EDMONTON, ALBERTA — (Marketwired) — 11/28/13 — Titan Logix Corp., (TSX VENTURE: TLA), an advanced technology industrial instrumentation and controls company, announces its results for the three months and year ended August 31, 2013.
Financial results are summarized as follows:
Summary of Sales Revenue and Net Earnings:
Titan Logix Corp.-s sales for fiscal 2013 totaled $16,493,151, a decrease of $1,448,606 from sales of $17,941,757 in the previous year. This represents a decrease in sales that were 8% below the record sales achievements of fiscal 2012. Earnings before income tax, for the fiscal year ended August 31, 2013 were $4,276,895 compared to $4,558,703 in fiscal 2012. Net earnings and comprehensive income were $3,242,765 compared to $3,870,780 for fiscal 2012. Titan continues to be profitable for thirteen consecutive quarters.
The consolidated financial statements for the year ended August 31, 2012 have been restated to correct an error resulting from a misapplication of the variance between the Company-s standard cost rates used in costing its inventory and actual inventory-related costs incurred. The restatement resulted in an increase to reported inventory of $287,235 and an increase to net earnings of $213,071. This is a one-time error impacting only the 2012 fiscal year.
In the fourth quarter of 2013 Titan-s sales were $3,843,329 a decrease of $1,288,058 from the fourth quarter sales in the previous year. The decrease in revenue through fiscal 2013 is reflective of the reduction from peak market activity experienced in the second half of fiscal 2012. The net earnings in the fourth quarter of fiscal 2013 were $616,371 compared to net earnings of $1,092,052 in the fourth quarter of fiscal 2012. This decrease in earnings is due primarily to the reduction in revenue and a reduced gross profit.
Titan-s sales outside of Canada, primarily to the U.S., were $7,914,182 in fiscal 2013, a decrease of 9% from the record sales achievements of fiscal 2012. Sales in Canada for fiscal 2013 decreased by 7% to $8,578,969 from sales of $9,264,226 in fiscal 2012. This decrease is primarily a result of new tanker construction in our primary market decreasing from the peak levels of the previous fiscal year.
Summary of Operating Expenses:
In fiscal 2013, total expenses were $4,691,819, a 3% decrease from $4,842,309 the previous year. General and administration expenses were $2,349,422 compared to $2,370,093 in fiscal 2012. Marketing and sales expenses were $1,783,995 compared to $1,638,066 in the previous year. Engineering expenses were $600,050 compared to $739,919 for the previous year. Total engineering expenditures prior to the capitalization of development costs and the recording of recoveries for funding received were $1,557,237 for fiscal 2013 compared to $1,061,661 for the previous fiscal year. Titan had a gain on foreign exchange of $137,231 due to changes in the value of the Canadian dollar as compared to a loss in fiscal 2012 of $18,936.
Financial Position
At August 31, 2013 working capital was $12,184,559 compared to the August 31, 2012 year-end balance of $8,844,641. Cash and cash equivalents were $5,060,168 at the end of fiscal 2013 compared to $5,060,318 on August 31, 2012. Short term investments increased $3,497,009 to $4,197,009. Titan does not have any debt except for trade payables, accrued liabilities and finance lease obligations. Titan continues to maintain a strong balance sheet and a good cash position.
Business Outlook
Fiscal year 2013 was the year of the Stik with the release of the next variants in the Stik product line – the Av-Stik, Chem-Stik, and the UsedOil-Stik.
The decrease in revenue through fiscal 2013 is reflective of the reduction from peak oil tanker construction experienced in the second half of fiscal 2012. As the market continues to experience this reduction, we continue to focus on market penetration, retrofit sales, and diversification through development and sales of our new products. We expect that revenue in the first quarter of 2014 will be comparable to or slightly better than 2013-s first quarter revenue.
Titan looks forward to the opportunities available in Fiscal 2014. “The Stik product line is key to Titan-s success,” said Greg McGillis, President and CEO. “This will enable us to more fully diversify into additional markets, including used oil collection, aviation refueling and chemical distribution.”
The Company-s strategy is to develop, manufacture, market and support the right products to ensure its customers achieve a high return on their investment. Titan continues to make sustained progress on the development and deployment of advanced technology fluid management systems. In addition to ongoing Stik development, we have strengthened our engineering group in order to work on research and development of a next generation burner management system which we expect to release in calendar 2014.
Additional Information:
Titan Logix Corp.-s audited financial statements and management-s discussion and analysis for the fiscal year ended August 31, 2013 are available on SEDAR at and on the Company-s website, .
About Titan Logix Corp.:
Founded in 1979, Titan Logix Corp. (“Titan” or “the Company”) is a high technology company specializing in Research and Development (R&D), manufacturing and marketing of advanced technology fluid management solutions. The Company-s products include 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. The products are currently used in the oil and gas, waste fluid collection, chemical and aviation industries.These technologies and their derivatives under development are applicable to a variety of additional markets which Titan plans to expand into at the appropriate time. A common practice in many of these markets is the use of manual methods for measurement and control. Due to safety considerations, the rising cost of many fluids, awareness and concerns about the environment and technological advancements enabling better operational efficiencies, we are experiencing a continued demand for our advanced technology products. We anticipate this demand will continue as we pursue expansion into other markets.
The products we manufacture are part of a complete asset management solution. The full solution consists of our own market leading products integrated with best-in-class third party solutions to enable our customers to benefit from complete fluid management, throughout each stage of their fluid handling processes. This is captured by our slogan “Advanced Technology Fluid Management Solutions, In the Field, On the Road, In the Office”.
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 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.
Contacts:
Titan Logix Corp.
Greg J. McGillis, P.Eng.
President and Chief Executive Officer
(780) 462-4085
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