OSI Geospatial Inc. Reports 2009 Fourth Quarter and Year End Results
OTTAWA, March 1 /CNW Telbec/ - OSI Geospatial Inc. (TSX: OSI) today announced its financial results for the fourth quarter of fiscal year 2009 and 12 months ending November 30, 2009, reported in Canadian dollars and in accordance with Canadian Generally Accepted Accounting Principles (GAAP). The Company previously announced that it will present its results during a conference call scheduled for 5:00PM, Eastern Time, today March 1, 2010.
For the fourth quarter of 2009, OSI Geospatial Inc. reported consolidated revenue of $4.7 million, a decrease of 42% from the $8.1 million reported in the fourth quarter of 2008. The consolidated revenue for the full year of 2009 was $23.0 million compared to $26.9 million in the prior year, a decrease of 14%.
For the fourth quarter of 2009, the Company reported a net loss of $5.7 million before taxes and a net loss after taxes of $5.7 million compared with net earnings of $363,000 before taxes and earnings after taxes of $1.0 million in the fourth quarter of 2008. The fourth quarter of 2009 includes a one-time restructuring charge of $387,000 and a non-cash goodwill impairment charge of $4.5 million. For the 12 months ending November 30, 2009, the Company reported a net loss of $7.9 million before taxes and $7.7 million after taxes compared to a $2.4 million loss before taxes and a $1.4 million loss after taxes in the same period of 2008. The 12 months ending November 30, 2009 includes a one-time restructuring charge of $652,000 and a non-cash goodwill impairment charge of $4.5 million.
For the fourth quarter of 2009, the net loss attributable to common shareholders was $5.9 million or $0.12 per share, compared to a net income of $873,000 or $0.02 per share in 2008. For the full year of 2009, the net loss attributable to common shareholders was $8.3 million or $0.18 per share compared to the net loss available to common shareholders of $2.0 million or $0.04 per share in the prior year.
"In the fourth quarter, the Company recorded a non-cash goodwill impairment charge of approximately $4.5 million. This action is primarily the result of the sustained decrease in market capitalization, reduced operating forecasts, and the divestiture of a non-core asset," said Ken Kirkpatrick, president and CEO. "Subsequent to the fourth quarter, we announced the divestiture of our soldier systems intellectual property for US$6.5 million. These funds will significantly strengthen our balance sheet and provide us with the resources to take advantage of the growth opportunities that our niche maritime markets present for our world-leading technologies."
Conference Call
OSI Geospatial will present the results from the 2009 fourth quarter at 5:00PM Eastern Time (2:00 PM Pacific Time), Monday, March 1, 2010. To listen to the conference call live by telephone, dial +1-800-319-4610 for participants in North America or +1-604-638-5340 for international participants approximately ten minutes before the call is scheduled to begin. A telephone playback will be available beginning approximately one hour after the call. Dial +1-800-319-6413 for North American callers or +1-604-638-9010 for international callers. Enter access code 7826 followed by the number sign. A replay version of the webcast can be accessed on the Company's investor website at http://www.osigeospatial.com/investors/default.htm.
About OSI Geospatial
OSI Geospatial Inc. delivers advanced geospatial systems and software that enable shared real-time situational awareness for military, safety and security applications. Our products and services enable our customers to integrate and visualize live data with any combination of sensor data, imagery, maps and charts. This capability provides our customers with enhanced operational performance, safety and security through shared real-time situational awareness. OSI Geospatial systems and software are in use by military, government, and commercial customers around the world. The Company is publicly traded on the Toronto Stock Exchange. For additional information please visit www.osigeospatial.com.
Forward-Looking Statements
This press release contains forward-looking statements and information which reflect the current view of OSI Geospatial Inc. ("OSI") with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties, and OSI's actual results of operations could differ materially from historical results or current expectations. Additional information on these and other potential factors that could affect OSI's financial results are detailed in disclosure documents filed from time to time with the applicable Canadian securities regulatory authorities.
The Toronto Stock Exchange has neither approved nor disapproved the form or content of this release.
Copyright (C) 2010 OSI Geospatial Inc. and its affiliated or related companies. ECPINS and COP-IDS are registered trademarks of Offshore Systems Ltd., an OSI Geospatial company. iGEN is a registered trademark of CHI Systems Inc., an OSI Geospatial company. Other company brand, product and service names are for identification purposes only and may be either trademarks, service marks or registered trademarks of their respective owners. Data subject to change without notice.
OSI Geospatial Inc.
