Financial News
Boomerang Tracking Reports Third Quarter 2004 Results
Company sustains its profitable growth
Boomerang Tracking Inc.
Press Release
Sylvain Dunn
3/10/2004
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 22% TO $6.40 MILLION
· SERVICE CONTRACT REVENUES OF $4.42 MILLION
· NET EARNINGS AT $0.55 MILLION

Boomerang Tracking Inc. (TSX: BMG), the Canadian leader in stolen asset recovery, announced today its results for the third quarter ended January 31, 2004.

For this period, net earnings were at $0.55 million ($0.03 per share), compared with net earnings of $0.12 million ($0.01 per share) for the same period last year. Net earnings were at 8.6% of revenues, compared to 2.4% for the same period last year. In the quarter ended January 2003, net earnings would have reached 4.7% considering unusual items. In the present quarter, the Company achieved revenues of $6.40 million, an increase of 22% compared with revenues of $5.26 million for the same period last year.

Revenues from service contracts jumped by 36% to a record $4.42 million during the third quarter of fiscal 2004, from $3.25 million for the same period last year. New activations of Boomerang units were 8,621 units in the third quarter, compared to 9,812 units for the third quarter of the previous fiscal year, a 12% decrease. The amount of units sold were 8,169 in the third quarter, compared to 9,383 for the third quarter of the previous fiscal year, a 13% decrease. During this same period, new car sales in Canada decreased by 17.5%. In addition, 2,100 Boomerang devices were transferred to new vehicles during this period. The Company continued its progression in Ontario with close to 900 new activations this past quarter.

For the nine months ended January 31, 2004, net earnings were at $2.00 million ($0.09 per share), compared to $1.01 million ($0.04 per share) for the first nine months of the previous year. Revenues saw a 26% increase to $19.16 million, compared to $15.17 million for the nine months ended January 31, 2003. Revenues from service contracts jumped by 35% to $12.38 million for the first nine-month period of fiscal 2004, from $9.19 million during the same period last year. During this period, new Boomerang activations were 31,556 compared to 31,953 for the same period last year.


Stock market activity

During the quarter ended January 31, 2004, the Company purchased for cancellation, pursuant to the Normal Course Issuer Bid, a total of 336,500 shares. For the nine months ended January 31, 2004, the Company purchased for cancellation, pursuant to the Normal Course Issuer Bid, a total of 670,500 shares. Within this Normal Course Issuer Bid, which took effect May 6, 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. The Company continued developing its market strategies and does not anticipate any material revenues in the immediate future.


Numbers That Speak Volumes

As of January 31 2004, the Boomerang Tracking System has been instrumental in the recovery of more than 3,315 vehicles and other valuable assets, including incidental recoveries, representing a total value of over $156 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.