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ERHC Energy Inc. (OTCBB: ERHE) today announced that its board of directors has accepted the resignation of Walter Brandhuber, chief executive officer and member of the Board.
The company's board of directors has initiated an international recruitment search for a chief executive officer. Effective immediately, the board of directors has appointed Board Member Nicolae Luca, 46, as interim chief executive officer until a successor is named. Mr. Luca has served as a non-executive director of the company since February 2001.
Since April 1998, Mr. Luca has also served as the technical director for Chrome Oil Services Limited. He has a bachelor of science in mechanical engineering.
"We are pleased to have Nicolae Luca lead this transition process as the board conducts its search for a new CEO," said Sir Emeka Offor, chairman of the board. "Going forward, our business strategy will be to continue to commercialize our rights in the Joint Development Zone."
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Additionally, ERHC Energy announced that Franklin Ihekwoaba, chief financial officer, vice president and a member of the board, has resigned as an officer and director. Mr. Ihekwoaba resigned after recently informing the Audit Committee that he should not have used the designation "C.P.A." following his name and that he had initiated a personal bankruptcy proceeding in December 2005. The company has initiated an international recruitment search for a chief financial officer.
About ERHC Energy
ERHC Energy Inc. is a Houston-based independent oil and gas company focused on growth through high impact exploration in the highly prospective Gulf of Guinea and the development of undeveloped and marginal oil and gas fields. ERHC is committed to creating and delivering significant value for its shareholders, investors, and employees; sustainable and profitable growth through risk balanced smart exploration, cost efficient development and high margin production.
Safe Harbor Statement
This press release contains "forward-looking statements," including statements about ERHC Energy Inc.'s future operating milestones, financing plans, as well as other matters that are not historical facts or information. These forward-looking statements are based on management's current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including those relating to the Company's ability to exploit its commercial interests in the JDZ and the exclusive territorial waters of Sao Tome and Principe, that may cause the Company's actual results to be materially different from any future results expressed or implied by such forward-looking statements. The Company undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise, nor is there any assurance that the contemplated financing will be effected, under the terms set forth herein or any other terms.
Public Company Management Corporation (OTCBB: PUBC) announced that it has signed a contract with Escape International, a Detroit-area network marketing company. Escape International oversees a network of independent representatives who market cutting-edge technologies and products of industry leaders in voiceover IP, video phones, wireless phones and medically endorsed wellness products to individual consumers and small businesses.
Escape International sells products and services of new-technology companies such as Packet8 VoIP service provider 8x8, Inc. (NASDAQ: EGHT), Sprint Wireless, T-Mobile, Nextel, Verizon, and Cingular. Escape International also offers wellness products in competition with other companies in the nutrition and wellness products industry. Under the contract, PUBC will provide consulting services to Escape International in connection with various corporate and securities matters.
"Escape International's unique business plan combines outstanding products and the possibility for individuals to start their own businesses," said Stephen Brock, PUBC's President. "At PUBC, we are excited about working with this promising organization in its efforts to become a fully reporting public company."
About Escape International
Escape International is a marketing company focused in the telecom arena.. A second division exists specializing in wellness products. David A. Rutz founded the Escape International in 2001 in his continuing effort to help people gain financial independence by owning their own businesses. Escape International promotes itself as the marketing company responsible for bringing to market a number of cutting-edge products. Its business model offers a no-risk startup opportunity for would-be entrepreneurs. Escape International prides itself on being a legitimately free network marketing company with income opportunities ranging from stay-at-home, part-time income to full-time business opportunities. The company considers its marketing plan viable because representatives can start part time and may earn significant residual income as their clients pay their monthly bills or consume the products each month. The company also provides extensive training to its representatives, which is aimed at increasing the odds for success. Escape International is managed by a team of individuals with more than 100 years of combined experience. Escape International maintains a corporate website at www.escapeinternational.com.
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About Public Company Management Corporation
PUBC's primary services are to educate, consult and advise clients seeking to register and self distribute their own securities in a public offering without an underwriter, to maintain compliance with their public reporting and corporate governance obligations or to conduct a State registered offering or a private placement. PUBC also consults and advises companies seeking to migrate from the Pink Sheets to the OTCBB. PUBC focuses on the small business market, traditionally underserved by large management consulting firms.
PUBC supports the full lifecycle of entering the public market through its various subsidiaries. In addition to PUBC's corporate website at www.publiccompanymanagement.com, PUBC also maintains the following websites to promote the services offered by its subsidiaries:
Education -- Pubco WhitePapers, Inc. (http://www.PubcoWhitePapers.com) hosts a comprehensive body of knowledge on private and public equity markets;
Registration and Listing -- GoPublicToday.com, Inc. (http://www.GoPublicToday.com) provides consulting services and advice in connection with companies seeking to register and self distribute their own securities in a public offering without an underwriter and obtain a listing on the OTCBB and companies seeking to migrate from the Pink Sheets to the OTCBB; and
Regulatory Compliance -- Public Company Management Services, Inc. (http://www.PCMS-Team.com) provides consulting services and advice relating to compliance with reporting and corporate governance obligations of public companies.
To increase OTCBB transparency and awareness, PUBC has also established the PCMC Bulletin Board 30 Index™. The index is comprised of 30 stocks and is not a full representation of the OTCBB marketplace, but rather a stratified grouping of stocks that meet certain well recognized standards. Several original companies included in the PCMC Bulletin Board 30 have graduated to the national exchanges, including GAINSCO, Inc. (AMEX), Law Enforcement Associates Corp. (AMEX), Silverleaf Resorts (AMEX), Covad Communications Group, Inc. (AMEX) and True Religion Apparel, Inc., the latter of which was replaced in the PCMC30 index with International Fuel Technologies (OTCBB: IFUE). Neither the companies discussed in this paragraph nor the current companies listed in the index are clients of PUBC and PUBC does not own any of their securities.
PCMC30 Index: http://pcmc.stockgroup.com/pcmc30.asp
Safe Harbor
This press release contains or may contain forward-looking statements such as statements regarding PUBC's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction, and trends in the industry in which PUBC operates including recommendations by the SEC Advisory Committee on Smaller Public Companies which could have a material effect on PUBC's current business model, the ability of PUBC's clients to become fully reporting, publicly traded, migrate to the OTCBB or to satisfy the SEC periodic or other reporting and/or corporate governance requirements if such clients were to become fully reporting or migrate to the OTCBB, and the ability of PUBC or any of its subsidiaries to consult with or advise its clients with respect to accomplishing any of the same. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in PUBC's filings with the SEC. PUBC assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.
Public Company Management Corporation (OTCBB: PUBC)
Invision Capital, Inc. (OTCBB: IVCA) (the "Company") announced today that its wholly owned subsidiary, EDI Exploration Drilling International GmbH ("EDI"), based in Haltern am See, Germany, has expanded its cooperative affiliations in Saudi Arabia by entering into a joint venture agreement with A. Abunayyan Trading Corporation ("ATC") to seek out and complete water exploration drilling projects in Saudi Arabia.
