ST. JOHN'S, Jan. 14 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its
unaudited first quarter consolidated financial statements for the three month
period ended November 30, 2008.
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. Ryan Hinz, President and CEO of the Company, and Karen Snook,
Chief Financial Officer, will host a conference call on Tuesday, January 20,
2009, to discuss the results and recent corporate developments. Details of
this call will be announced by Friday, January 16 and will also be 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 Increase
Months Months (Decrease)
November 30 2008 November 30 2007
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Revenue $ 22,904 $ 21,104 $ 1,800
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EBITDA(1) 2,394 220 2,174
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Other (costs)
income(2) (2,228) (3,702) (1,474)
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Net earnings -
Discontinued
Operations - 310 (310)
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Net earnings (loss) 166 (3,792) 3,958
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Earnings (Loss)
Per Share $ Nil $ (0.05) $ 0.05
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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; (Gain) on sale of
investments; other items; 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 Increase
Months Months (Decrease)
November 30 2008 November 30 2007
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Technologies
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Revenue:
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Third party
manufacturing $ 6,836 $ 6,245 $ 591
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Company owned
products 4,219 4,670 (451)
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Total revenue 11,055 10,915 140
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EBITDA 1,307 618 689
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Controls and
Automation
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Revenue 11,849 10,189 1,660
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EBITDA 1,544 207 1,337
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Corporate Costs $ 457 $ 605 $ (148)
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RESULTS
The Company saw improvements in revenue performance in the first quarter
compared to the same quarter in the previous year. The improvement in EBITDA
from ongoing operations of over $2 million was particularly significant for
the Company.
Technologies - Overall, revenues in the segment increased from the same
quarter in the prior year. The significant increase in third party
manufacturing revenues of $591,000 was offset by a drop in revenues from the
sale of Company owned products of $451,000. EBITDA from operations almost
doubled over the same quarter last year to $1,307,000 due to improved gross
margin performance achieved from the productivity improvement exercise
undertaken in fiscal 2008, the weakening of the Canadian dollar and the
ongoing cost rationalization program.
Controls and Automation - This segment saw an increase in revenue of
$1,660,000 representing a 16% increase over the same quarter last year,
demonstrating the stability of the customer base, particularly in Western
Canada. EBITDA performance improved in part due to the revenue growth but more
importantly, due to better utilization rates for personnel.
Other (Costs) Income and Net Earnings (Loss) - The Company has recognized
a $972,000 foreign exchange gain due to fluctuations in the Canadian dollar in
the first quarter. Depreciation and amortization costs have decreased by
$725,000 as a result of completed amortization of Hinz non-compete agreements
and lower carrying value of Hinz customer relationships as a result of the
write-down at August 31, 2008. Net earnings for the quarter is $166,000.
CONCLUSION
The operational results are in line with the Company's expectations with
both segments performing very well in the quarter. "The results we are
announcing today reconfirm the Board's belief in the strong underlying
viability of the Company, demonstrating operational strength in both
segments," said Ryan Hinz, President and CEO of the Company. "For the balance
of the year manufacturing contracts totaling almost $30 million will result in
significantly higher revenue growth in Technologies. As announced in our year
end press release, we will continue to pursue our strategy to divest of a
significant portion of our Controls and Automation segment in order to address
the Company's overall debt structure going forward. I am confident that the
measures we are taking will result in a stronger, more focused Rutter for
employees and shareholders," he concluded.
About Rutter - Rutter Inc. has two business segments, Controls and
Automation and Technologies. Rutter Hinz Inc. is a vendor independent
automation and controls systems engineering enterprise with offices in Canada
and the United States. Rutter Technologies Inc. is a global enterprise
providing voyage data recorders, enhanced radar solutions, marine certified
interfaces, safety lights and other custom integrated electronics systems.
Rutter Technologies is also an ISO 9001: 2000 manufacturer of electronics and
electronic subassemblies for clients in the marine, defense and
telecommunications 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
