Winalta Inc.

Winalta Inc.

March 24, 2005 16:55 ET

Winalta Announces 1st Quarter Financial Results




MARCH 24, 2005 - 16:55 ET

Winalta Announces 1st Quarter Financial Results

EDMONTON, ALBERTA--(CCNMatthews - March 24, 2005) - Winalta Inc. (TSX

First Quarter Results: (three months ended January 31, 2005 compared
with three months ended January 31, 2004)

- Revenues were $15.9 million compared with $12.3 million in 2004

- Net loss was ($1.68 million) compared with a net profit of $277
thousand in 2004

- Net earnings per share were ($0.13) compared with $0.02 in 2004

- Cash Flow per share was ($0.11) compared with $0.03 in 2004

- EBITDA per share was ($0.14) compared with $0.10

Mr. James A. Sapara, Chairman and CEO, reported that despite rising
sales, labour inefficiencies, excessive material utilization and high
service costs in the production of Industrial Camps contributed to a
reduction in gross margins year over year. Vanguard also reported higher
sales however sales were lower than budgeted. The lower than budgeted
sales are attributed to lower production caused by the company
introducing several new prototypes. Further, Vanguard retail dealers
also took advantage of the weak Canadian dollar which has resulted in
many recreational dealers buying U.S. manufactured product over Canadian
product. Retail sales and gross profit margins through Ridgewood Homes
Inc were lower year over year as a result of an early winter and the
effects of BSE in the rural areas. Overall, while expenses were
controlled, the lower gross margin resulted in a loss for the first
quarter of 2005.

Mr. Sapara advised that management believes the problems associated with
the expansion into the Industrial Camp business are now behind us. We
are looking forward to selling product into our latest manufactured home
communities in Leduc and Sylvan Lake. Our first quarter results are
soft, however we are disappointed at the level of the losses in 2005.

Winalta is a producer of manufactured CSA certified homes, modular
homes, site-built homes, industrial projects, and recreational homes. In
addition, through its subsidiary, Vanguard Inc., the company designs,
manufactures, distributes, and wholesales motorized and non-motorized
recreational vehicles.

Winalta Inc. shares trade on the TSX Venture Exchange under the symbol


Contact Information

    Winalta Inc.
    James A Sapara
    Chairman and CEO
    (780) 960-6900
    The TSX Venture Exchange has neither approved nor disapproved of the
    contents of this press release.