News

Frisco Bay earnings drop slightly in 3Q; 4Q could be best yet

December 10, 2003

MONTREAL - Frisco Bay Industries Ltd. (NASDAQ: FBAY), a provider of integrated security and financial transaction processing systems and an operator of white label ATMs, said that revenues for the period ended Oct. 31, 2003 increased by 4 percent to C$13.4 million ($10 million U.S.) compared to C$12.8 million ($9.6 million U.S.) recorded a year earlier.

Net earnings for the quarter declined slightly, however, to C$975,526 ($734,563 U.S.), or C37 cents a share (28 cents U.S.) per share, compared to C$903,924 ($680,630 U.S.), or C38 cents (28 cents U.S.) per share, in the same quarter of 2002.

Net earnings generated for the nine months ended October 31, 2003 totaled C$2 million ($1.5 million U.S.), or C78 cents (59 cents U.S.) per share, on revenues of C$38 million ($28.6 million U.S.), versus net earnings of C$2.6 million ($1.9 million U.S.), or C$1.13 (85 cents U.S.) per share, on revenues of C$38.2 million ($28.8 million U.S.) in the corresponding period of 2002.

According to a news release, reductions in net earnings were due to a higher effective income tax rate (33 percent this year versus 23 percent in 2002) as well as increased amortization expense. Reduction in earnings per share was also impacted by the higher number of shares outstanding this year (2,668,691) versus last year (2,375,063) as a result of the private placement in June 2003 and options exercised during the year.

Barry Katsof, the company's chairman and chief executive said that the upcoming fourth quarter has the potential to be the largest revenue producing quarter in the history of the company. "This momentum is also having a positive effect on our backlog for next year. For our next fiscal year, our backlog is at record levels, approximately double what it was at this time last year," he said in the release.