Thomas Equipment Inc. Reports Third Quarter 2005 Results
CENTERVILLE, New Brunswick--May 1, 20053, 2005--Thomas Equipment, Inc. ("Thomas") (OTCBB:TEQI) today reported its financial results for the third quarter of fiscal 2005."Although we were pleased to see an increase in revenues of 15%, our third quarter results reflect the traditional seasonal decline in sales expected for that period. These results also reflect the acquisition of Pneutech Inc. and our investment and ramping up of our recently reported backlog of in excess of $69 million. We continue to build the infrastructure to support our growing business and expect our future results to be reflective of this success," said Clifford Rhee, president and CEO of Thomas. "It will take several quarters to normalize the revenue and acquisition successes we have already achieved. We are very pleased with our progress."
TEQI Chairman David M. Marks stated: "Cliff and his team continue the integration our business units and to ramp up capacity in order to fulfill our backlog. Our shipments have and will continue to build in the fiscal fourth quarter as we complete our capacity expansion plans. Cliff and I are confident that we will create tremendous shareholder value as we continue to build the Thomas business and that of its subsidiaries."
Third-Quarter Results:
Third quarter 2005 net sales were C$17,036,455.
Reconciliation of earnings following U.S. generally accepted accounting principles with Non-GAAP financial measures (Non-GAAP earnings):
In accordance with the Securities and Exchange Commission's (SEC) Release No. 34-47226 and its related Q&A, TEI supplements its quarterly report filed with the SEC provided in accordance with accounting principles generally accepted in the U.S. with non-GAAP financial measures that exclude those transactions that management do not reasonably expect to be part of recurring business transactions over the long term. TEI's management believes the non-GAAP information provides investors useful information to understand operating results. TEI's management uses such non-GAAP measures internally to evaluate the company's net income and operating performance on a period over period basis, and for planning and forecasting future periods.
Non-GAAP net income (loss) excludes and includes items as listed
below:
Reconciliation of GAAP earnings (loss) to Non GAAP earnings (loss):
THREE MONTHS ENDED
March 31, 2005
In thousands $
Net Income (Loss) before excluding items to normalize
results (3,744)
Increase (Decrease) to net Income (loss) for normalization:
Elimination of start-up related expenditures 597
Elimination of fair value allocation to inventory expensed
in determining costs of goods sold 480
Elimination of Amortization Of Debt Discount and Debt Premium 960
Elimination of Capital Leases Amortization 134
Elimination of Capital Leases related interests 94
Addition of rent expense in lieu of capital lease (123)
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Adjustment to Net Income (loss) 2,142
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Net Income (Loss) after excluding items to normalize results (1,602)
Increase (Decrease) to net Income for normalized EBITDA
Elimination of other depreciation and amortization 227
Elimination of other financing costs 984
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Adjustment to normalized results 1,211
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Net Income (Loss) after excluding items to normalize results
and interest, depreciation, taxes and amortization (391)
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About Thomas Equipment Inc. ("TEQI"): Thomas Equipment Inc., www.thomas-equipment.com, www.thomasloaders.com, and its subsidiaries including Pneutech Inc., www.pneutech.ca, Rousseau Controls Inc., www.rousseaucontrols.com, Samsung Industry Co. Ltd., www.ss-ind.com, and Hydramen Fluid Power Limited, www.hydramen.com: Thomas is an innovative and technologically advanced global manufacturer of a full line of skid steer and mini skid steer loaders as well as attachments, mobile screening plants and six models of mini excavators. Thomas distributes its products through a worldwide network of distributors and wholesalers. In addition, Thomas' wholly owned subsidiaries manufacture specialty industrial and construction products, a complete line of potato harvesting and handling equipment, fluid power components, pneumatic and hydraulic systems, spiral wound metal gaskets, and packing material.