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Automodular Second Quarter 2005 Results
TORONTO - August 12, 2005
Automodular Corporation ("Automodular") reports net earnings of $1.1 million or $0.06 per share for the six months ended June 30, 2005 compared to $1.8 million or $0.09 per share in the same period in 2004. Net earnings for the quarter ended June 30, 2004 were $0.6 million or $0.03 per share compared to $0.7 million or $0.04 per share in the same period in 2004.
The decrease in the year over year results is due to several factors. Canadian operations experienced lower income levels as compared to 2004 due to the closure of the Company’s Pickering facility and poor first quarter production levels in the current year. These factors are partially offset by the $0.9 million (net of tax) gain on the sale of excess real estate during the current year. U.S. operations experienced lower income levels in 2005 due to the closure of the Company's Delaware operations, the change from a three-shift to a two-shift operation in the Pontiac truck assembly plant and poor first quarter production levels.
The first half results are summarized below:
| |
2005 |
2004 |
| Sales |
$38,870 |
$55,437 |
| Net earnings |
$1,096 |
$1,773 |
| Earnings per share |
$0.06 |
$0.09 |
| Fully diluted shares outstanding |
19,148 |
19,072 |
Earnings before interest, taxes, amortization and other non-cash items increased from $0.1 million in the first quarter to $1.4 million in the second quarter. The outlook for the second half of the year is a continuation of this positive trend as the Company realizes the benefits of new and renewed contracts combined with cost reduction initiatives and strong
anticipated volumes for the vehicles that are supplied by Automodular
facilities.
Subsequent to quarter-end, the Company reached an agreement to settle outstanding litigation for payment to the Company in the amount of $11 million. The settlement is expected to be received by September 2005 and will be recorded as income in the third quarter.
Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to six General Motors plants in Ontario, Michigan and Ohio. The Company has eight operating facilities and employs over 800 people. | 