Consolidated Balance Sheets (unaudited)
As at November 30, 2009 and 2008
In thousands of Canadian dollars 2009 2008
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Assets
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Current assets
Cash $ 315 $ -
Accounts receivable and unbilled revenue 5,880 11,183
Inventory 1,139 1,407
Prepaid expenses and deposits 375 388
Current portion of future income tax asset 1,041 338
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8,750 13,316
Deferred development costs 653 437
Future income tax asset 113 823
Equipment and furnishings 1,473 1,735
Intangible and other assets 446 732
Goodwill 4,324 10,269
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$ 15,759 $ 27,312
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Liabilities
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Current liabilities
Bank indebtedness $ 599 $ 2,015
Factored advances payable 240 -
Accounts payable and accrued liabilities 3,806 4,519
Income taxes payable - 9
Unearned revenue 550 256
Current portion of deferred rent 41 41
Current portion of capital lease obligations 68 88
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5,304 6,928
Deferred rent 260 347
Capital lease obligation 54 156
Unearned revenue 178 290
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5,796 7,721
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Shareholders' Equity
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Issued and outstanding
Class A, Series A preference shares 30 30
Class B, Series 2 preference shares 5,383 5,731
Common shares 29,876 29,748
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35,289 35,509
Warrants 4,546 4,898
Contributed surplus 3,322 2,674
Accumulated deficit (31,838) (24,121)
Accumulated other comprehensive income (1,356) 631
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9,963 19,591
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$ 15,759 $ 27,312
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OSI Geospatial Inc.
Consolidated Statements of Operations (unaudited)
For the years ended November 30, 2009 and 2008
In thousands of Canadian dollars,
except share related data 2009 2008
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Revenue
Maritime systems $ 8,159 $ 12,396
Land and air systems 11,077 10,154
Mapping 3,758 4,312
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22,994 26,862
Cost of sales 15,541 17,077
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Gross profit 7,453 9,785
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Expenses (income)
General and administrative 5,275 5,621
Sales and marketing 3,164 4,086
Engineering 872 1,179
Technology Partnerships Canada royalty 394 562
Amortization 433 497
Interest expense 111 137
Interest income (8) (8)
Foreign exchange (gain) loss (6) 74
Loss on disposal of equipment and furnishings - 28
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10,235 12,176
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Net loss before other items (2,782) (2,391)
Other items
Goodwill impairment charge (4,453) -
Restructuring costs (652) -
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Net loss before income taxes (7,887) (2,391)
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Future income tax recovery (187) (802)
Current income tax (recovery) expense 11 (220)
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Income tax recovery (176) (1,022)
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Net loss $ (7,711) $ (1,369)
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Net loss available to common shareholders $ (8,315) $ (1,994)
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Loss per share
Basic and diluted $ (0.18) $ (0.04)
Weighted average number of common shares
outstanding
Basic and diluted 47,250,113 46,956,439
OSI Geospatial Inc.
Consolidated Statements of Cash Flows (unaudited)
For the years ended November 30, 2009 and 2008
In thousands of Canadian dollars 2009 2008
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Cash flows from (used in) operating activities
Net loss for the year $ (7,711) $ (1,369)
Items not affecting cash
Amortization 637 724
Loss on disposal of intangible assets and
equipment and furnishings - 28
Stock-based compensation 66 21
Goodwill impairment charge 4,453 -
Future income taxes (187) (802)
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(2,742) (1,398)
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Changes in non-cash working capital items
Accounts receivable and unbilled revenue 4,785 2,797
Inventory 265 (181)
Prepaid expenses and deposits (24) 165
Accounts payable and accrued liabilities (496) (1,315)
Income taxes payable (16) (157)
Unearned revenue 186 153
Deferred rent (41) (42)
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4,659 1,420
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1,917 22
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Cash flows used in investing activities
Development costs deferred (237) (294)
Additions to equipment and furnishings (164) (182)
Additions to intangible and other assets (24) (99)
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(425) (575)
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Cash flows from (used in) financing activities
Advances from (repayments of) bank indebtedness (1,361) 1,089
Factored advances payable 240 -
Repayment of capital lease obligations (95) (50)
Issue of shares related to exercise of stock
options 9 -
Class B preference share dividends declared and
paid (6) (332)
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(1,213) 707
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Effect of foreign exchange on cash balances 36 (154)
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Increase in cash and cash equivalents 315 -
Cash and cash equivalents - beginning of year - -
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Cash and cash equivalents - end of year $ 315 $ -
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For further information: Sandy Oneschuk, Investor Relations, (613) 287-8004 or +1-888-880-9797, (613) 287-0466 (FAX), [email protected]
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