Rutter Releases 2009 Audited Financial Statements

ST. JOHN'S , Nov. 30 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its audited consolidated financial statements for the year ending August 31, 2009 .

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 Companys 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 December 1, 2009 , at 9am EST to discuss the results. Details of this call were announced in a press release dated November 30, 2009 and are also available on the Company's web site.

    
    SUMMARY OF RESULTS

    The Company's quarterly results are summarized in the tables below:

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                   (in thousands except per share amounts)
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                     Three     Three    Change    Twelve    Twelve    Change
                    Months    Months              Months    Months
                      2009      2008                2009      2008
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    -------------------------------------------------------------------------
    Revenue        $15,381   $11,791    $3,590   $58,380   $45,733   $12,647
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    EBITDA(1)        1,735    (1,915)    3,650     5,609    (1,986)    7,595
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    Other (costs)
     income(2)      (1,424)   (1,992)      568    (5,280)   (7,143)    1,863
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    Earnings
     (loss) from
     Continuing
     Operations        310    (3,906)    4,216       329    (9,129)    9,458
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    Net loss
     - Discontinued
     Operations          -   (14,495)   14,495     1,991   (21,112)   23,103
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    Net earnings
     (loss)            310   (18,401)   18,711     2,320   (30,241)   32,561
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    Earnings
     (loss) Per
     Share          $ 0.00   $ (0.24)   $ 0.24    $ 0.03   $ (0.39)   $ 0.42
    -------------------------------------------------------------------------


    ------------------------------
    (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.
    (2) Other (costs) income include: Depreciation and amortization; Interest
        on long-term debt; Interest and bank charges; other items; Equity
        income; Write down of intangible assets and product development costs
        and Goodwill impairment, all of which are separately disclosed in the
        Company's financial statements.


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                               (in thousands)
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                     Three     Three    Change    Twelve    Twelve    Change
                    Months    Months              Months    Months
                      2009      2008                2009      2008
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    Technologies
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      Revenue:
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      Third party
       manufactu-
       ring        $11,795    $6,815    $4,980   $42,227   $24,386   $17,841
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      Company
       owned
       products      2,856     4,426    (1,570)   13,843    19,221    (5,378)
    -------------------------------------------------------------------------
      Total
       revenue      14,651    11,241     3,410    56,070    43,607    12,463
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      EBITDA         2,044    (1,208)    3,252     7,067       218     6,849
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Other
     (including
     corporate
     costs)
    -------------------------------------------------------------------------
      Revenue          730       550       180     2,310     2,126       184
    -------------------------------------------------------------------------
      EBITDA          (309)     (707)      398    (1,458)   (2,204)      746
    -------------------------------------------------------------------------
    

RESULTS

Overall, revenues increased by $3,590,000 for the fourth quarter as compared to the same quarter in the prior year. For the year, revenues increased by $12,647,000 .

Technologies - Revenues in the Technologies segment account for the total Company revenue increase and were driven by increased Third party manufacturing activity levels. The significant quarterly and year end increases in Third party manufacturing revenues were offset by a drop in revenues from the sale of Company owned products. EBITDA performance has also improved significantly by $3,252,000 for the quarter and $6,849,000 for the year. Driving the improvement for both the quarter and year end results is improved gross margin performance achieved as a result of the large revenue growth experienced in Third party manufacturing. Profitability also improved with respect to Company product sales as compared to the prior year which was negatively impacted by large warranty provisions with respect to the Company's VDR product line.

Earnings (Loss) from Continuing Operations - The Company's earnings from continuing operations were $310,000 for the quarter and $329,000 at year end. This compares to losses of $3,906,000 and $9,129,000 in the prior year's quarter and year end, respectively.

Net Loss - Discontinued Operations and Net Loss -As a result of the sale of the controls and automation business on March 31, 2009 , the statements reflect the results of this business as discontinued operations. Also reflected in discontinued operations for the prior year is the operation of Unicontrol International Ltda, a former subsidiary, disposed of in the final quarter of fiscal 2008. Net earnings for discontinued operations were $1,991,000 for the year. Included in the year end is a gain on sale of $2,644,000 and recognition of a future income tax recovery of $1,537,000 . Total net earnings for the year were $2,320,000 compared to a net loss of $30,241,000 in the prior year.

CONCLUSION

During the year, the Company achieved significant improvements in revenue generation in its manufacturing business and generated a profit and positive earnings per share. "I am very pleased with these results, in particular that we have generated positive earnings for our shareholders at year end considering the liquidity challenges faced by the Company over the past two years," said Fraser H. Edison, President and CEO of the Company. "This year, we were profitable for the first time since August 2003 . The performance is a demonstration of the fundamental strength of the Company and could not have been achieved without the dedication and effort of the people that work at Rutter," he concluded.

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. Multidisciplinary consulting engineering services including civil, structural, mechanical and electrical engineering (other than automation engineering) as well as environmental and construction management services are provided to a diverse client base which includes all levels of government and the oil and gas and industrial sectors. For more information see www.rutter.ca

Forward-Looking Statements

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.
    

For further information: Karen Snook, Chief Financial Officer, Rutter Inc., [phone]; Dan Herder, Corporate Secretary, Rutter Inc., [phone]