TORONTO, ONTARIO--(Marketwire - April 27, 2012) -
This news release may contain forward-looking statements. Reference should be made to "Forward-looking Statements" at the end of this news release. All amounts are stated in Canadian dollars except where otherwise noted.
Atlantis Systems Corp. ("Atlantis") (NEX:AIQ.H), a globally recognized training integrator in the military and commercial aviation markets, today announced its audited consolidated financial results for the year ended 2011. Full results are available on www.sedar.com.
About Atlantis Systems Corp.
Atlantis Systems Corp. uses its core capabilities in simulation-aided design, engineering and e-learning, combined with various technology tools, to help customers in military and civil aviation ensure the feasibility, capability, and effective utilization of their complex assets. In more than 30 years of operation, Atlantis has developed a solid reputation for its creative workforce and innovative solutions in supporting global Original Equipment Manufacture ("OEM") customers and defence organizations. To learn more, please visit the Company's web site at www.atlantissc.com.
Forward-Looking Statements
Atlantis assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Additional information regarding risks and uncertainties that could affect Atlantis' business is contained in the Business Risk Factors section of Atlantis's Annual MD&A available on SEDAR at www.sedar.com.
| ATLANTIS SYSTEMS CORP. | ||||||||||
| Consolidated Statements of Comprehensive Income (Loss) | ||||||||||
| For the years ended December 31, 2011 and 2010 | ||||||||||
| (Expressed in thousands of Canadian dollars except per share amounts) | ||||||||||
| For the years | ||||||||||
| ended December 31 | ||||||||||
| 2011 | 2010 | |||||||||
| Revenue | $ | 14,512 | $ | 19,851 | ||||||
| Cost of revenue | 10,853 | 12,912 | ||||||||
| Gross margin | 3,659 | 6,939 | ||||||||
| Other income (Note 22) | 871 | - | ||||||||
| Expenses | ||||||||||
| General and administrative | 3,419 | 4,185 | ||||||||
| Selling and marketing | 615 | 495 | ||||||||
| Restructuring costs | 203 | 189 | ||||||||
| Share-based compensation expense | - | 11 | ||||||||
| 4,237 | 4,880 | |||||||||
| Operating income | 293 | 2,059 | ||||||||
| Depreciation and amortization | 206 | 1,114 | ||||||||
| Finance costs (Note 8) | 2,154 | 1,279 | ||||||||
| Loss on derivative liability | 341 | - | ||||||||
| Acretion expense | 12 | - | ||||||||
| Foreign currency loss (gain) | 233 | (489 | ) | |||||||
| Write down of investments | 6 | - | ||||||||
| Loss (gain) on disposal of capital assets | 6 | (479 | ) | |||||||
| Net and comprehensive income (loss) | $ | (2,665 | ) | $ | 634 | |||||
| Earnings (loss) per share (Note 15) | ||||||||||
| Basic | $ | (0.26 | ) | $ | 0.08 | |||||
| Diluted | $ | (0.26 | ) | $ | 0.08 | |||||
| The accompanying notes are an integral part of these consolidated financial statements. | ||||||||||
| ATLANTIS SYSTEMS CORP. | |||||||||||||
| Consolidated Statements of Financial Position | |||||||||||||
| As at December 31, 2011, December 31, 2010 and January 1, 2010 | |||||||||||||
| (Expressed in thousands of Canadian dollars) | |||||||||||||
| December 31 | December 31 | January 1 | |||||||||||
| 2011 | 2010 | 2010 | |||||||||||
| ASSETS | |||||||||||||
| Current assets | |||||||||||||
| Cash and cash equivalents | $ | 1,610 | $ | 1,110 | $ | 161 | |||||||
| Note receivable (Note 11) | 100 | 200 | - | ||||||||||
| Trade and other receivables (Note 9) | 2,624 | 2,439 | 2,089 | ||||||||||
| Unbilled revenue | 2,736 | 3,679 | 2,376 | ||||||||||
| Inventory (Note 10) | - | 118 | 489 | ||||||||||
| Prepaid expenses | 299 | 167 | 143 | ||||||||||
| Current assets of discontinued operations (Note 7) | - | 16 | 16 | ||||||||||
| 7,369 | 7,729 | 5,274 | |||||||||||
| Note receivable (Note 11) | - | 100 | - | ||||||||||
| Capital assets, net (Note 12) | 521 | 615 | 667 | ||||||||||
| Long-term prepaid expenses | 1 | 151 | 54 | ||||||||||
| Other long-term assets | 67 | 77 | 77 | ||||||||||
| Core technology | - | - | 797 | ||||||||||
| 589 | 943 | 1,595 | |||||||||||
| $ | 7,958 | $ | 8,672 | $ | 6,869 | ||||||||
| LIABILITIES | |||||||||||||
| Current liabilities | |||||||||||||
| Operating line of credit (Note 13) | $ | - | $ | 6,732 | $ | 5,555 | |||||||
| Accounts payable and accrued liabilities | 2,396 | 4,659 | 4,162 | ||||||||||
| Deferred revenue | 1,420 | 2,566 | 3,367 | ||||||||||
