TORONTO, Jan. 26, 2012 /CNW/ - LOREX Technology Inc. ("LOREX" or the "Company") [TSXV: LOXV] today announced results* for the three and twelve month periods ended September 30, 2011.
The Company is very pleased to announce that revenue increased by $15.9 million or 34% to $62.7 million and earnings before taxes increased by $2.1 million or 60% to $5.5 million for the fiscal year ended September 30, 2011.
Revenue during the fourth quarter ended September 30, 2011 grew by 40% or $5.3 million over the prior year to $18.6 million, when compared to $13.3 million in 2010. The Company's EBITDA for the quarter was $2.0 million compared to $1.9 million in 2010.
Fourth quarter 2011 operating expenses include increased marketing, sales, and operations costs proportionate to the Company's growth pattern; stock-based compensation expenses relating to stock options granted in the quarter totaling $0.2 million (nil in 2010); and new ERP support costs and IFRS conversion-related costs (nil in 2010).
"We are extremely pleased with our record setting operating results achieved during fiscal year end 2011," stated Chairman and CEO Reuben Klein. "We reported 34% growth in our top line revenues while at the same time maintaining gross profit margin percentage at the same level of 2010. Furthermore, our EBITDA for the year grew by 48% when compared to 2010 and we are delighted to report to shareholders that we have now completed our twelfth consecutive quarter of positive EBITDA."
"Our growth during the year can be attributed to several factors including industry trends and Company specific actions. First and foremost, National and International demand for "Do it Yourself" (DIY) video security solutions continues to grow at double digit annual levels. As a global leader in this market, we are extremely well positioned to capture a large chunk of that demand and continue to do so. In addition, during 2010 we recognized a growing trend in our Lorex brand consumer preferences moving towards lower priced, high quality solutions. Our continually evolving innovative product lines enabled us to quickly and methodically respond to this changing purchasing behavior and thus we were able to capture additional volume away from our competitors in our plug and play products as well as faster product turnover at the retail level. Our innovative product development continues to be recognized both by consumers and the industry and in January 2012, the Company was honoured with its 6th International Consumer Electronic Show engineering and design award for the new Lorex Live Connect2 Home and Family Wireless Video Monitoring System. This dedicated 'Plugged into Skype™' gateway enables remote viewing over any Skype™ compatible device.
In addition, during the year, awareness of our Digimerge branded professional products continued to grow, aiding in Lorex's top line growth. As we enter 2012, we expect continued growth for both our Lorex and Digimerge branded products this year and beyond," continued Mr. Klein.
Highlights of the three and twelve month operating results are as follows:
(Thousands of US $, unless otherwise noted)
| Three months ended
| Twelve months ended
|Revenue||$ 18,593||$ 13,265||$ 62,662||$ 46,767|
|Earnings before interest, taxes, amortization **||2,043||1,948||5,968||4,026|
|Earnings before income taxes||1,902||1,863||5,496||3,430|
|Earnings per common share, basic||$ 0.05||$0.09||$ 0.15||$ 0.13|
|Earnings per common share, diluted||$ 0.03||$0.06||$ 0.10||$ 0.09|
|Weighted average number of shares -basic||32,609,846||31,290,278||31,634,936||31,207,118|
|Weighted average number of shares - diluted||44,409,435||43,790,278||44,100,855||43,707,118|
*Unaudited financial information is available at www.sedar.com.
**EBITDA is not a measure of performance under Canadian GAAP. EBITDA should not be considered in isolation or as a substitute for profit nor as a measure of operating performance or profitability.
"We are pioneers and leaders of do-it-yourself video security solutions, and we continue to innovate by offering secure, internet-connected plug and play video technology to our customers. We believe that the new look, intuitive operation and ease of remote connectivity will cater to the growing demand from consumers. Our record sales and earnings this year will help us continue to build a stronger balance sheet and improve our working capital position. We will continue to increase our marketing and product development initiatives in 2012, which is expected to continue to contribute to our growth and profitability", concluded Mr. Klein.
The Company projects 2012 revenues to be in the $66 to $70 million range.
About LOREX Technology Inc.:
LOREX Technology Inc. ('LOREX') (TSXV:LOX.V) provides businesses and consumers with leading edge video surveillance security solutions and sells its products under the LOREX and Digimerge brands. The LOREX brand, which caters to both small business and consumer markets, is available in thousands of retail locations across North America. The Digimerge division distributes its products through major distributors in North America. Both brands concentrate on the sale of wired, wireless and IP security surveillance and monitoring equipment including cameras, digital video recorders and all-in-one systems.
LOREX subsidiaries include; LOREX Canada Inc., LOREX Corporation and Strategic Vista Corporation Limited, Hong Kong.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.
Cautionary Statement on Forward-Looking Information
This news release contains certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this press release relate to the Company's projected revenue. The forward-looking information reflects predictions and does not in any way reflect a guarantee. Factors which could cause actual results to differ materially from current projections include, among other things: competitive conditions in which the Company participates; changes in consumer spending; general economic conditions and normal business uncertainty; customer preferences towards product offerings; the occurrence of a pandemic or other catastrophic event which could create shortages of labour, products or services required to operate the business profitably; fluctuations in foreign currency exchange rates; changes in the Company's relationships with its suppliers. The Company cautions that this is not an exhaustive list of factors that may affect the forward-looking information contained in this press release. Potential investors and readers are urged to give careful consideration to all of these factors in evaluating any forward-looking information and are cautioned not to place undue reliance on such information. While the Company believes that its projections are reasonable, results predicted in this forward-looking information may differ materially from actual results. The Company disclaims any obligation to update forward-looking information, except as may be required by law.
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