Net earnings more than double compared to 2008
Toronto Stock Exchange Symbol: RTT
ST-LAMBERT, QC, March 24 /CNW/ - Roctest Ltd ("Roctest") (TSX: RTT) a leading manufacturer of high-tech sensors for civil engineering, healthcare and industrial applications, today announced its operational and financial results for the three- and twelve-month periods ended December 25, 2009. All results are reported in Canadian dollars.
"Fiscal 2009 was a record breaking year for Roctest as we achieved the highest revenues in Company history," said Francois Cordeau, President and CEO of Roctest. "This milestone was a result of record revenue from the industrial sector as well as steady growth from the civil engineering sector and allowed us to generate over $1.1 million of net income, more than doubling our 2008 earnings."
Mr. Cordeau continued: "We transacted in 72 countries in 2009, achieving record revenues in markets like Vietnam and Italy. We have launched SHMLive, an innovative monitoring service which offers, for a fixed monthly fee, a turnkey structural health monitoring system providing data and exception reports in real-time. In the industrial sector, our focus on OEM accounts has continued to serve us well, with these integrators accounting for over 70% of FISO revenues in 2009, compared to 55% in 2008."
Roctest's consolidated revenues were $25.5 million for 2009, a record level for the Company and an increase of $2.2 million or 9.4% in comparison with consolidated revenues of $23.3 million in 2008. The revenue growth is attributable to a 16.5% increase in revenues of the industrial sector, and an increase of 6.7% in the civil engineering sector.
For the fourth quarter ended December 25, 2009, revenue reached $6.49 million compared to $6.48 million in the same quarter of 2008. Revenue from the civil engineering sector grew by nearly 3%, while revenue from the industrial sector declined by 6.5% due to inventory adjustment from a large customer.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") amounted to nearly $2.9 million in 2009, compared to $2.1 million in 2008. The $0.8 million improvement was attributable to revenues and gross profit increasing at a faster rate than operating expenses. In the fourth quarter of 2009, EBITDA increased to $1.14 million from $0.84 million in the same period of 2008.
Net earnings were $1.17 million or $0.21 per share in 2009, compared to net earnings of $0.52 million or $0.09 per share in 2008. The $0.65 million improvement in net earnings was attributable to increased EBITDA as well as lower amortization and interest costs, partially offset by increased foreign exchange loss and income tax expense. In the fourth quarter of 2009, the net earnings were $0.36 million or $0.06 per share, compared to net earnings of $0.33 million or $0.06 per share in the fourth quarter of 2008.
As of December 25, 2009, Roctest had $1.25 million in cash and cash-equivalents and temporary investments less bank advances, compared with $1.08 million in 2008. The Company and its subsidiaries had credit lines totaling $2.42 million at the end of fiscal 2009 compared to $2.34 million a year earlier. Working capital increased by more than $1.5 million during the year, totalling $6.39 million at December 25th, 2009 compared to $4.86 million on December 26, 2008. As at March 24, 2010, Roctest had 5,563,071 common shares outstanding.
"We achieved significant growth in 2009 despite the ongoing global economic downturn," said Francois Cordeau. "I believe the positive financial results validate our strategy to be the leader in sensor instrumentation by offering a complete toolbox of solutions, providing world-class traditional vibrating-wire instruments, leading-edge fiber optic sensors, the unique Senscore(TM) concrete corrosion monitoring system and application software to monitor complex structures such as SHMLive(TM)."
Mr. Cordeau continued: "We remain confident that we will benefit from new opportunities in the civil engineering market resulting from the investments in infrastructure renewal and development projects included in the stimulus plans announced by governments around the world. We expect the economic climate, particularly in the USA, to continue to have a negative impact on our industrial segment as some of our customers have decided to reduce their inventory levels over the first half of 2010. As a result, we anticipate that revenue growth in this segment, which represents approximately 30% of our total revenues, is unlikely before 2011, at which time we expect to see renewed growth in the sector."
Further information relating to Roctest's 2009 and fourth quarter 2009 operating results and financial results may be found on the Company's website at www.roctest.com and on SEDAR (www.sedar.com).
About Roctest Ltd
Roctest designs, manufactures and markets sensors and high-precision measuring instruments for civil engineering and energy, healthcare and industrial control applications in the industrial sector. The Company is recognized for its leading-edge technology, the quality of its technical expertise and its product development capabilities for challenging and demanding environments. Its products are mainly sold internationally. The shares of the Company are listed on the Toronto Stock Exchange under the symbol RTT. To reach Roctest Ltd via the worldwide web please visit www.roctest.com.
Caution concerning forward-looking statements
Except for historical information provided herein, this press release may contain information and statements of a forward looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events, and as such involve a number of risk factors. Such factors may include, without excluding other considerations, risks related to foreign exchange fluctuations, evolution in customer demand for the Company's products and services, the impact of price pressure from competitors and general market trends, economic and geopolitical changes. As a result, readers are advised that actual results may differ from expected results. The Company is not required to update or revise publicly its forward-looking statements, except as may be required under applicable law.
SOURCE ROCTEST LTD.
For further information: For further information: François Cordeau, President and Chief Executive Officer, Roctest Ltd., (450) 465-1113, (450) 465-1938 fax, Email: email@example.com; Jeff Codispodi, Investor Relations, The Equicom Group Inc., (416) 815-0700 x 261, (416) 815-0080 fax, Email: firstname.lastname@example.org