EDMONTON, ALBERTA--(Marketwire - Dec. 15, 2008) - Titan Logix Corp., (TSX VENTURE:TLA), an advanced technology industrial instrumentation and controls company, released its audited financial results for its fiscal year ended August 31, 2008.
Summary of Sales Revenue, Gross Profit and Net Income:
An improvement in sales in the third and fourth quarters in Titan's 2008 fiscal year, which ended August 31, has resulted in annual net earnings before income taxes of $267,542. Earnings before income taxes in the fourth quarter were $343,946. The company had a decrease of 11% in sales revenues in fiscal 2008 over the previous year with revenues of $7,974,131 compared to $8,922,386 in fiscal 2007.
Sales revenues from level and flow instruments were up 5% for the year, while transport instruments were down by 18% and burner controls were down by 13%. In the fourth quarter of fiscal 2008, burner controls were slightly lower from the fourth quarter numbers of fiscal 2007 by 3%, while transport instruments were up 11% and level and flow instruments were 10% higher than in the fourth quarter of fiscal 2007.
Lower sales volumes in transport instruments and burner controls in the first half of fiscal 2008 and the change in Titan's product mix due to significant sales of discontinued product lines in fiscal 2007 resulted in reduced gross margins and earnings before income taxes in fiscal 2008.
Titan's financial results in fiscal 2008 were a result of a decline in general operating activity in the oil and gas industry in Alberta, which is its primary market. The company identified and addressed areas of improvement in the design and implementation of the company's sales program in the second quarter and along with an increase in operating activity in Alberta, sales and profits improved for the remainder of the year.
"Titan's management is optimistic about fiscal 2009," states Les J. Evans, President and CEO. "We will continue improving our sales effort in the U.S. and in our domestic markets, particularly southeastern Saskatchewan and southwestern Manitoba. We have a restructured sales program to meet the challenges of our ever-changing marketplace and we will continue improving our product delivery and customer service. With our progress in product enhancements and new product developments at various stages of readiness for market introductions, we have set an ambitious sales target of a 20% increase over our fiscal 2008 results."
Selected Annual Information for Years ended August 31 (audited)
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2008 2007 2006 2005
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Revenues and Earnings
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Revenue $7,974,131 $8,922,386 $7,071,349 $5,584,826
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Earnings before income taxes 267,542 1,260,946 440,882 339,635
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Cash Flow
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Cash provided by operating
activities 773,244 257,056 283,593 412,755
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Additions to capital assets 260,132 165,044 108,007 32,921
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Additions to deferred
development costs 551,216 nil nil nil
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Net increases in cash 4,306 175,919 1,028,927 378,236
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Closing Financial Position
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Total shareholders' equity 6,763,523 6,537,565 2,987,708 1,700,838
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Total assets 7,673,546 7,623,875 4,327,231 2,900,178
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Per Common Share
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Basic earnings per share 0.01 0.13 0.03 0.02
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Diluted earnings per share 0.01 0.12 0.02 0.02
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Financial Ratios
using earnings before income
taxes
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% Return on sales 3.4% 14.1% 6.2% 6.1%
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% Return on total assets 3.5% 16.5% 10.2% 11.7%
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% Return on shareholders'
equity 4.0% 19.3% 14.8% 20.0%
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Summary of Operating Expenses:
In fiscal 2008, total expenses were $2,771,551, lower by 5% from $2,914,283 in the previous year. General and administration expenses were 1,329,567 compared to $1,269,549 in fiscal 2007. Product development expenses were lower due to deferral of expenses associated with certain products that qualified under generally accepted accounting criteria for deferral of development costs. Marketing and sales expenses were $1,041,040, down by $40,033, compared to $1,081,073 in the previous year. Other decreased expenses of note were due to changes in the value of the Canadian dollar during the year resulting in lower losses on foreign exchange in fiscal 2008 of $2,364 compared to $48,085 in fiscal 2007. Due to the elimination of our debt during fiscal 2007, interest expense was nil compared to interest expenses of $18,223 in the previous year.
Working Capital:
At August 31, working capital was $4,259,064 compared to the August 31, 2007 year-end balance of $4,640,748. Cash and cash equivalents were $1,633,147 at the end of fiscal 2008 compared to $1,628,841 on August 31, 2007. Titan does not have any debt except for trade payables.
Summary of our Focus and Initiatives for Fiscal 2009:
For the 2009 fiscal year, Titan will continue to focus on growth in the following areas:
- Increase market penetration of its flagship products in current domestic markets with emphasis on areas of southeastern Saskatchewan and southwestern Manitoba;
- Continue expanding sales into targeted North American geographical markets;
- Continue product development and enhancing the features of existing products to better serve existing markets now and into the future; and
- Continue development of additional Guided Wave Radar technology products to meet the needs of other niche markets in the mobile tanker industry.
In the areas of new products, we are planning the commercial release of the recently introduced Deice-Stik(TM) (patent pending). Additional Guided Wave Radar products for mobile applications are in various stages of development including two of which are scheduled for Canadian Standards Association (CSA) approvals in the near future. Field trials of some of these products have been underway.
A field trial installation of a communication interface module to enable the TD80(TM) Guided Wave Radar liquid level gauge to integrate into an asset management system for mobile tankers is proceeding well. This expands our understanding of, and will increase our exposure to markets tied to asset management - a key component of our company's vision.
We are continuing our efforts to grow our market share in burner management applications using the FGI 351(TM). Sales are improving and our distributors and customers indicate that they are very satisfied with our product and service. We are expanding our distribution base, including the potential development of a joint venture arrangement with a leading industry provider.
Titan continues to explore ways to grow beyond solely organic means. Business development activities center primarily on our new Guided Wave Radar technology products. Discussions are ongoing with several companies, the purpose of which is to identify potential business partners to create a joint venture, merger or acquisition. This would enable Titan to meet a larger set of needs for our current and potential customers, develop opportunities to gain additional market coverage and provide increased effectiveness and efficiencies to our overall operations.
Outstanding Share Summary:
The common shares of Titan Logix Corp. trade on the TSX Venture Exchange under the symbol "TLA". At August 31, 2008, Titan had 24,713,440 common shares issued and outstanding.
Additional Information:
Titan Logix Corp.'s audited financial statements and management's discussion and analysis for the 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. However, due to rising costs, concerns and awareness about the environment, the importance of spill prevention and technological advancements - to list but a few reasons - there has been an accelerated demand for our products. 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 Toronto Venture Stock 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.
(TSX VENTURE:TLA)
FOR FURTHER INFORMATION PLEASE CONTACT:
Titan Logix Corp.
Aniz Pisani
Investor Relations and Corporate Communications Coordinator
(780) 462-4085
Email: invest@titanlogix.com
Website: www.titanlogix.com
