Sarasota, Florida, September 16, 2008 - CarBiz Inc. (CBZFF: OTCBB), Carl Ritter, Chairman and CEO of CarBiz, Inc. ("CarBiz") announced the company’s second-quarter results. In the three months ended July 31, 2008, revenues increased by $7,840,557 compared to the same period ended July 31, 2007. This was primarily due to the acquisition of a number of buy here-pay here credit centers. Net profit for the period was $1,530,838; an increase by $4,242,936 compared to the same period ended July 31, 2007.
The software operation was sold on July 2, 2008. As of July 1, 2008, ongoing revenue stream from consulting will consist of new sales and monthly revenue from consulting products, training products, buy here - pay here performance groups, seminars, other one time dealer assistance, and supply sales.
According to Mr. Ritter, “Business was comparable with the first quarter. The adoption of our tier two loans across our car lots, which are loans at the $10,000 range, is going very well. We can expect to see the results of the tier two adoption in the third quarter impact our top line revenue in a positive way.”
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Three months ended
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Three months ended
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Six months ended
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Six months ended
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July 31, 2008
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July 31, 2007
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July 31, 2008
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July 31, 2007
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TOTAL SALES
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$8,783,948
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$943,391
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$17,707,220
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$1,823,976
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TOTAL COST OF SALES
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$5,375,682
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$518,841
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$10,175,375
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$934,794
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GROSS PROFIT
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$3,408,266
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$424,550
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$7,531,845
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$889,182
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TOTAL OPERATING EXPENSE
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$4,525,019
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$1,563,983
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$8,751,225
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$1,851,461
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OPERATING INCOME (LOSS)
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($1,116,753)
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($1,139,433)
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($1,219,380)
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($962,279)
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INTEREST AND OTHER EXPENSES
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($1,877,114)
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($149,430)
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($3,783,535)
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($238,937)
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GAIN (LOSS) ON DERIVATIVE INSTRUMENTS
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$2,010,476
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($1,430,363)
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$4,044,834
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($751,742)
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GAIN (LOSS) ON SALE OF SOFTWARE DIVISION
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$2,514,229
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$0
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$2,514,229
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MINORITY INTEREST IN LOSSES
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$0
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$7,128
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$1,034
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NET PROFIT(LOSS) FOR THE PERIOD
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$1,530,838
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($2,712,098)
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$1,556,148
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($1,951,924)
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As at July 31, 2008
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As at January 31, 2008
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ASSETS
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Cash and cash equivalents
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$374,894
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$1,141,271
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Notes Receivable, Net
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$23,923,068
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$25,123,459
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Inventory
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$4,546,924
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$2,554,836
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Fixed Assets
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$823,787
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$767,995
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Other Assets
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$1,662,307
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$2,270,083
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TOTAL ASSETS
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$31,330,980
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$31,857,644
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LIABILITIES
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Accounts Payable
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$3,343,022
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$3,078,560
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Notes Payable
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$37,267,338
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$36,624,618
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Capital Leases
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$6,617
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$10,725
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Convertible debenture derivative liability
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$1,732,687
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$748,002
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Warrant Liability
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$4,628,207
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$8,844,036
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Other Liabilities
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$150
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$59,753
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TOTAL LIABILITIES
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$46,978,021
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$49,365,694
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CAPITAL DEFICIENCY
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COMMON SHARES
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$16,274,119
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$16,274,119
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ADDITIONAL PAID-IN CAPITAL
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$7,984,066
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$7,679,205
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OTHER COMPREHENSIVE LOSS
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($385,197)
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($385,197)
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ACCUMULATED DEFICIT
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($39,520,029)
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($41,076,177)
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TOTAL EQUITY
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($15,647,041)
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($17,508,050)
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TOTAL LIABILITES AND EQUITY
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$31,330,980
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$31,857,644
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About CarBiz Inc.
Based in Sarasota, Florida, CarBiz owns and operates the nation’s fourth-largest chain of buy-here pay-here dealerships through its CarBiz Auto Credit division. Capitalizing on expertise developed over 10 years of providing software and consulting services to buy-here pay-here businesses across the United States, CarBiz entered the buy-here pay-here business in 2004. CarBiz recently acquired a large regional chain in the Midwest, bringing the total number of dealerships to 26 in nine states. For more information about CarBiz and its services, visit CarBiz’s web site: www.CarBiz.com.
Forward-Looking Statements
All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future growth plans and objectives of CarBiz. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any of our future results or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to the following: (i) whether we are successful in implementing our business strategy; (ii) our ability to increase revenues in the future and to continue as a going concern; (iii) our ability to obtain additional financing on terms favorable to us, if at all, if our operating revenues fail to increase; (iv) our ability to attract and retain key personnel; (v) the impact on the market price of our common shares of the concentration of common share ownership by our directors, officers and greater than 5% shareholders, which may delay, deter or prevent actions that would result in a change of control; (vi) the significant fluctuation of the market price of our common shares; (vii) costly difficulties we may face in the assimilation of the operations, technologies and products of companies that we may acquire in the future; (viii) the adequacy of our insurance coverage to cover all losses or liabilities that may be incurred in our operations; (ix) our dividend policy; (x) the impact on our financial position, liquidity and results of operations if we underestimate the default risk of sub-prime borrowers; (xi) general economic conditions; (xii) general competition; (xiii) our ability to comply with federal and state government regulations; (xiv) potential infringement by us of third parties’ proprietary rights; (xv) defects in our products; (xvi) our compliance with privacy laws; (xvii) our ability to obtain adequate remedies in the event that our intellectual property rights are violated; (xviii) our ability to develop and market on a timely and cost-effective basis new products that meet changing market conditions, and (xix) the risk factors identified in our most recent Annual Report on Form 10-KSB, including factors identified under the headings “Description of Business,” “Risk Factors” and “Management’s Discussion and Analysis or Plan of Operation.”
Although we believe that expectations reflected in these forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or other future events. Moreover, neither we nor anyone else assumes responsibility for the accuracy and completeness of these forward-looking statements. We are under no duty to update any of these forward-looking statements. You should not place undue reliance on these forward-looking statements.
Investor Relations
CarBiz Inc.
Jennifer Downey
1-800-547-2277 ext. 1203
Website: www.carbiz.com
AGORACOM Investor Relations
http://www.agoracom.com/IR/carbiz
http://www.carbiz.com
CBZFF@agoracom.com
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