December 6, 2010 17:53
LOOK COMMUNICATIONS REPORTS FISCAL 2010 RESULTS
TORONTO, Dec.6 /CNW/ - Look Communications Inc. ("Look" or the "Corporation") (TSXVenture: LOK and LOK.A) today reported its operating and financial results forthe fiscal year ended August 31, 2010.
Operating highlights for the year ended August 31, 2010 included the following:
- On September 11, 2009, Look received the final payment of $50 million in connection with the sale of its spectrum and broadcast licence;
- On November 15, 2009, Look terminated service to its remaining subscribers and by the end of December 2009, Look had decommissioned its wireless network;
- On July 21, 2010, prior to the opening of the markets, the Corporation's former Board of Directors resigned seriatim and the CEO and CFO gave notice that they would no longer serve as officers of the Corporation. Messrs. Grant McCutcheon, Henry Eaton, David Rattee and Lawrence Silber now serve as Directors with Grant McCutcheon also serving as CEO and Acting CFO; and
- The Corporation has five full-time equivalent employees at August 31, 2010.
Financial highlights for the year ended August 31, 2010 included the following:
- Cash and cash equivalents and short-term investments at August 31, 2010 totalled $27.3 million, which represents an increase of $13.0 million from August 31, 2009. This increase is due to, among other things, the receipt of the final $50 million of consideration due from Inukshuk partially offset by the payment of the Corporation's restructuring charges and losses from ongoing operations;
- Operating expenses for the year ended August 31, 2010 totalled $8.1 million, a decrease of $29.8 million or 79.0 per cent from the $37.9 million incurred during fiscal 2009;
- The net loss for the year ended August 31, 2010 was $8.4 million, or a basic loss per share of
.06; and
- During the third quarter of fiscal 2010, debenture-holders converted $ 0.9 million of debentures into 6.1 million Multiple Voting Shares and 6.1 million Subordinate Voting Shares and the Corporation redeemed the remaining $3.2 million of debentures for cash. As a result, at August 31, 2010 the Corporation had no remaining debenture-related liabilities.
The Corporation continues to pursue opportunities to maximize thevalue of its remaining assets consisting primarily of its cash and short-terminvestments of approximately $27 million,approximately $373 million of tax attributes, ofwhich $184 million expires at December 31, 2010, and the Milton facility and relatedinfrastructure.
For further information on Look's financial results, please reviewthe Corporation's annual audited consolidated financial statements andmanagement's discussion and analysis of financial condition and results ofoperations for the years ended August 31, 2010 and2009.
About Look Communications Inc.
Look's shares are listed on the TSX Venture Exchange under thesymbols "LOK" for Multiple Voting Shares and "LOK.A" for SubordinateVoting Shares. Look's website may be found at www.look.ca.
The corporate information contained in this release includesforward-looking statements regarding future events and the futureperformance of Look that involve risks and uncertainties that could cause actualresults to differ materially. Assumptions used in the preparation of suchinformation, although considered reasonable by Look at the time of preparation,may prove to be incorrect. The actual results achieved may vary from theinformation provided herein and the variations may be material. Consequently,there is no representation by Look that actual results achieved will be the samein whole or in part as those forecast.
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracy of thisrelease.
Look Communications Inc.
