Edmonton, Alberta--(Newsfile Corp. - January 18, 2023) - Titan Logix Corp., (TSXV: TLA) ("Titan" or the "Company"), a technology company specializing in in mobile liquid measurement solutions, announces its results for the first quarter ended November 30, 2022.
Financial Highlights Summary
(in Canadian dollars)
Three months ended
November 30, 2022
November 30, 2021
Gross profit (GP)
Operating earnings (loss) before other items and income tax
Finance income and other items
Net earnings (loss)
As at November 30, 2022
As at August 31 2022
Q1 FISCAL 2023 HIGHLIGHTS
Revenues for the first quarter of fiscal 2023 improved over the comparative prior period as the demand for the GWR product line continued to strengthen, resulting in a $878,986 or a 141% increase in the Company's revenues for the first quarter compared to the comparative prior period. Revenues in the first quarter were $1,503,120, compared with the $624,134 recorded in the comparative prior period. This increase in demand for the GWR was due to an improvement in the global supply chain for tanker OEMs from the crude oil, recycled oil, and aviation refueling sectors.
Gross profit for the first quarter of fiscal 2023 increased by $506,738 to $836,621 or 56% of revenue compared to $329,883 or 53% 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 primarily the result of increased utilization of the Company's production capacity from increased product levels.
Total expenses in the first quarter of fiscal 2023 decreased by $40,158 to $593,826 as compared with $633,984 in the comparative prior period. This decrease in total expenses was primarily due to lower engineering costs and an increase in foreign currency exchange gains. These were partially offset by increased general and administrative expenses and sales and marketing costs.
In the first quarter of fiscal 2023, the Company reported an operating income before other items of $242,795 compared to an operating loss of $304,101 in the first quarter of fiscal 2022. The significant improvement in the operating loss before other items for the first quarter of fiscal 2023 was largely due to higher gross profits from increased volumes for the GWR product line.
Net earnings after income taxes for the first quarter of fiscal 2023 amounted to $414,685 compared to a net loss after taxes of $162,958 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 combined with the unrealized gain on the investment in Bri-Chem Corp. common share.
"Titan has been diligently focused on restoring our core business, which serves as a strong foundation to our strategic growth plan and the first quarter results show that we are on track. We continue to invest in our sales and marketing efforts, upgrading existing customer fleets to our latest TD100 platform, which will serve as the cornerstone for new product releases we have planned for the fiscal year," 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 first quarter ended November 30, 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 mobile liquid 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.
Founded in 1979, Titan Logix Corp. is a public company listed on the TSX Venture Exchange and its shares trade under the symbol TLA.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our Management Discussion and Analysis in respect of the year ended August 31, 2022 which is available at www.sedar.com. In addition, the occurrence of pandemics, such as the outbreak of the novel coronavirus COVID-19 in any of the areas in which the Company, its customers or its suppliers operate could cause interruptions in the Company's operations. In addition, pandemics, natural disasters or other unanticipated events could negatively impact the demand for, and price of, oil and natural gas which in turn could have a material adverse effect on the Company's business, financial condition, results of operations and cash flows. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.
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