Rutter Releases 2011 Audited Financial Statements

ST. JOHN'S, Nov. 29, 2011 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its audited consolidated financial statements for the year ended August 31, 2011.

Summary financial information is provided in this press release which should be read in conjunction with the full financial statements and MD&A available on the Company's web site at www.rutter.ca or on SEDAR at www.sedar.com. Fraser H. Edison, President and CEO of the Company, and Karen M. Snook, Chief Financial Officer, will host a conference call on Thursday, December 1, 2011, to discuss the results. Details of this call were announced in a press release dated November 29, 2011 and are also available on the Company's web site.

SUMMARY OF RESULTS

Rutter is a significantly different Company from the one that started the year. Improved results, the dispositions of the VDR product line and Engineering business and a substantial reduction of debt have reduced the going concern risks that had characterized the Company's activities in previous years, resulting in the removal of the going concern note from the Company's financial statements in this quarter.

The Company's quarterly results are summarized in the tables below:

(in thousands except per share amounts)
  Q4
2011
Q4
2010 (1)
Change YTD
2011
YTD
2010 (1)
Change
             
Revenues:            
Third party manufacturing $5,663 $5,037 $626 $25,863 $26,662 $(799)
Company owned products 1,958 815 1,143 6,596 2,701 3,895
Corporate 172 91 81 518 365 153

Company total
$7,793 $5,943 $1,850 $32,977 $29,728 $3,249
 
EBITDA (2) $989 $440 $549 $5,357 $2,545 $2,812
Other (costs) (3) (940) (722) (218) (3,480) (3,888) 408
Income tax recovery 996 - 996 996 - 996
Net earnings (loss) from discontinued operations (2) 254 (256) 1,852 373 1,479
Net and Comprehensive earnings (loss) 1,043 (28) 1,071 4,725 (970) 5,695
 
Earnings (Loss) Per Share $0.014 $(0.001) $0.015 $0.062  $(0.013) $0.075

(1)   Prior year figures have been reclassified to reflect Engineering business and VDR product line disposed of during the year as discontinued operations. See Note 4 to the audited consolidated financial statements.
(2)   EBITDA is identified in the Company's financial statements as "Earnings before undernoted items" and is more fully defined in the Company's financial statements and MD&A.
(3)   Other (costs) income include: Depreciation and amortization; Interest on long-term debt; Interest and bank charges; Other items and Write-down of intangibles all of which are separately disclosed in the Company's financial statements.

Revenues

Revenues have increased by $1,850,000 for the quarter and $3,249,000 year to date as compared to the same periods of the prior year, driven primarily by increases in the sale of Radar products. In the past year, the Company's Oil Spill Response Radar received certification from the Norwegian Clean Seas Association, increasing both interest and orders for this particular radar product. Higher third party manufacturing revenues in the prior year were attributable to revenues relating to the manufacture of power distribution assemblies for the Company's military customer. This contract resulted in unusually high activity levels throughout fiscal 2009 and into the first quarter of fiscal 2010.

EBITDA

EBITDA has improved both for the quarter and on a year to date basis due to improved gross margins.  Gross margins have been positively impacted by the change in mix of the products sold with an increasing portion of revenues coming from higher margin radar sales.

Income tax recovery

The Company has recognized a future income tax recovery of $996,000 on the basis of management's assessment that realization of a portion of the Company's net future income tax assets is more likely than not.

Net earnings (loss) from discontinued operations

Included in the year to date net earnings from discontinued operations of $1,852,000 are gains on sale of $1,756,000, including a gain on the disposition of the VDR product line of $1,517,000 and a gain of $239,000 relating to the disposition of the Engineering business.

Net Earnings (Loss)

The Company has net earnings of $4,725,000 for the year to date compared to a loss of $970,000 in the prior year.

Long-term debt

The Company has reduced its principal long-term debt balances from $17,923,000 in the prior year to $10,259,000, a net reduction of $7,664,000. Of this amount, $3,466,000 was repaid from cash generated from operations while the remainder was repaid from disposition of assets.

CONCLUSION

"In reviewing our year end results, I would reiterate the messages conveyed in our quarter three release" noted Fraser Edison, President and CEO. "Profitable growth, significant debt repayment and the disposition of non-core assets have been our focus. We have accomplished all of these in the current year and our results reflect it. We expect that our results will better position us to establish a more appropriate debt facility, eliminating the high interest rates that have consumed significant amounts of cash over the past several years," he concluded.

About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies and engineering solutions. Rutter's global network supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors from its headquarters in the Province of Newfoundland and Labrador. For more information see www.rutter.ca

Forward-Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to a number of risks and uncertainties including but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this press release will be realized.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

 

SOURCE RUTTER INC.

For further information:

Karen Snook, Chief Financial Officer and Corporate Secretary, Rutter Inc. +1 709 576 6666

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RUTTER INC.

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