Financial News
Boomerang Tracking Reports First Quarter 2004 Results
Company sustains growth in revenues, quarter after quarter
Boomerang Tracking Inc.
Quarterly Release
Sylvain Dunn, Genevieve Foster
9/11/2003
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.


FIRST QUARTER HIGHLIGHTS:

·NET EARNINGS TO A RECORD $0.69 MILLION
·REVENUES UP 31% TO $6.61 MILLION
·10% INCREASE IN UNITS SOLD AND 6 % INCREASE IN UNITS ACTIVATED

Boomerang Tracking Inc. (TSX: BMG), the Canadian leader in stolen asset recovery, announced today its results for the quarter ended July 31, 2003.

For this period, the Company realized revenues of $6.61 million, an increase of 31% compared with revenues of $5.04 million for the same period last year. Net earnings reached a record to $0.69 million ($0.03 per share) compared with net earnings of $0.53 million ($0.02 per share) for the same period last year. Net earnings were at 10.5% of revenues compared to 10.6% for the same period last year.

Revenues from service contracts jumped by 35% to a record $3.88 million during the first quarter of fiscal 2003, from $2.86 million for the same period last year. New activations of Boomerang units were 12,775 units in the first quarter compared to 12,089 units for the first quarter of the previous fiscal year, an increase of 6%. The amount of units sold were 12,277 in the first quarter, compared to 11,164 for the first quarter of the previous fiscal year, an increase of 10%. In addition, 4,400 Boomerang devices were transferred to new vehicles during this period. The Company continued its progression in Ontario with more than 1,500 new activations this past quarter.

“Since inception, the Company has shown sustained growth in revenues, and this trend continued during the last quarter,” said Peter Lashchuk, President and CEO, Boomerang Tracking Inc. “Our healthy balance sheet, combined with an increase in our client base quarter after quarter, allows us not only to maintain our leadership position in Quebec but also serves as a solid foundation for growth in new promising markets. The Ontario market, which now accounts for nearly 12% of our new activations in this past quarter, is a prime example of additional revenues incurred by the Company with relatively minimal financial outlay.”

Stock market activity

During the quarter ended July 31, 2003, the Company purchased for cancellation, pursuant to the Normal Course Issuer Bid, a total of 150,700 shares. Within this Normal Course Issuer Bid, which took effect May 2, 2003 for a 12-month period, the Company is authorized to purchase for cancellation a maximum of 1,093,155 common shares, representing approximately 5% of the issued and outstanding Common Shares as of May 2, 2003.

US Market Update
In June 2003, the Company announced its upcoming entry into California, the gateway to the US market, with its advanced proprietary GSM-based Boomerang device.
As part of its distribution strategy, Boomerang Tracking Corporation, the Company’s wholly owned American subsidiary, has recently signed an agreement with Southwest Dealer Services Inc., one of the largest after-market expeditors servicing new car dealerships in the state of California, providing access to an extensive distribution network. The Company is also pleased to announce that it has sold and delivered product to Southwest Dealer Services Inc., marking the entry of the Boomerang Tracking System in the U.S. market.

Numbers That Speak Volumes

As of July 31 2003, the Boomerang Tracking System has been instrumental in the recovery of more than 2,600 vehicles and other valuable assets, including incidental recoveries, representing a total value of over $124 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.