Titan Logix Corp.

Titan Logix Corp.

December 18, 2009 16:30 ET

Titan Logix Corp. Reports Fiscal 2009 Year End and Q4 Financial Results

EDMONTON, ALBERTA--(Marketwire - Dec. 18, 2009) - 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, 2009.

Financial results are summarized as follows:

    Q4 2009   Q4 2008   YE 2009   YE 2008
     $    $     $    $
Revenues   1,337,087   2,139,033 8,396,952   7,974,131
Gross profit   357,761    834,478 3,389,382   3,001,022
Earnings (loss) before income taxes   (581,555)    343,946  195,177    267,542
Net ( loss) earnings   (830,260)    221,692  (264,213)    145,288
Basic and diluted (loss) earnings per share    (0.03)     0.01   (0.01)     0.01

Summary of Sales Revenue and Net (Loss) Earnings:

Titan Logix Corp.'s sales for fiscal 2009 totaled $8,396,952, an increase of $422,821 from sales of $7,974,131 in the previous year. Earnings before income tax, for the fiscal year ended August 31, 2009 were $195,177 compared to $267,542 in fiscal 2008. Net loss and comprehensive loss was $264,213 compared to net earnings of $145,288 for fiscal 2008. Revenue growth in fiscal 2009 did not materialize as expected, and when combined with increased expenses, created the reduced earnings before income taxes. A re-valuation of the carrying value of future income taxes resulted in future income tax expense of $455,536 bringing Titan into an overall loss position for the year.

In the fourth quarter of 2009, Titan's sales were $1,337,087, a decrease of $801,946 from the fourth quarter sales of $2,139,033 in fiscal 2008. Titan's loss before income taxes in the fourth quarter of the 2009 fiscal year was $581,555. This is a significant decrease in earnings from fiscal 2008's fourth quarter earnings before taxes of $343,946 and due mainly to lower sales. Cost reduction programs were not fully implemented until late in the fourth quarter. Cost reduction, cost management and controls implemented included salary reductions, work sharing programs, unpaid leaves and other cutbacks. The reduction of certain overhead expenses and the curtailing of discretionary spending were also part of the program to curb spending.

Titan's financial results for fiscal 2009 were negatively impacted by the North American economic downturn, weakening of oil and gas prices, and the resulting decrease in oil and gas drilling activity.

Summary of Operating Expenses:

In fiscal 2009, total expenses were $3,211,298, an increase of 16% from $2,771,551 in the previous year. General and administration expenses were $1,567,486 compared to $1,329,567 in fiscal 2008. Product development expenses for fiscal 2009 were $288,413 and were lower than fiscal 2008's expense of $352,553, primarily due to the application of approved tax credits relating to product development costs and other research funding. Marketing and sales expenses were $1,362,277, an increase of $321,237, compared to $1,041,040 in the previous year. Titan had a gain on foreign exchange of $53,645 due to changes in the value of the Canadian dollar as compared to a loss in fiscal 2008 of $2,364.

Working Capital:

At August 31, working capital was $3,835,745 compared to the August 31, 2008 year-end balance of $4,275,842. Cash and cash equivalents were $1,326,487 at the end of fiscal 2009 compared to $1,633,147 on August 31, 2008. Titan does not have any debt except for trade payables.

Summary of our Focus and Initiatives for Fiscal 2010:

Fiscal 2010 is not expected to be without challenges, yet there is cause for optimism. Fluctuation and uncertainty in oil and gas prices is expected to result in an ongoing focus on cost control in both capital and operating budgets for companies in the markets we serve. In preparation for these challenges we are actively developing markets outside of Western Canada and the oil and gas sector. We expect to build upon our historical successes. Titan continues to focus on cost control in its fiscal 2010 business and operational plans, and has reduced planned expenditures by optimizing its staffing, reducing employee benefits costs, and reducing discretionary expenses wherever possible.

Despite these cutbacks and the caution for fiscal 2010, management remains positive and believes that growth in revenue can be achieved in fiscal 2010. Titan expects to achieve growth through planned strategies, some of which include:

  • Strengthened support of the Western Canada oil and gas sector, which appears to be in the midst of a positive recovery (as indicated by the recent ongoing increase trend in active drilling rigs).
  • The attracting of significant new customers in the aircraft deicing market.
  • Continued growth opportunities in the U.S. market within the current economic environment.
  • Pursuing additional opportunities for Titan's current and new technologies in both North America and Internationally.
  • Developing and penetrating markets through strategic partnerships.
  • Maintaining our strong balance sheet that positions the Company to take advantage of strategic opportunities that may arise.

Additional Information:

Titan Logix Corp.'s audited financial statements and management's discussion and analysis for the fiscal year ended August 31, 2009 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. has evolved into an advanced technology industrial instrumentation and controls company. We design, manufacture, distribute and service instrumentation, control and automation solutions. These are primarily for the oil and gas, transportation and aviation industries, which for many years have relied on manual intervention. However, due to rising costs, concerns and awareness about the environment, (including the importance of spill prevention) and technological advancements - to list but a few reasons – we expect an increased demand for our products. The products we specialize in comprise an essential part of a complete asset management solution in the following categories:

  • Transport Instruments: guided wave radar liquid gauging and control systems for mobile tankers;
  • Level and Flow Instruments: mechanical and electronic liquid level gauging systems for storage tanks and industrial process vessels;
  • Burner Controls: electronic burner management systems for atmospheric industrial heaters; and
  • Telemetry and Control Products: communication and control systems enabling remote telemetry and management of site processes.

Titan Logix Corp. is a public company listed on the Toronto Venture Stock 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.

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