TORONTO, ONTARIO--(Marketwire - Aug. 21, 2012) - LOREX Technology Inc. ("LOREX" or the "Company") (TSX VENTURE:LOX) announces results* for the three and nine month periods ended June 30, 2012.
LOREX Technology is very pleased to announce record third quarter revenue and EBITDA results as well as record revenue and profitability for the first nine months ending June 30, 2012 of the current fiscal year. Revenue for the third quarter grew by $4.7 million or 29% over the prior year to $21.2 million; and the Company's EBITDA grew by $1.0 million over the prior year to $2.4 million. For the current nine month period, revenue grew by $14.6 million or 33% over the prior year to $58.7 million; and the Company's EBITDA grew by $2.7 million or 68% over the prior year to $6.6 million.
"We are extremely pleased with our continued record-setting achievements both during this current quarter and over the first nine months of fiscal 2012," stated Reuben Klein, Chairman and CEO of LOREX Technology. "We were able to continue to grow the business in spite of a slow economy and its associated competitive business pressures. We were also able to overcome cost increases that resulted from the worldwide hard disk drive shortage caused by the flooding in Thailand. Our growth continues to come across all business areas, as both the Lorex and Digimerge brands continue to gain in demand, awareness and market share. Our year to date EBITDA as a percentage of revenue improved to 11.2% from 8.9% the prior year and I am proud to say that LOREX has achieved a 15th straight quarter of profitability. Previously, we updated our projected revenue guidance for the fiscal year ended September 30, 2012 to be in the range of $74 million to $78 million, and LOREX expects to be in the upper end of this guidance."
"Please be reminded when reading the financial information noted below that $0.6 million of a previously unrecognized loss carry-forward was available and utilized in the prior year to reduce the tax expense," continued Mr. Klein. "The result was tax expense for the first nine months of the prior year of $0.6 million, as compared to $2.0 million in the current year. The benefit of North American loss carry-forwards that reduced tax expense in fiscal 2011 has been fully utilized."
Highlights of the three and nine month operating results are as follows:
|(Thousands of US $, unless otherwise noted)
||Three months ended
|Nine months ended
|Earnings before interest, taxes, amortization **
|Earnings before income taxes
|Earnings per common share, basic
|Earnings per common share, diluted
|Weighted average number of shares - basic
|Weighted average number of shares - diluted
*Unaudited financial information is available at www.sedar.com.
**EBITDA is not a measure of performance under Canadian GAAP. EBITDA should not be considered in isolation or as a substitute for profit nor as a measure of operating performance or profitability.
"As a leader in do-it-yourself consumer and professional advanced video security market, we continue to invest in the business in order to provide one of the broadest, most advanced product lines in the industry. The recent introductions of the LOREX High Definition (HD) Series recorder and cameras, and the pilot launch of the Active line of sport action cameras catering to the outdoor enthusiast, serve as examples of our continued focus to maintain our leadership position. We will continue to invest in product development to consistently deliver first-to-market features with the highest emphasis on user experience and connectivity compared to our competitors. At the same time, we are expanding our distribution into the Latin American countries. Our record revenue and earnings for the first nine months of fiscal 2012 continued to strengthen our balance sheet and improve our working capital position. We will continue to increase our marketing and product development initiatives throughout the remainder of 2012 and beyond to increase shareholder value; and expect to continue our growth and profitability," concluded Mr. Klein.
About LOREX Technology Inc.:
LOREX Technology Inc. ('LOREX') (TSX VENTURE:LOX) provides businesses and consumers with leading edge video surveillance security solutions and sells its products under the LOREX and Digimerge brands. The LOREX brand, which caters to both small business and consumer markets, is available in thousands of retail locations across North America. The Digimerge division distributes its products through major distributors in North America. Both brands concentrate on the sale of wired, wireless and IP security surveillance and monitoring equipment including cameras, digital video recorders and all-in-one systems.
LOREX subsidiaries include; LOREX Canada Inc., LOREX Corporation and Strategic Vista Corporation Limited, Hong Kong.
Cautionary Statement on Forward-Looking Information
This news release contains certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this press release relate to the Company's projected revenue. The forward-looking information reflects predictions and does not in any way reflect a guarantee. Factors which could cause actual results to differ materially from current projections include, among other things: competitive conditions in which the Company participates; changes in consumer spending; general economic conditions and normal business uncertainty; customer preferences towards product offerings; the occurrence of a pandemic or other catastrophic event which could create shortages of labour, products or services required to operate the business profitably; fluctuations in foreign currency exchange rates; changes in the Company's relationships with its suppliers. The Company cautions that this is not an exhaustive list of factors that may affect the forward-looking information contained in this press release. Potential investors and readers are urged to give careful consideration to all of these factors in evaluating any forward-looking information and are cautioned not to place undue reliance on such information. While the Company believes that its projections are reasonable, results predicted in this forward-looking information may differ materially from actual results. The Company disclaims any obligation to update forward-looking information, except as may be required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.