Boomerang Tracking Reports Fourth Quarter 2004 Results: Company Sustains its Profitable Growth.MONTREAL Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. -- Boomerang Tracking Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BMG BMG Bundesministerium für Gesundheit (Germand: Federal Ministry for Health) BMG Be My Girl BMG Blue Man Group BMG Bertelsmann Music Group BMG Be My Guest BMG Browning Machine Gun BMG Bulk Metallic Glass ): FOURTH QUARTER HIGHLIGHTS: - REVENUES UP 25% TO $7.06 MILLION - SERVICE CONTRACT REVENUES OF $4.80 MILLION - NET EARNINGS AT $1.30 MILLION Boomerang Tracking Inc. (TSX:BMG), the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. leader in stolen asset recovery, announced today its results for the fourth quarter ended April 30, 2004. For this period, net earnings were at $1.30 million ($0.06 per share), compared with net earnings of $0.13 million ($0.01 per share) for the same period last year. Net earnings were at 18.4% of revenues, compared to 2.4% for the same period last year. In the quarter ended April 2003, net earnings would have reached 10.8% considering unusual items. In the present quarter, the Company achieved revenues of $7.06 million, an increase of 25% compared with revenues of $5.63 million for the same period last year. Revenues from service contracts jumped by 37% to a record $4.80 million during the fourth quarter of fiscal 2004, from $3.50 million for the same period last year. New activations of Boomerang units were 9,338 units in the fourth quarter, compared to 10,031 units for the same quarter of the previous fiscal year. The amount of units sold was 9,384 in the fourth quarter, compared to 9,428 for the fourth quarter of the previous fiscal year. In addition, 2,600 Boomerang devices were transferred to new vehicles during this period. The Company continued its progression progression, in mathematics, sequence of quantities, called terms, in which the relationship between consecutive terms is the same. An arithmetic progression is a sequence in which each term is derived from the preceding one by adding a given number, d, in Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. with close to 1,091 new activations this past quarter. For the fiscal year ended April 30, 2004, net earnings were at a record $3.30 million ($0.15 per share), compared to $1.14 million ($0.05 per share) for the previous fiscal year. Revenues saw a 26% increase to a record $26.22 million, compared to $20.79 million for the twelve months ended April 30, 2003. Revenues from service contracts jumped by 35% to $17.18 million for fiscal 2004, from $12.68 million for fiscal 2003. New Boomerang activations were 38,146 in 2004, compared to 41,984 for fiscal 2003. Stock Market Activity During the quarter ended April 30, 2004, the Company purchased for cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. , pursuant to the Normal Course Issuer Bid, a total of 1,900 shares. For fiscal year 2004, the Company purchased for cancellation, pursuant to the Normal Course Issuer Bid, a total of 672,400 shares. Within this Normal Course Issuer Bid, which took effect May 6, 2003 for a 12-month period, the Company was authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: to purchase for cancellation a maximum of 1,093,155 common shares, representing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 5% of the issued and outstanding Common Shares as of May 2, 2003. US Market Update In June June: see month. 2003, the Company announced its entry into California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , the gateway to the US market, with its advanced proprietary GSM-based Boomerang device. In this past quarter, the Company saw the departure of Mr. Tim Flusche, Managing Director for the US operation. The Company continued developing its market strategies and does not anticipate any material revenues in the immediate future. Numbers That Speak Volumes As of April 30, 2004, the Boomerang Tracking System has been instrumental in the recovery of more than 3,390 vehicles and other valuable assets, including incidental Contingent upon or pertaining to something that is more important; that which is necessary, appertaining to, or depending upon another known as the principal. Under Workers' Compensation statutes, a risk is deemed incidental to employment when it is related to whatever a recoveries, representing a total value of over $167 million. These impressive results have earned the Company the support of national insurers and the law enforcement community, who recognize the benefits of the Company's tracking devices.
