Atlantis Systems Corp.
TSX VENTURE : AIQ.H

Atlantis Systems Corp.

April 29, 2011 19:05 ET

Atlantis Reports Fiscal 2010 Financial Results

TORONTO, ONTARIO--(Marketwire - April 29, 2011) -

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. (NEX:AIQ.H), a globally recognized training integrator in the military and commercial aviation markets, today announced its financial and operating results for the fourth quarter and fiscal year ended December 31, 2010.

"Atlantis Systems has undergone a remarkable change since last year", said Henrik Noesgaard, CEO and Chairman of Atlantis Systems Corp. ("ASC"). "Our revenues increased year over year by 204% to $19,851,000, and our profits increased by over $7M from a FY2009 loss of $6,491,000 to an FY2010 Profit of $634,000. Our impressive financial results for Fiscal 2010 are a result of hard work and dedication on the part of our employees, and is evidence of the significant turnaround that we have been implementing."

"We have grown our Nova Scotia based Atlantis Systems Eduplus ("ASE") Division which has more than doubled the number of employees. This growth has been as a result of the many new Contracts which have been awarded to ASE. In 2010 ASE continued to diversify its revenue base by adding new customers, product platforms and technological innovation which supports our mission to improve human performance by delivering world class training and job performance solutions for clients in our chosen segments."

"The award of the Grob Level V Contract and the work on the CAE OTSP contract at our Brampton based Atlantis Systems International ("ASII") subsidiary has also been a major contributor to the upswing of our financial results."

Results are available on www.sedar.com.

Additional Information

For more information about the Company's fourth quarter and year-end results, please refer to the 2010 Management's Discussion and Analysis filed on SEDAR (www.sedar.com).

About Atlantis Systems Corp.

Atlantis Systems (NEX:AIQ.H) uses its core capabilities in simulation-aided design and engineering and e-learning, combined with various technology tools, to help customers in military aviation, civil aviation ensure the feasibility, capability, and effective utilization of their complex assets. Simply stated our business is leveraging partnerships and technology to put competent people on the job consistently faster. In more than 30 years of operation, Atlantis has developed a solid reputation for its creative workforce and innovative solutions in supporting global OEM customers and defence organizations. To learn more, please visit the Company's web site at www.atlantissi.com

Forward-Looking Statements

Certain statements in this release are considered "forward-looking". These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. The material factors and assumptions that were applied in making the forward-looking statements in this release include but are not limited to assumptions regarding: our ability to obtain financing to fund our losses and continue to operate as a going concern; our ability to retain our current banking relationship; our eligibility for investment tax credits; our ability to win new projects and to successfully complete ongoing negotiations with new and existing customers for new work and to accurately forecast the timing of such wins; our current order backlog and the timing of its recognition; our ability to secure spinoff programs to the CFTS program; the stability and growth of military markets and expenditures worldwide and expected developments in the energy and aerospace industries;
the stability and growth of markets for simulation–based training products; the availability of skilled personnel and that our cost reduction plan will not affect this availability; our ability to meet contractual obligations under the CFTS and SMHP programs or any other major program; our ability to complete new and existing projects on time and on budget; the performance of subcontractors; our ability to protect and exploit our intellectual property; the value of the Canadian dollar relative to foreign currencies, in particular, the U.S. dollar; the level of capital programs to be completed and the accuracy of our projections of infrastructure spending at our facilities; Material factors that could cause Atlantis' actual results to differ materially from the forward-looking statements in this release include risks and uncertainties relating to: our ability to meet debt obligations as required by our lending arrangements or secure waivers; our ability to source capital to fund our operations; our ability to continue to operate as a going concern; our ability to convert sales, negotiations and marketing pursuits into actual awards and order backlog; our inability to repay bank debt on demand;
the level of military expenditures and developments in the energy and aerospace industries; our continued reliance on key customers for existing and new work; the availability of skilled personnel to ramp up new programs and complete existing programs; our reliance on subcontractors; our ability to protect the ownership of our technology and intellectual property; and the volatility of foreign exchange rates. Atlantis cannot provide any assurance that the predictions of forward-looking statements will materialize. 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. which is available on SEDAR at www.sedar.com.

