Rutter Releases Second Quarter Unaudited Financial Statements
ST. JOHN'S, April 12 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its unaudited second quarter consolidated financial statements for the six month period ended February 28, 2010.
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 Company's 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 Thursday, April 15, 2010, to discuss the results. Details of this call were announced in a press release dated April 12, 2010 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 Six Six Change
Months Months Months Months
2010 2009 2010 2009
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Revenue $ 8,788 $14,071 $(5,283) $21,691 $25,689 $(3,998)
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EBITDA(1) 454 1,518 (1,064) 1,691 2,374 (683)
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Other costs(2) 1,511 1,403 (108) 2,547 2,110 (437)
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Earnings
(Loss) from
Continuing
Operations (1,057) 115 (1,172) (856) 264 (1,120)
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Net loss -
Discontinued
Operations - (1,754) 1,754 - (1,737) 1,737
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Net and
Comprehensive
Loss (1,057) (1,639) 582 (856) (1,473) 617
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Loss Per
Share $ (0.01) $ (0.02) $ 0.01 $ (0.01) $ (0.02) $ 0.01
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(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; Write down
of assets; Equity income; 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 Six Six Change
Months Months Months Months
2010 2009 2010 2009
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Revenues:
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Third party
manufactu-
ring $ 6,258 10,266 (4,008) 15,938 17,102 (1,164)
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Company
owned
products 1,882 3,384 (1,502) 4,019 7,603 (3,584)
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Total
Technolo-
gies 8,140 13,650 (5,510) 19,957 24,705 (4,748)
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Other
(including
Corporate) 648 421 227 1,734 984 750
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Company
total 8,788 14,071 (5,283) 21,691 25,689 (3,998)
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EBITDA
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Technologies
Segment 892 2,091 (1,199) 2,203 3,398 (1,195)
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Other
(including
Corporate) (438) (573) 135 (512) (1,024) 512
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Technologies
Technologies revenues for the quarter declined by $5,510,000 and on a year to date basis by $4,748,000. The decrease is partially the result of anticipated declines in third party manufacturing from the previous year's historic high which continued to impact revenues in the first quarter of the current year. In company owned products, VDR revenues continue to decline as the regulatory deadline for installation of the product approaches. Radar revenues have increased both for the quarter and year to date as the Company continues to pursue its strategy to grow its presence in the radar market. EBITDA has decreased as compared to the same quarter of the prior year due primarily to the impact of decreased revenues. While selling, general and administrative expenses and variable overheads have been reduced, these reductions do not entirely offset the impact of decreased revenues.
Earnings (Loss) from Continuing Operations
Overall continuing operations lost $1,057,000 in the quarter resulting in year to date losses of $856,000 compared to earnings of $264,000 for the same period last year. Contributing to the loss was a $532,000 write-down of product development costs as the result of the Company's decision during the quarter to cancel development of an electronic charting and display system.
CONCLUSION
"Our performance in the manufacturing business is essentially in line with expectations, having settled back to more normal levels in the current quarter", said Fraser H. Edison, President and CEO of the Company. "We had hoped for stronger operating results overall but the VDR market continues to be softer worldwide than anticipated, a trend that began with the economic downturn in the prior year. During the second quarter we have taken action to redirect more research and development efforts to complete the commercialization of the radar product line and completed a restructuring to realign the organization with the current sales activity. In addition, we continue to reduce excess costs that have been legacy issues of past acquisitions and divestitures, including resolution of an office lease in the US and reaching an agreement with a Canadian landlord to reduce the total square footage leased. We have also negotiated the sale of a building which will reduce the Company's debt upon closing.
Our strong relationship with our large military customer, solid technology in our radar products, a growing consulting engineering business and productive work environment are the core operational strengths that are the foundation of our future growth", 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 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.
%SEDAR: 00022015E
For further information: Karen Snook, Chief Financial Officer, Rutter Inc., (709) 368-3174; Dan Herder, Corporate Secretary, Rutter Inc., (709) 368-3174
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