Royal Laser Corp.
TSX VENTURE : RLC

Royal Laser Corp.

November 14, 2005 18:02 ET

Royal Laser Corp.-Releases Q2 September 30, 2005 Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 14, 2005) - Royal Laser Corp. (the "Corporation") (TSX:RLC) announced today the release of its consolidated financial results for its second quarter ended September 30, 2005. The comparable period for the quarter ended September 30, 2004 is that of the former Logan Metals Inc. only, and does not include the operations of WAM Industries Ltd.

HIGHLIGHTS:

- Increased revenues of $7.51 million in the second quarter of fiscal 2006 compared to $5.08 million in the comparable quarter of fiscal 2005 representing 48% growth in revenues. Increased revenue of $15.8 million for the first two quarters of fiscal 2006 compared to $6.7 million in the comparable period of fiscal 2005 representing a 135% growth in revenues. The increased revenues during the first two quarters of fiscal 2006 indicates a broadened and expanding customer base as well as the positive result from the consolidation of WAM Industries Ltd. commencing in February 2005.

- Net income before taxes of $0.66 million in the second quarter of fiscal 2006, compared to $0.41 million in the comparable quarter in fiscal 2005 representing a 61% increase in profits. Net income before taxes increased to $1.38 million during the first two quarters of fiscal 2006 compared to $0.7 million in the comparative period of fiscal 2005 representing a 95% increase in profits. The increase in profits in a direct result of improvements in operations and productivity.

- EBITDA, adjusted for stock based compensation, increased to $1.02 million or 14% of revenues in the second quarter of fiscal 2006 compared to $0.55 million or 10% in the comparable quarter of fiscal 2005. EBITDA, adjusted for stock based compensation, increased to $2.1 million or 13.3% during the first two quarters of fiscal 2006 compared to $1 million or 14.8% in the comparative period of fiscal 2005. As the Corporation continues to experience revenue growth, it intends to take advantage of further economies of scale.

Bill Iannaci, the Corporation's Chief Executive Officer commented: "We are pleased to announce another strong quarter for Royal Laser Corp. This quarter shows that we continue to be on track with our business plan to become a much larger, integrated, OEM manufacturer of choice for our diverse customer base. We continue to focus on growth opportunities with existing, and new, customers and are excited about the upcoming integration of Thunder Tool and Smokey Manufacturing - both of which are ISO/TS 16949 certified, provide us with further capacity, production capabilities and a stronger base from which to continue to grow."

The complete reports of the Corporation's financial statements and related notes for the second quarter ended September 30, 2005, together with Management's Discussion and Analysis of financial conditions have been filed on SEDAR and are available at www.sedar.com.

The Corporation, through its wholly owned operating subsidiaries Royal Laser Mfg Inc. and WAM Industries Ltd., manufactures custom wood and metal products and targets the multi-billion dollar high-end retail in-store development industry as well as the OEM industrial products and construction industries, in Canada, the United States and increasingly, overseas. Royal Laser Mfg. Inc. and WAM employ state-of-the-art industrial technology to fabricate custom and standardized wood and metal products, including robotic wood finishing lines and advanced laser-based computer-integrated manufacturing systems. In addition to contract manufacturing services, Royal Laser and WAM provide value-added engineering and design services.

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Corporation. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include risks and factors as are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results may differ materially from those currently anticipated. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressed qualified by this cautionary statement.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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