EDMONTON, ALBERTA — (Marketwired) — 11/27/14 — 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, 2014.
“Our increase in sales from 2013 was a hard-won team achievement, considering the market-wide slowdown in oil industry tanker construction,” said President and CEO, Greg McGillis. “Our focus on strengthening our people, processes, and quality, combined with the growing demand for our Finch II, RCM, and Stik technologies, position us well to grow our sales in the coming year. Stik development, strategic acquisitions, partnerships, and expansion into the refined fuel tanker markets are Titan–s key focuses to help advance our penetration into new markets.”
Summary of Sales Revenue and Net Earnings:
Titan Logix Corp.–s sales for fiscal 2014 totaled $17,192,744, an increase of $699,593 or 4% from sales of $16,493,151 in the previous year. This increase is primarily a result of increased market penetration due to our ongoing deep commitment to customer service/support and the introduction of new products, mitigating the impact of a market-wide slowdown in oil industry tanker construction. Earnings before income tax, for the fiscal year ended August 31, 2014 were $3,525,785 compared to $4,276,895 in fiscal 2013. Net earnings and comprehensive income were $2,661,188 compared to $3,242,765 for fiscal 2013. Titan continues to be profitable for seventeen consecutive quarters.
In the fourth quarter of 2014, Titan–s sales were $4,634,174, an increase of 21% or $790,845 from the fourth quarter sales of $3,843,329 in fiscal 2013 The increase in revenue is a result of successful efforts to increase market penetration in the United States as well as an increase from the sale of our new products. The net earnings in the fourth quarter of fiscal 2014 were $733,049 compared to net earnings of $616,371 in the fourth quarter of fiscal 2013. This increase in earnings is due primarily to the increased revenue for the quarter.
Titan–s sales outside of Canada, primarily to the U.S., were $2,648,914 in the fourth quarter of fiscal 2014, an increase of 38% from sales of $1,922,558 in the fourth quarter ended August 31, 2013. Sales outside of Canada were 57% of Titan–s total sales in the fourth quarter of fiscal 2014 compared to 50% in the comparable period of 2013. Sales in Canada for the quarter ended August 31, 2014 increased by 3% to $1,985,260 from sales of $1,920,771 in the comparable period of fiscal 2013.
Summary of Operating Expenses:
In fiscal 2014, total expenses were $5,372,346, an increase of $893,040 from $4,479,306 the previous year. Total engineering expenditures prior to the capitalization of development costs and the recording of recoveries for funding received were $1,385,905 for fiscal 2014 compared to $1,361,019 for the previous fiscal year.
Financial Position
At August 31, 2014 working capital was $15,011,133 compared to the August 31, 2013 year-end balance of $12,184,559. Cash, cash equivalents and short term investments were $11,845,187 at the end of fiscal 2014 compared to $9,257,177 on August 31, 2013. 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
Titan continues to be committed to focused and targeted product innovation. This focus includes our formation of an enhanced in-house application and support engineering arm, led by the product management team. By doing this, product innovation will be executed more consistently and efficiently. We have also made significant process improvements, most notably the adoption of the Cooper Stage- Gate product development model. These changes will help us bring new and innovative products to commercialization more effectively. Due to our focus on commercializing our current Stiks and developing our next generation Stiks, we are assessing potential partnership opportunities to advance the development of our next generation BMS solution.
Along with product innovation, our team is dedicated to customer satisfaction. Through the TLC gives TCC program (Titan Logix Corp. gives Total Customer Care) we work with our OEMs and end users to ensure product suitability and reliability thus maximizing the benefit to our customers. We are committed to respond quickly to customer requests and concerns, and continuously seek their feedback to improve our products. Our focus on identifying and responding to market and customer needs has enabled us to grow our market share and build relationships that will assist us in penetrating new markets.
Titan is developing a full suite of business solutions for “In the field, On the road, In the office” product offerings. We have partnered with well-known telematics providers. We are working on additional partnerships in telematics and other product categories that will bring added value to the Titan brand of products. These partnerships allow our products to work alongside other proven products to provide reliable back-office information and control solutions to our customers.
We have modified our process for managing strategic acquisition opportunities. This is a focus of Titan–s executive, and with recent restructuring of the management team more time and resources are dedicated to this important objective.
Our Products:
Next phase testing including ongoing North American field trials are well underway for the upcoming launch of the advanced fluid level gauging system for refined fuel tankers (fleet fueling and fuel transport markets). The resulting system refinements from these field trials along with other product enhancements under development by our UK partner have pushed the release into mid-fiscal 2015. These developments will help ensure Titan releases a full featured and reliable product for the North American customer base.
Our Finch II and RCM (Rack Control Module) have been widely accepted in the market segments we serve and we are seeing a growing demand for them. Stik product development continues for other markets and applications, including associated productivity modules (eg. displays, controllers, interface/communication technology, etc.). Our product innovation, engineering and manufacturing teams continue to progress on the development of our Stik offerings.
Additional Information:
Titan Logix Corp.–s audited financial statements and management–s discussion and analysis for the fiscal year ended August 31, 2014 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, and communication systems for remote alarming and control. Our 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 an increased 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
You must be logged in to post a comment Login