Financial Highlight Summary
(in Canadian dollars)
|| Three months ended
||Nine months ended
||May 31, 2014
||May 31, 2013
|| May 31, 2014
||May 31, 2013
|Gross profit (GP)
|Earnings before income tax
| Financial Position
||As at February 28, 2014
||As at August 31, 2013
| Working capital
For the first nine months of fiscal 2014 ended May 31, 2014, sales were $12,558,570, down by $91,252 or 1% from sales of $12,649,822 in the first nine months of fiscal 2013. Sales remained consistent primarily as a result of successful efforts in the retrofit market and increased market penetration which together mitigated the impact of a decline in new crude oil tanker construction.
Sales for the third quarter of fiscal 2014 totaled $4,325,360, a decrease of $251,109 or 5% from sales of $4,576,469 in the previous year’s third quarter. This is primarily a result of a market-wide slowdown in new oil industry tanker construction. Titan’s sales outside of Canada, primarily to the U.S., were $2,266,021 in the third quarter of fiscal 2014, a decrease of 8% from sales of $2,452,116 in the third quarter ended May 31, 2013. Sales in Canada for the third quarter of fiscal 2014 decreased by 3% to $2,059,339 from sales of $2,124,353 in the same period of fiscal 2013. Sales for the quarter ending May 31, 2014 reflect an increase from the most recent quarter. Titan continues to increase its market penetration due to the successful execution of its sales initiatives and has seen a less severe decline in its sales as a result.
In the first nine months of fiscal 2014, total expenses were $4,034,152 compared to $3,217,379 in the first nine months of fiscal 2013. This increase is primarily due to costs associated with increases in wages, higher than usual professional fees related to a product recall, network upgrades, and rent expense. Titan recorded the capitalization of product development costs of $587,896 in the nine months ended May 31, 2014 as compared to $717,079 in fiscal 2013’s comparable period. This decrease is a result of increased activities related to recently commercialized products as well as a product recall. These activities are not eligible for deferral under IFRS.
At May 31, 2014 cash and cash equivalents and short term investments were $10,908,800 compared to $9,257,177 at the end of fiscal 2013. Titan does not have any debt except for trade payables, accrued liabilities and finance lease obligations.
Our OEM customers in the mobile crude oil tanker markets are reporting a slight decrease in orders compared to a year ago. However, as a result of increased market penetration, we expect the related revenue to remain consistent with fiscal 2013.
Titan is committed to focused and targeted product innovation. This focus includes the formation of an enhanced in-house application and support engineering arm. By doing this, product innovation can be executed more consistently and efficiently. Further, expansion of our development environment, including more advanced in-house development, testing equipment/facilities, and the addition of key engineering staff is currently underway.
New product lines
We have seen a growing interest in our UsedOil-Stik. We recently joined NORA, the US Association of Responsible Recyclers. After attending their 2014 Mid-Year Meeting, we are encouraged with the relationships we have formed and the positive UsedOil-Stik feedback we received. These relationships should positively impact future sales. NORA has recently formed an Environment, Health and Safety Forum. Leaders will meet each month to discuss environmental and safety topics related to the liquid recycling industry. This is important in relation to UsedOil-Stik sales as our product not only provides accurate level measurement and helps prevent spills, it also reduces the need for the driver to get on top of the tank.
Demand for the new Stik products is growing in the targeted markets. Customers have identified useful product enhancements, like printer capability and communication drivers, which we are incorporating. We expect these improvements will make the products even more applicable to the market needs. We are completing an enhancement to the Chem-Stik which we expect will help us gain additional market penetration.
As reported in last quarter’s MD&A, field trials of the advanced fluid level gauging system for refined fuel tankers began in April 2014. These systems have performed well, providing valuable data that will assist with the full commercial launch expected later this calendar year. The refined fuels mobile tanker gauging market is larger than the crude oil market. This new gauging system will enable Titan to tap into this market with an advanced technology solution designed to meet current and emerging market needs.
Titan Logix Corp.’s unaudited financial statements and management’s discussion and analysis for the third quarter of fiscal 2014 as well as its audited financial statements and management’s discussion and analysis for its fiscal year ended August 31, 2013 are available on SEDAR at www.sedar.com and on the Company’s website, www.titanlogix.com.
About Titan Logix Corp.
Founded in 1979, Titan Logix Corp. is a high technology company specializing in Research and Development (R&D), manufacturing and marketing of advanced technology fluid management solutions. The Company's focus includes Guided Wave Radar (GWR) gauges for level measurement and overfill prevention (particularly for use in mobile tanker applications), level gauges for storage tanks, burner management for oilfield heaters, and communication systems for remote alarming and control.
This is captured by our slogan “Advanced Technology Fluid Management Solutions, In the Field, On the Road, In the Office”™.
- In the Field: "In the Field" refers to Titan's solution offerings for storage tanks and process vessels.
- On the Road: "On the Road" refers to Titan's solution offerings for mobile tanker trucks and trailers.
- In the Office: "In the Office" refers to Titan's solution offerings that enable customers to monitor their fluid assets from the convenience of their dispatch center or other back office environment through a wired or wireless connection.
Titan Logix Corp. is a public Company listed on the Toronto Venture Stock Exchange and its shares trade under the symbol, TLA.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain statements with information that may be forward-looking and subject to unknown risks and uncertainties. The actual results, performance and achievements of Titan Logix Corp. may differ materially from the results, performance and achievements expressed or implied by such forward-looking statements. These forward-looking statements may not relate strictly to historical or current facts. They represent management’s views as of the date of this press release and we assume no obligation to update them. We caution you not to place undue reliance on these forward-looking statements.
Greg McGillis, P.Eng.,
President and Chief Executive Officer
Ph: (780) 462-4085
TSX Venture, TLA