Look Communications reports third quarter 2010 results
TORONTO, July 20 /CNW/ - Look Communications Inc. ("Look" or the "Corporation") (TSX Venture: LOK and LOK.A) today reported its financial and operating results for the third quarter of fiscal 2010, ended May 31, 2010.
Financial and operating highlights for the quarter included the following:
- Cash and cash equivalents and short-term investments at May 31, 2010 totalled $29.8 million, which represents an increase of $15.5 million from August 31, 2009. This increase is due to, among other things, the receipt of the final $50 million of consideration due from Inukshuk partially offset by the payment of the Corporation's restructuring charges and losses from ongoing operations; - Operating expenses for the quarter totalled $2.0 million, a decrease of $4.8 million or 70.8 per cent from the $6.8 million incurred during the same quarter one year prior; - Net loss for the quarter was $2.1 million, or a basic loss per share of $0.02; - During May 2010, debenture-holders converted $916 thousand of debentures into 6,106,661 Multiple Voting Shares and 6,106,661 Subordinate Voting Shares and the Corporation redeemed the remaining $3.2 million of debentures for cash. As a result, at May 31, 2010 the Corporation had no remaining debenture-related liabilities; and - The Corporation has maintained its full-time equivalent staff at six through May 31, 2010.
The Corporation continues to pursue opportunities with interested parties to maximize the value of its remaining assets consisting primarily of its cash and short-term investment position of approximately $30 million, approximately $360 million of tax attributes and the Milton facility and related infrastructure.
About Look Communications Inc.
Look's shares are listed on the TSX Venture Exchange under the symbols "LOK" for Multiple Voting Shares and "LOK.A" for Subordinate Voting Shares. Look's website may be found at www.look.ca.
The corporate information contained in this release includes forward-looking statements regarding future events and the future performance of Look that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by Look at the time of preparation, may prove to be incorrect. The actual results achieved may vary from the information provided herein and the variations may be material. Consequently, there is no representation by Look that actual results achieved will be the same in whole or in part as those forecast.
Neither the 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.
Look Communications Inc. INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS As at (In thousands of dollars) ------------------------------------------------------------------------- May 31 August 31 2010 2009 ------------------------------------------------------------------------- ASSETS Total current assets $ 33,116 $ 67,288 Restricted cash - 380 Property and equipment 1,781 1,995 ------------------------------------------------------------------------- $ 34,897 $ 69,663 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Total current liabilities $ 1,460 $ 26,144 Liability component of convertible debentures - 3,291 ------------------------------------------------------------------------- Total liabilities 1,460 29,435 ------------------------------------------------------------------------- Shareholders' equity Share capital 34,484 33,566 Equity component of convertible debentures - 1,479 Contributed surplus 11,934 11,151 Deficit (12,981) (5,968) ------------------------------------------------------------------------- Total shareholders' equity 33,437 40,228 ------------------------------------------------------------------------- $ 34,897 $ 69,663 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Look Communications Inc. INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND DEFICIT Three and nine months ended May 31, 2010 and 2009 (In thousands, except per share amounts) ------------------------------------------------------------------------- Three months ended Nine months ended May 31 May 31 2010 2009 2010 2009 ------------------------------------------------------------------------- Service and sales revenue $ - $ 3,096 $ 434 $ 10,011 Carrier charges and cost of sales - 2,470 425 6,224 ------------------------------------------------------------------------- Gross margin from continuing operations - 626 9 3,787 ------------------------------------------------------------------------- Expenses 1,977 6,754 6,692 15,827 ------------------------------------------------------------------------- Loss from continuing operations before the undernoted (1,977) (6,128) (6,683) (12,040) Interest and finance charges, net 46 (51) 29 (99) Accretion on liability component of convertible debentures (164) (109) (386) (323) Gain on sale of spectrum and broadcast licence - 78,243 (61) 78,243 Loss on settlement of Bell litigation - (5,817) - (5,817) Gain on sale of property and equipment 5 - 10 2 ------------------------------------------------------------------------- Income(loss) for the period from continuing operations (2,090) 66,138 (7,091) 59,966 Income for the period from discontinued operations - - 78 4,531 ------------------------------------------------------------------------- Income(loss) and comprehensive income(loss) for the period (2,090) 66,138 (7,013) 64,497 Deficit, beginning of period (10,891) (53,130) (5,968) (51,489) ------------------------------------------------------------------------- Surplus(deficit), end of period $(12,981) $ 13,008 $(12,981) $ 13,008 ------------------------------------------------------------------------- Continuing operations Basic income(loss) per share $ (0.02) $ 0.52 $ (0.06) $ 0.47 Diluted income(loss) per share (0.02) 0.36 (0.06) 0.33 Discontinued operations Basic income per share - - - 0.04 Diluted income per share - - - 0.02 Income(loss) per share Basic (0.02) 0.52 (0.06) 0.51 Diluted (0.02) 0.36 (0.06) 0.35 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of shares outstanding Basic 128,801 126,841 127,924 126,427 Diluted 128,801 184,298 127,924 184,015 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Look Communications Inc. INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS Three and nine months ended May 31, 2010 and 2009 (In thousands of dollars) ------------------------------------------------------------------------- Three months ended Nine months ended May 31 May 31 2010 2009 2010 2009 ------------------------------------------------------------------------- OPERATING ACTIVITIES Income(loss) for the period $ (2,090) $ 66,138 $ (7,013) $ 64,497 Less: Income for the period from discontinued operations - - (78) (4,531) Items not affecting cash 160 (68,893) 524 (66,484) Changes in non-cash operating assets and liabilities (70) 4,411 (22,769) 4,850 ------------------------------------------------------------------------- Cash provided by(used in) continuing operations (2,000) 1,656 (29,336) (1,668) Cash provided by discontinued operations - 12 78 507 ------------------------------------------------------------------------- Cash provided by(used in) operating activities (2,000) 1,668 (29,258) (1,161) ------------------------------------------------------------------------- ------------------------------------------------------------------------- FINANCING ACTIVITIES Cash provided by(used in) financing activities (3,358) - (5,304) 1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- INVESTING ACTIVITIES Cash provided by continuing operations 5,530 12,273 22,487 12,261 Cash provided by(used in) discontinued operations - (12) - 3,381 ------------------------------------------------------------------------- Cash provided by investing activities 5,530 12,261 22,487 15,642 ------------------------------------------------------------------------- Increase(decrease) in cash and cash equivalents 172 13,929 (12,075) 14,482 Cash and cash equivalents, beginning of period 2,007 4,118 14,254 3,565 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 2,179 $ 18,047 $ 2,179 $ 18,047 ------------------------------------------------------------------------- -------------------------------------------------------------------------
%SEDAR: 00013414E
For further information: Peter Block, Investor and Media Relations, [email protected], (647) 259-3284
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