Titan Logix Corp. Reports Financial Results for Fiscal 2012 Third-Quarter
FOR: TITAN LOGIX CORP.
JUL 26, 2012 - 16:30 ET
EDMONTON, ALBERTA--(Marketwire - July 26, 2012) - Titan Logix Corp., (TSX VENTURE:TLA), today reported its unaudited financial results for the third quarter of its fiscal 2012 ended May 31, 2012.
Summary of Sales Revenue, Gross Profit and Net Earnings:
Sales for the third quarter ended May 31, 2012 were $5,177,377, an increase of 72% from sales of $3,012,969 in the third quarter of fiscal 2011. Gross profit in the three month period was $2,766,679 (53%) compared to $1,327,432 (44%) and net earnings and comprehensive income was $1,720,418 before tax and $1,162,132 after tax compared to $352,055 before tax and $351,383 after tax in the same quarter of the previous fiscal year.
For the first nine months of fiscal 2012 ended May 31, 2012, sales were $12,810,370, up by $5,162,745 or 68% from sales of $7,647,625 in the first nine months of fiscal 2011. Gross profit in this same period was $6,528,840, with a gross margin of 51%, compared to $3,329,479, with a gross margin of 44%, in the first nine months of fiscal 2011. Net earnings and comprehensive earnings in fiscal 2012's first nine months was $ 3,351,938 before tax and $2,778,737 ($0.11 per diluted share) after tax. This is a material increase from the earnings of $453,584 before tax and $446,710 ($0.02 per diluted share) after tax reported for the first nine months of fiscal 2011.
Financial results for the first nine months of fiscal 2012 reflect Titan Logix Corp's successful execution of its strategic plan, its continued operational strength and the continued customer demand for its oilfield fluid transport products.
Summary of Operating Expenses:
Total expenses for the first nine months of fiscal 2012 were $3,194,855 compared to $2,899,782 in the same period a year ago. General and administration expenses were $1,556,558, compared to $1,186,965 recorded in the same period of the previous fiscal year. Engineering and development expense was $564,296 compared to $559,889 and marketing and sales expense increased from $1,006,416 in the previous fiscal year's first nine months to $1,160,860 for the first nine months of fiscal 2012. As a percentage of sales, operating expenses are 25% for the nine month period ended May 31, 2012 compared to 38% for the same period of fiscal 2011. The reduction of operating expenses as a percentage of sales is primarily due to the increase in revenues and also the continued focus on controlling of operating costs.
At May 31, 2012, working capital was $7,717,678 compared to the August 31, 2011 year-end balance of $4,430,414. Cash and cash equivalents were $3,791,704 compared to $1,457,324 at the end of fiscal 2011. Titan does not have any debt except for trade and accrued payables.
The mobile tanker original equipment manufacturers (OEMs) to whom we sell TD80s (our GWR mobile tank level measurement and overfill prevention system) are showing reduced backlogs in their new tanker fabrication. Titan's TD80 and TPZ gauging systems are used in oilfield tankers (hauling crude oil, chemicals, produced water, etc.) and oilfield storage tanks respectively. The recent fluctuation in the price of a barrel of crude oil has caused concern in the oil and gas industry. Although there is some uncertainty in the future price of crude oil and associated oilfield exploration and production activity, Titan expects continued sales growth through this fiscal year as compared to the prior year.
Titan Logix Corp.'s unaudited financial statements and management's discussion and analysis for the third quarter of fiscal 2012 as well as its audited financial statements and management's discussion and analysis for its fiscal year ended August 31, 2011 are available on SEDAR at www.sedar.com and on the company's website, www.titanlogix.com
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, particularly for use in mobile tanker applications. The Company's world class Guided Wave Radar (GWR) solutions are currently used in the oil and gas, waste collection 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 will continue to 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"™.
- In the Field: "In the Field" refers to Titan's solution offerings for storage tanks and process vessels.
- On the Road: "On the Road" refers to Titan's solution offerings for mobile tanker trucks and trailers.
- In the Office: "In the Office" refers to Titan's solution offerings that enable customers to monitor their fluid assets from the convenience of their dispatch center or other back office environment through a wired or wireless connection.
Titan Logix Corp. is a public company listed on the TSX Venture Exchange and its shares trade under the symbol, TLA.
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.