The agreement extends for a period of 3 years and will automatically renew for successive 3 year terms unless either party provides written notice of its intention not to renew the agreement. ATC and EDI will initially seek out 10 water exploration drilling projects under their joint venture agreement. Payments received under any projects generated by the joint venture will be apportioned amongst ATC and EDI pro rata in accordance with the percentage of the total project costs paid by each of them.
ATC is headquartered in the Saudi capital of Riyadh and provides technical solutions in the fields of water, oil, gas and electricity. Together with EDI's affiliations with Duluk Petroleum Services, based in Dammam, Saudi Arabia, and Manarah World Trading Est., based in the Kingdom of Bahrain, EDI has, with ATC, now established its third cooperative affiliation on the Arabian Peninsula. By establishing a joint venture with ATC, the Company believes that EDI is now in a position to establish itself as a competent service provider in the Gulf region for governments, municipal authorities and private companies.
EDI Exploration Drilling International GmbH is the wholly owned subsidiary of Invision Capital, Inc. EDI specializes in innovative water well drilling, construction and maintenance systems. The systems offered by EDI provide considerable cost and quality advantages over traditional drilling, construction and maintenance systems. EDI's systems can also be used in the drilling and construction of oil and gas wells.
The Company's shares are traded on over-the-counter market in the United States (OTCBB: IVCA) as well as on the stock market in Frankfurt (WKN:A0JKCN, ISIN: US46184W2098).
This Press Release may contain, in addition, to historical information, forward-looking statements. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. In particular, the Company is a development stage company, and has not earned any revenues to date. There are no assurances that EDI's cooperative efforts with Duluk, Manarah or ATC will result in future revenues or sales.
Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.
INVISION CAPITAL, INC.
Guenter Thiemann, Chief Financial Officer and Treasurer
International Smart Sourcing, Inc. (OTCBB: ISSG) announced today that it has terminated the letter of intent and negotiations to acquire Charter Fabrics, Inc., a privately held textile and cosmetic sourcing company located in New York, New York.
The Company terminated the letter of intent after its preliminary due diligence investigation revealed that Charter Fabrics did not meet all of the requirements set forth in the letter of intent.
David Hale, Chairman of the Board of Directors, President and Acting Chief Financial Officer of the Company, said: "After careful consideration and review of the preliminary due diligence materials, we have decided not to proceed with the transaction to acquire Charter Fabrics at the present time. Although we are disappointed that we were unable to complete the transaction, we believe that this is the best alternative for the Company and its shareholders. We will continue to explore other opportunities to grow our business in new directions."
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About International Smart Sourcing, Inc.
International Smart Sourcing, Inc. specializes in assisting companies in substantially reducing their cost of manufacturing by outsourcing all or part of their manufacturing to China. The Company's services include project management, source selection, engineering coordination, quality assurance, logistics, and cost reduction. Product specializations are tooling, injection molding, die-casting, metal stampings, mechanical assemblies, and electromechanical assemblies. The Company has offices located in New York and China.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any such statements are subject to risks and uncertainties, which could cause actual results to vary materially from those indicated. Actual results could differ due to a number of factors, including negative developments relating to unforeseen order cancellations or push outs, the company's strategic relationships, the impact of intense competition and changes in our industry.
Scott A. Yeoman, President and Chief Executive Officer of UnionBancorp, Inc. (NASDAQ: UBCD), reported net income for the second quarter ended June 30, 2006 of $1,294,000 or $0.33 per diluted share compared to $1,382,000 or $0.33 per diluted share earned in the second quarter of 2005. For the six months ended June 30, 2006, net income equaled $2,940,000 or $0.74 per diluted share compared to $2,346,000 or $0.55 per diluted share earned in the same period during 2005.
Commenting on the quarter, Yeoman said, "Excluding nonrecurring activity for the 2006 and 2005 quarters, we were pleased to report an 8% improvement in earnings. We continue to enjoy acceptable customer retention levels and improved customer service while expense controls remain firmly on target. This, combined with continued favorable asset quality trends, has yielded a strong start in the first half of 2006. As we move into the latter half of the year, we will continue to focus on our sales and service efforts in an attempt to help offset the anticipated flat yield curve. We will remain committed to attracting high quality commercial relationships and reaping the benefits of strong credit quality."
Second Quarter 2006 Highlights:
-- On June 30, 2006, UnionBancorp, Inc. and Centrue Financial Corporation (NASDAQ: TRUE) announced that they have signed a definitive agreement to join forces in a merger of equals transaction. Under the terms of the agreement, Centrue shareholders will receive shares of UnionBancorp common stock, using a fixed exchange ratio of 1.2 shares of UnionBancorp common stock for each share of Centrue common stock outstanding. The combined company will adopt the Centrue name and change its stock market ticker symbol to TRUE. The merger is subject to approval by UnionBancorp's and Centrue's stockholders and banking regulators and other customary conditions. The transaction is expected to be completed during the fourth quarter of 2006. -- Earnings per share were unchanged compared to the second quarter of 2005. -- The Company's earnings were positively impacted by a $300,000 negative provision for loan losses largely based on continued improvements in the quality of the loan portfolio, which was partially offset by a loss on sale of securities of $88,000 in order to better position the securities portfolio. Excluding these items, net income for the quarter would have equaled $1,163,000 or $0.29 per diluted share. -- The second quarter of 2005 results were positively impacted by a $251,000 reduction in state income taxes and $90,000 of interest received due to the receipt of a tax refund related to amended tax returns outstanding from prior years. Excluding these items, net income for the second quarter of 2005 would have equaled $1,076,000 or $0.25 per diluted share. -- Due to the flat yield curve, the net interest margin decreased to 3.37% during the second quarter of 2006 as compared with 3.59% for the same period in 2005 and 3.50% in the first quarter of 2006. -- The loan portfolio decreased to $403.5 million as compared to $417.5 million at December 31, 2005. Of this decrease in balances, approximately $7.7 million or 55% was related to the pay-off of action list credits refinanced by a competitor. -- The level of nonperforming loans to end of period loans totaled 0.70% as of June 30, 2006 compared to 0.95% at June 30, 2005 and 0.96% on December 31, 2005. -- Net charge-offs for the second quarter of 2006 were 0.09% of average loans as compared to 0.19% for the same period 2005. -- The Company's Board of Directors approved the payment of a $0.12 quarterly cash dividend on the Company's common stock, marking the 85th consecutive quarter of dividends paid to stockholders.
Net Interest Margin
The net interest margin for the second quarter of 2006 was reported at 3.37% as compared to 3.59% for the same period in 2005. The expectation of a flat yield curve is likely to maintain pressure on margins for the remainder of 2006.
Tax-equivalent net interest income decreased $360,000 to $5,078,000 for the second quarter of 2006 as compared to $5,438,000 for the second quarter of 2005. This change in net interest income was largely related to a decrease in volume and a shift in the mix of earning assets. Also contributing to the decline was a decrease in non-interest bearing deposits and an increase in time deposits.
Noninterest Income and Expense
Excluding $88,000 in securities losses from the second quarter of 2006 and $90,000 in interest received due to the receipt of a tax refund in the second quarter of 2005, noninterest income decreased $156,000 or 8.0% during the second quarter of 2006 as compared to the same period in 2005. The change was primarily related to a production level decrease in revenue generated from the mortgage banking division and lower brokerage and insurance revenue and losses related to investment activity.