ATLANTIS SYSTEMS CORP.
Consolidated Statements of Operations,
Comprehensive Income / (Loss) and Deficit
Years ended December 31, 2010 and 2009
(Expressed in thousands of Canadian dollars except per share amounts)
20102009
Revenue (notes 3, 6, 17, and 18)$19,851$9,804
Cost of revenue13,0438,225
Gross margin6,8081,579
Expenses
General and administrative4,2434,347
Selling and marketing495992
Stock based compensation11127
4,7495,466
Income / (loss) before the undernoted items2,059(3,887)
Depreciation and amortization1,1141,434
Interest and financing costs (note 11)1,2792,152
Currency exchange gain on foreign debt(489)(1,149)
Write off of mortgage receivable-167
Gain on disposal of capital assets(479)-
Net income / (loss) from continuing operations634(6,491)
Net loss from discontinued operations (note 5)-(230)
Net income/(loss) and comprehensive income/(loss)634(6,721)
Deficit, beginning of year(109,101)(102,380)
Deficit, end of year$(108,467)$(109,101)
Earnings / (loss) per share
Basic:
Continuing operations$0.08$(2.32)
Discontinued operations-(0.08)
Net income / (loss)0.08(2.40)
Diluted:
Continuing operations0.08(2.32)
Discontinued operations-(0.08)
Net income / (loss)0.08(2.40)
Weighted average number of shares
Basic7,962,5402,799,383
Diluted7,987,5402,799,383
The accompanying notes are an integral part of these consolidated statements.
ATLANTIS SYSTEMS CORP.
Consolidated Balance Sheets
As at December 31, 2010 and 2009
(Expressed in thousands of Canadian dollars)
20102009
ASSETS
Current assets
Cash$1,110$161
Trade receivables (note 6)2,6392,089
Unbilled revenue (note 6)3,6792,376
Inventory (note 8)118489
Prepaid expenses167143
Current assets of discontinued operations (note 5)1616
7,7295,274
Note receivable (Note 7)100-
Core technology, net (note 10)-797
Capital assets, net (note 9)615667
Long-term prepaid expenses15154
Investment in foreign company7777
9431,595
$8,672$6,869
LIABILITIES
Current liabilities
Operating line of credit and over-advances (notes 12 and 14)$6,732$5,555
Accounts payable and accrued liabilities4,6594,162
Deferred revenue2,5663,367
Bridge loans (notes 12 and 14)996898
Term debt (notes 12, 14 and 17)-2,733
Current liabilities of discontinued operations (note 5)1111
14,96416,726
SHAREHOLDERS' DEFICIENCY
Share capital and warrants (notes 13 and 14)92,83789,917
Contributed surplus9,3389,327
Deficit(108,467)(109,101)
(6,292)(9,857)
$8,672$6,869
Going concern (Note 2)
Commitments, contingencies and guarantees (Note 20)
Subsequent events (Note 24)
On behalf of the Board:
"Henrik Noesgaard""Ron Brown"
ChairmanChief Financial Officer
The accompanying notes are an integral part of these consolidated statements.
ATLANTIS SYSTEMS CORP.
Consolidated Statements of Cash Flows
Years ended December 31, 2010 and 2009
(Expressed in thousands of Canadian dollars)
20102009
Cash flows provided by (used in):
Operating activities:
Net income / (loss)$634$(6,721)
Net loss from discontinued operations-(230)
Net income / (loss) from continuing operations634(6,491)
Items not affecting cash:
Depreciation and amortization1,1141,434
Write off of mortgage receivable-167
Stock based compensation11127
Accretion on term debt-238
Write-off of un-accreted financing costs (note 11 and 12)-594
Financing costs related to common share purchase warrants-26
Gain on disposal of capital assets(479)-
1,280(3,905)
Interest on mortgage receivable-(4)
Decrease in long-term prepaid expenses(97)3
Net change in non-cash working capital (note 21)(1,919)411
Cash used in discontinued operations-(313)
(736)(3,808)
Investing activities:
Investment in capital assets(337)(51)
Proceeds from disposal of capital assets514-
Cash provided by discontinued operations-21
177(30)
Financing activities:
Term debt prinicipal payment(179)(821)
Term debt prinicipal proceeds-820
Warrants exercised279-
Bridge loan proceeds5491,118
Bridge loan repayment(451)(220)
Increase on operating line of credit1,1772,297
1,3753,194
Net cash (used in) provided by foreign exchange loss on term debt133(295)
Net increase (decrease) in cash949(939)
Cash, beginning of year - continuing operations1611,100
Cash, beginning of year - discontinued operations--
Cash, end of year$1,110$161
SUPPLEMENTAL INFORMATION
Interest paid$486$1,179
Income taxes paid$-$-

NON-CASH TRANSACTIONS

During the year, common shares were issued in return for settlement of debt in the amount of $2,641 (2009 - nil) (note 12 and 13).

The accompanying notes are an integral part of these consolidated statements.

Contact Information

  • Atlantis Systems Corp.
    Ellie Landale
    Corporate Secretary
    905-792-1981