TRADING SYMBOL: TSX-V KHA
VANCOUVER, March 30 /CNW/ - Increasing weakness in United States housing
starts, and the forest products sector in general, has contributed to a
significant reduction in rail freight revenues in the first quarter of 2007.
Revenues from continuing operations for the three months ended January 31,
2007 totalled $1,276,000 compared with $1,753,000 for the same period in 2006.
Net loss from continuing operations for the first quarter of 2007 was
($147,000) compared to net income of $203,000 for the same period in 2006.
The Company's net loss from discontinued operations for the three months
ended January 31, 2007 was ($56,000) compared to a net loss of ($60,000) for
the same period in 2006. The net loss from discontinued operations for the
first quarter of 2007 was due primarily to unrealized foreign exchange losses
on liabilities denominated in US dollars.
Persistent weakness in United States housing starts, and the forest
products sector in general, will prove challenging for the Company in 2007.
Also, with the wind up of air freight operations substantially completed in
2006, substantially all of the corporate overhead and public company related
costs are now borne by rail freight operations. In addition, the Company has
been adversely affected by the conductors strike at Canadian National Railway
Company. In response to these challenges, the Company continues to focus on
increasing non haulage rail freight revenues and additional measures to reduce
operating and overhead costs commensurate with reduced rail freight volumes to
the extent possible.
KnightHawk's complete 2007 First Quarter Report is available at
KnightHawk operates a short line railroad, carrying freight within
British Columbia, Canada. Further information about the company is available
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy of this release. This news release may contain
certain "Forward-Looking Statements". All statements, other than statements of
historical fact, included herein are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from the
Company's expectations are disclosed in the Company's documents filed from
time to time with the TSX Venture Exchange and various securities commissions.
For further information:
For further information: Mr. Ken Fitzgerald, Chairman and Chief
Executive Officer, KnightHawk Inc., (604) 472-1480