ST. JOHN'S, Nov. 28, 2012 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its audited consolidated financial statements for the year ended August 31, 2012.
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 Friday, November 30, 2012, to discuss the results. Details of this call were announced in a press release dated November 28, 2012 and are also available on the Company's web site.
SUMMARY OF RESULTS
The Company's quarterly results are summarized in the table below:
(in thousands except per share amounts)
|Q4 2012||Q4 2011||YTD 2012||YTD 2011|
|Third party manufacturing||$||4,649||$||6,019||$||16,634||$||26,233|
|Company owned products||1,652||1,575||5,333||6,129|
|Net earnings (loss)||$||555||$||1,027||$||(1,269)||$||4,730|
|Earnings (loss) per share||$||0.008||$||0.013||$||(0.017)||$||0.062|
|(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.
Third party manufacturing revenue is lower in the fourth quarter of the current year and on a year to date basis as a result of a reduced Stryker program by the Company's significant military customer. Partially offsetting the reduction of revenue available from the Stryker program is an increase in revenues from the customer's foreign military sales program.
Company owned products revenue is lower in the current year by $797,000 primarily due to timing of shipments. At August 31, 2012, the Company had unshipped radar orders of $845,000 whereas the backlog value was closer to $50,000 at August 31, 2011.
The elements contributing to lower EBITDA performance for the current year include: lower year to date revenues from third party manufacturing; the change in mix of products manufactured; lower year to date revenues from radar sales; higher professional fees in the first quarter relating to acquisition activity and higher research and development expenses. The EBITDA performance benefitted in the quarter both from improved gross profit performance and an increase in other income.
Included in the net loss for the year was a $508,000 loss on settlement of debt relating to the early repayment of a 14% term loan which was scheduled to mature December 2012. The loss on settlement has no cash impact, reflecting loan transaction costs and equity component of the debt that would otherwise have been accreted over the remaining scheduled maturity from May to December 2012. The early settlement was funded partially from the proceeds from the issuance of two new loans, bearing interest at 10%.
Commenting on the quarter, Fraser Edison, CEO, noted "We have continued to be successful in controlling costs in the current year and as expected, the quarterly earnings performance was the strongest of the year. We continue to be excited about our radar product line; and we expect our acquisition of OceanWaveS subsequent to yearend will create new development pathways and revenue generation opportunities going forward."
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
About OceanWaveS GmbH - OceanWaveS is an enterprise focused on technology development for the real time measurement of directional ocean wave spectra. OceanWaveS' customer base includes operators in offshore oil development interested in operational safety and efficiency, navies pursuing greater understanding of ship stability and motion prediction, and coastal monitoring stations concerned with vessel traffic management and coastline erosion monitoring. For more information see www.oceanwaves.org
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.
Fraser Edison, President and Chief Executive Officer, Rutter Inc. +1 709 576 6666