Noninterest expense experienced a decrease of $498,000 or 8.9% during the second quarter of 2006 as compared to the same period in 2005. This decrease was largely due to the reduction of salary and benefit costs, and lower accounting and professional fees. These savings were offset by a modest increase in furniture and fixture expense.
Asset Quality
General asset quality trends continued to improve as the level of nonperforming loans to end of period loans totaled 0.70% as of June 30, 2006 compared to 0.95% at June 30, 2005 and 0.96% on December 31, 2005. Additionally, the reserve coverage ratio (allowance to nonperforming loans) was reported at 244.05% as of June 30, 2006 as compared to 238.83% as of June 30, 2005 and 208.84% as of December 31, 2005.
About the Company
UnionBancorp, Inc. is a regional financial services company based in Ottawa, Illinois, and devotes special attention to personal service and offers Bank, Trust, Insurance and Investment services at each of its locations. The Company's market area extends from the far Western suburbs of the Chicago metropolitan area across Central and Northern Illinois.
UnionBancorp common stock is listed on The NASDAQ Global Market under the symbol "UBCD." Further information about UnionBancorp, Inc. can be found at the Company's website at http://www.ubcd.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Act of 1934 as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by the use of words such as "believe," "expect," "intend," "anticipate," "estimate," or "project" or similar expressions. The Company's ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and the subsidiaries include, but are not limited to, changes in: interest rates; general economic conditions; legislative/regulatory changes; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality and composition of the loan or securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company's market areas; the Company's implementation of new technologies; the Company's ability to develop and maintain secure and reliable electronic systems; and accounting principles, policies, and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.
Accompanying Financial Statements and Tables
Accompanying this press release is the following unaudited financial information:
-- Unaudited Quarterly Highlights -- Unaudited Consolidated Balance Sheets -- Unaudited Consolidated Statements of Income -- Unaudited Selected Quarterly Consolidated Financial Data
UnionBancorp, Inc. Unaudited Quarterly and Year to Date Highlights (In Thousands, Except Share Data) Three Months Ended Six Months Ended June 30, June 30, -------------------- -------------------- 2006 2005 2006 2005 --------- --------- --------- --------- Operating Highlights Net income $ 1,294 $ 1,382 $ 2,940 $ 2,346 Return on average total assets 0.79% 0.83% 0.89% 0.71% Return on average stockholders equity 7.93 7.94 9.03 6.73 Net interest margin 3.37 3.59 3.44 3.56 Efficiency ratio 74.80 74.27 74.70 75.81 Per Share Data Diluted earnings per common share $ 0.33 $ 0.33 $ 0.74 $ 0.55 Book value per common share $ 17.31 $ 17.40 $ 17.31 $ 17.40 Diluted weighted average common shares outstanding 3,787,231 4,054,804 3,809,813 4,083,477 Period end common shares outstanding 3,742,751 3,923,018 3,742,751 3,923,018 Stock Performance Data Market Price: Quarter End $ 20.10 $ 22.00 $ 20.10 $ 22.00 High $ 21.12 $ 22.00 $ 21.48 $ 22.00 Low $ 19.44 $ 20.10 $ 19.44 $ 20.10 Period end price to book value 1.16 1.26 1.16 1.26 UnionBancorp, Inc. Unaudited Consolidated Balance Sheets (In Thousands) June 30, December 31, 2006 2005 --------- --------- ASSETS Cash and cash equivalents $ 30,265 $ 24,358 Securities available-for-sale 182,914 196,440 Loans 403,455 417,525 Allowance for loan losses (6,848) (8,362) --------- --------- Net loans 396,607 409,163 Cash surrender value of life insurance 15,775 15,498 Mortgage servicing rights 2,373 2,533 Premises and equipment, net 13,789 13,908 Goodwill 6,963 6,963 Intangible assets, net 446 533 Other real estate 1,390 203 Other assets 6,309 6,623 --------- --------- Total assets $ 656,831 $ 676,222 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits Non-interest-bearing $ 56,119 $ 57,832 Interest-bearing 466,576 486,009 --------- --------- Total deposits 522,695 543,841 Federal funds purchased and securities sold under agreements to repurchase 7,297 612 Advances from the Federal Home Loan Bank 46,700 50,000 Notes payable 8,824 9,468 Series B mandatory redeemable preferred stock 831 831 Other liabilities 5,180 5,395 --------- --------- Total liabilities 591,527 610,147 --------- --------- Stockholders' equity Series A convertible preferred stock 500 500 Common stock 4,698 4,684 Surplus 23,381 23,167 Retained earnings 50,775 48,837 Accumulated other comprehensive income (1,204) 95 --------- --------- 78,150 77,283 Treasury stock, at cost (12,846) (11,208) --------- --------- Total stockholders' equity 65,304 66,075 --------- --------- Total liabilities and stockholders' equity $ 656,831 $ 676,222 ========= ========= UnionBancorp, Inc. Unaudited Consolidated Statements of Income (In Thousands, Except Per Share Data) Three Months Ended Six Months Ended June 30, June 30, -------------------- -------------------- 2006 2005 2006 2005 --------- --------- --------- --------- Interest income Loans $ 7,194 $ 6,751 $ 14,349 $ 13,201 Securities Taxable 2,030 1,484 4,025 2,909 Exempt from federal income taxes 210 263 426 521 Federal funds sold and other 42 47 59 56 --------- --------- --------- --------- Total interest income 9,476 8,545 18,859 16,687 Interest expense Deposits 3,845 2,571 7,324 4,890 Federal funds purchased and securities sold under agreements to repurchase 51 37 123 111 Advances from the Federal Home Loan Bank 455 550 938 1,133 Series B Mandatory Redeemable 13 13 25 25 Notes payable 161 94 315 163 --------- --------- --------- --------- Total interest expense 4,525 3,265 8,725 6,322 --------- --------- --------- --------- Net interest income 4,951 5,280 10,134 10,365 Provision for loan losses (300) - (1,100) 100 --------- --------- --------- --------- Net interest income after Provision for loan losses 5,251 5,280 11,234 10,265 Noninterest income Service charges 495 525 935 1,008 Trust income 199 187 418 402 Mortgage banking income 281 364 527 704 Insurance commissions and fees 414 472 793 893 Bank owned life insurance (BOLI) 137 135 277 269 Securities gains, net (88) - (88) - Gain (loss) on sale of assets (9) 1 (9) 3 Other income 268 347 604 602 --------- --------- --------- --------- 1,697 2,031 3,457 3,881 Noninterest expenses Salaries and employee benefits 2,910 3,366 5,955 6,842 Occupancy expense, net 346 385 789 779 Furniture and equipment expense 521 461 1,033 885 Marketing 98 128 209 224 Supplies and printing 65 86 162 163 Telephone 118 106 235 213 Other real estate owned expense 2 29 8 34 Amortization of intangible assets 43 43 87 87 Other expenses 1,026 1,023 1,985 1,946 --------- --------- --------- --------- 5,129 5,627 10,463 