Attention Business/Financial Editors:
AADCO Continues to Improve Operating Performance
AADCO Automotive Inc. (AA: TSX - Venture Exchange)
BRAMPTON, ON, Mar. 1 /CNW/ - AADCO Automotive Inc. ("AADCO" or the "Company"), a supplier of quality used automotive parts, today announced its financial results for the six month period ended December 31, 2006. The operating results continue to improve from prior years as the Company continues to improve its operating capability.
The Company reduced its operating loss before interest and amortization to $310,000 in the first six months of the current year from $465,000 for the same period last year. Sales for the current period were $1,817,000 compared to $2,311,000 in the prior year. However gross margins improved from 34.8% for the six month period ended December 31, 2005 to 39.5 in the same period this year. Operating expenses were lower by 19% falling from $1,271,000 in the first six months of fiscal 2006 to $1,028,000 in the same period this year.
The net loss after a charge for stock-based compensation of $37,600 and the costs associated with the termination of a proposed acquisition of $217,000 was $875,000 for the first six months of fiscal 2007 compared to $839,000 for the first six months of fiscal 2006. The loss in fiscal 2006 included a restructuring gain of $49,000 and a loss from discontinued operations of $24,000.
Added Charles Hodgkinson, CEO of AADCO, "With the cost reductions, improvements to gross margin and increased sales volume, we have lowered our operating break even point substantially over the past year. Based on initial reports we expect to achieve a first ever milestone for the company of break even operating results in February 2007. Along with the improvements in January sales and operating results, this projects well for the third quarter and for the rollout of the company's previously announced intention to grow rapidly through acquisitions in addition to organic growth."
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 PLEASE CONTACT: AADCO Automotive Inc., (905) 789-9313, Charles Hodgkinson, CEO, chodgkinson@aadco.ca
