Carbiz Inc. Announces Year-End Results
SARASOTA, Fla.--May 27, 2005--Carl Ritter, Chief Executive Officer of Carbiz Inc. (TSX VENTURE:CZ) (Carbiz), has announced the company's results for the year ended Jan. 31, 2005. Revenue increased by $398,686 U.S. or 13.46 percent compared to the prior year. The increase was primarily due to the incremental revenue increase from the Carbiz Auto Credit division, which contributed $594,722 U.S. in sales for the year. Software product sales and consulting revenues increased year-to-year. The increase was offset by a decrease in TaxMax sales and in services provided by the software division.Operating expenses increased year-to-year based on fees related to pursuing a listing on the U.S. Over-the-Counter Bulletin Board (OTC-BB), as well as reporting changes resulting from adopting 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 Ritter, "The majority of expenses for the OTC-BB application have been absorbed in the fiscal year ended Jan. 31, 2005. Our auto-credit business will continue to increase over the next quarter in both sales and profit. Revenues from the tax season for the TaxMax division will be reflected in the first quarter ending Apr. 3, 20050, 2005."
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Year Ending Year Ending
Jan. 31, 2005 Jan. 31, 2004
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Revenue $ 3,359,551 $ 2,960,865
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Cost of sales $ 1,486,506 $ 1,491,122
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Operating expenses $ 3,167,490 $ 1,974,437
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Operating loss $ (1,294,445) $ (504,694)
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Interest income (expense) $ (171,722) $ (137,786)
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Amortization/Depreciation $ (515,126) $ (566,673)
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Net loss $ (1,981,293) $ (1,209,153)
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Loss per common share $ (0.05) $ (0.04)
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About Carbiz
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 Sarasota, Florida that employs 90 people on a seasonal basis.
In calendar year 2004, Carbiz began to leverage 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 Tampa, Florida in mid 2005. Each credit center originates, funds, manages and collects loans for vehicles sold to customers.
For more information about Carbiz and its services, visit Carbiz's web site: www.carbiz.com.