Atlantis Systems Corp.

TSX VENTURE : AIQ.H


Atlantis Systems Corp.

November 29, 2012 13:13 ET

Atlantis Reports Third Quarter 2012 Financial Results

HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 29, 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. (NEX:AIQ.H), a globally recognized training integrator in the military and commercial aviation markets, today announced its unaudited interim financial and operating results for the third quarter ended September 30, 2012. Full results are available on 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 and commercial markets to 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 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.
Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)
For the three and nine months ended September 30, 2012 and 2011
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
For the three months For the nine months
ended September 30 ended September 30
2012 2011 2012 2011
Revenue $ 2,470 $ 2,843 $ 8,771 $ 11,578
Cost of revenue 1,660 2,159 5,466 8,480
Gross margin 810 684 3,305 3,098
Other income (Note 15) 479 128 1,077 871
Expenses
General and administrative 942 1,000 2,968 2,749
Selling and marketing 73 110 284 477
Restructuring costs 19 - 70 -
1,034 1,110 3,322 3,226
Operating income (loss) 255 (298 ) 1,060 743
Depreciation and amortization 40 47 127 151
Interest and financing costs, Net (Note 5) 418 620 1,195 1,363
Accretion expense 18 - 53 -
Expiration of warrants (27 ) - (27 ) -
Foreign currency (gain) loss (403 ) 894 (327 ) 673
Write down of investments - - - 6
(Gain) loss on disposal of capital assets - - (7 ) 6
Net and comprehensive (loss) income $ 209 $ (1,859 ) $ 46 $ (1,456 )
Earnings (loss) per share (Note 10)
Basic $ 0.02 $ (0.18 ) $ 0.004 $ (0.14 )
Diluted $ 0.02 $ (0.18 ) $ 0.004 $ (0.14 )
Weighted average number of shares:
Basic 10,233,683 10,233,683 10,233,683 10,233,683
Diluted 10,233,683 10,258,683 10,233,683 10,258,683
The accompanying notes are an integral part of these consolidated financial statements.
Atlantis Systems Corp.
Condensed Consolidated Interim Statements of Financial Position
As at September 30, 2012 and December 31, 2011
(Expressed in thousands of Canadian dollars)
(Unaudited)
September 30 December 31
2012 2011
ASSETS
Current Assets
Cash and cash equivalents $ 169 $ 1,610
Note receivable (Note 7) - 100
Trade and other receivables (Note 6) 2,417 2,624
Unbilled revenue 2,812 2,736
Prepaid expenses 88 299
5,486 7,369
Capital assets, net (Note 8) 406 521
Long-term prepaid expenses 1 1
Other long term assets 65 67
472 589
$ 5,958 $ 7,958
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities $ 1,233 $ 2,396
Deferred revenue 245 1,420
1,478 3,816
Term note (Note 9) 6,427 6,648
Convertible note (Note 9) 6,446 5,897
Derivative liability (Note 9) 545 554
13,418 13,099
14,896 16,915
SHAREHOLDERS' DEFICIENCY
Share capital and warrants (Note 10) 92,810 92,837
Share-based payments reserve 9,338 9,338
Deficit (111,086 ) (111,132 )
(8,938 ) (8,957 )
$ 5,958 $ 7,958
Going concern (Note 1); Commitments (Note 12)
The accompanying notes are an integral part of the consolidated financial statements
Approved on behalf of the Board of Directors:
signed David Williams, Director signed Ken Howard, Director
Atlantis Systems Corp.
Condensed Consolidated Interim Statements of Changes in Shareholder's Deficiency For the nine months ended September 30, 2012 and 2011
(Expressed in thousands of Canadian dollars except number of shares)
(Unaudited)
Number Share-based Total
of Common Payments Accumulated Shareholders'
Shares Stock Warrants Reserve deficit deficiency
Balance January 1, 2011 10,233,683 $ 92,810 $ 27 $ 9,338 $ (108,467 ) $ (6,292 )
Comprehensive loss - - - - (1,456 ) (1,456 )
Balance September 30, 2011 10,233,683 $ 92,810 $ 27 $ 9,338 $ (109,923 ) $ (7,748 )
Comprehensive loss - - - - (1,209 ) (1,209 )
Balance December 31, 2011 10,233,683 $ 92,810 $ 27 $ 9,338 $ (111,132 ) $ (8,957 )
Comprehensive gain - - - - 46 46
Warrants expired - - (27 ) - - (27 )
Balance September 30, 2012 10,233,683 $ 92,810 $ - $ 9,338 $ (111,086 ) $ (8,938 )
Atlantis Systems Corp.
Condensed Consolidated Interim Statements of Cash Flows
For the nine months ended September 30, 2012 and 2011
(Expressed in thousands of Canadian dollars)
(Unaudited)
For the nine months
ended September 30
2012 2011
Cash flows provided by (used in):
Operating activities:
Net (Loss) income $ 46 $ (1,456 )
Items not affecting cash:
Depreciation and amortization 127 151
(Gain) loss on disposal of capital assets (7 ) 6
Write down of investments - 6
Foreign currency loss (gain) (327 ) -
Finance costs 1,195 1,363
Accretion on term debt 53 -
Expiration of warrants (27 ) -
Long-term prepaid expense - (150 )
Other long-term assets 2 6
1,062 (74 )
Net change in non-cash working capital (Note 13) (1,896 ) (3,032 )
Net cash used in operations (834 ) (3,106 )
Interest paid (595 ) (1,642 )
Net cash used in operating activities (1,429 ) (4,748 )
Investing activities:
Investment in capital assets (12 ) (83 )
Net cash used in investing activities (12 ) (83 )
Financing activities:
Term debt proceeds/(repayment) net - (996 )
Net change to operating line of credit - 6,186
Net cash provided by financing activities - 5,190
Net cash provided by foreign exchange gain (loss) on term debt - 4
Net Increase (decrease) in cash (1,441 ) 363
Cash beginning of period 1,610 1,110
Cash, end of period $ 169 $ 1,473

Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the accuracy or adequacy of this release.

Contact Information