EDMONTON, AB / ACCESSWIRE / December 1, 2017 / Titan Logix Corp. (TSX V: TLA) ("Titan" or the "Company"), a high technology company specializing in advanced technology fluid management solutions, announces its results for the three months and year ended August 31, 2017.
Financial Highlights Summary
(in Canadian dollars)
"We successfully managed our operating costs and engineering development this year and maintained a strong working capital position. Our traditional customer base is continuing to exhibit increased planning activity in response to improving market traction," said CEO, Douglas Carruthers. "Our Gateway telematics introduction is progressing well, and we are active in multiple customer field trails."
2017 HIGHLIGHTS
The Company's net loss after tax was $982,388, a decrease of $2,714,867 when compared to the net loss of $3,697,254 in fiscal 2016. The significant improvement in results was positively impacted by:
- A decrease in operating expenses by $1,766,939 (40%) to $2,636,679 from expenses of $4,403,618 in the previous year, due to cost cutting initiatives. This decrease includes a compensation saving of $981,555 due to staff rationalizations resulting in a significant reduction in the workforce while retaining core engineering, sales, and support teams.
- A decrease in impairments of assets recorded in fiscal 2017 to $14,056 as compared to $1,115,482 in fiscal 2016.
- A gain on sale of $307,275 from the sale of the TPZ3310 and 3500 Controller product line in fiscal 2017.
- An increase in gross margin to 33% as compared to 22% in fiscal 2016, primarily due to a decrease in technical service and support engineering costs, and labour savings achieved due to a reduction in the workforce.
- For fiscal 2017 revenue declined by $460,273 or 12% to $3,512,527 as compared to $3,972,800 for fiscal 2016. The year-over-year decrease in revenues and the continued weak sales in the current fiscal year can be attributed to continued weak demand for the GWR product line in the new tanker construction market both in Canada and the U.S. For the fourth quarter of fiscal 2017 revenue increased by 40% to $988,773 as compared to $706,279 in the comparative prior period in fiscal 2016. The increase in revenue during the quarter was largely as a result of an increase in TD80 retrofit sales in both geographic regions.
The operating loss before other items and income taxes was $1,466,779 for fiscal 2017 as compared to an operating loss before other items and income taxes of $3,515,053 in fiscal 2016. Due to cost reduction initiatives in the prior fiscal year, the decrease in the operating loss is primarily attributable to the reduction in total expenses, which decreased by $1,766,939 year-over-year. This decrease in expenses combined with the reduction in production costs included in cost of sales and the resulting improvement in gross profit, accounted for the significant improvement in the operating loss. Despite these improvements in the cost structure, the Company incurred an operating loss, largely due to continued weaker demand for the Company's products and the resulting lower revenues.
The net loss after income taxes was $982,388 in fiscal 2017 as compared to a net loss of $3,697,254 in fiscal 2016. Net loss and comprehensive loss in fiscal 2017's fourth quarter was $338,268 after tax, compared to an after tax net loss of $1,888,482 reported for the fourth quarter of fiscal 2016. This significant reduction in the net loss is primarily due to the decrease in impairments of product development costs and property, plant and equipment.
The Company's unaudited interim condensed consolidated financial statements and the management's discussion and analysis ("MD&A") for the year ended August 31, 2017, are available on SEDAR at www.sedar.com and the Company's website, www.titanlogix.com.
Business Outlook
The 2016-17 recovery of the market price of WTI Crude Oil from the 2014 extreme lows is resulting in some increase in U.S. and Canadian drilling activity as operators increase their drilling programs. However, the oil price collapse in 2014, stranded a significant backlog of new fully equipped tanker trucks and trailers on dealer lots. This backlog must be absorbed before the new tanker construction market will begin to recover. Titan is seeing a slight pickup in its customer's activity in reaction to the industry adjustment to stable commodity prices; however, there are no short-term expectations of significant improvements to revenues generated by a demand-driven upswing in trailer construction. Titan continues to maintain its market share for level measurement and control devices in a significantly smaller crude oil tanker new construction market in the face of continuing low crude oil prices.
Titan's proprietary TD80/Finch II/RCM technologies continue to be widely accepted. Leveraging Titan's large install base and market share, the Company is focused on generating new revenue stream opportunities via existing tanker retrofit sales and by exploring new market alternatives for product sales in other than crude oil applications. Titan recently developed the Titan Gateway for mobile tankers, providing remote data communications from Titan's TD80, Finch II and AirWeigh products. Titan's Gateway increases marketplace opportunities by linking our widely respected legacy sensor technologies to the worldwide cloud/web. The Company's traditional market's interest in universal "Internet of Things" solutions is driving both new and retrofit decisions. The new Gateway telematics introduction to the market is generating pilot trials and is expected to continue progressing well. The Company is also prospecting new opportunities in both the complementary upstream and downstream storage tank markets.
Product development is progressing on Titan's next generation digital Guided Wave Radar product, the TD100, and market introduction is expected in fiscal 2018's third quarter. This digital renewal of the TD80 legacy is opening doors to improved reliability and expanded capabilities for the next generation of Titan customers.
Founded in 1979, Titan Logix Corp. ("Titan" or "the Company") is a developer, manufacturer, and marketer of innovative fluid measurement and 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, and communication systems for remote alarming and control. Titan's products are mainly used in the upstream/midstream oil and gas industry. Secondary industries for its products include the aviation, waste fluid collection, and chemical industries.
Titan's products are all developed to be a part of a complete asset management solution. The ultimate solution will consist of Titan's products integrated with best-in-class third party solutions to enable complete fluid management throughout each stage of their fluid handling processes. This is captured by Titan's 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 remotely 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 TSX Venture 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) accept responsibility for the adequacy or accuracy of this release.
Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties, you should refer to our Management Discussion and Analysis in respect of the year ended August 31, 2017, which is available at www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.
Contact Information:
Douglas Carruthers.
Chief Executive Officer
Ph: (780) 462-4085
Email: [email protected]
www.titanlogix.com
TSX Venture, TLA
SOURCE: Titan Logix Corp.