 2004.

The Company is starting to see the benefits of several programs implemented in this latest fiscal year including accountability for project profitability, leveraged purchasing to lower costs, increased business controls, and improved field and management reporting. These improved business controls combined with digital estimating and project costing software is enabling the Company to realize significant improvements in project profitability for all projects, with increased returns expected for the upcoming fiscal year. Pan Terra remains committed to improving the profitability of its Bluebird operating division, while continuing to identify strategic acquisitions in trenchless technology and environmental contracting. These acquisitions and current Company operations will allow Pan Terra to capitalize on the increasing demand for infrastructure improvements in Southern Alberta and Eastern British Columbia, and strengthen its position as a leader in providing innovative construction for owners, developers and contractors. Complete details are available on SEDAR at www.sedar.com.

In addition to the reporting of its financial results for this fiscal year, the company has elected to cancel its current financing with Wolverton Securities and continues to market the equity and debenture offering on a non-brokered basis. Pan Terra is also exploring alternative forms of acquisition capital that may be less dilutive and prefaced by improved earnings.

The memorandums of understanding regarding the acquisitions of both Hazmat Abatement Company and Pacific Multilining Inc. have technically expired however these acquisitions continue to be targeted by Pan Terra contingent upon financing and completion of due diligence.

Pan Terra has revised its acquisition strategy to lessen the degree of dilution to the share capital structure and to strengthen the balance sheet. Acquisitions will be facilitated through a combination of internal and strategic funding projects, with supplemental funding through smaller financings in the form of venture capital vehicles, debentures and convertible debentures. An update of the status of the previously noted acquisitions of Hazmat and PMI, and any additional acquisitions will be provided in the future.

About Pan Terra

Pan Terra is an innovative construction solutions contractor that develops new sites and redevelops existing sites to the point where an owner, developer, or general contractor can proceed with building construction. The focus of the Company is site preparation and underground utility installations and rehabilitation. The Company offers packaged services in industrial, commercial, retail and residential markets. Pan Terra's major clients include leading General Contractors, Owners and Developers. The Company has extensive relationships with architects, engineers, and consultants. Pan Terra's growth plan includes: acquisition of successful companies, leveraging of environmental and trenchless technology solutions and total dedication to exceptional operational performance and achievement.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Pan Terra Industries Inc.
    Don Sandford
    CEO
    (403) 251-9233
    (403) 251-9244 (FAX)
    or
    Pan Terra Industries Inc.
    Kaan Camlioglu
    CFO
    (403) 251-9233
    (403) 251-9244 (FAX)
    or
    Boardmarker Consultancy Group
    ir@boardmarker.net
    (403) 517-2270
    (403) 517-2289 (FAX)
    www.panterraindustries.com