Frisco Bay Announces Third Quarter Results

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., [phone], E-Mail: , Web site:

http://www.friscobay.com/

Copyright