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Third Quarter 2005 Results
TORONTO - October 28, 2005
Automodular Corporation (“Automodular”) reports net earnings for the quarter ended September 30, 2005 of $0.6 million or $0.03 per share compared to a loss of $0.1 million or $0.01 per share in the same period in 2004. Net earnings are $1.7 million or $0.08 per share for the nine months ended September 30, 2005 compared to $1.6 million or $0.09 per share in the same period in 2004.
The improved quarterly results are a result of the benefit of new and renewed contract pricing in both Canadian and US operations. "Employee pricing" initiatives by the automobile manufacturers also resulted in additional volumes of the vehicles that Automodular supports, which generated incremental earnings.
The three and nine month results are summarized below (in thousands except for per
share data):
|
3 Months |
9 Months |
| |
2005 |
2004 |
2005 |
2004 |
| Sales |
$20,680 |
$19,478 |
$59,550 |
$74,915 |
| Net earnings |
$576 |
$(126) |
$1,672 |
$1,647 |
| Earnings per share |
$0.03 |
$(0.01) |
$0.08 |
$0.09 |
| Fully diluted shares outstanding |
22,049 |
19,051 |
20,126 |
19,066 |
Subsequent to quarter-end, the agreement the Company reached to settle outstanding litigation for payment to the Company of $11 million received final court approval. The settlement was received in October 2005 and will be recorded as income in the fourth quarter.
The company does not expect to see significant earnings growth until 2007. At that time, full-scale production should be achieved in the Company’s new facilities and the costs of closing excess facilities will have been addressed.
Automodular Corporation (“Automodular”) also reports recent organization changes, summarized below:
- Russell Baranowski retired as President of the Company. Russ remains a director.
- Winston Ash retires as Executive Vice President, Business Development, effective December 31, 2005.
Michael Blair, Chief Executive Officer, commented: “Russ and Winston have made important contributions to Automodular Corporation during their careers and played key roles in building the organization. We wish them well in their retirements”.
Automodular is a supplier of sub-assembly, sequencing, transportation and logistics services to six OEM plants in Ontario, Michigan and Ohio. The Company has eight operating facilities and employs over 800 people. | 
