FBAY Frisco Bay Industries Ltd. (MM)

Frisco Bay Announces Third Quarter Results MONTREAL, Dec. 10 /PRNewswire-FirstCall/ -- Frisco Bay Industries Ltd. , a leading international provider of integrated security and financial transaction processing systems, today announced its operating results for the period ended October 31, 2003. Revenues for the quarter increased by 4% to C$13,385,393 compared to C$12,811,234 recorded in the corresponding period of the previous year. For the first nine months of the year, revenues were C$38,083,740 compared to C$38,265,369 in the same period last year. Service revenues for the nine months were 30% higher than the previous year as a result of the continued growth in the Company's recurring revenue base. The decrease in product sales was due to reduced capital spending in Canada particularly in the first half of the year. EBITDA - Earnings before interest, income taxes and amortization - for the quarter ended October 31, 2003 increased by 22% to C$1,958,863, the highest in Corporate history, due to higher revenues and improved margins. EBITDA for the nine months ended October 31, 2003 was 4% higher than the previous year primarily due to increased proportion of higher-margin recurring services revenues. Net earnings for the quarter ended October 31, 2003 were C$975,526, or C$0.37 (US$0.28) per share, compared to C$903,924, or C$0.38 (US$0.25) per share, in the same period last year. Net earnings generated for the nine months ended October 31, 2003 totaled C$2,082,287, or C$0.78 (US$0.60) per share, versus net earnings of C$2,680,682, or C$1.13 (US$0.73) per share, in the corresponding period of the previous year. Reductions in net earnings were the result of a higher effective income tax rate (33% this year versus 23% last year) as well as increased amortization expense. Reduction in earnings per share was also impacted by the higher number of shares outstanding this year (2,668,691) versus last year (2,375,063) as a result of the private placement in June 2003 and options exercised during the year. "Third quarter saw an increase in new product orders and this activity has gained momentum," stated Barry Katsof, Chairman and Chief Executive Officer. "As a result, the fourth quarter has the potential to be our largest revenue producing quarter in the history of the Company. This momentum is also having a positive effect on our backlog for next year. For our next fiscal year, our backlog is at record levels, approximately double what it was at this time last year", concluded Katsof. Frisco Bay Industries Ltd. is an international provider of security systems and equipment for financial institutions, government agencies and major industrial corporations. The Company markets its products throughout Canada, the United States and Latin America where it is recognized as an expert in integrated security solutions. The financial information for the current year presented in this release is expressed in Canadian dollars (C$1.00 (equal sign) US$0.76). Comparative financial information for prior periods is expressed in Canadian dollars at the rate then in effect. Statements made in this press release, other than historical financial results, are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements express the current beliefs and expectations of Frisco Bay's management group about the Company's future results and performance. However, they are subject to a number of known and unknown risks that could cause actual results to differ materially from those projected or implied in forward-looking statements. These risks and uncertainties are described in detail from time to time in the Company's filings with the Securities and Exchange Commission. > DATASOURCE: FRISCO BAY INDUSTRIES LTD. CONTACT: Barry Katsof or Robert Gagnon, Frisco Bay Industries Ltd., (514) 738-7300, E-Mail: , Web site: http://www.friscobay.com/

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