| Bridge loans (Note 13) | - | - | 898 | ||||||||||
| Term debt (Note 13) | - | 996 | 2,733 | ||||||||||
| Current liabilities of discontinued operations (Note 7) | - | 11 | 11 | ||||||||||
| 3,816 | 14,964 | 16,726 | |||||||||||
| Term note (Note 14) | 6,648 | - | - | ||||||||||
| Convertible note (Note 14) | 5,897 | - | - | ||||||||||
| Derviative liability (Note 14) | 554 | - | - | ||||||||||
| 13,099 | - | - | |||||||||||
| 16,915 | 14,964 | 16,726 | |||||||||||
| SHAREHOLDERS' DEFICIENCY | |||||||||||||
| Share capital and warrants (Note 15) | 92,837 | 92,837 | 89,917 | ||||||||||
| Share-based payments reserve | 9,338 | 9,338 | 9,327 | ||||||||||
| Deficit | (111,132 | ) | (108,467 | ) | (109,101 | ) | |||||||
| (8,957 | ) | (6,292 | ) | (9,857 | ) | ||||||||
| $ | 7,958 | $ | 8,672 | $ | 6,869 | ||||||||
| Going concern (Note 1); Subsequent events (Note 24); Commitments (Note 19) | |||||||||||||
| The accompanying notes are an integral part of these consolidated financial statements. | |||||||||||||
| Approved on behalf of the Board of Directors: | |
| signed David Williams, Director | signed Ken Howard, Director |
| ATLANTIS SYSTEMS CORP. | ||||||||||||||||
| Consolidated Statements of Changes in Shareholders' Deficiency | ||||||||||||||||
| For the years ended December 31, 2011 and 2010 | ||||||||||||||||
| (Expressed in thousands of Canadian dollars, except number of shares) | ||||||||||||||||
| Number of shares | Common stock | Share-based payments reserve | Warrants | Accumulated deficit | Total shareholders' deficiency | |||||||||||
| Balance, January 1, 2010 | 2,799,383 | $ | 89,314 | $ | 9,327 | $ | 603 | $ | (109,101 | ) | $ | (9,857 | ) | |||
| Comprehensive income (loss) | - | - | - | - | 634 | 634 | ||||||||||
| Warrants exercised | 465,000 | 855 | - | (576 | ) | - | 279 | |||||||||
| Granted - term debt conversion | 6,969,300 | 2,641 | - | - | - | 2,641 | ||||||||||
| Share-based payments reserve | - | - | 11 | - | - | 11 | ||||||||||
| Balance, December 31, 2010 | 10,233,683 | 92,810 | 9,338 | 27 | (108,467 | ) | $ | (6,292 | ) | |||||||
| Comprehensive income (loss) | - | - | - | - | (2,665 | ) | (2,665 | ) | ||||||||
| Balance, December 31, 2011 | 10,233,683 | $ | 92,810 | $ | 9,338 | $ | 27 | $ | (111,132 | ) | $ | (8,957 | ) | |||
| The accompanying notes are an integral part of these consolidated financial statements. | ||||||||||||||||
| ATLANTIS SYSTEMS CORP. | |||||||||
| Consolidated Statements of Cash Flows | |||||||||
| For the years ended December 31, 2011 and 2010 | |||||||||
| (Expressed in thousands of Canadian dollars) | |||||||||
| For the years | |||||||||
| ended December 31 | |||||||||
| 2011 | 2010 | ||||||||
| Cash flows provided by (used in): | |||||||||
| Operating activities: | |||||||||
| Net income (loss) | $ | (2,665 | ) | $ | 634 | ||||
| Items not affecting cash: | |||||||||
| Depreciation and amortization | 206 | 1,114 | |||||||
| Loss (gain) on disposal of capital assets | 6 | (479 | ) | ||||||
| Foreign currency loss (gain) | 233 | (489 | ) | ||||||
| Writedown of investments | 6 | - | |||||||
| Finance costs | 2,154 | 1,279 | |||||||
| Accretion on term debt | 12 | - | |||||||
| Loss on derivative | 341 | - | |||||||
| Share-based payment expense | - | 11 | |||||||
| Long-term prepaid expense | 150 | (97 | ) | ||||||
| Other long-term assets | 10 | - | |||||||
| Long-term receivable | 100 | (100 | ) | ||||||
| Net change in non-cash working capital (Note 20) | (2,780 | ) | (2,603 | ) | |||||
| Interest paid | (1,939 | ) | (486 | ) | |||||
| Net cash used in operating activities | (4,166 | ) | (1,216 | ) | |||||
| Investing activities: | |||||||||
| Investment in capital assets | (119 | ) | (300 | ) | |||||
| Proceeds from disposal of capital assets | - | 514 | |||||||
| Net cash provided by (used in) investing activities | (119 | ) | 214 | ||||||
| Financing activities: | |||||||||
| Term debt proceeds | 4,785 | - | |||||||
| Operating line proceeds | - | 1,951 | |||||||
| Net cash provided by financing activities | 4,785 | 1,951 | |||||||
| Net increase in cash and cash equivalents | 500 | 949 | |||||||
| Cash and cash equivalents, beginning of year | 1,110 | 161 | |||||||
| Cash and cash equivalents, end of year | $ | 1,610 | $ | 1,110 | |||||
| The accompanying notes are an integral part of these consolidated financial statements. | |||||||||
Atlantis Systems Corp.
Ellie Landale
Corporate Secretary
(905) 759-1041
elandale@atlantissc.com
www.atlantissc.com
