Rutter Releases First Quarter Unaudited Financial Statements

ST. JOHN'S, Jan. 14 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its unaudited first quarter consolidated financial statements for the three month period ended November 30, 2009.

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 Monday, January 18, 2010, to discuss the results. Details of this call were announced in a press release dated January 12, 2010 and are also available on the Company's web site.

SUMMARY OF RESULTS

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

    
    -------------------------------------------------------------------------
                   (in thousands except per share amounts)
    -------------------------------------------------------------------------
                                  Three Months   Three Months
                                   November 30,   November 30,      Increase
                                          2009           2008      (Decrease)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Revenue                           $ 12,903       $ 11,617       $  1,286
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    EBITDA(1)                            1,236            855            381
    -------------------------------------------------------------------------
    Other costs(2)                       1,034            706            328
    -------------------------------------------------------------------------
    Net Earnings from Continuing
     Operations                            202            149             53
    -------------------------------------------------------------------------
    Net Earnings from Discontinued
     Operations                              -             17            (17)
    -------------------------------------------------------------------------
    Net Earnings                           202            166             36
    -------------------------------------------------------------------------
    Earnings per Share                   0.003          0.002          0.001
    -------------------------------------------------------------------------

    ---------------------
    1. 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.
    2. Other costs include: Depreciation and amortization; Interest on long-
       term debt; Interest and bank charges; Other items; Equity income; all
       of which are separately disclosed in the Company's financial
       statements.


    -------------------------------------------------------------------------
                                 (in thousands)
    -------------------------------------------------------------------------
                                  Three Months   Three Months
                                   November 30,   November 30,      Increase
                                          2009           2008      (Decrease)
    -------------------------------------------------------------------------
    Revenues
    -------------------------------------------------------------------------
    Third Party manufacturing         $  9,679       $  6,836       $  2,843
    -------------------------------------------------------------------------
    Company owned products               2,138          4,219         (2,081)
    -------------------------------------------------------------------------
      Technologies segment              11,817         11,055            762
    -------------------------------------------------------------------------
    Other (including corporate)          1,086            562            524
    -------------------------------------------------------------------------
      Company total                     12,903         11,617          1,286
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    EBITDA
    -------------------------------------------------------------------------
    Technologies segment              $  1,310       $  1,307       $      3
    -------------------------------------------------------------------------
    Other (including corporate)            (74)          (452)           378
    -------------------------------------------------------------------------
      Total                              1,236            855            381
    -------------------------------------------------------------------------
    

Overall, revenues increased by $1,286,000 or 11% for the first quarter as compared to the same quarter in the prior year.

Technologies - Revenue in the Technologies segment account for $762,000 of the revenue increase for the Company and were driven by increased third party manufacturing activity levels. The third party manufacturing revenue increase was offset by a decrease in revenues from the sale of the Company's products. EBITDA for the Technologies segment has stayed constant as compared to the same quarter of the prior year while revenues have increased due to the changing revenue mix; Company owned products are sold at a higher gross margin than earned in the third party manufacturing business.

Other (including corporate) - Revenues and EBITDA have improved as a result of increased consulting engineering business from government stimulus spending in response to the general economic conditions.

Earnings from Continuing Operations - The Company's profit from continuing operations was $202,000 for the quarter. This compares to a profit of $149,000 in the prior year's quarter.

CONCLUSION

The results of operations during the first quarter of the 2010 fiscal year are consistent with the Company's expectation for the quarter. "Rutter has now completed the transition from the restructuring we undertook in fiscal 2009," said Fraser Edison, President and CEO of the Company. "As these results show, we have strong performance in our manufacturing operations and I fully expect this to continue during the year. While our products business is slowing from last year, I'm very optimistic about the investments we are making in our radar products and the initial successes we've achieved," 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. Multidisciplinary consulting engineering services including civil, structural, mechanical and electrical engineering (other than automation engineering) as well as environmental and construction management services are provided to a diverse client base which includes all levels of government and the oil and gas and industrial sectors. 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.

%SEDAR: 00022015E

SOURCE Rutter Inc.

For further information: For further information: Karen Snook, Chief Financial Officer, Rutter Inc., (709) 368-3174; Dan Herder, Corporate Secretary, Rutter Inc., (709) 368-3174


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