EDMONTON, ALBERTA — (Marketwired) — 07/23/15 — 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 third quarter of its fiscal 2015, ended May 31, 2015.
“Our Q3 results were negatively impacted as a result of the downturn in the oil patch,” said President and CEO, Greg McGillis. “Lower crude oil prices have impacted the industry–s entire supply chain. We believe Titan is well positioned to weather this downturn, however we expect a material negative impact on our bottom line for some time.”
Summary of Sales Revenue and Net Earnings
Titan Logix Corp.–s sales for the third quarter of fiscal 2015 totalled $2,570,724, $1,754,636 or 41% lower than sales of $4,325,360 in the previous year–s third quarter. Titan–s sales outside of Canada, primarily to the U.S., were $1,619,860 in this third quarter of fiscal 2015, a decrease of 29% from sales of $2,266,021 in the same quarter of fiscal 2014. Sales outside of Canada were 63% of Titan–s total sales for the third quarter of fiscal 2015 compared to 52% in the previous year–s third quarter. Our customers have indicated that crude oil trailer manufacturing in Canada and the United States has slowed down due to the decline in oil prices and as a result, Titan–s sales have decreased. For the first nine months of fiscal 2015 ended May 31, 2015, sales were $11,565,860, down by $992,710 or 8% from sales of $12,558,570 in the first nine months of fiscal 2014. The decrease in sales began at the end of the previous quarter.
Net earnings and comprehensive earnings in fiscal 2015–s first nine months was $2,124,655 ($0.08 per diluted share) after tax, an increase of $196,516 or 10% compared to earnings of $1,928,139 ($0.07 per diluted share) after tax reported for the first nine months of fiscal 2014.This increase is a result of lower general and administration and marketing and sales expenses and gains in foreign exchange offset by a decrease in gross profit and increased engineering expenses.
Summary of Operating Expenses
In the first nine months of fiscal 2015, total expenses were $3,665,178 compared to $4,034,152 in the first nine months of fiscal 2014. As a percentage of sales, general and administrative expenses were 15% for the nine month period ended May 31, 2015, compared to 16% for the comparable period in fiscal 2014 and marketing and sales expenses were 10% of sales as compared to 11% in the same period in the prior year.
Financial Position
As at May 31, 2015, Titan had positive working capital of $17,761,165 compared to $15,011,133 at August 31, 2014. At May 31, 2015 cash and cash equivalents were $14,722,738 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
The decline in the price of oil continues to negatively impact sales of TD80 systems in new tankers in the last quarter of fiscal 2015. We anticipate the low crude oil price will create a challenging environment and result in a material negative impact on our bottom line.
Titan–s mitigation plans include increasing retrofit sales efforts and sales into non-crude oil markets, reducing discretionary spending and making changes in our production structure including contract manufacturing. Our strong financial position will help us weather current uncertainties, build upon our established reputation, and pursue new opportunities. Titan continues to maintain tight fiscal controls and focus on product and market diversification.
During the third quarter, Titan expanded its product line to include the Visi-OIL, advanced technology automated stationary tank gauging system. We also released our new Visi-ACID mobile tank gauging system that uses the same time tested Guided Wave Radar technology of the TD80 coupled with the corrosion resistance of a Hastelloy probe.
Additional Information
Titan Logix Corp.–s unaudited financial statements and management–s discussion and analysis for the third 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:
Titan Logix Corp.
Greg McGillis, P.Eng.
President and Chief Executive Officer
(780) 462-4085
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