Financial Highlights
Statements of Consolidated Earnings
(Thousands of dollars except earnings per share information)
For the three months
ended April 30
2004 2003 Change
(Unaudited) (Unaudited)
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Revenues $7,060 $5,628 25%
Unusual Items - 250 -100%
Earnings Before
Income Taxes 1,644 219 651%
Net Earnings 1,301 133 878%
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Earnings per
Share
Basic $0.061 $0.006 917%
Diluted $0.060 $0.006 900%
Weighted Average Number of Class "A" shares and Class "A" shares
equivalents outstanding
Basic 21,190,824 22,033,388 -4%
Diluted 21,540,496 22,299,672 -3%
For the twelve months
ended April 30
2004 2003 Change
(Unaudited) (audited)
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Revenues $26,217 $20,793 26%
Unusual Items - 450 -100%
Earnings Before
Income Taxes 4,823 1,817 165%
Net Earnings 3,304 1,140 190%
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Earnings per
Share
Basic $0.153 $0.051 200%
Diluted $0.151 $0.051 196%
Weighted Average Number of Class "A" shares and Class "A" shares
equivalents outstanding
Basic 21,540,879 22,219,059 -3%
Diluted 21,853,107 22,510,671 -3%
Interim Management's Discussion & Analysis of Financial Condition and Results of Operations for the three months ended April 30, 2004 Results of Operations Revenues For the fourth quarter ended April 30, 2004, the Company achieved revenues of $7.06 million, representing an increase of 25%, compared to revenues of $5.63 million for the same period last year. More specifically, revenues from service contracts jumped by 37% to a record $4.80 million, from $3.50 million during the same period last year, whereas sales of equipment increased by $0.12 million (or 6%). New Boomerang devices activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. in the period were 9,338 for the quarter ended April 30, 2004, as compared to 10,031 units for the same quarter last year. The Company continued to realize a constant growth of revenues derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from service contracts attributed, in part, to the Company's customer retention and loyalty programs which accounted for nearly 2,600 Boomerang devices being transferred to new vehicles. The revenues derived from service contracts represented 68% of total revenues for the quarter ended April 30, 2004, and 62% for the quarter ended April 30, 2003. Service contracts are available primarily on a 12-, 24-, 36-, or 48-month basis. All services are covered by contracts and, in most cases, are payable in full upon activation activation /ac·ti·va·tion/ (ak?ti-va´shun) 1. the act or process of rendering active. 2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme. 3. and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. renewal. For accounting purposes, revenue is recognized progressively over the term of the contract, resulting in deferred revenue of $13.61 million as at April 30, 2004, of which $10.53 million will be recognized as revenues during the next twelve months. This compares to $9.40 million, and $7.83 million respectively as at April 30, 2003. The number of units sold was 9,384 compared to 9,428 for the same period last year. Revenues derived from the sale of units represent 29% of total revenues for the quarter ended April 30, 2004, and 34% for the quarter ended April 30 2003. Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. Tight cost control enabled the Company to cut the ratio of sales, administration and R&D costs on revenues by 8% during the quarter ended April 30, 2004, compared with the same quarter last year. During this same period, the Company's revenues climbed by 25%. The service fees of wireless network carriers constitute the major costs involved in asset tracking. These services are the subject of commercial agreements. Depreciation and Amortization For the fourth quarter ended April 30, 2004, quarterly depreciation and amortization of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → increased to $0.29 million from $0.25 million in the quarter ended April 30, 2003. Income Taxes Income tax expenses in the fourth quarter ended April 30, 2004, amounted to $0.34 million, as compared to $0.09 million for the same period in the last fiscal year. Net Earnings Net earnings for the fourth quarter reached $1.30 million ($0.06 per share) compared with net earnings of $0.13 million ($0.01 per share) for the same period last year. Net earnings were at 18.4% of revenues compared to 2.4% for the same period last year. Considering unusual items, net earnings would have been at 10.8% of revenues for the same period last year. Liquidity and Financial Resources The Company maintains its excellent financial health with its ongoing strong balance sheet with no external debt. During the fourth quarter of operations in fiscal 2004, the cash resources increased by $3.26 million to $16.49 million (including temporary investments of $10.88 million with maturity dates up to June 2010). The increase in liquidity during the past quarter is due to cash generated by operating activities in the amount of $3.63 million, outflows from expenditures for fixed and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. of $0.40 million, and outflows for the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of shares for cancellation in the amount of $0.01 million. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (representing cash provided by operating activities before changes in working capital items) in the quarter ended April 2004 generated $1.84 million, compared to $0.16 million for the same period last year. Year-over-year positive operating cash flow reflects the efficiency of Boomerang Tracking in generating profits while expanding its internal infrastructures. The Company's working capital (current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. less current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. ) increased to $6.16 million as at April 30, 2004, from $3.19 million in the same quarter last year. The working capital ratio reached 1.39 at the end of the quarter, compared to 1.29 for the same quarter last year. The Company believes that its cash resources as at April 30, 2004, together with cash flow from future operations, will provide it with sufficient funds to meet its operating and capital expenditure requirements for the upcoming year. Operations are expected to continue to generate positive cash flow into the future. Excess cash is invested by the Company in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. instruments with financially sound institutions and is readily available when the need for funds arises. Risks and Uncertainties Technology The Boomerang Tracking System employs proprietary wireless-based tracking devices. Presently, there are no known direct competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. in the marketplace using similar technology and locating process as the Company. Competing products utilize other technologies, including Global Positioning System Global Positioning System: see navigation satellite. Global Positioning System (GPS) Precise satellite-based navigation and location system originally developed for U.S. military use. (GPS (1) (General Print Server) An IBM mainframe feature that lets TN3270 clients access LPD/LPR printers via the SNA/VTAM network. See TN3270 and VTAM. (2) (Global Positioning S ) technologies, which are not as effective at locating assets enclosed en·close also in·close tr.v. en·closed, en·clos·ing, en·clos·es 1. To surround on all sides; close in. 2. To fence in so as to prevent common use: enclosed the pasture. within buildings or shipping containers or situated underground. Although the Company is continuing to invest in research and development, there is no certainty CERTAINTY, UNCERTAINTY, contracts. In matters of obligation, a thing is certain, when its essence, quality, and quantity, are described, distinctly set forth, Dig. 12, 1, 6. It is uncertain, when the description is not that of one individual object, but designates only the kind. Louis. that it will be able to maintain its current technological edge. Financial Resources Although the Company is profitable and growing, there is no certainty that it will be able to compete with larger, more financially secure competitors in the marketplace. Reliance on Strategic Alliances The Company is currently heavily dependent on its alliance with wireless carriers and insurance companies. Wireless carriers are an integral facet facet /fac·et/ (fas´it) a small plane surface on a hard body, as on a bone. fac·et n. 1. A small smooth area on a bone or other firm structure. 2. of its stolen asset tracking system. The continued availability and maintenance of the wireless telecommunications networks A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. used by the Company is essential for operating the tracking system. In addition, many insurance companies are strong supporters This article is about supporters in heraldry. For the use in British English meaning supporting sports teams, see fan (person). In heraldry, supporters are figures usually placed on either side of the shield and depicted holding it up. and advocates of the Boomerang tracking system. The continued existence of these strategic alliances is important for the ongoing development of new and existing markets. Reliance on Key Employees The Company's continued success will be dependent on the performance and continued service of its executive officers and certain key employees. The loss of any of these individuals could have a material adverse impact on the Company's business. Risk Related to Territorial Expansion Certain risks are inherent to the entrance into and development of new markets. These risks include the development of strategic alliances and distribution networks, the acceptance by the automobile industry automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. and consumers of the Boomerang Tracking System, and the application of laws and regulations governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. the vehicle insurance industry in each territory. Tracking Risk Certain risks are inherent to tracking activities. These risks include the contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. arising out of serious accidents and incidents. At the same time, as a result of various factors, the Company cannot guarantee the recovery of each of the vehicles stolen from its clients. Although the Company believes that its relationships with strategic partners are good, the confidence it receives from its partners depends on the continued success of its performance. Credit Risk With respect to the holding of short-term investments, the Company may be exposed to a credit loss in the event of non-performance by the counterparties Counterparties The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position. to these contracts, but does not anticipate such non-performance. The Company manages this credit risk by dealing only with financially sound counterparties. The Company, in the normal course of business, monitors the financial condition of its customers. It does not have significant exposure to any individual customer or counterparty Counterparty The other participant, including intermediaries, in a swap or contract. . The Company establishes an allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. that corresponds to the credit risk of its customers, historical trends and economic circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . The Company does not believe that it is exposed to an unusual level of customer credit risk. About Boomerang Tracking Inc. Boomerang Tracking Inc. markets and distributes the Boomerang(R) Tracking System, a proprietary product using technology patented by the Company. The Boomerang, Boomerang2(TM) and GSM-based Boomerang devices are the central devices in a wireless-based asset tracking system utilizing the networks of major telecommunications companies See telecom company. . The Boomerang Tracking System is capable of locating stolen automobiles No invention has so transformed the landscape of the United States as the automobile, and no other country has so thoroughly adopted the automobile as its favorite means of transportation. , heavy equipment and valuable objects. Members of the insurance industry endorse To sign a paper or document, thereby making it possible for the rights represented therein to pass to another individual. Also spelled