Royal Laser Corp.

Royal Laser Corp.

November 14, 2007 17:10 ET

Royal Laser Corp. Reports Financial Results for the Second Quarter

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2007) - Royal Laser Corp. (TSX:RLC) today reported its financial results for the second quarter of fiscal year 2008, ended September 30, 2007.

The summarized financial results for the three months ended September 30, 2007, as compared to three months ended September 30, 2006, were:

Q2 2008 Q2 2007
------- -------
Revenues $ 62,094,157 $ 68,648,434
Cost of Sales $ 55,971,352 $ 60,413,106
Gross Margin $ 6,122,805 $ 8,235,328
EBITDA(i) $ 769,823 $ 3,357,016
EBITDA(i) per share $ 0.01 $ 0.04
Net Earnings (Loss) $ (1,377,490) $ 466,466
EPS (Basic) $ (0.01) $ 0.01
EPS (Diluted) $ (0.01) $ 0.01

The summarized financial results for the six months ended September 30, 2007, as compared to six months ended September 30, 2006, were:

Q2 2008 Q2 2007
------- -------
Revenues $ 123,856,311 $ 126,053,172
Cost of Sales $ 111,706,318 $ 110,632,602
Gross Margin $ 12,149,993 $ 15,420,570
EBITDA(i) $ 1,965,833 $ 5,731,634
EBITDA(i) per share $ 0.02 $ 0.07
Net Earnings (Loss) $ (2,015,790) $ (1,793,568)
EPS (Basic) $ (0.02) $ (0.02)
EPS (Diluted) $ (0.02) $ (0.02)

(i)Earnings (loss) before interest, taxes, depreciation and amortization and stock-based compensation charges.


- The Company's revenues for Q2 FY 2008 increased to $62,094,157 and were lower than Q2 FY 2007 predominately due to decreased steel prices.

- Gross margin percentage for Q2 FY 2008 was 10% compared to 12% for Q2 FY 2007. The decrease of 2% reflects the conditions of the market for certain Company products that have demanded price reductions which have eroded margins.

- Working Capital remains strong at $22,904,284 at the end of Q2 FY 2008 as compared to $24,513,847 for Q4 FY 2007.

- EBITDA per share for Q2 FY 2008 remains positive at $0.01 per share, although lower than $0.04 per share in Q2 FY 2007.

- Revenues derived from the United States market were 11%. Transactions conducted in US dollars expose the Company to currency fluctuations that resulted in a foreign exchange loss of $576,557 for Q2 FY2008.

- The Company continues to take steps to increase market share and customer penetration in the industrial and store fixturing markets, in order to neutralize the negative impact of the weaker North American domestic automotive industry on sales. One such change is the hiring of a new management team for Venture Steel Inc. ("VSI") and for the stamping operations.

- Sales were negatively impacted predominantly by decreased steel prices and reduced volumes from North American domestic automotive customers.

Bill Iannaci, Royal Laser's Chief Executive Officer, commenting on the results of the last quarter indicated: "The Company has undergone a recent transformation, led by the hiring of a new, experienced, management team to lead our Steel Service Centre business. Our negative performance during the quarter is not indicative of the improved results that we anticipate in the coming quarters - especially now that we have completed the restructuring of our management team. Each of our business units continues to win new contracts and attract new customers - thereby driving increased capacity utilization. We look forward to improved performance going forward."

The Company's unaudited financial statements for the interim period ended September 30, 2007, together with Management's Discussion and Analysis have been filed on SEDAR and are available at

About Royal Laser Corp.

Royal Laser Corp., through its wholly-owned operating subsidiaries, services steel and manufactures custom wood and metal products targeted at the multi-billion dollar automotive, high-end retail in-store development industry, the OEM industrial products and construction industries, in Canada, the United States and overseas. Royal Laser Corp. employs state of the art industrial technology to process steel, fabricate custom and standardized wood and metal products, including robotic wood finishing lines, advanced laser-based computer-integrated manufacturing systems and advanced stamping presses. In addition to contract manufacturing services, Royal Laser provides value-added engineering and design services. The Corporation's common shares trade on the Toronto Stock Exchange under the symbol "RLC" and there are approximately 92.9 million shares outstanding.

For further information on the Corporation, please visit SEDAR at

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Forward-Looking Statements

Certain statements contained in this press release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and other factors, many of which are beyond our control, and are as discussed under the heading "Trends, Risks and Uncertainties" and in the Annual Information Form of Royal Laser dated June 27, 2007 and filed on SEDAR at, as well as Royal Laser's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits will be derived therefrom. Except as required by law, Royal Laser Corp. disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained herein is expressly 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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