Precision Assessment Technology Corporation announces year end results and the appointment of John Spisak as CEO



    VANCOUVER, April 5 /CNW/ - Precision Assessment Technology Corporation
("Precision") (TSX:PDT) announced its financial results for the year ended
December 31, 2006 which are summarized as follows:

    
    -------------------------------------------------------------------------
    1,  Revenue:                Revenue was $15,119,132 up from $10,174,547
                                in 2005, which represents a 49% increase.

    2,  Income from Operations  Income from operations before corporate
        before Corporate        expenses and other items represent the
        Expenses and other      earnings before interest, taxes,
        items:                  depreciation & amortization generated by each
                                operating subsidiary for the year ended
                                December 31, 2006 after taking into account
                                their individual operating expenses,
                                including salaries and administration costs.
                                Income from operations before corporate
                                expenses and other items from the respective
                                operating subsidiaries was $2,801,273
                                compared to $2,114,676 in 2005. This
                                represents a 32% increase.

    3,  EBITDA:                 Earnings Before Interest, Taxes,
                                Depreciation, Amortization, non cash currency
                                translation adjustments and non cash
                                stock-based compensation was $1,450,808 up
                                from $945,017 in 2005 when the one time
                                "China Contact" is eliminated in 2005. This
                                represents a 54% increase.

                                                                     2006
                                Net Loss before Tax              $(2,639,371)
                                Depreciation & Amortization        2,559,720
                                Interest Expense                     799,476
                                Stock based Compensation             267,617
                                Foreign Exchange
                                 Translation Losses                  463,366
                                                                 ------------
                                EBITDA                            $1,450,808

    4,  Net Income:             Depreciation, Amortization, Stock based
                                Compensation and the Foreign Currency
                                Translation adjustment totaled $3,290,703.
                                After taking into account interest cost of
                                $799,476 a net loss of $3,400,270 was
                                reported for 2006.
    -------------------------------------------------------------------------
    

    During the year the Company deployed working capital to pay off
$1,237,574 in acquisition liabilities. The Company has now secured US
$12.0 million of preferred equity financing from Bison and up to an additional
US $18.5 million of senior debt financing from Comerica. Upon completion of
the 2nd acquisition of the South-eastern drilling company the Company intends
to pay off its operating line. These steps and the addition of working capital
resulting from the acquisitions put the Company in a strong financial
position.

    John Spisak, the new CEO stated, "With the completion of the equity
financing, the senior debt financing and the 2 acquisitions Precision will
have a strong balance sheet. Based on 2006 results the combined pro forma
revenue exceeds US $31.0 million and the combined 2006 pro forma EBITDA
exceeds US $4.7 million. Included in Precisions 2006 expenses are some
$900,000 of costs which should not reoccur. Upon closing the acquisitions
certain expenses previously being incurred in those acquisitions are
eliminated. On this basis "normalized" 2006 combined annual pro forma EBITDA
exceeds US $5.6 million. This therefore provides an excellent platform from
which to accelerate growth."

    Bob Nowack, Chairman, stated, "I am pleased to hand the reigns over to
John. He is a seasoned operator and has spent many years in and around our
industry. I agree that the platform is now solidly built. Recognizing the
typically slow first quarter and the inherent seasonality in the business
which is weather dependent at job sites I expect growth on the quarters to
come to begin to accelerate. I look forward to my new role which will focus on
strategic growth and acquisitions."

    Precision Assessment Technology Corporation provides drilling services to
the environmental, geotechnical and construction industries for site
assessment and remediation and groundwater assessment, and utility
installation in the U.S. These services are provided using specialized and
innovative drilling and sampling equipment and technologies from offices in
California and Florida. Precision Assessment Technology Corporation operates
through its wholly owned U.S. subsidiary, Precision Sampling, Inc. and
Trenchless Specialties Inc. Further information can be found at
www.precisiontecha.com. Precision's common shares are listed on the Toronto
Stock Exchange under the symbol "PDT".

    If you wish to receive company press releases via email, please advise
Kristina Peszel at info@precisiontecha.com

    FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all
statements in this news release - including, without limitation, statements
regarding future plans and objectives of Precision are forward-looking
statements that involve various risks and uncertainties. Forward-looking
statements in this document are often, but not always, identified by the use
of words such as "anticipate" and "intend" and statements that an event or
result "will" occur or be achieved and other similar expressions. There can be
no assurance that such statements will prove to be accurate; actual results
and future events could differ materially from those anticipated in such
statements.





For further information:

For further information: Robert (Bob) E. Nowack, Chairman of the Board
of Directors, Precision Assessment Technology Corporation, Tel: (604) 669-3373
(Ext. 201)

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PRECISION ASSESSMENT TECHNOLOGY CORPORATION

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