Attention Business/Financial Editors:
AADCO announces Q3 - 2005 results
AADCO Automotive Inc. (AA: TSX - Venture Exchange)
BRAMPTON, May 30 /CNW/ - AADCO today reported its financial results for the quarter ended March 31, 2005. Sales for the period were $1,083,332 versus $1,282,135 for the same period in the prior year, and for the 9 months ended March 31, 2005, sales reached $3,951,566 versus $3,393,821 in the
corresponding period in fiscal 2004. The net loss for this quarter was ($692,832) or ($0.01) per share versus ($302,705) or ($0.01) per share in the same quarter last year, and for the 9 months ended March 31, 2005, the loss was ($534,163) versus ($517,684) for the same 9-month period last year.
States Charles Hodgkinson, CEO, "The results reflect impairment induced by a temporary depletion of inventory during the quarter, a condition substantially rectified late in the quarter and early in the fourth quarter with the injection of the financing required to effect AADCO's business model. This delay in capital impacted both AADCO's LKQ sales and Coreline's sales."
The closing of this financing has allowed AADCO to entirely complete the fiscal restructuring contemplated in the business model. As at March 31, 2005 current assets were $4,595,460 and current liabilities were $1,050,399 compared to $4,543,143 and $3,267,277 at June 30, 2004, resulting in an increase in working capital at March 31, 2005 to $3,545,601 from $1,275,866 at June 30, 2004.
With the strength of the new balance sheet AADCO is now pursuing strategic avenues to lever its shareholders equity and pursue its aggressive sales goals. This may involve innovative financing arrangements to date not employed in this business sector. Information releases are expected prior to July 31/05.
About AADCO
AADCO Automotive Inc. is a growing, Canadian public company with a unique business model committed to complete vehicle dismantling to provide quality used OEM parts, recyclable core from insurance salvage and aftermarket parts to meet the needs of the collision/ mechanical repair industry, as well as the remanufacturing industry through it's Coreline division. AADCO serves over 3,000 mechanical and collision repair clients across Ontario through its LKQ parts division. AADCO maintains one of the largest unbolted inventory of quality used OEM parts in Canada at its 87,000 sq. ft. facility in Brampton, Ontario. AADCO is the only auto recycler to have been awarded the Ecologo for environmental stewardship.
The TSX - Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information: Please contact: AADCO Automotive Inc. - (905) 789-9313, Charles Hodgkinson, CEO, chodgkinson@aadco.ca
