EDMONTON, ALBERTA — (Marketwired) — 01/22/15 — Titan Logix Corp. (TSX VENTURE: TLA) (“Titan” or the “Company”), an advanced technology industrial instrumentation and controls company announces its unaudited financial results for the first quarter of its fiscal 2015, ended November 30, 2014.
Financial Highlight Summary
(in Canadian dollars)
“I congratulate our team on the increase in sales we achieved this quarter. They worked hard to make this happen,” said President and CEO, Greg McGillis. “We have increased our market share in new tanker construction which, in addition to a focused strategy on retrofit sales, will help us mitigate the expected downturn due to the reduction in the price of oil. We continue to maintain strong fiscal controls and an increased focus on product and market diversification.”
Summary of Sales Revenue and Net Earnings
Titan Logix Corp.–s sales for the first quarter of fiscal 2015 totaled $5,045,245, an increase of $612,928 or 14% from sales of $4,432,317 in the previous year–s first quarter. Titan–s sales outside of Canada, primarily to the U.S., were $2,744,144 in this first quarter of fiscal 2015, an increase of 54% from sales of $1,778,954 in the first quarter of fiscal 2014. These sales have increased as the Company has had success in increasing its market penetration in the United States and has also benefited from the strengthened U.S dollar compared to the same period last year. In addition, during the period a number of the Company–s U.S. based OEM customers increased their sales to Canadian trucking companies which has caused a shift in Titan–s sales from Canada to the U.S.
Earnings before income tax, for the quarter ending November 30, 2014 were $1,512,608 compared to $1,125,523 in the first quarter of fiscal 2014. Net earnings and comprehensive income for the first quarter of fiscal 2015 were $1,113,928 compared to $836,358 for the first quarter of fiscal 2014. This increase is tied to increased sales and a gain on foreign exchange offset by increases in certain expense categories, as detailed below.
Summary of Operating Expenses
In the first quarter of fiscal 2015, total expenses were $1,227,544 in the quarter ending November 30, 2014 compared to $1,160,032 in the quarter ending November 30, 2013. As a percentage of sales, general and administrative expenses were 10% for this first quarter of fiscal 2015 compared to 13% for the comparable quarter in fiscal 2014 and marketing and sales expenses were 9% of sales as compared to 10% in the same period in the prior year.
Financial Position
At November 30, 2014 working capital was $16,395,797 compared to the August 31, 2014 year-end balance of $15,011,133. At November 30, 2014 cash and cash equivalents were $12,709,397 compared to $11,845,187 at the end of fiscal 2014. 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
We expect the decrease in the price of oil to have an impact on sales of TD80 systems in new tankers in fiscal 2015. We are not certain of the timing and the depth of the reduction in sales. Our mitigation plans include increased retrofit sales efforts and sales into non-crude oil markets. Titan continues to maintain strong fiscal controls and the increased focus on product and market diversification.
Titan continues to develop the complete solution for “In the field, On the road, and In the office” product offerings to provide a fully integrated supply chain management solution to help our customers manage their fluid assets. We are partnering with well-known telematics providers and working on partnerships in other product categories that further enhance the Titan solution offering. These partnerships will allow our products to work alongside other proven products to provide reliable back-office information and control solutions to our customers. Customers are seeing the value of this enhanced management of their fluid assets as we see an increase in the demand for the integration of our products with telematics solutions.
Titan has the dominant market share for the monitoring of crude oil in over-the-road tankers in North America. To more completely facilitate the monitoring of crude oil at all points along the supply chain, Titan is working on expanding its product line to include advanced technology automated stationary tank gauging. This will enable us to provide an ideal integrated total asset management gauging solution for crude oil movement from the well head to the refinery, monitored in the cloud through Titan–s telematics partners. The storage tank gauging market is fractured with a variety of products, many of which are mechanical.
Additional Information
Titan Logix Corp.–s unaudited financial statements and management–s discussion and analysis for the first quarter of fiscal 2015 as well as its audited financial statements and management–s discussion and analysis for its 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 Toronto Venture Stock 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:
Greg McGillis, P.Eng.,
President and Chief Executive Officer
Ph: (780) 462-4085
Email:
TSX Venture, TLA
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