PFB Corporation
TSX : PFB

PFB Corporation

October 26, 2006 18:29 ET

PFB Corporation Announces Results for the Third Quarter Ended September 30, 2006, and Declaration of Regular Quarterly Dividend

CALGARY, ALBERTA--(CCNMatthews - Oct. 26, 2006) - PFB Corporation (TSX:PFB) reports its financial results for the three and nine month periods ended September 30, 2006, and declares regular quarterly dividend.

Results for Third Quarter and Nine Months Ended September 30, 2006

Consolidated net income for the three months ended September 30, 2006 was $2,123,000, $0.33 per share, compared to net income of $2,527,000, $0.40 per share reported in the comparative three months of 2006. Sales were $23,640,000 in the third quarter of 2006 as compared to $24,025,000 in the third quarter of 2005, a decrease in sales of $385,000 or 1.6%.

Consolidated net income for the nine months ended September 30, 2006 was $3,693,000, $0.58 per share, as compared to net income of $4,111,000, $0.65 per share in the comparative nine months in 2005. Sales in the nine months ended September 30, 2006 were $57,927,000 as compared to $58,204,000 in the nine months ended September 30, 2005, a decrease in sales of $277,000 or 0.5%.

Overall revenue in the current quarter and for the first nine months remained marginally lower than reported in the corresponding periods of 2005. Our insulating building products continue to produce respectable year-on-year sales increases and our current plans remained focussed on accelerating the growth curve for these products. New manufacturing equipment additions were fully commissioned and operating during the current quarter which allowed us to restore market confidence in our ability to supply certain products. Sales of our rigid EPS products have remained very strong in Western Canada but we have experienced a slow down in Eastern Canada. A decrease in sales in our Eastern Canadian markets is the main reason for the moderate shortfall in sales in the current year as compared to sales in 2005.

Despite a trend of significant price increases in our key raw material, styrene monomer, over the course of the current quarter and the previous quarter, we have been successful in maintaining reported gross margins at around 30% of sales. Volatility in the price of styrene is continuing in the fourth quarter with prices continuing upwards. This trend will challenge our ability to maintain gross margins at current levels.

Quarterly Dividend Payment

The Board of Directors has approved the payment of a regular quarterly dividend of $0.06 per common share. The dividend will be paid on November 30, 2006, to shareholders of record on November 16, 2006.

Forward Looking Statements

Certain statements in this Press Release contain forward-looking statements about the objectives of PFB Corporation ("PFB" or the "Corporation") and management's expectations, beliefs, intentions or strategies for the future. Future events are subject to certain risks, uncertainties and assumptions that may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such risks, uncertainties and assumptions include, but are not limited to: general economic conditions; actions by government authorities; actions by regulatory authorities; availability of raw materials; changes in raw materials prices; foreign exchange rates; interest rates; competitor activity; industry pricing pressures; seasonality of the construction industry; and weather.

About PFB

PFB Corporation is a vertically integrated manufacturer of insulating building products marketed across North America under three brands. Plasti-Fab® EPS Product Solutions are products, manufactured using expanded polystyrene (EPS) as base raw materials, that are delivered to customers in five segmented markets. Insulspan® SIP Systems are structural insulating panel systems that customers assemble on-site to provide a strong and completely insulated building envelope. Riverbend® Timber Framing products are custom, enclosed timber framed structures delivered to customer's job sites as ready-to-assemble building packages.

PFB Corporation is listed for trading on the Toronto Stock Exchange, symbol PFB.

PFB Corporation's interim consolidated financial statements and interim MD&A for the third quarter of fiscal 2006 will be posted on SEDAR (www.sedar.com) by October 31, 2006.

PFB Corporation shares are listed for trading on the Toronto Stock Exchange, under the symbol PFB.

Contact Information

  • PFB Corporation
    Stephen P. Hardy
    Vice President & CFO
    (403) 569-4303
    (403) 569-4075 (FAX)
    or
    PFB Corporation
    #270, 3015 - 5th Avenue NE
    Calgary, Alberta T2A 6T8