Edmonton, Alberta, November 17, 2022 – Titan Logix Corp., (TSX Venture: TLA) (“Titan” or the “Company”), a technology company specializing in mobile liquid measurement solutions, announces its results for the fourth quarter and year ended August 31, 2022.
FISCAL 2022 HIGHLIGHTS
- Revenues for the fiscal year improved over the previous fiscal year as the demand for the GWR product line continued to strengthen, resulting in a $794,964 or a 22% increase in the Company’s revenues for the fiscal year compared to the previous fiscal year. Revenues in fiscal 2022 were $4,328,588, compared with the $3,533,624 recorded in fiscal 2021. This increase in demand for the GWR was due to an improvement in the global supply chain for tanker OEMs from the crude oil sector.
- Gross profit in fiscal 2022 increased by $553,288 to $2,392,764 or 55% of revenue compared to $1,839,476 or 52% of revenue in fiscal 2021. This increase in gross profit is primarily due to the increase in unit demand and revenue. The increase in the gross profit percentage is primarily the result of a price increase.
- Total expenses in fiscal 2022 decreased by $71,367 to $2,618,424 as compared with $2,689,791 in the comparative prior year. This decrease in total expenses was primarily due to a reduction in engineering costs, a realized gain on foreign exchange compared with a foreign exchange loss, and lower sales and marketing expenses. These reductions were partially offset by an increase in general and administration expenses. General and administrative expenses increased primarily due to one-time costs combined with an increase in director, professional fees and travel expenditures. One-time costs in the fiscal year include $253,000 of payroll expenses due to severance expense associated with executive termination and transaction fees of $53,000 related to the acquisition of Bri-Chem Corp. common share purchase warrants.
- The operating loss before other items for fiscal 2022 was $225,660 compared to $850,315 in fiscal 2021. The significant improvement in the operating loss before other items for fiscal 2022 was largely due to higher gross profits from increased volumes for the GWR product line.
- August 26, 2022 the Company announced the exercise of 2,425,000 common share purchase warrants in Bri-Chem Corp for a total consideration of $771,250. At August 31, 2022 its investment in Bri-Chem Corp. was recorded at a fair market value of $1,503,500 and accounting for its investment at fair value through profit or loss, the Company recorded an unrealized gain on its investment of $732,250. The Company considers its share purchase in Bri-Chem Corp to be held for investment purposes, which will allow the Company to participate in the broader energy sector that is expected to experience strong fundamentals over the next few years.
- Net earnings after income taxes for fiscal 2022 amounted to $1,125,861 compared to a net loss after taxes of $227,357 in fiscal 2021. The increase in the net earnings was primarily due to the significant improvement in the operating loss before other items combined with the unrealized gain on the investment in Bri-Chem Corp. common share purchase warrants. Excluding this unrealized gain and the one-time executive severance, the adjusted net earnings after income taxes would have been $646,611 compared with a loss after income taxes of $227,357 an increase of $873,968 or 384%, largely due to growth in demand for the GWR product line and the increase in gross profit.
- On May 9, 2022 the Company’s investment in its secured loan was fully repaid early. Principal repayments of $3,466,666 were recorded for the fiscal year-ended August 31, 2022. Accrued loan interest, plus additional interest in the form of payment in kind interest and a make-whole fee representing three months interest was received. At August 31, 2022 the Company’s investment in the secured loan generated finance income of $473,785 as compared with $531,174 in fiscal 2021.
- During the fiscal year the Company wound-down its participation in the Canada Emergency Wage Subsidy (“CEWS”) program. Total benefits received from wage subsidy programs in fiscal 2022 amounted to $76,281 as compared with $463,373 in fiscal 2021.
“We continue to see an improvement in the overall market conditions, with quarter-over-quarter growth compared to prior year periods. Heading into fiscal 2023, the backlog for new tanker construction signals strong demand for growth and replenishment in bulk liquid fleets, and we anticipate another growth year for Titan. I’m proud of the work that Titan has done to maintain product shipments and manage supply chain volatility in these turbulent times.” said CEO, Nick Forbes.
The Company has approved a long-term strategic growth plan to position Titan as the leader in mobile liquid measurement solutions. The strategy focuses on deploying Titan’s resources in 3 strategic areas:
- Product and market development to diversify Titan’s business into identified, addressable, mobile liquid markets outside of the crude and used oil segments
- Develop a cloud-connected product offering to bring new value to existing customers of the TD series products, and a differentiated offering to adjacent markets
- Evaluate investment, and acquisition opportunities that align with Titan’s strategic roadmap
Titan intends to be disciplined in its capital investment strategy and will continue to build on its strong financial position.
The Company’s audited consolidated annual financial statements and the management’s discussion and analysis (“MD&A”) which includes the Company’s Business Outlook, for the year ended August 31, 2022, are available on SEDAR at www.sedar.com and the Company’s website, www.titanlogix.com.
About Titan Logix Corp.:
For over 25 years, Titan Logix Corp. has designed and manufactured mobile liquid measurement solutions to help businesses reduce risk and maximize efficiencies in bulk liquids transportation. Titan’s TD Series of tank level monitors are a market leader in mobile fluid measurement, and are known for their high level of accuracy, rugged design, and solid-state reliability. Our solutions are designed for hazardous and non-hazardous applications, and we serve customers in a wide range of applications including petroleum, environmental solutions, chemical, and agriculture.
Founded in 1979, 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.
Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our Management Discussion and Analysis in respect of the year ended August 31, 2022 which is available at www.sedar.com. In addition, the occurrence of pandemics, such as the outbreak of the novel coronavirus COVID-19 in any of the areas in which the Company, its customers or its suppliers operate could cause interruptions in the Company’s operations. In addition, pandemics, natural disasters or other unanticipated events could negatively impact the demand for, and price of, oil and natural gas which in turn could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.
Chief Executive Officer
Ph: (403) 561-8095
Email: [email protected]
TSX Venture, TLA