Attention Business/Financial Editors:
AADCO Announces Third Quarter Results
AADCO Automotive Inc. (AA: TSX - Venture Exchange)
13:23 EDT Wednesday, May 30, 2007
BRAMPTON, ON, May 30 /CNW/ - AADCO Automotive Inc. ("AADCO" or the "Company"), a supplier of quality used automotive parts, today announced its financial results for the third quarter ended March 31, 2007. In this quarter the efforts to increase the base of larger body shop customers was reflected in an increase in sales over the prior year. Combined with continuing operational improvements, AADCO continues to reduce the operating losses and progress towards profitability.
The company reduced its operating loss before interest and amortization to $92,000 in the third quarter from $229,000 last year. For nine months the operating loss was reduced to $403,000 from $695,000 for the same period in the previous year. The sales for the quarter ended March 31, 2007 were $1,166,000, up 14%, compared to $1,020,000 in the same period last year. Sales for the current nine-month period were $2,982,000 down from $3,332,000 in the prior year. The decline in sales for the year to date was the result of low sales in the first quarter. Gross margins continue to show improvement over last year to 39.5% from 34.4%. Operating expenses were lower by 14%, falling from $1,842,000 for the first nine months of 2006 to $1,580,000 for the first nine months of 2007.
About AADCO Automotive Inc.
AADCO Automotive Inc. is a rapidly growing, Canadian public company committed to providing quality LKQ (used) and Aftermarket parts to the automotive repair industry with the goal of becoming the national provider of these parts through acquisition and 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.
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FOR FURTHER INFORMATION PLEASE CONTACT: AADCO Automotive Inc., (905) 789-9313, Charles Hodgkinson, CEO, chodgkinson@aadco.ca
