Global Railway reports Q2 financial results for 2007



    Q2 revenue up 6.1% to $9.2 million; EPS $0.07
    Investor conference call on August 14th, 2007 @ 11am ET

    Stock Symbol: GBI
    Listing: Toronto Stock Exchange
    Outstanding Shares: 14.9 Million
    Web Site: www.globalrailway.com

    PITTSFORD, NY, Aug. 13 /CNW/ - Global Railway Industries Ltd., -
(GBI:TSX): Global Railway Industries Ltd., www.globalrailway.com, ("Global" or
the "Company"), a leading North American provider of railway products and
services, today reports the Company's 2007 second quarter financial results
for the three month and six month periods ended June 30, 2007. All dollar
figures are reported in Canadian currency.

    
    Financial Highlights - Three months ended June 30, 2007:

    -   Total revenue increased to $9.2 million compared with $8.7 million in
        2006
    -   Net earnings essentially unchanged at $1.087 million compared with
        $1.093 million in 2006
    -   Earnings per share of $0.07 (diluted) were unchanged compared with
        2006
    -   Cash and cash equivalents of $8.1 million and no debt as of June 30,
        2007

    Financial Highlights - Six months ended June 30, 2007:

    -   Total revenue increased to $18.7 million compared with $16.5 million
        in 2006
    -   Net earnings increased to $2.3 million compared with $1.8 million in
        2006
    -   Earnings per share increased to $0.15 (diluted) compared with
        $0.12 (diluted) in 2006
    

    "Global's revenues are derived primarily from the sale of track switching
components, event recorders with crash hardened memory modules, rail gear,
freight car parts and boxcar doors through our three subsidiaries. There is
continued strong demand in the railroad and transit markets served by the
Company," said Terry McManaman, Chairman, President and CEO of Global Railway
Industries Ltd.
    McManaman continues, "Revenues in the three month period ended June 30,
2007 were $9.2 million, an increase of 6.1% compared with 2006. When
translated, reported sales growth in the second quarter was offset by
fluctuations in the rising value of the Canadian dollar against the United
States dollar. Approximately 87% of Global's sales are transacted in United
States dollars."
    Revenues in the six month period ended June 30, 2007 were $18.7 million,
an increase of 13.3% compared with 2006.
    "Global subsidiaries, Bach-Simpson and G&B Specialties both achieved
higher sales in 2007 compared with same three and six month periods in 2006.
Prime Railway, Global's smallest subsidiary, recorded lower second quarter
sales in 2007 when compared to 2006, due to labour work stoppages that
impacted two of its major railroad customers," said McManaman.
    Net earnings for the three month period ended June 30, 2007 were
$1.087 million compared with $1.093 million in 2006, essentially unchanged at
$.07 per share (diluted).
    Net earnings for the six month period ended June 30, 2007 increased 29.1%
to $2.3 million or $0.15 per share (diluted) compared with $1.8 million or
$0.12 per share (diluted) in 2006.
    "Collectively Global's three subsidiaries delivered record sales, gross
margins and pretax profits for the second quarter of 2007 and for the first
half of 2007, when measured in their local currencies on a combined basis,"
said McManaman. "But significant to the second quarter of 2007 was the
dramatic strengthening of the Canadian dollar which resulted in a foreign
exchange loss of $231,000, compared with a foreign exchange gain of $94,000
during the same period last year."
    McManaman continues, "Also significant to the second quarter of 2007 when
compared to 2006, are higher expenses from non-recurring corporate development
costs, an increase in non-cash stock-based compensation charges and higher
professional fees related to audits, taxation support, quarterly reviews, and
legal support. Global's efforts to strengthen its senior management team, by
hiring a new COO in July 2006 and CFO in April of 2007, to enhance our public
company reporting responsibilities, internal growth and potential
acquisitions, resulted in incremental salary expenses when compared to 2006."
    As of June 30, 2007, Global had $8.1 million in cash-on-hand, no debt,
and a working capital ratio of 6.4 to 1. Shareholders' equity was
$32.7 million.
    "The outlook for the remainder of 2007 continues to be very encouraging
for Global," said McManaman. "Capital spending by the major North American
Class 1 rail operators continues to be strong and increased customer demand
for freight transportation continues to exert pressure on current rail
infrastructure capacity. Global is well positioned with its diverse range of
products and services to supply rail operators."
    McManaman concludes, "With our intent to acquire the Canada Allied Diesel
Co. Ltd. and affiliated company net assets, announced on July 30, 2007, Global
expects to double the size of its annual revenue, expand its customer service
offering to include locomotive refurbishing and parts sales and will be able
to leverage this additional range of services to expand its business with the
North American Class 1 Railroads."
    Brian McMullan, Chief Financial Officer of Global added, "To Global,
acquiring CAD will provide balance to our revenue base and operations between
Canada and United States, and reduce our net exposure to foreign exchange
currency fluctuations. With CAD, Global's product coverage becomes more
equally distributed over the three major expenditure categories of the
railroads; track & signal, locomotive and railcars."

