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2nd Quarter Results
TORONTO - August 11, 2006
Automodular Corporation (“Automodular” or “the Company”) reports net earnings of $1.2 million or $0.05 per share for the six months ended June 30, 2006 compared to $1.1 million or $0.06 per share in the same period in 2005. Net earnings for the quarter ended June 30, 2006 were $0.6 million or $0.03 per share compared to $1.4 million or $0.07 per share in the same period in 2005. The 2005 comparative figures for the three-month period ended June 30, 2005 have been restated to include the gain recorded on the sale of an excess facility. The facility gain had previously been reported as a first quarter 2005 transaction.
In the current year, operating results improved as a result of a combination of reduced customer downtime and improved contract terms on key contracts. This improvement was offset by costs incurred relating to the closure of the Company’s Pontiac, Michigan facility. As a result of the loss of its Pontiac contract, the Company closed its operations effective June 30, 2006. $0.8 million in closeout costs were incurred and were partially offset by $0.5 million in gains on the disposition of redundant assets. The gain on the sale of the excess facility in 2005 was $1.1 million.
The first half results are summarized below (all figures in ‘000s except per share):
|
Three months |
Six months |
| |
2006 |
2005
(restated) |
2006 |
2005 |
| Sales |
$17,133 |
$19,564 |
$35,023 |
$38,870 |
| Net earnings |
$591 |
$1,436 |
$1,167 |
$1,096 |
| Earnings per share* |
$0.03 |
$0.07 |
$0.05 |
$0.06 |
| Fully diluted shares outstanding |
22,049 |
19,247 |
22,049 |
19,149 |
| *(basic and fully diluted) |
The Company anticipates profitable operations for the balance of 2006 and improved results in 2007 as its new Oakville operation enters its first full year of production.
Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to five Original Equipment Manufacturer plants in Ontario, Michigan and Ohio. The Company has six operating facilities and employs over 700 people. | 