CONSOLIDATED CONDENSED BALANCE SHEETS
As at August 31, 2010 and 2009
(In thousands of dollars) |
|
|
|
|
|
|
2010 |
|
2009 |
| ASSETS |
|
|
|
|
| Total current assets |
$ |
31,505 |
$ |
67,288 |
| Restricted cash |
|
- |
|
380 |
| Property and equipment |
|
1,738 |
|
1,995 |
|
$ |
33,243 |
$ |
69,663 |
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
| Liabilities |
|
|
|
|
| Total current liabilities |
$ |
1,190 |
$ |
26,144 |
| Liability component of convertible debentures |
|
- |
|
3,291 |
| Total liabilities |
|
1,190 |
|
29,435 |
|
|
|
|
|
| Shareholders' equity |
|
|
|
|
| Share capital |
|
34,484 |
|
33,566 |
| Equity component of convertible debentures |
|
- |
|
1,479 |
| Contributed surplus |
|
11,934 |
|
11,151 |
| Deficit |
|
(14,365) |
|
(5,968) |
| Total shareholders' equity |
|
32,053 |
|
40,228 |
|
$ |
33,243 |
$ |
69,663 |
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS,COMPREHENSIVE INCOME AND DEFICIT
Year ended August 31, 2010 and 2009
(In thousands, except per share amounts) |
|
|
|
|
|
|
2010 |
|
2009 |
|
|
|
|
|
| Service and sales revenue |
$ |
434 |
$ |
12,518 |
| Carrier charges and cost of sales |
|
425 |
|
7,295 |
| Gross margin from continuing operations |
|
9 |
|
5,223 |
| Expenses |
|
8,147 |
|
37,945 |
| Loss from continuing operations before the undernoted |
|
(8,138) |
|
(32,722) |
| Accretion on liability component of convertible debentures |
|
(386) |
|
(432) |
| Interest and finance income (charges), net |
|
100 |
|
(137) |
| Gain on sale of property and equipment |
|
10 |
|
2 |
| Gain on sale of spectrum and broadcast licence |
|
(61) |
|
78,106 |
| Gain on sale of Internet business |
|
- |
|
1,630 |
| Loss on settlement of Bell litigation |
|
- |
|
(5,457) |
| Income (loss) for the year from continuing operations |
|
(8,475) |
|
40,990 |
| Income for the year from discontinued operations |
|
78 |
|
4,531 |
| Income (loss) and comprehensive income (loss) for the year |
|
(8,397) |
|
45,521 |
| Deficit, beginning of year |
|
(5,968) |
|
(51,489) |
| Deficit, end of year |
$ |
(14,365) |
$ |
(5,968) |
|
|
|
|
|
| Continuing operations |
|
|
|
|
|
Basic income (loss) per share |
$ |
(0.06) |
$ |
0.32 |
|
Diluted income (loss) per share |
|
(0.06) |
|
0.22 |
| Discontinued operations |
|
|
|
|
|
Basic income per share |
|
- |
|
0.04 |
|
Diluted income per share |
|
- |
|
0.02 |
| Income (loss) per share |
|
|
|
|
|
Basic |
|
(0.06) |
|
0.36 |
|
Diluted |
|
(0.06) |
|
0.24 |
| Weighted average number of shares outstanding |
|
|
|
|
|
Basic |
|
131,049 |
|
126,662 |
|
Diluted |
|
131,049 |
|
184,193 |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Years ended August 31, 2010 and 2009
(In thousands of dollars) |
|
|
|
|
|
|
2010 |
|
2009 |
|
|
|
|
|
|
| OPERATING ACTIVITIES |
|
|
|
|
|
Income (loss) for the year |
$ |
(8,397) |
$ |
45,521 |
|
Less: Income for the year from discontinued operations |
|
(78) |
|
(4,531) |
|
Items not affecting cash |
|
497 |
|
(68,167) |
|
Changes in non-cash operating assets and liabilities |
|
(23,935) |
|
20,782 |
| Cash used in continuing operations |
|
(31,913) |
|
(6,395) |
| Cash provided by discontinued operations |
|
78 |
|
333 |
| Cash used in operating activities |
|
(31,835) |
|
(6,062) |
|
|
|
|
|
|
| FINANCING ACTIVITIES |
|
|
|
|
| Cash provided by (used in) financing activities |
|
(5,304) |
|
1 |
|
|
|
|
|
|
| INVESTING ACTIVITIES |
|
|
|
|
| Cash provided by continuing operations |
|
25,003 |
|
13,310 |
| Cash provided by discontinued operations |
|
- |
|
3,440 |
| Cash provided by investing activities |
|
25,003 |
|
16,750 |
| Increase (decrease) in cash and cash equivalents |
|
(12,136) |
|
10,689 |
|
Cash and cash equivalents, beginning of year |
|
14,254 |
|
3,565 |
| Cash and cash equivalents, end of year |
$ |
2,118 |
$ |
14,254 |