EDMONTON, AB / ACCESSWIRE / November 29, 2018 / 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, 2018.
Financial Highlights Summary
(in Canadian dollars)
| Three months ended | Year ended | |||||||||||||||
| August 31, 2018 | August 31, 2017 | August 31, 2018 | August 31, 2017 | |||||||||||||
|
Revenue
|
$ | 1,447,743 | $ | 988,773 | $ | 4,494,588 | $ | 3,512,527 | ||||||||
|
Gross
profit (GP)
|
$ | 619,081 | $ | 290,084 | $ | 2,217,963 | $ | 1,169,900 | ||||||||
|
GM
%
|
43 | % | 29 | % | 49 | % | 33 | % | ||||||||
|
Operating earnings (loss) before other items and income tax
|
$ | 27,740 | $ | (380,475 | ) | $ | (427,607 | ) | $ | (1,466,779 | ) | |||||
|
Net
earnings (loss)
|
$ | 124,728 | $ | (338,268 | ) | $ | (3,781 | ) | $ | (982,388 | ) | |||||
|
EPS
(diluted)
|
$ | 0.00 | $ | (0.01 | ) | $ | 0.00 | $ | (0.03 | ) | ||||||
|
Financial Position
|
As at August 31 2018 | As at August 31, 2017 | ||||||
|
Working capital
|
$ | 10,065,265 | $ | 14,663,433 | ||||
|
Total
assets
|
$ | 16,750,962 | $ | 16,685,920 | ||||
|
Long-term liabilities
|
$ | - | $ | 26,504 | ||||
|
Total
equity
|
$ | 16,139,215 | $ | 16,174,861 | ||||
"I am happy to report that the Company's top and bottom lines are trending in a positive direction," said CEO, Alvin Pyke. "As the included financial report indicates we have improved our performance significantly over the previous year. Our TD100 GWR product is now in field trials and is proving itself to be robust and reliable while producing unprecedented accuracy. The field trials of our data Gateway are also producing encouraging results. The testing of third-party device connection to the Gateway is ongoing. In sync with our software partner, Pedigree Technologies, we are currently marketing our first industrial application for the supply chain management of produced water generated by fracking operations. We are excited by the interest we have seen to date. This is the first of many applications being planned by the Titan/Pedigree partnership. We are in the process of realigning our management team to better manage Titan's data generation and collection business while ensuring we remain focused on our core product offerings and market space. We are also pursuing other strategic technology partnerships as the opportunities present themselves." Mr. Pyke said, "The upcoming year will see the launching of a new Titan website and updated marketing material to align with our expanded product offerings."
2018 HIGHLIGHTS
- Revenues for fiscal 2018 improved to $4,494,588, a $982,601 or 28% increase from the $3,512,527 recorded in fiscal 2017. This improvement is primarily due to an increase in demand for the Company's guided wave radar (GWR) product line in the mobile tanker truck market as a result of the increase in oil prices.
- The gross profit for fiscal 2018 improved to $2,217,903 or 49% of revenue compared to $1,169,900 or 33% of revenue in fiscal 2017, an increase of $1,048,003. This improvement is due to the increase in revenue combined with reductions in production and overhead costs with a larger percentage of these costs allocated to inventory units manufactured.
- The operating loss before other items was $427,607, an improvement of 71% compared to $1,466,779 in fiscal 2017. This substantial improvement in the operating loss before other items was primarily due to the improvement in the revenue and gross profit.
- The net loss after income taxes was $3,781, an improvement of 100% compared to a net loss after taxes of $982,388 in fiscal 2017. This improvement was primarily a result of the increase in revenue and gross profit combined with an increase in finance income.
- During the last half of fiscal 2018 the Company completed development of the Company's next generation digital GWR product, the TD100 which was introduced to the market in the fourth quarter of the fiscal year.
The Company's revenue is largely derived from instrument sales of its GWR product line of technologies (TD80TM, Finch II and related components) throughout Canada and the U.S. These technologies are sold primarily into the mobile tanker truck market, servicing upstream/midstream customers. For fiscal 2018 revenue increased by 28% to $4,494,588 as compared to $3,512,527 for fiscal 2017, due to improved industry conditions. The year-over-year improvement in revenues is largely due to the improvement in demand for instruments in the U.S. market, and to a lesser degree, increased sales to the Canadian market. For the fourth quarter of fiscal 2018 revenue increased by 46% to $1,447,743 as compared to $988,773 in the comparative prior period in fiscal 2017. The increase in revenue during the quarter was largely as a result of the increased demand for the GWR product line in the new tanker construction market in the U.S.
The net loss after income taxes was $3,781 for fiscal 2018 as compared to a net loss of $982,388 in fiscal 2017. This 100% improvement was primarily due to the increase in revenue and the improvement in gross profit combined with an increase in finance income partially offset by the $307,275 gain recorded in the previous year on the sale of the TPZ 3310 and 3500 controller product line. Net earnings in fiscal 2018's fourth quarter was $124,728 after tax, compared to an after tax net loss of $338,268 reported for the fourth quarter of fiscal 2017. This 137% improvement from a net loss to net earnings was primarily due to the increase in revenue and the improvement in gross profit combined with the gain on foreign exchange and an increase in finance income.
The Company's audited consolidated annual financial statements and the management's discussion and analysis ("MD&A") which includes the Company's Business Outlook, for the year ended August 31, 2018, are available on SEDAR at www.sedar.com and the Company's website, www.titanlogix.com.
About Titan Logix Corp.:
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, primarily for use in the mobile tanker truck market, 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 designed to be a part of a complete Supply Chain Management (SCM) solution. The ultimate solution consists of Titan's products integrated with best-in-class data management to enable end-to-end Industrial Internet of Things (IIoT) solutions for our customers' SCM.
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) accepts 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, 2018 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:
Alvin Pyke
Chief Executive Officer
Ph: (780) 462-4085
Email: [email protected]
www.titanlogix.com
TSX Venture, TLA
SOURCE: Titan Logix Corp.