    UNTIL THE DEFINITIVE ASSET PURCHASE AND SALE AGREEMENT HAS BEEN EXECUTED
BY GLOBAL AND CAD, INVESTORS ARE CAUTIONED THAT NO ASSURANCES CAN BE GIVEN
REGARDING THE CONCLUSION OF THE CAD ACQUISITION.

    
    2007 Q2 Financial Summary

    -------------------------------------------------------------------------
    Income            Three months   Three months
     Statement              ending         ending
                     June 30, 2007  June 30, 2006
                        (unaudited)    (unaudited)        Change    % Change
    -------------------------------------------------------------------------
    Revenues            $9,215,968     $8,683,781       $532,187       +6.1%
    Net earnings        $1,086,628     $1,093,238        ($6,610)       0.0%
    Earnings per share
     (diluted)               $0.07          $0.07          $0.00        0.0%

    Weighted average
     number of common
     shares outstanding
     (diluted)          15,149,430     14,917,989        231,441       +1.6%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Income              Six months     Six months
     Statement              ending         ending
                     June 30, 2007  June 30, 2006
                        (unaudited)    (unaudited)        Change    % Change
    -------------------------------------------------------------------------
    Revenues           $18,709,013    $16,506,696     $2,203,317      +13.3%
    Net earnings        $2,275,073     $1,762,481       $512,592      +29.1%
    Earnings per share
     (diluted)               $0.15          $0.12          $0.03      +25.0%

    Weighted average
     number of common
     shares outstanding
     (diluted)          15,149,430     14,917,989        231,441       +1.6%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Balance Sheet    June 30, 2007  Dec. 31, 2006
                        (unaudited)      (audited)        change    % change
    -------------------------------------------------------------------------
    Cash                $8,087,241     $6,830,949     $1,256,292      +18.4%
    Current assets     $20,678,122    $18,577,535     $2,100,587      +11.3%
    Total assets       $37,415,920    $35,283,009     $2,132,911       +6.0%
    Current
     liabilities        $3,218,917     $2,389,097       $829,820      +34.7%
    Total liabilities   $4,714,693     $3,970,832       $743,861      +18.7%
    Shareholders'
     equity            $32,701,227    $31,312,177     $1,389,050       +4.4%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Company's 2007 Q2 financial statements and management's discussion
and analysis are posted in the investor information section of Global's web
site at www.globalrailway.com and are also available on SEDAR at
www.sedar.com.

    Investor Conference Call

    A conference call to review the 2007 second quarter financial results
will take place on Tuesday August 14th, 2007 at 11AM ET.
    Mr. Terry McManaman, Chairman, President and CEO, Bill Sturtz COO, and
Brian McMullan CFO, will speak on behalf of the Company. A question-and-answer
forum will follow the review of the 2007 second quarter financial results and
update on the Company's operations and growth strategies.
    To listen and/or participate in this conference call, please dial
1-800-731-5319 (from Toronto: 416-644-3421) approximately 10 minutes prior to
the beginning of the conference call.
    For those unable to participate in the conference call, a recording of
the conference call will be available from 1:00 PM ET, Tuesday August 14th,
2007, until 11:59 PM ET, Tuesday August 21, 2007. Please dial 1-877-289-8525
(from Toronto: 416-640-1917) and enter the reservation number 21241960
followed by the "pound sign" to listen to the rebroadcast.

    About Global Railway Industries: Global Railway Industries Ltd. is a
diversified rail product company serving the railway industry in North
America. Global Railway is a public company whose shares are listed for
trading on the Toronto Stock Exchange (TSX) under the symbol "GBI". The
Company has a total of 14.9 million shares outstanding. For more information:
visit www.globalrailway.com or www.investorfile.com.

    THIS NEWS RELEASE MAY CONTAIN FORWARD LOOKING INFORMATION. ACTUAL FUTURE
RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS,
UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE
ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS
FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED
ANNUAL REPORT AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE
GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS
WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY
WILL DERIVE THEREFROM.

    %SEDAR: 00010076E




For further information:

For further information: Company Contact: Terry McManaman, Chairman,
President & CEO, Tel: (585) 419-9709, E-mail: tmcmanaman@globalrailway.com,
Web: www.globalrailway.com; Investor Relations: Gerry Wimmer,
INVESTORFILE.com, Tel: (416) 360-8895, Toll Free: 1-888-894-8222, E-mail:
gwimmer@investorfile.com, Web: www.investorfile.com

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