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Titan Logix Corp. Reports Financial Results for Fiscal 2012 Second-Quarter(April 25, 2012)
EDMONTON, ALBERTA -- (Marketwire) -- 04/25/12 -- Titan Logix Corp., (TSX VENTURE:TLA), today reported its unaudited financial results for the second quarter of its fiscal 2012 ended February 29, 2012.
Summary of Sales Revenue, Gross Profit and Net Earnings:
Sales for the second quarter ended February 29, 2012 were $4,243,301, an increase of 72% from sales of $2,463,022 in the second quarter of fiscal 2011. Gross profit in the three month period was $2,182,268 (51%) compared to $1,086,980 (44%) and net earnings and comprehensive income was $994,368 compared to $36,154 in the same quarter of the previous fiscal year.
For the first six months of fiscal 2012 ended February 29, 2012, sales were $7,632,993, up by $2,998,337 or 65% from sales of $4,634,656 in the first half of fiscal 2011. Gross profit in this same period was $3,762,161, with a gross margin of 49%, compared to $2,002,047, with a gross margin of 43%, in the first six months of fiscal 2011. Net earnings and comprehensive earnings in fiscal 2012's first six months was $1,616,605 ($0.06 per diluted share). This is a material increase from the earnings of $95,327 ($0.00 per diluted share) reported for the first six months of fiscal 2011.
Financial results for the first six months of fiscal 2012 reflect Titan Logix Corp's successful execution of its strategic plan, its continued operational strength and the ever increasing customer demand for its oilfield fluid transport products.
Summary of Operating Expenses:
Total expenses for the first six months of fiscal 2012 were $2,143,688 compared to $1,903,289 in the same period a year ago. General and administration expenses were $1,012,042, compared to $782,208 recorded in the same period of the previous fiscal year. Engineering and development expense was $377,168 compared to $347,720 and marketing and sales expense increased from $651,375 in the previous fiscal year's first six months to $730,993 for the first six months of fiscal 2012. As a percentage of sales, operating expenses are 28% for the six month period ended February 29, 2012 compared to 41% for the same period of fiscal 2011. The reduction of operating expenses as a percentage of sales is primarily due to the increase in revenues and also the controlling of many operating costs.
At February 29, 2012, working capital was $6,011,707 compared to the August 31, 2011 year-end balance of $4,430,414. Cash and cash equivalents were $2,964,474 compared to $1,457,324 at the end of fiscal 2011. Titan does not have any debt except for trade and accrued payables.
The mobile tanker original equipment manufacturers (OEMs) to whom we sell TD80s (our GWR mobile tank level measurement and overfill prevention system) are backlogged in their new tanker fabrication for six to twelve months. Oil and gas drilling activity in Canada and the US continues to be strong. Titan's TD80 and TPZ gauging systems are used in oilfield tankers (hauling crude oil, chemicals, produced water, etc.) and oilfield storage tanks respectively. Market statistics favor continued growth of the sales of Titan's products in the oil and gas industry in North America. Titan's outlook for this fiscal year is positive.
Titan Logix Corp.'s unaudited financial statements and management's discussion and analysis for the second quarter of fiscal 2012 as well as its audited financial statements and management's discussion and analysis for its fiscal year ended August 31, 2011 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. ("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, particularly for use in mobile tanker applications. The Company's world class Guided Wave Radar (GWR) solutions are currently used in the oil and gas, waste collection 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"(TM).
-- 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 TSX Venture 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 J. McGillis
President and Chief Executive Officer
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