22.4.2005: Meldung: Carmanah Technologies Corp.: Financial Results for Q1 2005
CARMANAH ANNOUNCES FINANCIAL RESULTS FOR Q1 2005
Victoria, British Columbia, Canada - April 21, 2005 - Carmanah Technologies Corporation (TSX Venture: CMH) is pleased to announce its first quarter results for the three months ended March 31, 2005 and 2004.
Highlights for the quarter:
- Record Q1 2005 revenues of $4,849,542.
- Record Q1 2005 orders booked of $6,089,305.
- Record order backlog at the end of Q1 in the amount of $2,839,576.
- Year-to-date gross profit margin at 52%, consistent with the
average gross profit margin for 2004.
- Q1 2005 net income of $263,422.
- Q1 2005 EBITDA of $325,190.
"With a record $4.8 million in product delivered and over $6 million in orders booked during our first quarter, Carmanah is on track towards realizing its sales goals for 2005," states Art Aylesworth, Carmanah"s CEO. "We are seeing a more balanced contribution of revenues from each of our vertical markets. In particular LED signs, aviation products and transit each experienced exceptional growth."
SUMMARY OF RESULTS
Carmanah"s total revenues for the three months ended March 31, 2005 were $4,849,542, compared with $4,113,701 for the same period in 2004. Revenues were derived from the sale of solar-powered LED lighting illumination products to the marine, aviation, transit and roadway markets, as well as from the sale of LED edge-lit signs to point-of-purchase and gaming markets. Sales were sourced through both a worldwide distribution network and direct sales efforts.
The Company is seeing positive sales momentum developing this quarter with the size and number of orders ramping up quickly through the latter part of this quarter. The Company took in a record $6,089,305 in orders booked during the quarter, representing a 50% increase over bookings from the same period 2004. This also resulted in the Company closing Q1 2005 with record outstanding orders in the amount of $2,839,576.
Carmanah"s gross profit margin achieved in Q1 was 52% of sales, compared to 53% for the same period in 2004 (annual gross profit margin for the 2004 fiscal year was 52%).
Wages and benefits expense for the three months ended March 31, 2005, increased 28% to $1,030,499, compared with $804,941. As a percentage of sales, wages and benefits expense represented 21% of sales in Q1 2005, compared with 20% of sales in Q1 2004. In support of planned growth and expansion throughout the balance of 2005, the Company has been focused on broadening and strengthening its executive and middle management teams, resulting in increased senior staffing levels. Furthermore, the Company has invested in staffing its UK office and continues to hire administrative staff in support of increased volumes and sales growth.
Office and administration expenses in first quarter 2005 were $450,890, representing an 83% increase over same period in 2004 of $246,802. The Company"s investment in opening a London office through December 2004 contributed approximately $60,000 to this variance. A severance expense added a further $37,197. Management expects that as the Company"s sales forecast is met during the year, these expenses as a percentage of sales will come down.
During the first quarter 2005, research and development expenses of $363,225 represented a 7% increase over $337,903 in the comparative quarter. The continued investment in research for existing product enhancements and new product development has enabled Carmanah to turn out prototypes and products at a faster rate. This ability to keep up with market demands for technology enhancements and new product offerings has rewarded the Company with its current sales momentum. Carmanah will continue with its investment in research and development as the Company works with key market segments on new opportunities. As a percentage of sales, research and development expenses decreased in Q1 2005 to 7% of sales, compared with Q1 2004 at 8% of total sales.
Sales and marketing expenses in first quarter 2005 were $357,625, representing a 22% increase over same period in 2004 of $293,773. The Company continued to increase sales and marketing activities for new and existing product lines throughout its worldwide marketplace. In addition, a significant portion of the overall sales and marketing investment was allocated to markets and products where the Company has identified significant future revenue opportunity. Sales and marketing expense maintained at a consistent level of 7% of total sales for both the 2005 and 2004 quarters.
The Company utilized a portion of its carry forward investment tax credits, tax losses and SRED pools in order to minimize any current tax expense. The future income tax effect arising from the use of these items has been offset against available tax losses not previously recognized.
Net earnings for Q1 2005 were $263,422 (5% of sales) compared with $369,492 (9% of sales) in Q1 2004. The Company started 2005 aggressively setting up its UK branch operations, hiring management and support staff, and setting up infrastructure required to carry it through the year. The up front costs incurred from this resulted in a fairly significant increase in Q1 2005 operating expenses as a percentage of sales, compared with the same period in 2004. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $325,190 for the three months ended March 31, 2005 as compared to $483,135 for the same period in 2004.
Carmanah"s cash, cash equivalents, and short-term investments at March 31, 2005 were $8,769,662, compared to $7,751,411 at December 31, 2004. Net cash usage from operations and investing activities was $61,058. During the quarter, the Company raised $1,085,620 from the exercise of warrants and stock options. Net working capital at the end Q1 2005 was $13,019,439, with a current ratio of 8.9:1 and $11,202 of non-current debt obligations.
Carmanah is an award-winning manufacturer of proprietary LED-based lighting and illumination products for the public transit, marine, aviation, roadway, and industrial worksite and illuminated signage markets. The Company has more than 100,000 solar-powered LED lighting installations and 50,000 LED illuminated sign installations in 110 countries. The shares of Carmanah Technologies Corporation are publicly traded on the TSX Venture Exchange under the symbol "CMH" and on the Berlin and Frankfurt Stock Exchanges under the symbol "QCX". For more information, please visit www.carmanah.com.
The Annual General Meeting for Carmanah Technologies Corporation will be held on a newly scheduled date of Friday, May 27, 2005 at 11:30 AM PST at the Delta Victoria Ocean Pointe Resort, 45 Songhees Road, Victoria, BC, Canada. Attendance is not limited to shareholders, so other guests are welcome. Should you wish to attend, please email us at AGM@carmanah.com.
On Behalf of the Board of Directors
Carmanah Technologies Corporation
" Praveen Varshney "
Praveen Varshney, Director
For further information, please contact:
Mr. Mark Komonoski, Director
Telephone: (403) 252-6047
Fax: (403) 252-5580
Mr. David Davies
Tel: (250) 382-4332
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