11,173 --------- --------- --------- --------- Income before income taxes 1,819 1,684 4,228 2,973 Income taxes 525 302 1,288 627 --------- --------- --------- --------- Net income 1,294 1,382 2,940 2,346 Preferred stock dividends 52 52 104 104 --------- --------- --------- --------- Net income for common stockholders $ 1,242 $ 1,330 $ 2,836 $ 2,242 ========= ========= ========= ========= Basic earnings per share $ 0.33 $ 0.33 $ 0.75 $ 0.56 ========= ========= ========= ========= Diluted earnings per common share $ 0.33 $ 0.33 $ 0.74 $ 0.55 ========= ========= ========= ========= UnionBancorp, Inc. Unaudited Selected Quarterly Consolidated Financial Data (In Thousands, Except Share Data) Quarters Ended ------------------------------------------------------ 06/30/06 03/31/06 12/31/05 09/30/05 06/30/05 ---------- ---------- ---------- ---------- ---------- (Dollars in Thousands, Except Per Share Data) Statement of Income Data Interest income $ 9,476 $ 9,383 $ 9,290 $ 8,720 $ 8,545 Interest expense (4,525) (4,200) (3,886) (3,504) (3,265) ---------- ---------- ---------- ---------- ---------- Net interest income 4,951 5,183 5,404 5,216 5,280 Provision for loan losses (300) (800) 100 50 - ---------- ---------- ---------- ---------- ---------- Net interest income after provision for loan losses 5,251 5,983 5,304 5,166 5,280 Noninterest income 1,697 1,760 1,707 2,014 2,031 Noninterest expense 5,129 5,334 6,042 5,750 5,627 ---------- ---------- ---------- ---------- ---------- Income before income taxes 1,819 2,409 969 1,430 1,684 Provision (benefit) for income taxes 525 763 203 369 302 ---------- ---------- ---------- ---------- ---------- Net income $ 1,294 $ 1,646 $ 766 $ 1,061 $ 1,382 ========== ========== ========== ========== ========== Net income on common stock $ 1,242 $ 1,594 $ 715 $ 1,009 $ 1,330 ========== ========== ========== ========== ========== Per Share Data Basic earnings per common share $ 0.33 $ 0.42 $ 0.19 $ 0.26 $ 0.33 Diluted earnings per common share 0.33 0.42 0.19 0.25 0.33 Cash dividends on common stock 0.12 0.12 0.11 0.11 0.11 Dividend payout ratio for common stock 36.15% 28.17% 58.60% 41.92% 32.48% Book value per common share $ 17.31 $ 17.33 $ 17.23 $ 17.42 $ 17.40 Basic weighted average common shares outstanding 3,742,716 3,786,559 3,839,693 3,895,365 3,993,164 Diluted weighted average common shares outstanding 3,787,231 3,837,708 3,898,320 3,958,948 4,054,804 Period-end common shares outstanding 3,742,751 3,742,651 3,806,876 3,855,776 3,923,018 Balance Sheet Data Securities $ 182,914 $ 201,195 $ 196,440 $ 197,580 $ 192,593 Loans 403,455 406,617 417,525 405,884 404,462 Allowance for loan losses 6,848 7,506 8,362 8,493 9,159 Assets 656,831 661,707 676,222 664,643 665,424 Deposits 522,695 530,928 543,841 522,943 521,200 Stockholders' equity 65,304 65,369 66,075 67,664 68,749 Earnings Performance Data Return on average total assets 0.79% 0.99% 0.45% 0.64% 0.83% Return on average stockholders' equity 7.93 10.14 4.54 6.18 7.94 Net interest margin ratio 3.37 3.50 3.60 3.53 3.59 Efficiency ratio (1) 74.80 74.60 82.44 77.09 74.27 Asset Quality Ratios Nonperforming assets to total end of period assets 0.64% 0.59% 0.62% 0.59% 0.68% Nonperforming loans to total end of period loans 0.70 0.82 0.96 0.92 0.95 Net loan charge- offs to total average loans 0.09 0.01 0.06 0.17 0.19 Allowance for loan losses to total end of period loans 1.70 1.85 2.00 2.09 2.26 Allowance for loan losses to nonperforming loans 244.05 223.93 208.84 227.94 238.83 Capital Ratios Average equity to average assets 9.94% 9.80% 10.01% 10.33% 10.38% Total capital to risk adjusted assets 13.69 13.46 13.33 13.92 14.26 Tier 1 leverage ratio 9.38 9.18 9.03 9.30 9.42 (1) Calculated as noninterest expense less amortization of intangibles and expenses related to other real estate owned divided by the sum of net interest income before provisions for loan losses and total noninterest income excluding securities gains and losses and gains on sale of assets.
The chairman, president, and chief executive officer of St. Joseph Capital Corp. (NASDAQ: SJOE), John W. Rosenthal, today announced that the Company posted second quarter net income of $582,000, or $0.31 fully diluted income per common share, an increase of 13.9% compared to the first quarter of this year, but down 28.6% compared to the same quarter a year ago.
The second quarter was aided by a pre-tax recovery of $125,000 from the claim filed with the Company's insurance carrier for the previously disclosed international wire transfer fraud perpetrated on the bank during the first quarter of 2006. The Company also declared a quarterly dividend of $0.06 per common share to be paid on September 15, 2006 to shareholders of record on September 1, 2006.
Chairman Rosenthal stated, "In the most direct terms, the story behind our performance centers mainly on our 'spread' business being negatively impacted by a burdensome interest rate environment -- that is to say, the flat yield curve. Unfortunately, the shape of the yield curve is a variable over which we have no control. Looking ahead, some experts believe the slowing growth rate for the U.S. Economy currently being reported will lessen investors' inflation fears. This combination of reduced inflation pressure and the slowing rate of overall economic growth could allow the Fed to lower short-term rates in the not-too-distant future to stimulate economic growth. Should this scenario unfold, we expect that it will have a positive impact on our net interest margin."
"We continue our rigorous sales efforts to grow loans and deposits as well as control our non-interest expenses. I'm happy to report that we achieved solid results in all of those areas. Specifically, total loans and deposits grew by 13.2% and 13.5%, respectively, from the same quarter last year. Core non-interest expenses were up by 6.5% over the same time period, excluding the insurance recovery posted in the current quarter," Rosenthal continued.
Total assets at the end of the second quarter reached $490.9 million, an increase of 9.9% compared to June 30, 2005. Deposits increased to $376.3 million at June 30, 2006, up $44.9 million or 13.5% from $331.4 million at June 30, 2005. Gross loans grew by $40.7 million or 13.2% year over year and reached $349.4 million at quarter end. Securities available for sale decreased by $16.7 million or 17.5% year over year. A detailed review of St. Joseph Capital Corporation's performance is included with this release.
St. Joseph Capital Corporation is a bank holding company whose headquarters are located in Mishawaka, Indiana. Its primary operating subsidiary, St. Joseph Capital Bank, provides a broad array of banking services to businesses and individuals in the Michiana area. St. Joseph Capital Bank employs numerous delivery channels for their financial services including a unique courier service and electronic banking accessed via their website, www.sjcb.com. St. Joseph Capital Bank is a member of the Federal Deposit Insurance Corporation.
SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This news release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices, levies, and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by St. Joseph Capital Corporation with the Securities and Exchange Commission. St. Joseph Capital Corporation undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
ST. JOSEPH CAPITAL CORPORATION Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2006 2005 2006 2005 -------- -------- -------- -------- Interest income Loans, including fees $ 5,714 $ 4,217 $ 11,060 $ 8,110 Securities and other interest income 883 993 1,738 1,873 -------- -------- -------- -------- 6,597 5,210 12,798 9,983 Interest expense Deposits 3,406 1,979 6,353 3,656 Securities sold under agreements to repurchase and other borrowings 985 703 1,868 1,256 -------- -------- -------- -------- 4,391 2,682 8,221 4,912 -------- -------- -------- -------- Net interest income 2,206 2,528 4,577 5,071 Provision for loan losses - - - - -------- -------- -------- -------- Net interest income after provision for loan losses 2,206 2,528 4,577 5,071 Noninterest income Service charges on deposit accounts 102 121 192 223 Other noninterest income 180 128 336 272 -------- -------- -------- -------- 282 249 528 495 Noninterest expense Employee compensation and benefits 1,278 1,159 2,534 2,275 Stock option expense 75 35 110 70 Occupancy and equipment expense 133 132 275 246 Fraud Loss (125) - 52 - Other expense 391 437 748 840 -------- -------- -------- -------- 1,752 1,763 3,719 3,431 -------- -------- -------- -------- Income before income taxes 736 1,014 1,386 2,135 Income tax expense 154 199 293 524 -------- -------- -------- -------- Net income $ 582 $ 815 $ 1,093 $ 1,611 ======== ======== ======== ======== Basic income per common share $ .33 $ .47 $ .62 $ .93 ======== ======== ======== ======== Diluted income per common share $ .31 $ .43 $ .59 $ .86 ======== ======== ======== ======== ST. JOSEPH CAPITAL CORPORATION Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) June 30, June 30, 2006 2005 ASSETS Total cash and cash equivalents $ 44,415 $ 26,549 Securities available for sale 78,703 95,436 Federal Home Loan Bank (FHLB) stock 3,250 3,152 Loans receivable 349,400 308,750 Less: Allowance for loan losses 3,578 3,578 --------- --------- Loans receivable, net 345,822 305,172 Premises and equipment, net 3,217 3,203 Interest receivable and other assets 15,499 13,330 --------- --------- Total assets $ 490,906 $ 446,842 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Total deposits $ 376,251 $ 331,364 Federal fund purchased - 27,000 Securities sold under agreements to repurchase 10,992 7,829 FHLB advances 63,000 41,740 Subordinated debentures 8,000 8,000 Interest payable and other liabilities 3,223 2,891 --------- --------- Total liabilities 461,466 418,824 Total shareholders' equity 29,440 28,018 --------- --------- Total liabilities and shareholders' equity $ 490,906 $ 446,842 ========= ========= St. Joseph Capital Corporation Selected Quarterly Consolidated Financial Data (Unaudited) (Dollars in thousands, except per share data) Three Three Three Three Three Months Months Months Months Months --------- --------- --------- --------- --------- December September June 30, March 31, 31, 30, June 30, --------- --------- --------- --------- --------- 2006 2006 2005 2005 2005 --------- --------- --------- --------- --------- EARNINGS Net interest income $ 2,206 $ 2,371 $ 2,556 $ 2,584 $ 2,528 Provision for loan loss - - - - - Noninterest income 282 246 229 232 249 Noninterest expense 1,752 1,967 1,672 1,745 1,763 Net income 582 511 806 803 815 Basic earnings per share 0.33 0.29 0.46 0.46 0.47 Diluted earnings per share $ 0.31 $ 0.28 $ 0.43 $ 0.43 $ 0.43 Average shares outstanding 1,768,291 1,758,269 1,749,120 1,746,401 1,741,803 Average diluted shares outstanding 1,856,690 1,854,894 1,855,800 1,875,652 1,875,958 PERFORMANCE RATIOS Return on average assets* 0.50% 0.46% 0.71% 0.72% 0.77% Return on average common equity * 7.92% 7.24% 11.49% 11.58% 12.00% Net interest margin (fully-tax equivalent)* 2.14% 2.37% 2.53% 2.60% 2.69% Efficiency ratio 70.46% 75.12% 60.04% 61.95% 63.49% CAPITAL Average equity to average assets 6.4% 6.3% 6.2% 6.2% 6.4% Tier 1 leverage capital ratio 8.5% 8.6% 8.5% 8.4% 8.8% Tier 1 risk-based capital ratio 10.8% 10.9% 10.7% 10.8% 10.9% Total risk-based capital ratio 11.8% 11.9% 11.7% 11.8% 12.0% Book value per share 16.54 16.63 16.53 16.32 16.06 ASSET QUALITY Net charge-offs $ - $ - $ - $ - $ - Net charge-offs to average loans * 0.00% 0.00% 0.00% 0.00% 0.00% Allowance for loan losses $ 3,578 $ 3,578 $ 3,578 $ 3,578 $ 3,578 Allowance for loan losses to total loans 1.02% 1.03% 1.06% 1.08% 1.16% Nonperforming loans $ 83 $ - $ - $ - $ - Other real estate owned $ - $ - $ - $ - $ - Nonperforming loans to total loans 0.02% 0.00% 0.00% 0.00% 0.00% Nonperforming assets to total assets 0.02% 0.00% 0.00% 0.00% 0.00% END OF PERIOD BALANCES Total assets $ 490,906 $ 460,780 $ 481,128 $ 450,767 $ 446,842 Total earning assets 454,296 431,952 425,934 415,748 409,301 Total loans 349,400 345,953 338,705 330,972 308,750 Total deposits 376,251 330,081 343,398 332,876 331,364 Stockholders' equity 29,440 29,596 28,941 28,537 28,018 AVERAGE BALANCES Total assets $ 463,556 $ 451,645 $ 447,615 $ 440,751 $ 423,181 Total earning assets 436,081 425,312 419,884 413,442 397,011 Total loans 347,900 338,723 331,579 317,514 293,490 Total deposits 348,202 343,345 346,684 337,573 326,163 Stockholders' equity 29,483 28,608 27,819 27,519 27,250 * annualized for quarterly data
Action Products International, Inc. (NASDAQ: APII) announced today preliminary operating results. For the six months ended June 30, 2006 the company expects to report net sales of approximately $3.2 million, a decline of $600,000 and expects a loss in excess of $0.20 per share. The Company expects to report earnings by August 7, 2006.
The Board of Directors has taken the resignation of Lawrence H. Bernstein, the Company's President and Chief Operating Officer, effective today. Mr. Bernstein became the Company's President/COO in November 2005.
Ronald Kaplan, Chairman and Chief Executive Officer, stated that, "Our cash flows from operations continue to improve as a result of process and technology initiatives implemented to improve the overall customer experience. Our balance sheet remains strong and initiatives are well under way to enhance our core business, expand and promote our brands."
About Action Products International, Inc.
