Search Only in this section

Financial News
Boomerang Tracking Inc. Reports Third Quarter 2002 Results
Boomerang maintains momentum for continued geographic expansion
Boomerang Tracking Inc.
Press Release
Sylvain Dunn, Genevieve Foster
3/21/2002
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 third quarter revenues for the three-month period ended January 31, 2002.

For the third quarter ended January 31, 2002, the Company recorded revenues of over $4.4 million, representing an increase of 44% compared to revenues of over $3 million for the same period last year. Third quarter net earnings were $0.17 million ($0.008 per share) versus net earnings of almost $0.43 million ($0.020 per share) for the same period last year. New activations of Boomerang units in the third quarter rose by 8% to 11,655 from 10,769 in the third quarter of the previous fiscal year.

For the nine months ended January 31, 2002, revenues increased by 48% to $12.6 million, compared to $8.5 million for the nine months ended January 31, 2001. Net earnings were $1.4 million ($0.061 per share) for the first nine months of fiscal 2002, compared to $1.5 million ($0.067 per share) for the first nine months of the previous fiscal year. During this period, new activations of Boomerang units increased by 33%, reaching 35,425 units compared to 28,660 for the same period last year.

In announcing Boomerang’s quarterly results, Peter Lashchuk, President and CEO of the Company, commented: “In this last quarter we continued to invest in key areas of the Company, including manpower, research and development, marketing initiatives and internal infrastructure to sustain our growth. Approximately 15% of our expenses are non-recurring expenses related to these efforts. Given our commitment to developing and providing technologically advanced recovery systems throughout North America and eventually abroad, we are in the process of implementing advanced systems throughout our organization utilizing the JD Edwards platform to support our extensive supplier network and to help manage our customers’ increasingly sophisticated demands and requirements. In order to meet our strategic objectives to further develop business in our current markets and to lay the foundation for entry into new ones, we anticipate expenses to continue at a similar pace in the coming quarters. Given the Company’s strong cash position, these expenses are expected to be financed internally.”

Continued Momentum in Quebec

To date, the Boomerang Tracking System has been instrumental in the recovery of over $76 million in stolen vehicles, marine craft and heavy equipment, excluding incidental recoveries. Quebec insurers maintain their support of the Boomerang device by continually modifying their underwriting guidelines. These changes to their policies have resulted in widened support for the Boomerang, with the inclusion in the guidelines requiring the installation of a Boomerang of lower-priced vehicle and new geographical territories within the province. Boomerang is also experiencing support from insurers who do not recognize vehicles equipped with manufacturer-installed GPS systems and therefore mandate the installation of the Boomerang device in such vehicles as well.



Boomerang positions itself for continued growth in Ontario

The third quarter saw further development in Ontario. Serge Laporte, Vice President, Sales and International Market Development, reported that “During this last quarter, Boomerang added key members to its sales force in Ontario to further stimulate interest from important vertical markets including fleet, construction and new car dealers. This included the addition of a Director of Sales and two account managers. These seasoned individuals, with pertinent experience in areas such as automotive, construction and fleet management, bring a great deal of knowledge and experience to Boomerang in sectors which are tremendously relevant to the Company’s core business. We are in the process of building the infrastructure for the anticipated growth in this market and are confident that with the efforts we have made to date, we will soon be experiencing positive results.”

Mr. Laporte added: “During the course of the last year, we have forged agreements with key Ontarian insurers who now highly recommend or mandate installations of the Boomerang device in commercial fleets and marine equipment, in particular. Insurers, similar to all other organizations, are driven by solutions that increase profitability and the Boomerang Tracking Systems is one such solution. Brokerage firms also benefit from insurers’ successes with a significant reduction in loss ratios associated with vehicle theft. It is a win-win situation for all, including, of course, the end-customer.”

In February, regional facilities were opened in both Mississauga and Ottawa to support the operational needs of expansion in the Ontario market.


Development in the United States

In preparation of its entry into the United States, the Company has hired strategic individuals who will commence planning for the launch and deployment of the Company’s GSM-based instant-theft notification Boomerang device. Boomerang is in the process of finalizing office space that will serve as the Company’s first U.S. Branch Office.

Boomerang Appoints Vice President, R&D;

In order to give emphasis to the deployment of the Company’s new Boomerang device operating on the GSM (Global System for Mobile Communication) network in the United States, Boomerang has appointed Mr. Danny Pascale, eng. as Vice President, R&D.; Mr. Pascale''s primary mandate is to ensure the timely development of the GSM Boomerang device for its successful launch this year.

In commenting on this appointment, Peter Lashchuk, stated that “With over 20 years of experience in research and product development, we are confident that this new member of our executive team will enable us to bring to market our newly developed Boomerang for distribution in the United States. With the utilization of the GSM platform - the most widely deployed wireless communications network - Boomerang will provide, at the onset, instant theft notification, with a variety of telematic features anticipated to follow
shortly thereafter.”

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.