Company Achieves Record Revenues and Profitability
TORONTO, May 24, 2012 /CNW/ - LOREX Technology Inc. ("LOREX" or the "Company") [TSXV: LOX] announces results* for the three and six month periods ended March 31, 2012.
LOREX Technology is pleased to announce record revenue and EBITDA results for its second quarter and the first six months ending March 31, 2012 of the current fiscal year. Revenue for the second quarter grew by $5.7 million or 50% over the prior year to $17.0 million; and the Company's EBITDA grew by $1.0 million over the prior year to $1.4 million. For the current six month period, revenue grew by $9.9 million or 36% over the prior year to $37.5 million; and the Company's EBITDA grew by $1.7 million or 68% over the prior year to $4.1 million.
"We are extremely pleased with our record-setting achievements both during this quarter and over the first six months of fiscal 2012," stated Reuben Klein, Chairman and CEO of Lorex Technology. "We were able to continue our recent growth trend in both revenues and profitability despite continuing economic challenges in this competitive business environment. Our growth is organic and continues to come across all business areas, as both the Lorex and Digimerge brands continue to gain in demand, awareness and market share. Revenue for the first six months grew by 36% over the prior year. Our EBITDA dollars for the first six months grew by 68% over the prior year; and as a percentage of revenue improved to 11.1% from 8.9% the prior year. We are happy to report that we have now completed fourteen consecutive quarters of positive EBITDA. We previously reported that projected revenue for the fiscal year ended September 30, 2012 would be in the range of $66 million to $70 million. Based on actual results for the first six months of the year, we have updated our projections and are happy to report that revenue is now expected to be in the $74 million to $78 million range."
"Please be reminded when reading the financial information noted below that $0.6 million of a previously unrecognized loss carry-forward was available and utilized in the prior year to reduce the tax expense," continued Mr. Klein. "The result was tax expense for the first six months of the prior year of $0.2 million, as compared to $1.3 million in the current year. The benefit of North American loss carry-forwards that reduced tax expense in fiscal 2011 has been fully utilized."
Highlights of the three and nine month operating results are as follows:
(Thousands of US $, unless otherwise noted)
| Three months ended
| Six months ended
|Revenue||$ 16,976||$ 11,336||$ 37,477||$ 27,581|
|Earnings before interest, taxes, amortization **||1,358||358||4,144||2,461|
|Earnings before income taxes||1,254||244||3,888||2,247|
|Earnings per common share, basic||$ 0.02||$ 0.01||$ 0.07||$ 0.07|
|Earnings per common share, diluted||$ 0.02||$ 0.01||$ 0.06||$ 0.05|
|Weighted average number of shares -basic||36,052,788||31,290,278||35,799,763||31,290,278|
|Weighted average number of shares - diluted||45,194,381||43,807,254||44,901,727||43,790,278|
*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.
"Lorex pioneered and has established ourselves as the market leader in do-it-yourself consumer and professional advanced video security products by providing one of the broadest, most advanced product lines in the industry. We provide consumers and businesses with leading-edge video surveillance security solutions in a variety of configurations. We have invested heavily in product development to consistently deliver first-to-market features with the highest emphasis on user experience and connectivity compared to our competitors. We continue to innovate our products, introduce new solutions and offer secure industry leading, internet-connected plug and play video technology to our customers. Our record revenue and earnings for the first six months of fiscal 2012 continued to strengthen our balance sheet and improve our working capital position. We will continue to increase our marketing and product development initiatives throughout the remainder of 2012 and beyond to increase shareholder value; and expect to continue our growth and profitability", concluded Mr. Klein.
About LOREX Technology Inc.:
LOREX Technology Inc. ('LOREX') (TSXV:LOX) 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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