Action Products International, Inc., based in Orlando, Florida, is a toy manufacturer, emphasizing educational and positive play brands, including JAY JAY THE JET PLANE Wooden Adventure System, the I DIG® series, Space Voyagers® "The most authentic Space Toys on the Earth," ToddWorld™ soft play toys, Climb@Tron™ window-climbing robots, Curiosity Kits® and IMADETHAT™. Its products are marketed and sold to toy stores, specialty retailers, Internet retailers, museums, zoos, theme parks, attractions, catalog companies and education markets in the United States and worldwide.
El gobierno de España realiza pedido de un avión anfibio Bombardier 415
Bombardier Aerospace anunció hoy que el gobierno de España ha realizado un pedido de una aeronave anfibia Bombardier 415. El contrato tiene un valor de aproximadamente US$30,6 millones e incluye un aprovisionamiento inicial de repuestos, capacitación y asistencia técnica.
Con este pedido, el gobierno de España aumenta su flota a 20 aviones anfibios Bombardier. En la actualidad tienen operativos 14 aviones CL-215T y 5 aviones CL-215. El nuevo avión tiene un plazo de entrega inmediato y se espera que entre en servicio en la actual temporada de incendios.
"Esta venta al gobierno español, como parte del despliegue de su nueva "Unidad Militar Emergencias", servirá para demostrar una vez más que los clientes continúan eligiendo los aviones anfibios Bombardier por encima de otras opciones para formar parte de la columna vertebral de sus equipos en la lucha contra incendios. Después de haber sido el primer cliente europeo del CL-215T hace 17 años, España entra en una nueva era con la introducción del primer aparato Bombardier 415 en su flota, prevista para agosto de 2006. Bombardier tiene el compromiso de continuar apoyando las operaciones españolas", dijo Michel Bourgeois, Presidente de Bombardier Amphibious Aircraft.
Con motivo de la aprobación del contrato, el Consejo de Ministros hizo la siguiente observación: "el avión Bombardier 415 es la nueva versión del avión CL-215T que se usa en la actualidad en la 43 Unidad de la Fuerza Aérea. El buen rendimiento del CL-215T ha quedado demostrado desde su entrada en servicio en los años setenta. Por lo tanto, este tipo de nave es considerada como la mejor opción posible para la Unidad."(i)
El avión anfibio Bombardier es la primera herramienta de aviación para combatir los fuegos forestales y otras misiones relativas a sus propósitos de emergencia. Las capacidades operacionales únicas del avión y su rendimiento excepcional son adiciones valiosas para las fuerzas terrestres que combaten el fuego.
Desde la primera entrega realizada en 1994, Bombardier Aerospace ha entregado 63 aviones Bombardier 415 para diferentes agencias de la lucha contra el fuego de Croacia, Francia, Grecia, Italia, Ontario y Quebec. En la región mediterránea, Francia, Croacia, Italia y Grecia operan en la actualidad 41 aviones anfibios Bombardier 415. Además de los CL-215 y CL-215T españoles, Grecia tiene 13 aviones de pistones CL-215 en servicio.
El avión Bombardier 415 tiene una velocidad crucero máxima de 359 km/h, bajo ciertas condiciones, y en una misión promedio de una distancia de 11 kilómetros de separación entre el agua y el fuego, pude realizar nueve cargas en una hora, totalizando 55.233 litros de líquido para combatir el fuego.
El avión también se ofrece en una versión multipropósito (Bombardier 415 MP) para la búsqueda y rescate, control marítimo y protección del medio ambiente. Además, Bombardier ofrece mejoras del producto como piloto automático, radar meteorológico y Registro de datos de vuelo/Registro de voz de cabina (FDR/CVR) disponible para todos los aviones Bombardier 415.
Acerca de Bombardier
Fabricante y líder mundial en innovadoras soluciones de transporte, desde aeronaves regionales y jets privados hasta equipo de transporte por ferrocarril, Bombardier Inc. tiene su sede central en Canadá. Sus ingresos para el año fiscal que finalizó el 31 de enero de 2006 fueron de US$14.700 millones y sus acciones cotizan en el Toronto Stock Exchange (BBD). Más información y noticias en www.bombardier.com.
Century Aluminum of West Virginia, a wholly owned subsidiary of Century Aluminum Company (NASDAQ: CENX) was informed by the United Steelworkers today that the company's contract proposal covering 580 hourly workers at the Ravenswood reduction facility was not ratified by the membership of USW Local 5668-04. Ron Thompson, Manager of the Ravenswood plant, said that the company is disappointed with the vote.
Century presently owns 615,000 metric tones per year of primary aluminum capacity in the United States and Iceland, as well as an ownership stake in alumina and bauxite assets in the United States and Jamaica. Century's corporate offices are located in Monterey, California.
Aldila, Inc. (NASDAQ: ALDA) announced today that its Board of Directors has authorized the repurchase of up to $5,000,000 of the Company's common stock.
"We currently are debt free and have significant cash on hand. Our stock repurchase plan underscores our confidence in our ability to generate strong profitability and cash flows while investing in the future of the Company," said Mr. Peter R. Mathewson, Chairman of the Board and CEO.
The shares will be repurchased from time to time in open market transactions at the Company's discretion, subject to market conditions and other factors, including imposed "black-out periods," during which the Company and its insiders are prohibited from trading in the Company's common stock. While the Company typically allows insiders to trade in its stock for thirty days beginning the third day after its quarterly earnings announcement, the Company may impose a black-out period at any time without advance public notice.
The Company also announced that all prior stock repurchase plans have been cancelled. The Company had adopted previous stock repurchase plans, but has not repurchased any shares since August 2004.
Aldila, Inc. is a leader among manufacturers of graphite golf shafts used in clubs assembled and marketed throughout the world by major golf club companies, component distributors and custom clubmakers. Aldila manufactures and assembles hockey sticks and blades, in addition to the manufacture of composite prepreg material for its golf shaft business and external sales. Aldila also manufactures carbon fiber for internal use through an ownership interest in CFT.
This press release contains forward-looking statements based on our expectations as of the date of this press release. These statements necessarily reflect assumptions that we make in evaluating our expectations as to the future. Such forward-looking statements include, but are not limited to, implications concerning the acceptance of the NV™ shaft and that its success will continue to attract new customer accounts. Forward-looking statements are necessarily subject to risks and uncertainties. Our actual future performance and results could differ from that contained in or suggested by these forward-looking statements as a result of a variety of factors. Our filings with the Securities and Exchange Commission present a detailed discussion of the principal risks and uncertainties related to our future operations, in particular our Annual Report on Form 10-K for the year ended December 31, 2005, under "Business Risks" in Part I, Item 1, and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in Part I, Item 7 of the Form 10-K, and reports on Form 10-Q and Form 8-K. The forward-looking statements in this press release are particularly subject to the risks that:
-- we will not maintain or increase our market share at our principal customers; -- demand for clubs manufactured by our principal customers will decline, thereby affecting their demand for our shafts; -- the market for graphite shafts will continue to be extremely competitive, affecting selling prices and profitability; -- our product offerings, including the Aldila NV™ shaft and product offerings outside the golf industry, will not achieve or maintain success with consumers or OEM customers; -- our business with Mission Hockey will not grow, or it declines; -- our international operations will be adversely affected by political instability, currency fluctuations, export/import regulations or other risks typical of multi-national operations, particularly those in less developed countries; -- CFT will be unsuccessful as a result, for example, of internal operational problems, raw material supply problems, changes in demand for carbon fiber based products, or difficulties in operating a joint venture; -- the Company will not be able to acquire adequate supplies of carbon fiber, other than that being produced at CFT, at reasonable market prices; -- acts of terrorism, natural disasters, or disease pandemics interfere with our manufacturing operations or our ability to ship our finished product to meet customer demand.
