Edmonton, Alberta, April 15, 2009 – Titan Logix Corp., (TSX Venture: TLA), today
reported its unaudited financial results for the second quarter of its fiscal 2009 ended
February 28, 2009.
Summary of Sales Revenue, Gross Profit and Net Income:
Titan’s sales in the second quarter ended February 28, 2009 were $2,747,011, up by
$1,140,020 and an improvement of 71% from $1,606,991 in the second quarter of the
previous fiscal year. Gross profit in the three month period was $1,287,563 with a 47%
gross margin compared to $539,169 with a 34% gross margin in the second quarter of
the previous fiscal year. Net earnings and comprehensive income was $475,356 ($0.02
per diluted share) in this second quarter compared to a loss of $205,740 (-$0.01 per
diluted share) in the second quarter of the previous fiscal year.
Year to date, sales in the first six months of fiscal 2009 were $5,450,627, an
improvement of 48% over sales of $3,674,923 in the first six months of the previous
fiscal year. The company’s gross profit in the first six months of fiscal 2009 was 85%
higher at $2,413,420 compared to $1,303,443 in the first six months of fiscal 2008. Net
earnings and comprehensive income was $801,099 ($0.03 per diluted share) in the first
six months of this fiscal year compared to a loss of $194,663 (-$0.01 per diluted share)
in the past fiscal year.
In addition to improved margins (44% versus 35%) which led to much improved
profitability in the first six months of fiscal 2009 compared to the previous fiscal year,
Titan recorded a recovery of product development costs relating to scientific research
and experimental development (SR&ED) claims for the three previous fiscal years.
That, together with a gain on foreign currency exchange, substantially added to the
positive profit picture in the six month period of fiscal 2009 ended February 28, 2009.
“Our positive results are a reflection of improvements in the design and implementation
of our sales program initiated in Q3 of fiscal 2008”, states Les J. Evans, President and
CEO of Titan Logix Corp. “Our customers however are not immune from the current
global financial difficulties and we are monitoring and controlling our spending as we
navigate our way through the current recession. We are experiencing a slowdown and
expect our revenues to decrease to traditional lower levels for the spring breakup period
during the next quarter”.
Fiscal 2009 Second - Quarter Financial Highlights
||Six months ended
February 28, 2009
|Six months ended
February 29, 2008
|Revenues and Earnings
Earnings before income taxes
Net earnings and comprehensive income
|General and administration
Product development costs
Marketing and sales
|Per Common Share
|Basic earnings per share
Diluted earnings per share
|Financial Ratios (using earnings before income taxes)
|% Return on sales
% Return on shareholders’ equity
% Return on total assets
|Closing Financial Position
||At February 28, 2009
||At August 31, 2008
|Total shareholders’ equity
Summary of Operating Expenses:
Total expenses for the second quarter of fiscal 2009 ended February 28, 2009 were
17% lower, down to $636,124 from $764,812 in the second quarter of the previous fiscal
year. The lower total expense is primarily due to a recovery of product development
costs and a substantial gain on foreign currency exchange. General and administration
expenses in the second quarter were up 34% to $473,269 from $352,125 in the second
quarter of the previous year. Product development expenses saw a net recovery of
$216,577 compared to expenses of $97,659 in the previous year’s second quarter. A
recovery of $315,410 from scientific research and experimental development (SR&ED)
claims for product development costs for fiscal 2006, 2007 and 2008 offset the product
development expenses of $98,833 in this second quarter. Marketing and sales
expenses, which rose by 38% to $393,870 this quarter from $284,946 in the second
quarter of the previous year, were higher because of sales training costs, employee
compensation and travel expenses being higher.
At February 28, 2009, working capital was $4,865,305 compared to the year-end
balance of $4,259,064 at August 31, 2008. Cash and cash equivalents were $1,893,489
compared to $1,633,147 at the end of fiscal 2008. Titan does not have any debt except
for trade payables.
TSX-V: TLA, Page 3 of 3
Outstanding Share Summary:
The common shares of Titan Logix Corp. trade on the TSX Venture Exchange under the
symbol TLA. At April 6, 2009, Titan had 24,853,440 common shares issued and
Titan Logix Corp.’s unaudited financial statements and management’s discussion and
analysis for the second quarter of fiscal 2009 as well as its audited financial statements
and management’s discussion and analysis for its fiscal year ended August 31, 2008
are available on SEDAR at www.sedar.com and on the company’s website,
About Titan Logix Corp.:
Founded in 1979, Titan Logix Corp. has evolved into an advanced technology industrial
instrumentation and controls company. We focus on designing, manufacturing,
distributing and servicing instrumentation and automation solutions. These are primarily
for the oil and gas, chemical and transportation industries, which for many years have
relied on manual intervention. Due to rising costs, concerns and awareness about the
environment, the importance of spill prevention and technological advancements - to list
but a few reasons – demand for our products appears to be accelerating. The products
we specialize in are:
- Transport Instruments: guided wave radar liquid gauging and control systems
for mobile tankers;
- Level and Flow Instruments: mechanical and electronic liquid level gauging
systems for storage tanks and industrial process vessels;
- Burner Controls: electronic burner management systems for atmospheric
industrial heaters; and
- Telemetry and Control Products: communication and control systems
enabling remote telemetry and management of site processes.
Titan Logix Corp. is a public company listed on the TSX Venture 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 forwardlooking
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.
Investor Relations and Corporate Communications Coordinator
Ph: (780) 462-4085
TSX Venture, TLA
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