Financial News
Boomerang Tracking Reports Third Quarter 2003 Results
The Company realizes record revenues while continuing to focus on new markets
Boomerang Tracking Inc.
Press Release
Sylvain Dunn, Genevieve Foster
3/3/2003
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.


THIRD QUARTER HIGHLIGHTS:
· REVENUES UP 18% TO A RECORD $5.26 MILLION
· REVENUES FROM SERVICE CONTRACTS UP TO A RECORD $3.25 MILLION
· ACTIVATIONS IN ONTARIO STEADILY GROWING WITH 1,000 NEW INSTALLATIONS


Boomerang Tracking Inc. (TSX: BMG), the Canadian leader in stolen asset recovery, announced today its results for the three-month period ended January 31, 2003.

For the third quarter ended January 31, 2003, the Company realized record revenues of $5.26 million, representing an increase of 18% compared to revenues of approximately $4.44 million for the same period last year.

Revenues from service contracts jumped by 38% to a record $3.25 million during the third quarter of fiscal 2003, from $2.36 million during the same period last year. New activations of Boomerang units in the third quarter were 9,812 units versus 11,655 units in the third quarter of the previous fiscal year. The Company continued to realize a constant growth of revenues derived from service contracts attributable, in part, to the Company’s customer retention and loyalty programs which accounted for over 2,000 Boomerang devices being transferred to new vehicles in the last quarter alone.

Third quarter net earnings were $0.12 million ($0.01 per share) versus net earnings of $0.17 million ($0.01 per share) for the same period last year. Unusual items were incurred during the past quarter, which accounted for the reduction in net earnings from 4.8% to the reported 2.4%, compared to 3.8% for the same period last year. Therefore, had it not been for these unusual items, the net earnings would have been 1% higher this past quarter than the same quarter last year. These unusual items consist of severance costs amounting to $0.10 million resulting from an internal reorganization, and a provision in the same amount regarding a potential claim against the Company with regards to tax credits claimed. This reorganization was necessary to ensure that the allocation of the Company’s resources remained consistent with the Company’s long-range objectives; the non-recurring costs relating to this reorganization will lead to savings in future quarters.

During the period, the Company also continued to invest steadily in research and development undertakings as well as in the development of new markets, mainly in Ontario and in the United States. The Company’s focused efforts in Ontario also produced record results in this market, achieving 1,000 new activations last quarter, a milestone in the Company’s history.

For the nine months ended January 31, 2003, revenues increased by 20% to a record $15.17 million, compared to $12.62 million for the nine months ended January 31, 2002. Net earnings were $1.01 ($0.05 per share) for the first nine months of fiscal 2003, compared to $1.37 ($0.06 per share) for the first nine months of the previous year. Revenues from service contracts jumped by 46% to $9.19 million for the first nine-month period of fiscal 2003 from $6.30 million during the same period last year. During this period, new Boomerang activations were 31,953 compared to 35,425 for the same period last year.

For the nine months ended January 31, 2003, the Company repurchased a total of 112,400 shares for cancellation, within the Normal Course Issuer Bid, which took effect May 1, 2002.

“We are proud of our sustained profitable growth, the success of our retention programs and our record results in Ontario, a positive step in our development outside the Quebec market,” stated Peter Lashchuk, President and CEO, Boomerang Tracking Inc. “In addition, our Canadian and U.S. teams are aggressively building the foundation for a successful penetration of the U.S. market. We are focused and eager to achieve this important milestone. Furthermore, our debt-free status combined with a liquidity representing 52% of total assets enables us to internally finance these initiatives,” concluded Mr. Lashchuk.

In this past quarter, the Company saw the departure of Ms. Linda Farha, Vice-president, Marketing and Communications. During her tenure, Ms. Farha contributed to the development of the Company’s brand awareness in the marketplace. As part of her mandate, she also oversaw the Customer Service department and Investor Relations.


Additional Support and Progress in Ontario

Further inroads with the insurance industry were also been realized during this last quarter. The Company added two new insurers in Ontario who now offer premium discounts for the installation of the Boomerang tracking device on personal, recreational and transport vehicles. The Company also continued liaising with insurers in this market who currently endorse, and in some cases, mandate the installation of the Boomerang tracking devices on certain luxury and high-risk vehicles, commercial fleets, marinecraft and construction equipment. The Company continued to focus on forging strong strategic ties with Ontario insurers by educating the industry on the benefits of the Company’s products, services and technology.


Numbers That Speak Volumes

To date, the Boomerang Tracking System has been instrumental in the recovery of more than 2,200 vehicles and other valuable assets, including incidental recoveries, representing a total value of over $112 million. The Company benefits from the support of national insurers and the law enforcement community who recognize the benefits of the Company’s tracking devices.
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.