For additional information about Aldila, Inc., please go to the Company's web site at www.aldila.com
Airspan Networks, Inc. (NASDAQ: AIRN), a leading worldwide provider of broadband wireless access networks, including WiMAX-standard systems, today announced the appointment, of Julianne M. Biagini as a member of the Board of Directors and the Audit and Nominating and Governance Committees of the Company. The appointment is effective August 1st, 2006.
Ms. Biagini has been employed by Endwave Corporation since 1994, is currently an Executive Vice President, and served five years as Chief Financial Officer from May 2001 through April 2006. Endwave is a publicly traded company that designs, manufactures, and markets RF modules that enable the transmission, reception and processing of high-frequency signals in telecommunications networks, defense electronics and homeland security systems. From 1992 until 1994, Ms. Biagini was the manager of Accounting and Tax at Exponent, Inc., an engineering and scientific consulting firm. Prior to 1992, Ms. Biagini worked at KPMG as a tax specialist. Ms. Biagini serves as a member of the Board of Directors of the American Electronics Association and is chairperson of the Silicon Valley/Northern California Council. Ms. Biagini is a registered C.P.A. in the state of California with a B.S. in business administration from San Jose State University and an M.B.A. from Santa Clara University.
The Company believes that, with the appointment of Ms. Biagini to the Company's Audit Committee, the Company has regained compliance with the Nasdaq's audit committee composition requirements for continued listing as set forth in Nasdaq Marketplace Rule 4350. Pursuant to Nasdaq Marketplace Rule 4350(d), the Company's Audit Committee is required to be comprised of at least three members, at least one of which is financially sophisticated.
"We are very pleased that Julie has agreed to join the Airspan Board," said Matt Desch, Chairman of the Board of Airspan. "Her experience in manufacturing and telecommunications, coupled with her financial background, will help support Airspan's continued growth and strengthen our governance processes."
About Airspan Networks, Inc.
Airspan Networks provides fixed and wireless voice and data systems and solutions, including Voice Over IP (VoIP). Its wireless products serve operators around the world in both licensed and unlicensed frequency bands between 700 MHz and 6 GHz, including both PCS and 3.5GHz international bands. Airspan has a strong wireless product roadmap that includes offerings compliant with the new WiMAX 802.16-2004 standard, and software upgradeability to 802.16e from the time the WiMAX products are introduced. Airspan is on the Board and a founder member of the WiMAX Forum. Through its newly acquired Radionet division, the company also offers 802.11-based metrozone networks and applications for various enterprise vertical markets. The Company has deployments with more than 350 operators in more than 100 countries. Airspan's wireless systems are based on radio technology that delivers excellent area coverage, high security and resistance to fading. These systems can be deployed rapidly and cost effectively, providing an attractive alternative to traditional wired communications networks. Airspan's new AS.Tone VoIP system is a carrier class, turnkey solution that provides carriers with Class 4, Class 5 and IP-Centrex solutions and has a Softswitch and Gateways supporting SIP/H323 and SIP. AS.Tone's design provides customers, carriers, next-generation telcos, cellular providers and ITSP with a wide range of solutions with the best price/performance system for IP telephony. Airspan also offers radio planning, network installation, integration, training and support services to facilitate the deployment and operation of its systems. Airspan is headquartered in Boca Raton, Florida with its main operations center in Uxbridge, United Kingdom.
More information on Airspan can be found at http://www.airspan.com
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, including statements regarding our strategy, future operations, financial position, future revenues, projected costs, prospects, plans and objectives of management, may be deemed to be forward-looking statements. The words "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "will," "would" and similar expressions or negative variations thereof are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. Investors and others are therefore cautioned that a variety of factors, including certain risks, may affect our business and cause actual results to differ materially from those set forth in the forward-looking statements. These risk factors include, without limitation, (i) a slowdown of expenditures by communication service providers; (ii) increased competition from alternative communication systems; (iii) the failure of our existing or prospective customers to purchase products as projected; (iv) our inability to successfully implement cost reduction or containment programs; (v) the potential loss of Axtel and Yozan as our largest customers; and specific to this press release, (vi) our potential inability to locate and secure additional sources of capital at the time and in the amount needed; (vii) the possibility that Yozan will materially delay or cancel future equipment orders; (viii) our inability to cancel certain component orders and/or to use or sell any excess inventory we accumulate as a result of the Yozan contract amendment. The Company is subject to the risks and uncertainties described in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended 31 December, 2005 and its Form 10-Q for the quarter ended April 2, 2006. You should read those factors as being applicable to all related forward-looking statements wherever they appear in this press release. We do not assume any obligation to update any forward-looking statements.
Exeter Resource Corporation (TSX VENTURE: XRC)(PINK SHEETS: EXRCF)(FWB: EXB) reports that drilling at its Cerro Moro Project in Argentina has discovered a high-grade gold-silver vein in a new zone, situated 2.5 kilometres from any previous drilling on the property.
Reverse circulation drill hole CMRC-45 intersected 10 metres at a grade of 15.4 grams per tonne ("g/t") gold and 790 g/t silver, for a gold equivalent grade(i) of 28.6 g/t. Included in the intercept was 2 metres at a grade of 43.6 g/t gold and 2293 g/t silver (81.8 g/t gold equivalent(i)).
The vein intersected by CMRC-45 (now named the "Carla Vein") was not apparent in outcrop and suggests the potential for further discoveries in an entirely new part of the property. Significantly, two other holes, CMRC-43 and CMRC-44, located 75 metres to the east of CMRC-45, also intersected veining that could represent a faulted extension of the Carla Vein.
Company Comment
Chairman Yale Simpson commented: "Cerro Moro is a large, 50 square kilometre, gold-silver system; one of a number of promising epithermal gold-silver properties under our strategic agreement with Cerro Vanguardia S.A., an AngloGold Ashanti subsidiary. For the past 12 months, our approach in systematically exploring Cerro Moro has been to combine detailed ground magnetic surveying with geological mapping to identify additional high-grade veins, or extensions to known veins."
"Previous drilling at Cerro Moro showed the vein system to be extensive and the Deborah and Esperanza Veins have both shown sufficient grades and widths to support the advancement of the property toward mine development. The Carla Vein discovery has rewarded the persistence of our team, as we continue to explore this very large epithermal system."
