Carbiz Announces Q2 Results
TORONTO--Sept. 29, 2004--Carbiz Inc. ("Carbiz") (TSX VENTURE:CZ) is pleased to announce its 2nd quarter results.In the second quarter, three months ended July 2004, sales increased over the previous year by 19%. This increase was due primarily to the incremental increase from our auto credit division. "Carbiz Auto Credit had sales of $189,530 up to July 2004 and is on track as compared to our projections" stated Carl Ritter, Chief Executive Officer, he said further, "I am pleased with the quarter results, we expect the Palmetto facility to deliver greater results in sales and operating profit in the third quarter." The gross profit increase was due mainly to currency fluctuations between the Canadian and U.S. dollar and non-recurring development costs incurred in 2003. Operating expense increased on a quarter to quarter basis and continues to increase year to date mainly due to the adoption of the fair value method of employee stock-based compensation provision under Section 3870 of the CICA Handbook which added an expense of $125,375 in Q2 and $272,425 year-to-date. An additional $75,921 will be expensed in the third quarter. Although the total consolidated operations losses increased, the Carbiz Auto Credit portion of the Company had an operating profit of $4,277
Outlook
"The third quarter will be an exciting period for the corporation," stated Stan Heintz, Chief Operating Officer of Carbiz. With the start of TaxMax season, the second Carbiz Auto Credit facility scheduled to open in November 2004 and growth in software sales from the IDA software product we are well positioned for a strong finish to the year.
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For the For the For the For the
3 months 3 months 6 months 6 months
ended ended ended ended
July 2004 July 2003 July 2004 July 2003
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Revenue $ 933,538 $ 785,112 $ 2,321,473 $ 2,485,935
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Gross Profit 522,334 340,579 1,317,375 1,282,073
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Operating expenses 969,442 691,005 1,907,939 1,434,375
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Operating loss (447,108) (350,426) (590,564) (152,302)
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Interest income
(expense) (35,950) (48,576) (84,484) (96,046)
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Amortization/
Depreciation (63,003) (115,908) (490,565) (231,652)
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Net loss $ (546,061) $ (514,910) $ (1,165,613) $ (480,000)
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Current Assets $ 472,575 $ 457,782
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Capital Assets 750,099 1,655.884
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Intangible Assets 26,084 38,981
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Total Assets $ 1,248,758 $ 2,152,597
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Current Liabilities $ 1,290,514 $ 1,178,907
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Long-term Debt 584,299 681,974
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Preferred Shares 302,091 446,667
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Share Capital & Con. Surplus 27,281,157 25,743,109
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Deficit (28,208,303) (25,898,060)
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Total Liabilities +
Shareholders' Equity $ 1,248,758 $ 2,152,597
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Based in Toronto and Sarasota, Florida, Carbiz Inc., is a leading provider of Internet and software solutions to the North American automotive industry. Carbiz's suite of business solutions include dealer software products focused on the finance, sub-prime finance, buy-here pay-here finance solutions, lead generation, Internet and training services. Carbiz has provided thousands of products to dealers in the U.S., Canada, and other countries and currently supports over 3000 dealers with a recurring revenue model plus individual product sales.
Forward-Looking Statements
All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Carbiz Inc. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.