indorse. endorse (indorse) v. the Company's proven recovery record. The Boomerang Tracking System is installed through a network of corporate-managed service centers and authorized dealers located throughout the provinces of Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. and Ontario. The Company's head office, research and development and corporate installation facilities are located in Montreal, Quebec, with regional facilities located in Mississauga, Ontario For the First Nation, see . Mississauga (pronounced: [ˌmɪsɪˈsɑgə] listen and Orange County, California Orange County is a county in Southern California, United States. Its county seat is Santa Ana. According to the 2000 Census, its population was 2,846,289, making it the second most populous county in the state of California, and the fifth most populous in the United States. . Boomerang is a registered trademark and Boomerang2 is a trademark of Boomerang Tracking Inc. The shares of Boomerang Tracking Inc. trade on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol BMG. Statement reflecting outlook and forecasts Since the statements contained in this report refer to Company or management objectives, projections, estimates, expectations and forecasts for the future, they may be considered "prospective statements" and may be indicated as such by the use of verbs such as "believe", "predict", "estimate", "expect", "consider" as well as the use of the future or conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. verb verb, part of speech typically used to indicate an action. English verbs are inflected for person, number, tense and partially for mood; compound verbs formed with auxiliaries (e.g., be, can, have, do, will) provide a distinction of voice. tense tense [O.Fr., from Lat.,=time], in the grammar of many languages, a category of time distinctions expressed by any conjugated form of a verb. In Latin inflection the tense of a verb is indicated by a suffix that also indicates the verb's voice, mood, person, and , regardless of negative or positive tone or the variation used. The Company would like to remind readers that these prospective statements, given their nature, include risks and uncertainties and that the Company's actual actions or results may differ materially from those contained explicitly ex·plic·it adj. 1. a. Fully and clearly expressed; leaving nothing implied. b. Fully and clearly defined or formulated: "generalizations that are powerful, precise, and explicit" or implicitly im·plic·it adj. 1. Implied or understood though not directly expressed: an implicit agreement not to raise the touchy subject. 2. in such prospective statements and could affect the degree to which a particular projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. is achieved. No regulatory authority Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities has approved or disapproved of the information contained herein.
Consolidated Balance Sheets
(Thousands of dollars)
As at As at
April 30, 2004 April 30, 2003
(Unaudited) (Audited)
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Assets
Current
Cash and cash equivalents $5,608 $2,568
Temporary investments 10,882 7,266
Accounts receivable 2,006 2,125
Investment tax credits receivable 299 257
Income taxes recoverable - 208
Inventories 2,834 1,404
Prepaid expenses 171 218
Future income taxes 11 11
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21,811 14,057
Fixed Assets 3,599 3,372
(Net of accumulated amortization
of: April 30, 2004: $2,342; April
30, 2003: $1,413)
Patents and Trademarks 190 188
(Net of accumulated amortization
of: April 30, 2004: $299; April
30, 2003: $197)
Future Income Taxes 888 307
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$26,488 $17,924
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Liabilities
Current
Accounts payable and accrued
liabilities $4,037 $3,037
Income taxes payable 957 -
Deferred revenue 10,534 7,833
Future income taxes 121 -
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15,649 10,870
Deferred Revenue 3,076 1,566
Future Income Taxes 585 301
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19,310 12,737
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Shareholders' Equity
Capital stock 746 770
Retained earnings 6,432 4,417
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7,178 5,187
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$26,488 $17,924
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Consolidated Statements of Retained Earnings
(Thousands of dollars)
For the twelve months ended
April 30
2004 2003
(Unaudited) (Audited)
---------------------------------------------------------------------
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Balance - Beginning of Period $4,417 $3,927
Net earnings 3,304 1,140
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7,721 5,067
Premium on repurchase of shares (1,289) (650)
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Balance - End of Period $6,432 $4,417
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Consolidated Statements of Earnings
(Thousands of dollars except earnings per share information)
For the three For the twelve
months ended months ended
April 30 April 30
2004 2003 2004 2003
(Unaudited)(Unaudited)(Unaudited) (Audited)
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Revenues
Sales of equipment $2,061 $1,941 $8,267 $7,427
Service contracts 4,799 3,496 17,180 12,683
Other 200 191 770 683
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7,060 5,628 26,217 20,793
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Expenses 5,426 4,935 20,065 16,915
Except the following -
Amortization 288 247 1,032 932
Foreign exchange (5) 1 66 41
Interest expense 63 - 63 -
Interest income (115) (66) (372) (166)
Research and development (241) 42 540 804
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5,416 5,159 21,394 18,526
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Earnings Before
Undernoted Items 1,644 469 4,823 2,267
Unusual items (note 3) - 250 - 450
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Earnings Before Income
Taxes 1,644 219 4,823 1,817
Income taxes 343 86 1,519 677
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Net Earnings $1,301 $133 $3,304 $1,140
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Earnings Per Share