Cerro Moro Drilling Results
Exeter drilled 1,037 metres in 20 holes in the current program on the Carla, Dora, Deborah and Esperanza veins. Significant results from the current drilling program include:
-------------------------------------------------------------------- CARLA -------------------------------------------------------------------- Gold Hole Equivalent(i) No From To Meters Gold g/t Silver g/t g/t -------------------------------------------------------------------- CMRC 44 26 27 1 7.96 684 19.36 ----------------------------------------------------------- 56 62 6 0.57 45 1.32 -------------------------------------------------------------------- CMRC 45 46 56 10 15.41 790 28.58 ----------------------------------------------------------- Which Includes ----------------------------------------------------------- 47 52 5 28.32 1465 52.73 ----------------------------------------------------------- Which Includes ----------------------------------------------------------- 47 49 2 43.58 2293 81.78 -------------------------------------------------------------------- -------------------------------------------------------------------- DORA -------------------------------------------------------------------- Gold Hole Equivalent(i) No From To Meters Gold g/t Silver g/t g/t -------------------------------------------------------------------- CMRC 48 4 6 2 0.93 76 2.19 -------------------------------------------------------------------- CMRC 49 23 30 7 1.58 4 1.65 -------------------------------------------------------------------- CMRC 50 0 2 2 2.74 5 2.81 ----------------------------------------------------------- 19 26 7 0.51 3 0.55 -------------------------------------------------------------------- -------------------------------------------------------------------- DEBORAH -------------------------------------------------------------------- Gold Hole Equivalent(i) No From To Meters Gold g/t Silver g/t g/t -------------------------------------------------------------------- CMRC 52 59 64 5 2.92 74 4.15 -------------------------------------------------------------------- CMRC 53 41 55 14 3.04 61 4.05 ----------------------------------------------------------- Which Includes ----------------------------------------------------------- 49 52 3 7.03 129 9.18 ----------------------------------------------------------- Which Includes ----------------------------------------------------------- 49 50 1 12.98 142 15.34 -------------------------------------------------------------------- CMRC 54 57 65 8 0.70 28 1.15 -------------------------------------------------------------------- CMRC 55 31 34 3 2.39 17 2.67 -------------------------------------------------------------------- -------------------------------------------------------------------- ESPERANZA -------------------------------------------------------------------- Gold Hole Equivalent(i) No From To Meters Gold g/t Silver g/t g/t -------------------------------------------------------------------- CMRC 56 3 10 7 0.74 94 2.32 ----------------------------------------------------------- 19 20 1 1.16 3 1.21 ----------------------------------------------------------- 39 43 4 0.44 61 1.46 -------------------------------------------------------------------- CMRC 57 34 35 1 0.85 94 2.41 ----------------------------------------------------------- 38 41 3 4.00 323 9.38 ----------------------------------------------------------- Which Includes ----------------------------------------------------------- 38 40 2 5.79 467 13.56 ----------------------------------------------------------- 78 81 3 2.05 76 3.32 -------------------------------------------------------------------- CMRC 58 38 43 5 0.70 74 1.93 -------------------------------------------------------------------- CMRC 59 20 24 4 3.24 271 7.76 -------------------------------------------------------------------- CMRC 60 15 18 3 1.01 115 2.93 -------------------------------------------------------------------- (i) Gold equivalent grade is the aggregate of the gold and silver grades using a silver:gold ratio of 60:1.
The new, poorly outcropping, Carla vein and the surrounding area will be trenched and channel sampled in conjunction with other recently generated targets on the property. Detailed ground magnetics will continue ahead of follow up drilling in the fourth quarter, 2006. The Deborah vein remains open at depth and to the south-west, and the Esperanza vein remains open at depth and to the north-west.
Vein and drill hole locations can be viewed on the Exeter website at www.exeterresource.com or by clicking on these hyperlinks: http://www.exeterresource.com/images/gallery/plans/plans15.pdf.
Quality Control and Assurance
The gold assay results presented above are preliminary and have been calculated using a 0.5 g/t gold cut-off grade, with no cutting of high grades. All reverse circulation drill samples were collected using a cyclone in one metre intervals. Samples were prepared at the ALS Chemex preparation facility in Mendoza and assayed by fire assay (50 gram charge) at the ALS Chemex laboratory in Chile.
Check assaying of all samples assaying greater than 1.0 g/t gold will be completed by ALS Chemex. Standard, blank and duplicate samples are used throughout the sample sequence as checks. Note that the drill widths presented above are drill intersection widths and may not represent true widths.
Glen Van Kerkvoort, Exeter's Chief Geologist, a "qualified person" within the definition of that term in National Instrument 43-101, "Standards of Disclosure for Mineral Projects", has overall responsibility for Exeter's exploration programs in Patagonia and is responsible for the contents of this news release.
About Exeter
Exeter is a technically-advanced, Canadian gold exploration company, focused on the discovery and development of epithermal gold-silver properties in Argentina and Chile.
Currently, four drills are operating at its advanced La Cabeza gold project as a key component of project development activities that include engineering, metallurgical, hydrological, and environmental studies.
In the prospective, Patagonia region of Argentina, Exeter has a strategic partnership with Cerro Vanguardia S.A. over 12 epithermal gold-silver properties in Santa Cruz, Rio Negro and Chubut provinces. Drilling results are awaited on the Cerro Puntudo epithermal gold-silver property.
In Chile, Exeter is prospecting some 48 gold-silver and copper targets under a strategic agreement with Rio Tinto Mining and Exploration Limited.
In the Maricunga district of Chile, Exeter has a strategic agreement with Minera Anglo American Chile Limitada and Empresa Minera Mantos Blancos S.A. on the Caspiche epithermal gold property.
You are invited to visit the Exeter web site at www.exeterresource.com.
EXETER RESOURCE CORPORATION
Bryce Roxburgh, President and CEO
Safe Harbour Statement - This news release may contain certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 referring to Exeter's exploration plans and expectations for advancing its exploration properties. These statements reflect our current belief and are based upon currently available information. Actual results could differ materially from those described in this news release as a result of numerous factors, some of which are outside of the control of Exeter.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
SurfControl (LSE: SRF), the global leader in Internet protection, is currently tracking an email phishing scam that appears to be a message from Microsoft.
The email conveys that the user has won a prize from Microsoft that can be claimed by visiting the Microsoft "Resolution Centre" and filling out a small form. When clicking on the link included in the email, the user is taken to a malicious Web site that closely resembles Microsoft's home page.
SurfControl will add malcode protection for this attack into databases for all products. SurfControl also advises users to update any anti-virus software.
SurfControl's Threat Analysis and Research department is uniquely positioned to provide protection through its Adaptive Threat Intelligence service that spans the globe. Around-the-clock exchange of information on new threats allows SurfControl's Threat Experts to be at the forefront of Internet protection. SurfControl adds any new signatures and/or URLs to all three of the products in the SurfControl Enterprise Protection Suite.
About SurfControl
SurfControl makes Internet communication a business advantage -- and not a threat. The SurfControl Enterprise Protection Suite gives customers 360 degrees Internet protection and covers all points of Internet vulnerability -- including inbound and outbound communication and employees on or off the network. All products in the Enterprise Protection Suite are backed by industry-leading threat detection, delivered by SurfControl's Global Threat Experts working 24/7 to provide customers with dynamic protection against emerging threats. The company has more than 22,000 customers worldwide, and employs more than 500 people in offices across the United States, Europe and Asia/Pacific. For further information and news on SurfControl, please visit http://www.surfcontrol.com.
