Financial News
Boomerang Tracking Reports Fourth Quarter 2003 Results
Company’s revenues reach new heights
Boomerang Tracking Inc.
Press Release
Sylvain Dunn, Genevieve Foster
6/30/2003
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.


FOURTH QUARTER HIGHLIGHTS:

· REVENUES UP 17% TO $5.63 MILLION
· REVENUES FROM SERVICE CONTRACTS AT A RECORD $3.50 MILLION
· POSITIVE EARNINGS DESPITE SUBSTANTIAL INVESTMENTS IN PREPARATION FOR CALIFORNIA LAUNCH

MONTREAL, Quebec, June 30, 2003 – Boomerang Tracking Inc. (TSX: BMG), the Canadian leader in stolen asset recovery, announced today its results for the quarter ended April 30, 2003.

For the fourth quarter ended April 30, 2003, the Company realized revenues of $5.63 million, an increase of 17% compared with revenues of $4.83 million for the same period last year.

Revenues from service contracts jumped by 35% to a record $3.50 million during the fourth quarter of fiscal 2003, from $2.59 million for the same period last year. New activations of Boomerang units were 10,031 units in the fourth quarter compared to 11,061 units for the fourth quarter of the previous fiscal year; in addition, over 3000 Boomerang devices were transferred to new vehicles during this period. The Company continued its progression in Ontario with more than 1,200 new activations.

Net earnings for the fourth quarter reached $0.13 million ($0.01 per share) compared with net earnings of $0.46 million ($0.02 per share) for the same period last year. Without taking into account investments to prepare for the upcoming California launch and the impact of a new reserve and an unusual item incurred during the last quarter, net earnings would have been 10.8% of revenues rather than the reported 2.4%, compared with 9.5% for the same period last year. This unusual item consists of the last portion of a provision for tax credits for an amount of $0.25 million. Also, a new accounting reserve of $0.14 million was established for an extended warranty program implemented by the Company on May 1, 2003, covering all active installations.

For the fiscal year ended April 30, 2003, revenues increased 19% to a record $20.79 million compared with $17.45 million for the year ended April 30, 2002. Net earnings were $1.14 million ($0.05 per share) compared with $1.82 million ($0.08 per share) on April 30, 2002. Revenues derived from service contracts jumped 43%, reaching $12.68 million for 2003, compared with $8.89 million for the previous year. During the year, the number of new activations of Boomerang devices reached 41,984 compared with 46,486 for the previous fiscal year, not taking into account the constantly increasing number of Boomerang devices transferred to new vehicles.

“Our recently announced entry into the American market represents an important step in the Company’s history,” said Peter Lashchuk, President and CEO, Boomerang Tracking Inc. “Over the past fiscal year, the Company has invested more than $1.4 million to prepare for the launch in California. Our past earnings made it possible for us to fully finance these major investments internally while maintaining a healthy balance sheet and positive earnings for our shareholders. Furthermore, earnings of our Canadian operations for 2003, excluding the unusual and non recurring items, would have shown net earnings of 11%.”



Stock market activity

During the fiscal year ended April 30, 2003, the Company repurchased for cancellation within the Normal Course Issuer Bid, which took effect May 1, 2002, a total of 466,900 shares, being 42% of the maximum permissible. On May 2, 2003, the Company announced its intention to renew this Normal Course Issuer Bid for an additional 12 months to repurchase for cancellation a maximum of 5% of shares in circulation.


Numbers That Speak Volumes

To date, the Boomerang Tracking System has been instrumental in the recovery of more than 2,400 vehicles and other valuable assets, including incidental recoveries, representing a total value of over $122 million. These impressive results have earned the Company 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.