Financial News
Boomerang Tracking Reports Second Quarter 2003 Results
Company provides savings of over $100 million through vehicle recoveries
Boomerang Tracking Inc.
Quarterly Release
Sylvain Dunn, Genevieve Foster
12/11/2002
Quarterly Review and Financial Highlights with an Interim MD&A; can be found at this link, while the complete financials can be found at this link.


SECOND QUARTER HIGHLIGHTS:

· REVENUES UP 18% TO $4.9 MILLION
· REVENUES FROM SERVICE CONTRACTS UP 46% TO $3.1 MILLION
· COMPANY RANKS FIRST IN DELOITTE & TOUCHE’S 2002 FAST 50


Boomerang Tracking Inc. (TSX: BMG), the Canadian leader in stolen asset recovery, today announced second quarter revenues for the three-month period ended October 31, 2002.

For the second quarter ended October 31, 2002, the Company recorded revenues of $4.87 million, representing an increase of 18% compared to revenues of approximately $4.11 million for the same period last year. Second quarter net earnings were $0.35 million ($0.016 per share) versus net earnings of $0.61 million ($0.027 per share) for the same period last year. During the period, the Company continued to invest steadily in research and development undertakings, marketing initiatives and internal infrastructures. Revenues from service contracts jumped by a record 46% to $3.08 million during the second quarter of fiscal 2003 from $2.11 million during the same period last year. New activations of Boomerang units in the second quarter were 10,052 units versus 12,007 units in the second quarter of the previous fiscal year.

For the six months ended October 31, 2002, revenues saw a 21% increase to $9.90 million, compared to $8.18 million for the six months ended October 31, 2001. Net earnings were $0.88 million ($0.040 per share) for the first six months of fiscal 2003, compared to $1.20 million ($0.054 per share) for the first six months of the previous year. Revenues from service contracts jumped by 50% to $5.93 million for the first six-month period of fiscal 2003 from $3.95 million during the same period last year. During this period, new Boomerang activations were 22,141 compared to 23,770 for the same period last year.

“This second quarter of fiscal 2003 marked the first year anniversary of the Boomerang2™ tracking device. Activations from this second-generation Boomerang were very favorable and, as at the end of this quarter, represent 15% of the Company’s new activations. This product not only offers consumers with advanced notification features resulting in quicker response to theft, but also provides the Company with additional product and service revenues for every new activation. New revenue-generating programs including sales incentives for new car dealers permitted the Company to forge stronger ties with this channel of distribution,” said Peter Lashchuk, President and CEO of the Company.

Mr. Lashchuk continued: “With market development being the Company’s primary growth objective, we continued to invest in key areas such as research and development, marketing and internal infrastructures to support this goal. In recognition of Boomerang Tracking’s growing leadership position in the Canadian marketplace and strong profitable growth in its sector, Boomerang Tracking was ranked first in Deloitte & Touche’s 2002 Canadian Technology Fast 50 awards program. This ranking also placed the Company in 50th position in Deloitte & Touche’s 2002 North America Technology Fast 500 awards program.”

As part of the Company’s goal to further control the distribution and quality of installation of its devices, certain measures have been implemented. These have included a phase-out of the Company’s distribution agreement with its current distributor and a reduction in authorized dealers by 50%, particularly in the province of Quebec.


Additional Support in Quebec

During this last quarter, the Company added a new insurer who, like the 38 that currently endorse the Company’s tracking devices, now mandates the installation of the Boomerang tracking device on certain high-risk and high-end model vehicles. With the successful introduction of the Boomerang2 tracking device, some of the existing insurers recently adjusted their underwriting guidelines to mandate this second-generation tracking solution, in certain cases.


Progress in Ontario

For the six months ended October 31, 2002, the Company realized a 32% growth in new activations in the province of Ontario compared to the same period in the last fiscal year. During this last quarter, the Company also launched a public awareness campaign to further educate select high-risk neighborhoods about the need for a vehicle recovery system. Coop marketing initiatives including radio and print campaigns were also undertaken during this period, further building awareness of the Company’s devices. The Company continued liaising with 25 insurers in this market who support the Boomerang tracking devices. These efforts included educating the industry on the benefits of the Company’s products and services. Further development with new car dealers resulted in increased penetration in this market.


Numbers That Speak Volumes

To date, the Boomerang Tracking System has been instrumental in the recovery of more than 2,000 vehicles and other valuable assets, including incidental recoveries, representing a total value of over $102 million. These impressive results have resulted in support from insurance companies across Canada who recognize the system’s effectiveness. Over 60 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 devices, proprietary products using technology patented by the Company. The Boomerang, Boomerang2™ and GSM-based units are the central devices in a system that uses the wireless networks of major regional telecommunications companies for tracking stolen assets. The Boomerang Tracking System is capable of locating stolen automobiles, heavy equipment and valuable assets. As a result of its success, the Company has received the endorsement of members of the insurance industry. The Boomerang devices are available and installed through a network of authorized dealers in Quebec and Ontario. The Company's head office, research and development centre and manufacturing facilities are located in Montreal, Quebec, with regional facilities located in Mississauga, Ontario and Orange County, California. 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 under the symbol BMG.