Basic $0.061 $0.006 $0.153 $0.051
Diluted $0.060 $0.006 $0.151 $0.051
Weighted Average Number
of Class A shares and
Class A share
equivalents outstanding
Basic 21,190,824 22,033,388 21,540,879 22,219,059
Diluted 21,540,496 22,299,672 21,853,107 22,510,671
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Consolidated Statements of Cash Flows
(Thousands of dollars)
For the three For the twelve
months ended months ended
April 30 April 30
2004 2003 2004 2003
(Unaudited)(Unaudited)(Unaudited)(Audited)
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Funds Provided (Used) -
Operating Activities
Net earnings $1,301 $133 $3,304 $1,140
Amortization 288 249 1,032 932
Write-off of Fixed Assets - 104 - 104
Future income taxes 253 (326) (176) (130)
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1,842 160 4,160 2,046
Changes in non-cash
operating elements of
working capital 1,791 2,002 5,070 2,506
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3,633 2,162 9,230 4,552
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Financing Activity
Repurchase of class A
shares (4) (487) (1,313) (666)
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Investing Activities
Increase in temporary
investments (76) (1,999) (3,616) (1,294)
Additions to fixed assets (272) (383) (1,156) (1,597)
Additions to patents and
trademarks (50) (9) (105) (70)
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(398) (2,391) (4,877) (2,961)
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Increase (Decrease) in Cash
and Cash Equivalents 3,231 (716) 3,040 925
Cash and Cash Equivalents
Beginning of period 2,377 3,284 2,568 1,643
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End of period $5,608 $2,568 $5,608 $2,568
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Additional Cash Flow
Information
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Interest paid 8 - 8 -
Income taxes paid $(270) $223 $530 $981
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Notes to Interim Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge : (Thousands of dollars) (1) Basis of preparation These unaudited interim consolidated financial statements have been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Canadian generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , using the same accounting policies and methods of computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. as were used for the consolidated financial statements for the year ended April 30, 2003. These unaudited interim consolidated financial statements do not include all the disclosures required by Canadian generally accepted accounting principles in annual financial statements and accordingly, should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Consolidated Financial Statements for the year ended April 30, 2003. (2) Revenues The Company derives revenues from the sale of vehicle tracking devices, presented as "Sales of Equipment", and service contracts presented as "Service Contracts", and "Other" revenues such as tracking services. (3) Unusual items During the fourth quarter of 2003, an unusual item representing the last portion of a potential claim against the Company in regards to tax credits claimed amounted to $250K. Unusual items recorded in the third quarter of 2003 represents severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs of $100 resulting from an internal reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. , and a provision for a potential claim against the Company with regards to tax credits claimed. The provision has been included in accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. and is based on management's best estimate. The Company cannot predict the outcome of the claim at this time, but management is of the opinion that the potential liability will not have a material adverse effect on the financial position or results of the Company. (4) New accounting reserve for extended warranty The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. program A new provision of $140 for a new lifetime warranty An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a warranty. for all the Boomerang units installed as of May 1st, 2003, is instituted in the fourth quarter of 2003. This warranty covers all active contracts at year end. This provision has been included in accrued liabilities and is based on management's best estimate. The Company cannot predict the outcome of the claim at this time, but management is of the opinion that the potential liability will not have a material adverse effect on the financial position or results of the Company. (5) Comparative Figures Certains reclassifications of the comparative amounts presented have been made to facilitate comparison with the current period.
SUPPLEMENTARY INFORMATION
New Boomerang units installed and activated
Fiscal 2004
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For the three months ended Quarterly Cumulative
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July 31 11,516 157,895
October 31 8,212 166,107
January 31 9,080 175,187
April 30 9,338 184,525
Total 38,146
Fiscal 2003
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For the three months ended Quarterly Cumulative
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July 31 12,089 116,484
October 31 10,052 126,536
January 31 9,812 136,348
April 30 10,031 146,379
Total 41,984
Fiscal 2002
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For the three months ended Quarterly Cumulative
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July 31 11,763 69,672
October 31 12,007 81,679
January 31 11,655 93,334
April 30 11,061 104,395
Total 46,486
Fiscal 2001
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For the three months ended Quarterly Cumulative
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July 31 7,983 26,828
October 31 9,908 36,736
January 31 10,769 47,505
April 30 10,404 57,909
Total 39,064
Fiscal 2000
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For the three months ended Quarterly Cumulative
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July 31 1,850 6,832
October 31 2,160 8,992
January 31 4,080 13,072
April 30 5,773 18,845
Total 13,863
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