Attention Business/Financial Editors:
AADCO Announces Q2 2006 Results
AADCO Automotive Inc. (AA: TSX - Venture Exchange)
BRAMPTON, ON, Feb. 28 /CNW/ - AADCO Automotive Inc. today announced its financial results for the second quarter of fiscal 2006. AADCO continues its turnaround following a move of premises and a restructuring of its balance sheet in fiscal 2005. With cost reductions and a rebound in sales to levels experienced prior to 2005 the company has reduced its operating loss substantially. Operating loss before interest, amortization and gain on restructuring declined from $757,574 in the second quarter last year to $183,385 in the same quarter this year. The operating loss for the first six months of this year was $466,503 compared to $1,040,384 in the first six months of last year.
Sales for the six months ended December 31, 2004 were $1,837,702 compared to $1,507,363 this year. For the three months ended December 31, 2004 sales were $827,126 compared to $717,787 for this year. However the prior year results included revenue from a discontinued business of $238,633 in the second quarter and $518,781 for the six-month period. Sales for used parts alone (i.e. after factoring out the discontinued business) increased by 9% for the first six months of this year and by 23% in the second quarter over last year.
Charlie Hodgkinson, CEO, noted, "The restructuring from last year and the operational and sales improvements being created in the current year are setting a base for future growth. While these activities have resulted in operational improvements management recognizes the need for a more aggressive approach to the market. AADCO is currently assessing a number of strategic initiatives aimed at achieving the level of sales and profitability we believe is needed to create real value for the company."
About AADCO
About AADCO Automotive Inc. -- AADCO supplies recycled OEM automotive parts to collision repair businesses, mechanical shops, other recyclers, and consumers throughout the Greater Toronto Area ("GTA"). The Company is headquartered in Brampton, Ontario and is listed on the TSX Venture Exchange - AA.V.
The TSX - Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This press release includes forward-looking statements, including statements relating to the Company's marketing strategy, future sales growth, profitability, competitive position, and release of new products. The words "plan", "expect", "believe", "intend", "anticipate", "forecast", "target", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. The Company does not undertake to review or update these forward-looking statements.
For further information: AADCO Automotive Inc., (905) 789-9313, Charles Hodgkinson, CEO, chodgkinson@aadco.ca
