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Boomerang Reports Record Second Quarter 2002 Results
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Boomerang Tracking Inc.
Press Release
Sylvain Dunn, Genevieve Foster
12/21/2001
Quarterly Review and Financial Highlights can be found at this link, while the complete financials can be found at this link.

Boomerang Tracking Inc. (TSE: BMG), the Canadian leader in stolen asset recovery, today announced record second quarter revenues for the three-month period ended October 31, 2001.

In announcing the Company’s quarterly results, President Peter Lashchuk made the following comment: “We intend to remain very active in executing our long-range goals. The significant interest in our Boomerang solutions displayed by both prospective and existing clients alike as well as insurers in Canada and in the U.S. reinforces the importance of rapidly penetrating these markets.”

For the second quarter ended October 31, 2001, the Company recorded revenues of $4.1 million, representing an increase of 35% compared to revenues of over $3 million for the same period last year. Second quarter net earnings saw an increase of 3% at $0.61 million ($0.027 per share) versus net earnings of $0.59 million ($0.027 per share) for the same quarter in the previous year. New activations of Boomerang units in the second quarter rose by 21% to 12,007 from 9,908 in the second quarter of the previous fiscal year.

For the six months ended October 31, 2001, revenues saw a 50% increase to $8.2 million, compared to $5.5 million for the six months ended October 31, 2000. Net earnings increased by 15% to $1.2 million ($0.054 per share) for the first six months of fiscal 2002, compared to $1.0 million ($0.047 per share) for the first six months of the previous year. During this period, new Boomerang activations increased by 33%, reaching 23,770 units compared to 17,891 for the same period last year.

“Over the course of the last quarter, we have continued to realize growth while controlling operating costs and investing more in key areas of the Company, namely in internal infrastructures, senior management and research and development in anticipation of continued growth in Canada and abroad”, said Mr. Lashchuk. “Customer satisfaction is of paramount importance for a service company in full expansion such as Boomerang Tracking and, with this in mind, we will continue to invest in information systems in order to meet the requirements of an increasing subscriber base.”


More Progress in Ontario

The second quarter also saw the arrival of Serge Laporte, Vice President of Sales and Market Development at Boomerang Tracking. The first part of his mandate includes establishing a balanced sales force in Ontario with a focus on specific vertical markets and strengthening authorized dealer relations. A team of account managers and directors has already been hired in the Toronto and Ottawa markets with additional members anticipated over the course of the next few months.

Said Laporte: “We have initiated several programs to drive the business in this market. I am confident that with the addition of new, experienced staff to our team and strong marketing initiatives we are poised to experience significant growth in Ontario.”

Further Development in American Market

The appointment of Timothy Flusche to the position of Managing Director, U.S. Operations, marks further development in Boomerang Tracking’s U.S. market development. Mr. Flusche’s principal responsibilities will include implementing Boomerang Tracking’s business plan for the U.S. to ensure success in selling and distributing the Boomerang in the United States during 2002. In his new role, he will negotiate contracts with distribution networks, develop insurer relationships, oversee operational logistics and supervise the implementation team during each rollout phase in this new market.

Ongoing Research and Development

With the intention of entering the U.S., Boomerang Tracking’s Research and Development team recently is developing a new Boomerang device that operates on the GSM (Global System for Mobile Communication) network.

Added André Boulay, Boomerang Tracking’s Vice President of Technology: “We are developing this unique proprietary technology in order to provide tracking services using the GSM platform, the most widely deployed wireless communications network. This new GSM-based Boomerang will also provide instant theft notification and lead to a variety of telematic features.”

Numbers That Speak Volumes

To date, the Boomerang Tracking System has been instrumental in the recovery of over $68 million in stolen vehicles, marine craft and heavy equipment, excluding incidental recoveries. Due to its impressive recovery rate, insurance companies across Canada have recognized the system’s effectiveness. Over 40 insurers now support the Boomerang in Quebec and Ontario by either mandating or recommending its installation on certain luxury and high-risk vehicles.
Boomerang Tracking Inc. markets and distributes the Boomerang Tracking System, a proprietary product using technology patented by the Company. The Boomerang and Boomerang2 devices are the central devices in a cellular-based asset tracking system utilizing the wireless systems of major regional telecommunications companies. The Boomerang Tracking System is capable of locating stolen automobiles, heavy equipment and valuable objects. The Company's proven recovery record has received endorsement by members of the insurance industry. The Boomerang Tracking System is installed through a network of authorized dealers located throughout the provinces of Quebec, Ontario and British Columbia. The Company's head office, research and development and corporate installation facilities are located in Montreal, Quebec. Boomerang is a registered trademark of Boomerang Tracking Inc. The shares of Boomerang Tracking Inc. trade on The Toronto Stock Exchange under the symbol BMG.