ST. JOHN'S, July 12, 2012 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its unaudited third quarter consolidated financial statements for the nine month period ended May 31, 2012.
Summary financial information is provided in this press release which should be read in conjunction with the condensed consolidated interim financial statements and MD&A available on the Company's web site at www.rutter.ca or on SEDAR at www.sedar.com. Please note the Company has decided to host only an annual conference call to discuss results, beginning with the August 2012 release scheduled in November.
SUMMARY OF RESULTS
The Company's quarterly results are summarized in the tables below:
|Revenue||Q3 2012||Q3 2011||YTD 2012||YTD 2011|
|Third party manufacturing||$||3,775||$||8,091||$||11,986||$||20,214|
|Company owned products||1,216||2,663||3,680||4,554|
|Net earnings (loss)||$||(1,199)||$||3,390||$||(1,825)||$||3,702|
|Earnings (loss) per share||$||(0.016)||$||0.044||$||(0.024)||$||0.048|
|(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.|
Third party manufacturing revenue is lower in the third quarter of the current year and on a year to date basis as a result of a reduced Stryker program by the Company's significant military customer. Partially offsetting the reduction of revenue available from the Stryker program is an increase in revenues from the customer's foreign military sales program.
Company owned products revenue is lower in the third quarter and on a year to date basis due to a reduction in deliveries of the Company's Oil Spill Detection product in the current year. The Company attained certification from the Norwegian Clean Seas Association for this product in the Fall of 2010, which quickly led to commercial success and culminated in a large spike in sales in the prior year third quarter.
The strong EBITDA performance in the comparative quarter of the prior year was due to peak revenues achieved for both third party manufacturing and company owned products in that quarter. The elements contributing to lower EBITDA performance for the current year to date include: lower year to date revenues from third party manufacturing; the change in mix of products manufactured; lower year to date revenues from radar sales; higher professional fees in the first quarter relating to acquisition activity and higher research and development expenses.
Included in the net loss for the quarter is a $517,000 loss on settlement of debt relating to the early repayment of a 14% term loan which was scheduled to mature December 2012. The loss on settlement has no cash impact, reflecting previously unaccreted loan transaction costs and unaccreted equity component of the debt that would otherwise have been accreted over the remaining scheduled maturity to December 2012. The early settlement was funded partially from the proceeds from the issuance of two new loans, bearing interest at 10%.
Commenting on the quarter, Fraser Edison, CEO, noted "The quarterly earnings performance was impacted both by the loss on settlement of debt and a lower revenue base. We are pleased to have completed our new debt financing. Based on orders in hand for both Manufacturing and Products, we expect our fourth quarter revenues will be the strongest for the year."
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. For more information see www.rutter.ca
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 and Corporate Secretary, Rutter Inc. +1 709 576 6666