MONTREAL, Aug. 28 /CNW Telbec/ - BUS Systems Inc. ("BUS" or "the
Company") (TSX-V: BUS) today reported its results for the fiscal year ended
April 30, 2007.
Highlights for Fiscal 2007 and Subsequent to Year-End
- Signature of a first major agreement with repairers Procolor Prestige
and ColorPlus, divisions of Uni-Sélect Inc. (TSX: UNS)
- Closing of a $1.1 million financing
- Ongoing discussions with five of the largest insurers in Canada
- Ongoing discussions with three of Quebec's leading collision repair
- Launch of the Company's website (www.busconnect.com)
BUS reported revenues of $56,920 for the fiscal year ended April 30, 2007
compared to nil for the previous year. The Company resumed marketing the BUS
Controller(TM) solution and began marketing BUS Connector(TM) software once
its qualifying transaction closed on January 19, 2007. It also began selling
to insurers and franchisors as of that date. The Company incurred total
expenses of $1,031,828 for the year compared to $6,216 a year earlier. The
higher expenses were primarily related to the start of the Company's marketing
activities, as well as its listing on the exchange. BUS incurred a net loss of
$908,610 or $0.088 per share for fiscal 2007, compared to a loss of $6,216 or
$0.002 per share the previous year.
Update on the Company's Activities
Agreement with Procolor Prestige
The agreement with Procolor Prestige is generating results. To date,
Procolor Prestige collision repair centres account for 26 of the 35 BUS
Controller(TM) licences 35 sold, representing 20% of the potential Procolor
volume in five months. These same repairers have also acquired licences for
BUS Manager(TM), which will be launched in mid-September. This launch should
have a significant impact on selling activities in the coming months.
Progress with Insurance Companies
The Company is presently in discussions with five of Canada's largest
insurance companies. Discussions are at various stages depending on the
company in question. At this stage, the BUS Connector(TM) solution is very
well perceived by these companies, who have also identified potential
applications in the homeowners insurance segment, a potential new market for
Ongoing Business Development
As of today, discussions are also underway with three of the largest
collision repair groups, the main automobile paint companies and a leading
automobile dealer purchasing group. The primary criteria used by BUS to
identify potential customers are sales volume and network size.
Outlook for This Year
"We are holding our course and plan to develop our market as rapidly as
possible. The $1.1 million financing last May enabled us to add the resources
and personnel we needed to reach our objectives," said Claude Savard,
President and Chief Executive Officer of BUS Systems. "As we have already
stated, our approach is to target market leaders in industries related to the
Quebec automobile insurance claims segment, namely insurance companies,
collision repair groups, franchisors and other key players, and then move into
Ontario later in the year. This strategy is primarily aimed at winning the
industry leaders over to our product line and then creating momentum among
other industry players, who will have an interest in acquiring our solution to
improve their competitive position, which will help accelerate our growth. Our
main challenge is to sell the notion of a common communications platform to
all industry players, and particularly to the repairers and insurers. Our
unique solution responds to a critical, growing need in this industry, which
represents a market of over $30 billion annually in North America alone."
Stock Option Grant
The Company has granted certain officers and directors options from its
stock option plan for directors, officers, employees and consultants to
purchase 1,500,000 shares at $0.15 per share until August 28, 2012.
BUS operates an interactive, transactional internet portal for the
management, processing and follow-up of insurance claims, including management
of relations and the exchange of information between the participants.
The Company's mission is to offer an evolving, integrated electronic
solution that allows those involved in the claims sector or automotive events
industry to come together to exchange information, perform all of the
transactions required within the framework of their respective activities and
continuously improve the efficiency of claims processing.
For additional information about BUS, visit the Company's website at
This press release contains "Forward-Looking Statements" pursuant to the
securities legislation which are based on certain estimates and expectations.
Statements which are not based on historical fact, in particular statements on
management's views and expectations, are Forward-Looking Statements. These
statements are subject to certain risks and uncertainties and the actual
results could differ materially from those presented. The Company is under no
obligation to update any Forward-Looking Statement to take into account any
new information, future event or any other factor.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
For further information:
For further information: Claude Savard, President and CEO, BUS Systems
Inc., (514) 350-5252, email@example.com; François Kalos, SOLAK
Communications, (450) 993-0828, firstname.lastname@example.org