Titan Logix Corp.
TSX VENTURE : TLA

Titan Logix Corp.

April 15, 2009 09:00 ET

Titan Logix Corp. Reports Financial Results for Fiscal 2009 Second-Quarter


EDMONTON, ALBERTA--(Marketwire - April 15, 2009) - Titan Logix Corp., (TSX VENTURE:TLA), today reported its unaudited financial results for the second quarter of its fiscal 2009 ended February 28, 2009.

Summary of Sales Revenue, Gross Profit and Net Income:

Titan's sales in the second quarter ended February 28, 2009 were $2,747,011, up by $1,140,020 and an improvement of 71% from $1,606,991 in the second quarter of the previous fiscal year. Gross profit in the three month period was $1,287,563 with a 47% gross margin compared to $539,169 with a 34% gross margin in the second quarter of the previous fiscal year. Net earnings and comprehensive income was $475,356 ($0.02 per diluted share) in this second quarter compared to a loss of $205,740 (-$0.01 per diluted share) in the second quarter of the previous fiscal year.

Year to date, sales in the first six months of fiscal 2009 were $5,450,627, an improvement of 48% over sales of $3,674,923 in the first six months of the previous fiscal year. The company's gross profit in the first six months of fiscal 2009 was 85% higher at $2,413,420 compared to $1,303,443 in the first six months of fiscal 2008. Net earnings and comprehensive income was $801,099 ($0.03 per diluted share) in the first six months of this fiscal year compared to a loss of $194,663 (-$0.01 per diluted share) in the past fiscal year.

In addition to improved margins (44% versus 35%) which led to much improved profitability in the first six months of fiscal 2009 compared to the previous fiscal year, Titan recorded a recovery of product development costs relating to scientific research and experimental development (SR&ED) claims for the three previous fiscal years. That, together with a gain on foreign currency exchange, substantially added to the positive profit picture in the six month period of fiscal 2009 ended February 28, 2009.

“Our positive results are a reflection of improvements in the design and implementation of our sales program initiated in Q3 of fiscal 2008”, states Les J. Evans, President and CEO of Titan Logix Corp. “Our customers however are not immune from the current global financial difficulties and we are monitoring and controlling our spending as we navigate our way through the current recession. We are experiencing a slowdown and expect our revenues to decrease to traditional lower levels for the spring breakup period during the next quarter”.


Fiscal 2009 Second -Quarter Financial Highlights

           
    Six months ended February 28, 2009   Six months ended February 29, 2008  
           
  Revenues and Earnings        
  Sales $5,450,627   $3,674,923  
  Gross Profit 2,413,420   1,303,443  
  Earnings before income taxes 1,099,878   (194,663)  
  Net earnings and comprehensive income 801,099   (194,663)  
           
           
  Expenses        
  General and administration $873,278   $657,424  
  Product development costs (122,195)   183,735  
  Marketing and sales 714,495   578,885  
           
           
  Per Common Share        
  Basic earnings per share $0.03   ($0.01)  
  Diluted earnings per share 0.03   (0.01)  
           
           
  Financial Ratios (using earnings before income taxes)        
  % Return on sales 20.2%   (5.3)%  
  % Return on shareholders' equity 14.5%   (3.0)%  
  % Return on total assets 12.8%   (2.7)%  
           
           
  Closing Financial Position At February 28, 2009   At August 31, 2008  
           
  Total shareholders' equity $7,606,413   $6,763,523  
  Total assets 8,595,521   7,673,546  
           

Summary of Operating Expenses:

Total expenses for the second quarter of fiscal 2009 ended February 28, 2009 were 17% lower, down to $636,124 from $764,812 in the second quarter of the previous fiscal year. The lower total expense is primarily due to a recovery of product development costs and a substantial gain on foreign currency exchange. General and administration expenses in the second quarter were up 34% to $473,269 from $352,125 in the second quarter of the previous year. Product development expenses saw a net recovery of $216,577 compared to expenses of $97,659 in the previous year's second quarter. A recovery of $315,410 from scientific research and experimental development (SR&ED) claims for product development costs for fiscal 2006, 2007 and 2008 offset the product development expenses of $98,833 in this second quarter. Marketing and sales expenses, which rose by 38% to $393,870 this quarter from $284,946 in the second quarter of the previous year, were higher because of sales training costs, employee compensation and travel expenses being higher.

Working Capital:

At February 28, 2009, working capital was $4,865,305 compared to the year-end balance of $4,259,064 at August 31, 2008. Cash and cash equivalents were $1,893,489 compared to $1,633,147 at the end of fiscal 2008. Titan does not have any debt except for trade payables.

Outstanding Share Summary:

The common shares of Titan Logix Corp. trade on the TSX Venture Exchange under the symbol TLA. At April 6, 2009, Titan had 24,853,440 common shares issued and outstanding.

Additional Information:

Titan Logix Corp.'s unaudited financial statements and management's discussion and analysis for the second quarter of fiscal 2009 as well as its audited financial statements and management's discussion and analysis for its fiscal year ended August 31, 2008 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 focus on designing, manufacturing, distributing and servicing instrumentation and automation solutions. These are primarily for the oil and gas, chemical and transportation industries, which for many years have relied on manual intervention. Due to rising costs, concerns and awareness about the environment, the importance of spill prevention and technological advancements - to list but a few reasons – demand for our products appears to be accelerating. The products we specialize in are:

  • 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 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.

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

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