EDMONTON, ALBERTA -- (Marketwire) -- 01/23/13 -- 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 first quarter of its fiscal 2013, ended November 30, 2012.
Summary of Sales Revenue, Gross Profit and Net Earnings:
Sales for the first quarter ended November 30, 2012 were $4,009,955, an increase of 18% from sales of $3,389,692 in the first quarter of fiscal 2012. Gross profit in the three month period was $2,036,577 (51%) compared to $1,579,893 (47%) in the comparable period of the previous fiscal year. Net earnings and comprehensive income was $1,058,560 before tax and $781,257 after tax ($0.03 per diluted share) compared to $630,086 before tax and $622,237 after tax ($0.02 per diluted share) in the same quarter of the previous fiscal year. The increase is tied to the increase in sales for the period. Income tax expense for the previous year's first quarter was minimal compared to fiscal 2013 as the Company had unrecognized deferred tax assets available to reduce income tax expense.
Financial results for the first three months of fiscal 2013 reflect Titan Logix Corp's successful execution of its strategic plan, its continued operational strength and the continued customer demand for its oilfield fluid transport products.
Summary of Operating Expenses:
Total expenses for the first three months of fiscal 2013 were $989,218 compared to $951,945 in the same period a year ago. General and administration expenses were $471,564, compared to $450,698 recorded in the same period of the previous fiscal year. Engineering and development expense was $124,023 compared to $194,107. During the three months ended November 30, 2012, Titan recorded an increase to capitalized product development costs of $143,471 compared to $67,565 in the three months of the previous fiscal year. This increase is a result of additional resources being allocated to new product development rather than sustaining engineering in comparison to the previous year's first quarter. Marketing and sales expense increased from $353,553 in the previous fiscal year's first three months to $404,892 for the first three months of fiscal 2013. As a percentage of sales, operating expenses are 25% for the three month period ended November 30, 2012 compared to 28% for the same period of fiscal 2012. The reduction of operating expenses as a percentage of sales is primarily due to the increase in revenues and also the continued focus on controlling of operating costs.
At November 30, 2012, working capital was $9,514,113 compared to the August 31, 2012 year-end balance of $8,557,406. Cash and cash equivalents and short term investments were $6,899,143 compared to $5,760,318 at the end of fiscal 2012. Titan does not have any debt except for trade and accrued payables.
The customer activity in our primary market has decreased from the peak levels of the previous fiscal year. Sales for this most recent quarter ending November 30, 2012, are lower than the previous three quarters (second, third and fourth quarter of fiscal 2012). This market correction is expected to continue to have an impact on our sales into the next quarter. We plan to address this correction by continuing to focus on increasing our market share.
Titan Logix Corp.'s unaudited financial statements and management's discussion and analysis for the first 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
Titan also announces that on January 18th, 2013 the Board of Directors appointed Jeff Langford as Vice President of the Burner Management System business unit of Titan Logix Corp. As previously announced Mr. Langford will lead this new business unit and comes to Titan with over 20 years of burner and combustion experience.
In addition at Titan's Annual General Meeting held on January 18, 2013, shareholders re-elected R.W. (Bob) Logan, Dave Kastelic, Matthew Marquardt, W. Douglas Frame and Greg McGillis to the Board of Directors of Titan.
The Board of Directors approved incentive stock options for the directors of an aggregate of 80,000 shares which are exercisable over a five year period ending January 18, 2018 at a price of $0.63 per share. The Board of Directors also approved incentive stock options for Mr. Langford of 50,000 shares at a price of $0.63 per share which are also exercisable over the five year period ending January 18, 2018, following a one year vesting period. All options were granted in accordance with the Company's stock option plan as approved by the shareholders on January 17, 2003.
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.
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.
Titan Logix Corp.
Greg McGillis, P.Eng.
President and Chief Executive Officer