RoaDor Industries Ltd.
TSX VENTURE : RDR

RoaDor Industries Ltd.

August 29, 2007 16:34 ET

RoaDor Industries Ltd. Announces Financial Results for the 3rd Quarter Ended June 30, 2007

VAUGHAN, ONTARIO--(Marketwire - Aug. 29, 2007) - RoaDor Industries Ltd. ("RoaDor") (TSX VENTURE:RDR), announces financial results for the 3rd quarter ended June 30, 2007.

Sales for the third quarter ended June 30, 2007 of $279,648 were down slightly from the comparative prior year period of $292,724, a decrease of 4.5%. Approximately 1.5% of the decline is attributable to US foreign exchange decline. While management is disappointed with the decrease of 4.5%, this decline is dramatically less than the industry performance. RoaDor has significantly outperformed the overall North American market sales decline in OEM trailers and truck bodies, who represent a significant percentage of the Company's business.

The industry experienced a significant downturn in the first calendar quarter of 2007. Industry sources reported trailer sales in March down 50% over the prior year. Class 5-7 truck orders, an indicator of the demand for truck bodies, were down 75% year over year in March. This poor industry performance may have mitigated marginally but the industry still remains very soft with a clear trend of improvement not yet emerging. By comparative month, in May and June total trailer orders were down 5% and 8% respectively, an improvement compared to earlier in 2007. However for the month of July trailer orders were down 42% with cancellation rates of 16.4% versus 5.2% in the prior year. Current numbers for OEM truck body builders are not available, but Company contacts continue to report weak truck body order volume across the industry.

The Company notes that there are two contributors to the slowdown. The US economy, while still growing, is cooling. However, by far the primary reason, industry sources cite, is the new emission standards introduced effective in 2007. These standards added dramatically to the cost of a truck, (approximately $10,000), so there was a general trend to pre buy in advance of the standards. This has impacted available budget allocations and purchases for trailers and truck bodies. In addition, Company sources advise that many customers have delayed purchasing until they can see the new engines with the emission controls in use.

"Clearly the state of the industry has been disappointing with the decline being deeper than originally anticipated. For our part we have continued to focus on building our market penetration and client base while trying to minimize costs. In that regard we have been successful. While our sales for the quarter decreased by 4.5% we have seen the numbers of active customers continue to increase dramatically (55% over the comparative 12 calendar months for the prior year); which is why our performance has significantly exceeded the industry. This growth in customer base reflects the growing interest and acceptance of RoaDor in the key US market. We also believe that this will position us very well going forward for when industry order trends improve", Randy Flewelling, CEO.

The company incurred a loss from operations in the 3rd quarter of $134,033 (2006 - $169,052); and for the 9 months ended June 30,2007 - $401,880 (2006 - $353,432). The reduced loss in the 3rd quarter versus the prior year, is primarily as a result of reduced operating costs. The higher loss for the 9 months ended June 30, 2007 as compared to the prior year is directly attributable to lower than expected sales.

A complete financial statement and management's discussion and analysis can be found on the SEDAR web site: www.sedar.com.

About RoaDor Industries Ltd:

RoaDor has developed, patented and commercialized polyvinyl chloride (PVC) roll-up doors designed specifically for the commercial truck, van and trailer industry. Marketed and sold under the RoaDor name, they represent a major improvement over the traditional wood or aluminum doors. RoaDor roll-up doors are approximately half the weight and eliminate the major industry problems such as paint peeling and delamination, roller and hinge rusting and doors which are difficult to operate. The commercial truck, van and trailer market represents a large opportunity. In the United States alone there are 6.5 million vehicles with roll-up doors currently on the road and in excess of 200,000 new vehicles produced into this market each year.

RoaDor now has a complete line of roll up doors for the commercial truck, van and trailer industry. Noted for their light weight, these insulated doors share the benefits of the dry freight door, at approximately 50% of the weight of conventional doors, exceptional ease of operation, durability, and low maintenance. The excellent thermal efficiency and interlocking panel system provide superior freight protection. Numerous end users have stated that the ease of operation will help them reduce driver fatigue and compensation claims.

Further information on RoaDor can be found on the company's web site: www.roador.com.

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

Contact Information

  • RoaDor Industries Ltd.
    Debra Farquharson
    Chief Financial Officer
    (905) 532-0891 ext 226 or Toll free: 1-877-263-9153
    (905) 532-0895 (FAX)
    Website: www.roador.com