Carbiz Inc. Announces Third-Quarter Results
SARASOTA, Fla.--Jan. 3, 2005--Carl Ritter, Chief Executive Officer of Carbiz Inc., announced the company's third-quarter results. Revenue for the third quarter increased by 17 percent compared to the same period last year. The increase was primarily due to the incremental revenue increase from the Carbiz Auto Credit division, which contributed $255,453 in sales and $21,315 in operating profit for the third quarter.Operating expenses increased year-to-year based on fees related to pursuit of a listing on the U.S. OTC-BB, as well as reporting changes resulting from adoption of the CICA issued handbook Section 3870, Stock-Based Compensation and Other Stock-Based Payments. Included in the former are legal fees and accrual for professional fees in connection with U.S. tax and legal work.
According to Mr. Ritter, "Our auto-credit business will continue to increase over the next quarter in both sales and profit and revenues from the TaxMax division will begin to be reflected in the fourth quarter. The majority of expenses for the OTC-BB application will be absorbed by the end of the fiscal year, providing Carbiz an opportunity to reflect results based primarily on operations in the first quarter rather than the addition of several one-time or unique expense items."
Q3 financial summary
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For the 3 For the 3 For the 9 For the 9
months ended months ended months ended months ended
October 2004 October 2003 October 2004 October 2003
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Revenue $ 900,355 $ 765,886 $ 3,221,829 $ 3,251,821
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Gross Profit 446,629 373,376 1,764,004 1,655,449
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Operating
expenses 1,120,177 641,205 3,028,116 2,075,582
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Operating
loss (673,548) (267,829) (1,264,112) (420,133)
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Interest
income
(expense) (29,985) (48,570) (114,469) (144,616)
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Amortization/
Depreciation (64,319) (116,493) (554,884) (348,145)
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Net loss $ (767,852) $ (432,892) $ (1,933,465) $ (912,894)
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Current
Assets $ 1,331,804 $ 281,608
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Capital
Assets 692,387 1,542,931
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Intangible
Assets 23,507 35,085
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Total Assets $ 2,047,698 $ 1,859,624
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Current
Liabilities $ 2,691,042 $ 1,156,410
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Long-term
Debt 579,863 681,974
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Preferred
Shares 230,504 324,167
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Share Capital
& Con. Surplus 27,525,506 26,031,856
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Deficit (28,979,217) (26,334,483)
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Total Liabilities
+ Shareholders'
Equity $ 2,047,698 $ 1,859,624
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Based in Sarasota, Florida and Toronto, Canada, Carbiz is a leading provider of Internet and software solutions to the North American automotive industry. Carbiz's suite of business solutions includes dealer software products focused on the finance, sub-prime finance and "buy-here, pay-here" markets. Carbiz has 40 full-time employees and provides finance solutions, lead generation, Internet capability and training services. Carbiz supports more than 3,000 dealers with a recurring revenue model, in addition to individual product sales. Carbiz also provides a tax refund service and refund anticipation loans at a facility in Clearwater, Florida that employs 90 people on a seasonal basis.
In 2004, the Carbiz began leveraging its industry knowledge and software products into company-owned credit centers, which are used-car dealerships that offer financing to customers with poor credit. Carbiz opened its first two credit centers in Palmetto and St. Petersburg, Florida in 2004. The company intends to open a third credit center in the Tampa, Florida area in early 2005. Each credit center originates, funds, manages and collects loans for vehicles sold to customers.