Edmonton, Alberta, July 15, 2009 – Titan Logix Corp., (TSX Venture: TLA), has reported its unaudited financial results for the third quarter of its fiscal year ended May 31, 2009.

Summary of Sales Revenue, Gross Profit and Net Income (Loss):

Titan’s sales in the third quarter ended May 31, 2009 were $1,609,238, down $550,937 from $2,160,175 in the third quarter of the previous fiscal year. Gross profit in the third quarter was $618,201 with a 38% gross margin compared to $863,101 with a 40% gross margin in the third quarter of the previous fiscal year. The net loss and comprehensive loss in this third quarter was $235,052, (-$0.01 per diluted share), compared to net earnings and comprehensive income of $118,259 ($0.00 per diluted share) in the third quarter of the previous fiscal year.

Year to date, sales in the nine month period of this fiscal year, ended May 31 2009, were 21% higher than in the nine month period of the previous fiscal year. The company’s gross profit in this nine month period was 40% higher (43% gross margin) than in the nine period of the previous fiscal year (37% gross margin). Net earnings and comprehensive income was $566,047, ($0.02 per diluted share), in the nine month period, ended May 31, 2009, compared to a loss of $76,404 ($0.00 per diluted share) in the nine month period of the previous fiscal year.

“Our third quarter results reflect the petroleum industry’s typical slower time during spring break-up, compounded further by the current state of the North American economy”, said Les J. Evans, President and CEO of Titan Logix Corp. “With expectations of higher, more stable oil prices, there are indications that drilling activity will increase in the fall of 2009. The subsequent oil and gas production, which would follow, should result in more demand for the products we sell. Meanwhile, we have implemented several cost reduction, cost management and controls throughout the company. Beginning in the fourth quarter of fiscal 2009, the company is implementing salary reductions starting at the senior management level, work share programs, unpaid leaves and other cutbacks. This will protect the company’s working capital position during the current economic slowdown, which has affected the company’s performance”.

Fiscal 2009 Second - Quarter Financial Highlights

  Nine months ended
May 31, 2009
Nine months ended
May 31, 2008
Revenues and Earnings    
Sales
Gross Profit
Earnings before income taxes
Net earnings and comprehensive income
$7,059,865
3,031,621
776,732
566,047
$5,835,098
2,166,544
(76,404)
(76,404)
Expenses    
General and administration
Product development costs
Marketing and sales
$1,190,553
29,669
1,072,407
$992,786
281,719
877,378
Per Common Share    
Basic earnings per share
Diluted earnings per share
$0.02
0.02
$0.00
0.00
Financial Ratios (using earnings before income taxes)    
% Return on sales
% Return on shareholders’ equity
% Return on total assets
11.0%
10.5%
9.6%
(1.3)%
(1.2)%
(1.0)%
Closing Financial Position At May 31, 2009 At August 31, 2008
Total shareholders’ equity
Total assets
$7,371,921
8,071,527
$6,763,523
7,673,546

Summary of Operating Expenses:

Total expenses for the third quarter of fiscal 2009 ended May 31, 2009 were $931,988 compared to $754,257 in the third quarter of the previous fiscal year. General and administrative expenses were $317,255 in this third quarter period compared to $335,362 in the third quarter of the previous fiscal year. Product development expenses in the third quarter were $151,863 compared to $97,984 in the third quarter of the previous fiscal year. Marketing and sales expenses in the third quarter of this fiscal year, ended May 31, 2009, were $357,912 compared to $298,493 in the third quarter of the previous fiscal year.

Year to date, in the nine month period of this fiscal year, ended May 31, 2009, total expenses were slightly lower at $2,270,170 compared to $2,282,695 in the nine month period of the previous fiscal year. General and administrative expenses were 20% higher due mainly to higher consulting fees, fees paid for the application of scientific research and experimental development (SR&ED) credits and general market related increases in insurance, property taxes, employee compensation and professional fee costs. Product development expenses for the nine month period of this fiscal year, ended May 31, 2009, were $29,669 compared to $281,719 in the previous fiscal year. The substantially lower product development expenses are primarily due to recording a TSX-V: TLA, Page 3 of 4 recovery of $315,410 from scientific research and experimental development (SR&ED) claims for 2006, 2007 and 2008. For the nine month period, ended May 31, 2009, marketing and sales expenses were 22% higher than in the nine month period of the previous fiscal year. Sales training, employee compensation and travel expenses were higher whereas advertising and promotional expenses were lower in this fiscal year’s nine month period compared to the previous fiscal year’s nine month period. Changes in the value of the Canadian dollar and management of receipts from U.S. sales resulted in a gain of $56,249 on foreign currency exchange during the nine month period, ended May 31, 2009. This compares to a loss of $60,010 in the nine month period of the previous fiscal year.

Working Capital:

At May 31, 2009, working capital was $4,491,888 compared to the year-end balance of $4,259,064 at August 31, 2008. Cash and cash equivalents were $1,543,089 compared to $1,633,147 at the end of fiscal 2008. Titan does not have any debt except for trade payables.

Outstanding Share Summary:

The common shares of Titan Logix Corp. trade on the TSX Venture Exchange under the symbol TLA. At July 03, 2009, Titan had 24,853,440 common shares issued and outstanding.

Additional Information:

Titan Logix Corp.’s unaudited financial statements and management’s discussion and analysis for the third 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, www.titanlogix.com.

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 - there has been growth in the demand for our products. 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

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.

Contact Information:
Aniz Pisani,
Investor Relations and Corporate Communications Coordinator
Ph: (780) 462-4085
Email: invest@titanlogix.com
TSX Venture, TLA
 

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