SmarTire Systems Reports Year-End Financial Results
Expansion of product line and distribution channels results in 80% revenue increase
RICHMOND, BC, Oct. 16 -- SmarTire Systems Inc. (OTCBB: SMTR) today reported its financial results for the year ended July 31, 2003. The Company's consolidated financial statements and all financial information contained in this release are stated in United States Dollars, and are prepared in accordance with United States Generally Accepted Accounting Principles (GAAP).
SmarTire reported revenues for 2003 of $1.8 million, an increase of 80% over revenues of $1.0 million in 2002. Net loss for the year totaled $9.9 million ($0.37 per share) compared with a net loss of $6.8 million ($0.41 per share) in 2002. The actual cash used to fund operations in 2003 was $4.5 million compared to $5.6 million in 2002.
"SmarTire's financial performance during this past fiscal year reflects solid progress in the Company's transition from research and development to full commercialization of its proprietary technologies," stated Robert Rudman, President and Chief Executive Officer of SmarTire Systems Inc. "This progress has been achieved on many levels. Total revenues in 2003 increased by 80% over 2002 revenues which in turn, was a 30% increase over 2001. Equally important, 2003 revenue increased in all major product categories and included sales to new markets such as China. In addition, revenue growth, market expansion and additions to our product line were all achieved without increasing operating expenses."
"Driven by the TREAD Act mandating the use of tire pressure monitoring systems (TPMS) on passenger cars and light vehicles sold in the U.S., the TPMS industry is breaking out of its infancy and creating attractive marketing opportunities across a wide range of vehicle applications, not only in North America but also in Europe and Asia," continued Robert Rudman. "Together with its key strategic partners, SmarTire is aggressively pursuing these opportunities with an expanding line of innovative TPMS solutions."
SmarTire Systems Inc. develops and markets proprietary tire monitoring systems for the transportation industry worldwide. Incorporated in 1987, SmarTire is a public company with offices in North America and Europe. Additional information can be found at www.smartire.com.
"Jeff Finkelstein"
Jeff Finkelstein
Chief Financial Officer
SMARTIRE SYSTEMS INC.
Income Statement Summary
Expressed in United States dollars
Year ended Year ended
July 31, July 31,
2003 2002
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Revenue $ 1,802,596 $ 1,012,344
Cost of goods sold 1,387,365 699,955
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Gross profit 415,231 312,389
Expenses 6,802,391 7,038,843
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Loss from operations (6,387,160) (6,726,454)
Other income (expenses) (3,527,469) (102,722)
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Net loss $ (9,914,629) $ (6,829,176)
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Loss per share $ (0.37) $ (0.41)
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SMARTIRE SYSTEMS INC.
Balance Sheet Summary
Expressed in United States dollars
July 31, July 31,
2003 2002
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Cash $ 1,843,694 $ 525,968
Receivables 405,885 188,294
Inventory 806,846 1,277,953
Prepaid expenses 165,792 374,731
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Total current assets 3,222,217 2,366,946
Deferred financing expense 183,259 -
Capital assets 550,458 625,182
Other assets 3,129,658 3,757,473
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Total assets $ 7,085,592 $ 6,749,601
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Total liabilities $ 798,288 $ 2,460,555
Stockholders' equity 6,287,304 4,289,046
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Total liabilities and
stockholders' equity $ 7,085,592 $ 6,749,601
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