Rutter Releases Second Quarter Unaudited Financial Statements



    ST. JOHN'S, April 15 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its
unaudited second quarter consolidated financial statements for the six month
period ended February 28, 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 Thursday,
April 16, 2009, to discuss the results. Details of this call were announced in
a press release dated April 13, 2009 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     Three                 Six       Six
                    Months    Months              Months    Months
                      2009      2008    Change      2009      2008    Change
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Revenue       $ 14,071  $ 10,926  $  3,145  $ 25,689  $ 22,299  $  3,390
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    EBITDA(1)        1,518       479     1,039     2,374       434     1,940
    -------------------------------------------------------------------------
    Other (costs)
     income (2)     (1,403)   (1,341)      (62)   (2,110)   (2,866)      756
    -------------------------------------------------------------------------
    Earnings
     (loss) from
     Continuing
     Operations        115      (862)      977       264    (2,432)    2,696
    -------------------------------------------------------------------------
    Net loss -
     Discontinued
     Operations     (1,754)   (2,355)      601    (1,737)   (4,578)    2,841
    -------------------------------------------------------------------------
    Net loss        (1,639)   (3,217)    1,578    (1,473)   (7,010)    5,537
    -------------------------------------------------------------------------
    Loss Per
     Share        $  (0.02) $  (0.04) $   0.02  $  (0.02) $  (0.09) $   0.07
    -------------------------------------------------------------------------

    --------------------
    (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) income include: Depreciation and amortization; Interest
        on long-term debt; Interest and bank charges; (Gain) on sale of
        investments; other items; Equity income; all of which are separately
        disclosed in the Company's financial statements.


    -------------------------------------------------------------------------
                               (in thousands)
    -------------------------------------------------------------------------
                     Three     Three                 Six       Six
                    Months    Months              Months    Months
                      2009      2008    Change      2009      2008    Change
    -------------------------------------------------------------------------
    Technologies
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
      Revenue:
    -------------------------------------------------------------------------
      Third party
       manufactu-
       ring       $ 10,266  $  5,213  $  5,053  $ 17,102  $ 11,457  $  5,645
    -------------------------------------------------------------------------
      Company
       owned
       products      3,384     5,122    (1,738)    7,603     9,792    (2,189)
    -------------------------------------------------------------------------
      Total
       revenue      13,650    10,335     3,315    24,705    21,249     3,456
      EBITDA         2,091       973     1,118     3,398     1,590     1,808
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Consulting
     Engineering
    -------------------------------------------------------------------------
      Revenue          421       591      (170)      984     1,050       (66)
    -------------------------------------------------------------------------
      EBITDA          (113)      (21)      (92)     (108)      (80)      (28)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
      Corporate
       Costs           460       473       (13)      916     1,076      (160)
    -------------------------------------------------------------------------
    

    RESULTS

    Overall, revenues increased by $3,145,000 for the second quarter as
compared to the same quarter in the prior year.

    Technologies - Revenues in the Technologies segment account for the total
Company revenue increase and were driven by increased third party
manufacturing activity levels. The significant quarterly and year to date
increases in third party manufacturing revenues were offset by a drop in
revenues from the sale of Company owned products. EBITDA performance has also
improved significantly at $2,091,000 for the quarter and $3,398,000 year to
date. In addition to the impact of increasing revenues on performance, the
Technologies segment has also benefited from improved gross margin performance
achieved from the productivity improvement exercise undertaken in fiscal 2008,
the weakening of the Canadian dollar and ongoing cost rationalization efforts.

    Consulting Engineering - This segment saw a decrease in revenue of
$170,000, and overall a decrease of $66,000 on a year to date basis. EBITDA
performance declined in part due to the revenue decrease and lower utilization
rates for personnel.

    Earnings (Loss) from Continuing Operations - The Company's earnings from
continuing operations were $115,000 for the quarter and $264,000 year to date.
This compares to losses of $862,000 and $2,432,000 in the prior year's quarter
and year to date, respectively.

    Net Loss - Discontinued Operations and Net Loss -As a result of the sale
of the Controls and Automation business on March 31, 2009, the statements now
reflect the results of this business as discontinued operations. Also
reflected in discontinued operations for the prior year is the operation of
Unicontrol International Ltda, a former subsidiary, disposed of in the final
quarter fiscal 2008. During the quarter, discontinued operations reported a
loss of $1,754,000, a decrease of $601,000 compared to the same quarter in the
previous year. On a year to date basis, the discontinued operations reported a
loss of $1,737,000, a reduction of $2,841,000 compared to the same period in
the previous year. The net loss for the quarter is $1,639,000, an improvement
of $1,578,000 as compared to the same quarter of the previous year. The net
loss, year to date, is $1,473,000, an improvement of $5,537,000 as compared to
the same period last year.

    CONCLUSION

    The operating results released are in line with the Company's
expectations for the second quarter. "This has been a transitional quarter for
Rutter as we worked to complete the sale of our controls and automation
business," said Fraser H. Edison, President and CEO of the Company. "The
completion of the sale and consequent reduction and restructuring of debt in
the subsequent quarter will allow us to refocus on core competencies in our
technologies business and local opportunities in our consulting engineering
business. With strong demand expected for our manufacturing expertise,
continuing efforts to further improve our productivity levels and ongoing work
on diversification of our product line, we are looking forward to the
opportunities ahead " 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




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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