over $0.50 in cash
ORIGINAL: Titan Logix Corp. Reports Fiscal 2022 Q2 Financial Results
2022-04-21 09:01 ET - News Release
Edmonton, Alberta--(Newsfile Corp. - April 21, 2022) - Titan Logix Corp. (TSXV: TLA) ("Titan" or the "Company"), a technology company specializing in advanced measurement solutions, announces its results for the second quarter ended February 28, 2022.
Financial Highlights Summary
(in Canadian dollars)
| | Three months ended | Six months ended |
| | February 28, 2022 | February 28, 2021 | February 28, 2022 | February 28, 2021 |
| Revenue | $ 1,087,797 | $ 749,602 | $ 1,711,931 | $ 1,598,786 |
| Gross profit (GP) | $ 628,778 | $ 353,053 | $ 958,661 | $ 734,226 |
| GM % | 58% | 47% | 56% | 46% |
Operating loss before other items and
income tax | $ (274,957) | $ (255,310) | $ (579,058) | $ (556,280) |
| Finance income and other items | $ 138,150 | $ 190,333 | $ 279,293 | $ 348,815 |
| Net loss | $ (136,807) | $ (64,977) | $ (299,765) | $ (207,465) |
| EPS (diluted) | $ 0.00 | $ 0.00 | $ (0.01) | $ (0.01) |
| Financial Position | As at February 28, 2022 | As at August 31 2021 |
| Working capital | $ 14,322,945 | $ 11,386,485 |
| Total assets | $ 15,999,082 | $ 16,273,707 |
| Long-term liabilities | $ 186,183 | $ 253,736 |
| Total equity | $ 15,272,697 | $ 15,537,962 |
Q2 FISCAL 2022 HIGHLIGHTS
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Revenues in the second quarter of fiscal 2022 increased by $338,195 or 45% to $1,087,797, from the $749,602 recorded in the comparative prior period.
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This increase was primarily due to increased demand and volume increases for the GWR product line from the crude oil sector due to an increased confidence in the global supply chain for tanker OEMs.
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Gross profit for the second quarter of fiscal 2022 increased by $275,725 to $628,778 or 58% of revenue compared to $353,053 or 47% of revenue in the comparative period.
This increase in gross profit is primarily due to the increase in unit demand and revenue. The increase in the gross profit percentage is the result of price increases combined with lower overhead costs.
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Total expenses in the second quarter of fiscal 2022 increased by $295,372 to $903,735 as compared with $608,363 in the comparative prior period. This increase in total expenses was primarily due to executive termination costs.
The Company continues to focus on cost management, particularly with respect to discretionary spending. Investment in sales and marketing programs and product development focusing on enhancing digital capabilities is ongoing.
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In the second quarter of fiscal 2022, the Company reported an operating loss before other items of $274,957 compared to an operating loss of $255,310 in the second quarter of fiscal 2021.
Adjusted for interest income and other items, the net loss after income taxes for the second quarter was $136,807 in fiscal 2022 compared to a net loss after taxes of $64,977 in the prior period. The increase in revenue and gross profit in the quarter and year-over-year was offset by the increase in total expenses and the increase in the loss after income taxes was due to lower interest rates and the resulting decrease in income earned on GIC investments.
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During the fiscal quarter, the Company wound-down its participation in the CEWS program.
No benefits were received in the second quarter of fiscal 2022, and $76,281 was received for the six-month period for fiscal 2022. This compares with $70,012 and $183,847 in the comparative prior periods.
"We are seeing positive signs from the market, specifically from the crude oil sector. Our OEM partners are reporting an increase in demand for new tanker builds, while industry-wide supply chain issues continue to stifle sales velocities.
We will continue to support our market partners through these sporadic conditions by ensuring our gauging products are on-hand and ready to ship," said CEO, Nick Forbes.
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, 2022, are available on SEDAR at www.sedar.com and the Company's website, www.titanlogix.com.
About Titan Logix Corp.:
For over 25 years, Titan Logix Corp. has designed and manufactured advanced measurement solutions to help businesses reduce risk and maximize efficiencies in bulk liquids transportation. Titan's TD Series of tank level monitors are a market leader in mobile fluid measurement, and are known for their high level of accuracy, rugged design, and solid-state reliability. Our solutions are designed for hazardous and non-hazardous applications, and we serve customers in a wide range of applications including petroleum, environmental solutions, chemical, and agriculture.