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Second Quarter 2010 Results
Ajax - August 10, 2010
Automodular Corporation (“Automodular” or “the Company”) reports strong operating results driven by
increased production volumes in our remaining Oakville and Oshawa-area operations in the second quarter
of 2010 and for the six months ended June 30, 2010 when compared to the same periods in 2009. In
comparison, the second quarter of 2009 included a total of eight weeks of unscheduled downtime as our
customers sought to rebalance inventory levels against the backdrop of substantially reduced vehicle
demand. The second quarter of 2009 also included revenues of $4.4 million relating to an early termination
fee from GM in respect of Automodular’s Oshawa-area truck contracts. There were no similar amounts
included in revenues in the current year.
Reported net earnings in the quarter ended June 30, 2010 was reduced by a charge of $5.6 million in respect
of the recognition of the cumulative translation loss relating to Automodular’s US-based operations
following the shutdown of operations in our last remaining US facility in Ohio. The recognition of this
amount reallocates amounts within different categories of shareholders’ equity and has no impact on the
consolidated balance sheet or cash position of the Company. As a result of this charge, Automodular reports
a net loss of $(2.5) million or $(0.10) per share for the six-months ended June 30, 2010 compared to net
earnings of $1.6 million or $0.06 per share in the same period in 2009. Net loss for the quarter ended June
30, 2010 was $(2.3) million or $(0.09) per share compared to net earnings of $2.6 million or $0.10 per share
in the same period in 2009.
The results for the first half of the year are summarized below (all figures in ‘000s except per share):
|
Three months ended June 30 |
Six months ended June 30 |
| |
2010 |
2009 |
2010 |
2009 |
| Sales |
$25,540 |
$24,103 |
$50,341 |
$37,345 |
| Net earnings (loss) |
$(2,324) |
$2,576 |
$(2,526) |
$1,604 |
| Earnings per share* |
$(0.09) |
$0.10 |
$(0.10) |
$0.06 |
| Shares outstanding* |
25,412 |
25,412 |
25,412 |
25,412 |
| *(basic and fully diluted) |
During the second quarter of 2010, Automodular announced a Substantial Issuer Bid pursuant to which the
Corporation offered to repurchase for cancellation up to $5 million in value of its outstanding common
shares from shareholders. The offer closed subsequent to quarter end. A total of 5,555,554 shares will be
taken up as a result of the offer.
In Oshawa, Automodular’s efforts are focused on managing the termination of our GM contracts and the
transition of the business including our workforce to one of our competitors. In Oakville, the new 2011
model year for the Ford Edge program launched in July, 2010. The model year changes are expected to be
well received.
Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to
two Original Equipment Manufacturer plants in Ontario. The Company has three operating facilities and
employs approximately 600 people.
For further information, contact:
Christopher Nutt
Vice President, Finance
Automodular Corporation
(905) 619 4202
invest@automodular.com
This press release contains forward-looking statements that involve a number of risks and uncertainties. Specific
forward-looking statements in the document include those relating to the termination of our GM contracts and expected
closure of our Oshawa-area facility and transition of business to a competitor, as well as the expected impact of the 2011
Ford Edge model year change on vehicle demand. Among the important factors that could cause actual results to differ
materially from those indicated above are market and general economic conditions and the risk factors detailed from time
to time in the Company’s periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at
www.sedar.com. Readers are cautioned not to rely on forward-looking statements. Except as required under continuous
disclosure obligations, the Company undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise. As of the fourth quarter of 2008,
Automodular no longer provides a financial outlook.
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