THE MACYRO GROUP INC.
TSX : MYO

THE MACYRO GROUP INC.

July 29, 2005 10:27 ET

The Macyro Group Inc. Announces its Results for Fiscal Year Ended April 30, 2005

QUEBEC CITY, QUEBEC--(CCNMatthews - July 29, 2005) - The Macyro Group (TSX:MYO) is pleased to announce today its results for its fiscal year ended April 30, 2005. Sales for the year ended April 30, 2005 totalled $37.2M, an increase of 3.9% from last year. Net income for the year was $745,396 ($0.068 per share), an increase of 99.4% compared to the prior year.

In the fourth quarter sales were $8,743,000 versus $7,384,000 in the fourth quarter of 2004 for an increase of 18.2%. The Canadian dollar remained strong during the year. The Company has entered into foreign exchange contracts for a total value of $2M to hedge some of its currency foreign exposure. The Company posted net income of $56,000 ($0.005 per share) for the fourth quarter versus a loss of $198,000 ($0.018 per share) for the same period last year.



Highlights

Thousands of dollars, except per share amounts


Period of 3 months For the years ended
Ended April 30, April 30,
2005 2004 2005 2004
$ $ $ $
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(Restated) (Restated)

REVENUES 8,743 7,384 37,212 35,798

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Income (loss) before
income taxes and
discontinued
activities 155 (359) 1,049 361
Income taxes (96) 185 (273) 115
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Income (loss) resulting
from continuing
activities 59 (174) 776 476
Loss resulting from
discontinued
activities (3) (24) (31) (102)
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Net income (loss) 56 (198) 745 374

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Income (loss) per share
from continuing
activities 0.005 (0.016) 0.071 0.043
Income (loss)
per share 0.005 (0.018) 0.068 0.034
Average weighted
number of shares
outstanding 10 951 900 10 951 900 10 951 900 10 951 900


Gamma Industries experienced an increase in activity in the US market during the year. The Company was very active in pursuing new contracts and has seen an increase in its current backlog. The order backlog is presently $53 million versus $47.3 million at the end of 2004. We expect over 60% of our sales for the upcoming year will come from the United States.

Solaris Quebec Inc., which is 20% owned by the Company, contributed strong equity earnings of $596,000 for the year. In June of this year, the Company sold its interest in Solaris Quebec inc. for $2.9 million. A total gain of $537,034 will be reported during the quarter ending July 31, 2005.

The Chairman and Board of Directors would like to congratulate the Company's management and staff for the overall success achieved this year. The Company will remain focused on improving all aspects of its business in the hopes of delivering ever increasing value to its shareholders.



THE MACYRO GROUP INC.


CONSOLIDATED STATEMENTS OF EARNINGS
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For the years ended April 30,
2005 2004
$ $
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(Restated)

Revenues 37,211,528 35,798,234


Charges
Cost of revenues and operating expenses 35,917,686 34,801,719
Foreign exchange loss 252,687 542,584
Amortization of property and equipment 474,451 484,042
Interest on long-term debt 95,163 133,357
Interest on short-term debt 91,942 139,555
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36,831,929 36,101,257

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Income (loss) before other revenues and
income taxes 379,599 (303,023)

Other revenues
Investment income 74,305 87,506
Equity income in a company under
significant influence 595,574 576,265
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Income before income taxes and discontinued
activities 1,049,478 360,748
Income taxes 272,880 (114,997)
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INCOME RESULTING FROM CONTINUING
ACTIVITIES 776,598 475,745

Net loss from discontinued activities (31,202) (102,022)
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Net income 745,396 373,723

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Net income per share resulting from
continuing activities
Basic 0.071 0.043
Fully diluted 0.071 0.043

Net income per share
Basic 0.068 0.034
Fully diluted 0.068 0.034


Contact Information

  • The Macyro Group Inc.
    Kevin McCrann, CA
    President and Chief Executive Officer
    (613) 237 7075