Titan Logix Corp.

TSX VENTURE : TLA


Titan Logix Corp.

July 23, 2013 18:19 ET

Titan Logix Corp. Reports Financial Results for Fiscal 2013 Third-Quarter

EDMONTON, ALBERTA--(Marketwired - July 23, 2013) - Titan Logix Corp. (TSX VENTURE:TLA) ("Titan" or the "Company"), an advanced technology industrial instrumentation and controls company, today reported its unaudited financial results for the third quarter of its fiscal 2013, ended May 31, 2013.

In the third quarter of fiscal 2013 Titan Logix Corp. experienced an increase in revenue and net earnings as compared to the previous two quarters of this fiscal year, though this was a decrease from the third quarter of fiscal 2012. EBITDA for the third quarter of fiscal 2013 decreased compared to the previous year primarily due to decreased sales and additional expenditures incurred to support upcoming new burner management products. New tanker construction in Titan's primary market (oil industry tankers) has decreased from the peak levels of the previous fiscal year. In spite of this decrease in market activity the Company has sustained year to date sales and increased EBITDA compared to fiscal 2012.

Financial Highlight Summary
(in Canadian dollars)
Three months ended Nine months ended
May 31,
2013
May 31,
2012
%
Change
May 31,
2013
May 31,
2012
%
Change
Sales $ 4,576,469 $ 5,177,377 -12 % $ 12,649,822 $ 12,810,370 -1 %
Gross profit (GP) $ 2,602,604 $ 2,766,679 -6 % $ 6,866,595 $ 6,528,840 5 %
GP % 57 % 53 % 6 % 54 % 51 % 8 %
Earnings before income tax $ 1,279,950 $ 1,720,418 -26 % $ 3,557,339 $ 3,351,938 6 %
Net earnings $ 959,962 $ 1,162,132 -17 % $ 2,626,394 $ 2,778,737 -5 %
EBITDA $ 1,311,702 $ 1,766,407 -26 % $ 3,656,321 $ 3,479,923 5 %
EPS (diluted) $ 0.04 $ 0.05 -20 % $ 0.10 $ 0.11 -9 %
Financial Position As at
May 31, 2013
As at
August 31, 2012
Working capital $ 11,549,283 $ 8,557,406
Total assets $ 15,723,905 $ 13,234,683
Long-term liabilities Nil Nil
Total equity $ 14,212,356 $ 11,506,962

Titan's sales outside of Canada, primarily to the U.S., were $2,452,116 in this third quarter of fiscal 2013, a decrease of 12% from sales of $2,782,586 in the third quarter ended May 31, 2012. This decrease is primarily a result of new tanker construction in our primary market decreasing from the peak levels of the previous fiscal year. Sales to the U.S. were 54% of Titan's total revenue in the third quarter of fiscal 2013 comparable to 54% in the same period of 2012. Sales in Canada for the quarter ended May 31, 2013 decreased by 11% to $2,124,353 from sales of $2,394,791 in the comparable period of fiscal 2012. Reduced drilling activity during spring break up and a reduction in new tanker construction had an adverse impact on Canadian sales.

Total expenses for the first nine months of fiscal 2013 were $3,357,206 compared to $3,194,855 in the same period a year ago. General and administration expenses were $1,736,345, compared to $1,556,558 recorded in the same period of the previous fiscal year. Engineering expense, net of product development costs, was $413,053 compared to $564,296. During the nine months ended May 31, 2013, Titan recorded an increase to capitalized product development costs of $717,079 compared to $179,770 in the nine months of the previous fiscal year. This increase is a result of additional resources being allocated to new product development as Titan focuses on the completion and launch of new products. Marketing and sales expense increased from $1,160,860 in the previous fiscal year's first nine months to $1,263,278 for the first nine months of fiscal 2013.

At May 31, 2013 cash and cash equivalents and short term investments were $8,876,963 compared to $5,760,318 at the end of fiscal 2012. Titan does not have any debt except for trade and accrued payables.

Business Outlook:

Titan continues to invest in U.S. market expansion plans where increased growth is attainable and explore opportunities to sell its products beyond North America. Short term growth for fiscal 2013 has been constrained by a reduction in market activity, primarily in Canada. Therefore, while new product development presents long term opportunities for 2014 and beyond, Titan expects to see a decrease in revenue for the fourth quarter compared with the peak levels of 2012.

Titan reports that it is progressing on the development and deployment of its complete 'In the Field, On the Road, In the Office' solutions for various markets and applications. The Rack Control Module (RCM) was launched, which enables TD80 customers to load at loading racks, thereby expanding the use and market reach of the TD80 solution. The Company is completing the development of the next Stik products for new markets. Titan is in the final stages of testing and field trials for these products.

Additional Information:

Titan Logix Corp.'s unaudited financial statements and management's discussion and analysis for the third quarter of fiscal 2013 as well as its audited financial statements and management's discussion and analysis for its fiscal year ended August 31, 2012 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. ("Titan" or "the Company") is a high technology company specializing in Research and Development (R&D), manufacturing and marketing of advanced technology fluid management solutions. The Company's products include Guided Wave Radar (GWR) gauges for level measurement and overfill prevention (particularly for use in mobile tanker applications), level gauges for storage tanks, burner management for oilfield heaters, and communication systems for remote alarming and control. The products are currently used in the oil and gas, waste fluid collection, chemical and aviation industries. These technologies and their derivatives under development are applicable to a variety of additional markets which Titan plans to expand into at the appropriate time. A common practice in many of these markets is the use of manual methods for measurement and control. Due to safety considerations, the rising cost of many fluids, awareness and concerns about the environment and technological advancements enabling better operational efficiencies, we are experiencing an increased demand for our advanced technology products. We anticipate this demand will continue as we pursue expansion into other markets.

The products we manufacture are part of a complete asset management solution. The full solution consists of our own market leading products integrated with best-in-class third party solutions to enable our customers to benefit from complete fluid management, throughout each stage of their fluid handling processes.

This is captured by our slogan "Advanced Technology Fluid Management Solutions, In the Field, On the Road, In the Office"™.

  • In the Field: "In the Field" refers to Titan's solution offerings for storage tanks and process vessels.
  • On the Road: "On the Road" refers to Titan's solution offerings for mobile tanker trucks and trailers.
  • In the Office: "In the Office" refers to Titan's solution offerings that enable customers to monitor their fluid assets from the convenience of their dispatch center or other back office environment through a wired or wireless connection.

Titan Logix Corp. is a public Company listed on the Toronto Venture Stock Exchange and its shares trade under the symbol TLA.

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.

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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