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

SOURCE Look Communications Inc.

For further information: For further information: Peter Block, Investor and Media Relations, investorinfo@look.ca, (647) 259-3284

Organization Profile

Look Communications Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890