Q2…another solid positive Quarter Edmonton, Alberta--(Newsfile Corp. - April 20, 2023) - Titan Logix Corp., (TSXV: TLA) ("Titan" or the "Company"), a technology company specializing in mobile liquid measurement solutions, announces its results for the second quarter ended February 28, 2023.
Financial Highlights Summary
(in Canadian dollars)
| | | Three months ended | | | Six months ended | |
| | | February 28,
2023 | | | February 28,
2022 | | | February 28,
2023 | | | February 28,
2022 | |
| Revenue | $ | 1,521,908 | | $ | 1,087,797 | | $ | 3,025,028 | | $ | 1,711,931 | |
| Gross profit (GP) | $ | 799,152 | | $ | 628,778 | | $ | 1,635,773 | | $ | 958,661 | |
| GM % | | 53% | | | 58% | | | 54% | | | 56% | |
| Operating earnings (loss) before other items and income tax | $ | 87,191 | | $ | (274,957 | ) | $ | 329,986 | | $ | (579,058 | ) |
| Finance income and other items | $ | 3,046 | | $ | 138,150 | | $ | 174,936 | | $ | 279,293 | |
| Net earnings (loss) | $ | 90,237 | | $ | (136,807 | ) | $ | 504,922 | | $ | (299,765 | ) |
| EPS (diluted) | $ | 0.00 | | $ | 0.00 | | $ | 0.02 | | $ | (0.01 | ) |
| Financial Position | As at February 28, 2023 | | As at August 31 2022 | |
| Working capital | | $ | 14,745,409 | | | $ | 15,857,691 | |
| Total assets | | $ | 17,936,053 | | | $ | 17,499,282 | |
| Long-term liabilities | | $ | 47,509 | | | $ | 117,321 | |
| Total equity | | $ | 17,246,131 | | | $ | 16,698,323 | |
Q2 FISCAL 2023 HIGHLIGHTS
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Revenues for the second quarter of fiscal 2023 improved over the comparative prior period as the demand for the GWR product line continued to strengthen, resulting in a $434,111 or a 40% increase in the Company's revenues for the second quarter compared to the comparative prior period. Revenues in the second quarter were $1,521,908, compared with the $1,087,797 recorded in the comparative prior period. This increase in demand for the GWR was due to an improvement in the global supply chain, and a persistent backlog for new tanker builds in crude oil, recycled oil, and aviation refueling sectors.
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Gross profit for the second quarter of fiscal 2023 increased by $170,374 to $799,152 or 53% of revenue compared to $628,778 or 58% of revenue in the comparative period. This increase in gross profit is primarily due to the increase in unit demand and revenue. The decrease in the gross profit percentage is primarily the result of increased component costs.
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Total expenses in the second quarter of fiscal 2023 decreased by $191,774 to $711,961 as compared with $903,735 in the comparative prior period. This decrease in total expenses was primarily due to lower general and administrative expenses due to one-time executive termination costs recorded in the prior period. These were partially offset by increased engineering expenses and sales and marketing costs primarily due to staffing additions.
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In the second quarter of fiscal 2023, the Company reported an operating income before other items of $87,191 compared to an operating loss of $274,957 in the second quarter of fiscal 2022. The significant improvement in the operating loss before other items for the second quarter of fiscal 2023 was largely due to higher gross profits from increased volumes for the GWR product line combined with the impact of lower general and administrative expenses.
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Net earnings after income taxes for the second quarter of fiscal 2023 amounted to $90,237 compared to a net loss after taxes of $136,807 in the comparative prior period. The increase in the net earnings was primarily due to the significant improvement in the operating loss before other items.
"Titan continues to focus its efforts on new construction, retrofit, and upgrade sales of the TD100 platform through another strong quarter. We are also excited about 2 new product releases we have been working on, in the form of the multi-compartment Finch II, and the Wi-Fi- and Bluetooth-enabled Finch II," said CEO, Nick Forbes. "These new products are scheduled to launch in Q3 and these new offerings position Titan to better serve new and existing markets."
The Company's unaudited condensed consolidated interim financial statements and the management's discussion and analysis ("MD&A") which includes the Company's Business Outlook, for the second quarter ended February 28, 2023, are available on SEDAR at www.sedar.com and the Company's website, www.titanlogix.com.