Titan Logix Corp.

TSX VENTURE : TLA


Titan Logix Corp.

April 16, 2014 18:21 ET

Titan Logix Corp. Reports Financial Results for Fiscal 2014 Second Quarter

EDMONTON, ALBERTA--(Marketwired - April 16, 2014) - 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 second quarter of its fiscal 2014, ended February 28, 2014.

Financial Highlight Summary
(in Canadian dollars)

Three months ended Six months ended
Feb. 28, 2014 Feb. 28, 2013 Feb. 28, 2014 Feb. 28, 2013
Sales $ 3,800,893 $ 4,063,398 $ 8,233,210 $ 8,073,353
Gross profit (GP) $ 1,979,829 $ 2,174,173 $ 4,241,238 $ 4,161,954
GP % 52 % 54 % 52 % 52 %
Earnings before income tax $ 722,875 $ 1,218,829 $ 1,848,398 $ 2,277,389
Net earnings $ 539,514 $ 885,175 $ 1,375,872 $ 1,666,432
EBITDA $ 816,644 $ 1,249,128 $ 1,986,647 $ 2,344,619
EPS (diluted) $ 0.02 $ 0.03 $ 0.05 $ 0.06
Financial Position As at
February 28,
2014
As at
August 31,
2013
Working capital $ 13,133,252 $ 12,184,559
Total assets $ 18,568,768 $ 16,770,570
Long-term liabilities $ 409,456 $ 366,104
Total equity $ 16,520,870 $ 15,041,798

For the first six months of fiscal 2014 ended February 28, 2014, sales were $8,233,210, up by 2% from sales of $8,073,353 in the first six months of fiscal 2013. This increase is primarily attributable increased to sales of the Company's "On the Road" solution offerings for mobile tanker trucks and trailers to Original Equipment Manufacturers (OEMs) and increased retrofit sales in the first quarter of fiscal 2014, offset by the reduced sales in the second quarter of the fiscal year. Titan's sales outside of Canada, primarily to the U.S., were $1,880,200 in this second quarter of fiscal 2014, a decrease of 3% from sales of $1,940,378 in the second quarter ended February 28, 2013. Sales in Canada for the second quarter of fiscal 2014 decreased by 10% to $1,920,693 from sales of $2,123,020 in the same period of fiscal 2013. Sales for the quarter ending February 28, 2014 reflect a decrease from the most recent quarter and from the comparable period of the previous year. This is primarily a result of a short-term decrease in new oil industry tanker construction seen during the second quarter due to an unusually longer operational shut down of a number of original equipment manufacturers (OEMs) over the Christmas season, and a reduction in product sales in the Saskatchewan area.

Total expenses for the first six months of fiscal 2014 were $2,509,026 compared to $1,912,838 in the same period a year ago. This increase is primarily due to costs associated with increases in wages, higher than usual professional fees related to the FGI 351 recall, network upgrades, and rent expense. During the six months ended February 28, 2014, Titan recorded an increase to capitalized product development costs of $466,130 compared to $378,836 in the comparable period of fiscal 2013. This increase is a result of additional resources being allocated to product development of new and innovative products including a next generation burner management system.

At February 28, 2014 cash and cash equivalents and short term investments were $10,619,248 compared to $9,257,177 at the end of fiscal 2013. Titan does not have any debt except for trade payables, accrued liabilities and finance lease obligations.

Business Outlook

Early installations of our latest commercialized Stik products - Av-Stik, Chem-Stik and UsedOil-Stik - showed the need for some minor modifications resulting in a slower than expected product launch. With completion of these modifications, we are seeing a growing confidence in these products resulting in orders received from customers in the targeted markets.

Titan is committed to focused and targeted research and development. Our continued development of new and innovative products, including additional Stik gauges, will drive our success. Over the last three months, we have strengthened our research and development team with the hiring of additional engineering staff.

North American field trials of MechTronic's advanced fluid level gauging system for refined fuel tankers are scheduled to begin in April 2014. Titan staff will receive installation and operational training from MechTronic's engineers. Field performance data will be used in preparation for the full commercial launch later this year.

While we have seen a slight increase in sales over the first six months of this fiscal year compared to the first six months of fiscal 2013, we expect to see sales in the upcoming quarter to remain at current levels. This will be a decline from the same quarter last year, bringing increased urgency to the sale of recently released products and the introduction of new products.

Additional Information

Titan Logix Corp.'s unaudited financial statements and management's discussion and analysis for the second quarter of fiscal 2014 as well as its audited financial statements and management's discussion and analysis for its fiscal year ended August 31, 2013 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. 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.

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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