LOREX Announces Record Third Quarter 2012 Financial Results
August 21 2012 - 12:11PM
Marketwired Canada
LOREX Technology Inc. ("LOREX" or the "Company") (TSX VENTURE:LOX) announces
results(i) for the three and nine month periods ended June 30, 2012.
LOREX Technology is very pleased to announce record third quarter revenue and
EBITDA results as well as record revenue and profitability for the first nine
months ending June 30, 2012 of the current fiscal year. Revenue for the third
quarter grew by $4.7 million or 29% over the prior year to $21.2 million; and
the Company's EBITDA grew by $1.0 million over the prior year to $2.4 million.
For the current nine month period, revenue grew by $14.6 million or 33% over the
prior year to $58.7 million; and the Company's EBITDA grew by $2.7 million or
68% over the prior year to $6.6 million.
"We are extremely pleased with our continued record-setting achievements both
during this current quarter and over the first nine months of fiscal 2012,"
stated Reuben Klein, Chairman and CEO of LOREX Technology. "We were able to
continue to grow the business in spite of a slow economy and its associated
competitive business pressures. We were also able to overcome cost increases
that resulted from the worldwide hard disk drive shortage caused by the flooding
in Thailand. Our growth continues to come across all business areas, as both the
Lorex and Digimerge brands continue to gain in demand, awareness and market
share. Our year to date EBITDA as a percentage of revenue improved to 11.2% from
8.9% the prior year and I am proud to say that LOREX has achieved a 15th
straight quarter of profitability. Previously, we updated our projected revenue
guidance for the fiscal year ended September 30, 2012 to be in the range of $74
million to $78 million, and LOREX expects to be in the upper end of this
guidance."
"Please be reminded when reading the financial information noted below that $0.6
million of a previously unrecognized loss carry-forward was available and
utilized in the prior year to reduce the tax expense," continued Mr. Klein. "The
result was tax expense for the first nine months of the prior year of $0.6
million, as compared to $2.0 million in the current year. The benefit of North
American loss carry-forwards that reduced tax expense in fiscal 2011 has been
fully utilized."
Highlights of the three and nine month operating results are as follows:
(Thousands of US $, unless otherwise noted)
----------------------------------------------------------------------------
Three months ended Nine months ended
June 30 June 30
------------------------------------------------
2012 2011 2012 2011
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Revenue $ 21,218 $ 16,488 $ 58,695 $ 44,069
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Earnings before interest,
taxes, amortization (ii) 2,448 1,464 6,592 3,925
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Earnings before income taxes 2,322 1,347 6,210 3,594
----------------------------------------------------------------------------
Net earnings 1,559 920 4,182 2,969
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Earnings per common share,
basic $ 0.05 $0.03 $ 0.12 $ 0.10
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Earnings per common share,
diluted $ 0.03 $0.02 $ 0.09 $ 0.07
----------------------------------------------------------------------------
Weighted average number of
shares - basic 36,052,788 31,338,630 35,883,797 31,306,395
----------------------------------------------------------------------------
Weighted average number of
shares - diluted 45,310,018 44,239,497 45,116,082 44,008,645
----------------------------------------------------------------------------
(i)Unaudited financial information is available at www.sedar.com.
(ii)EBITDA is not a measure of performance under Canadian GAAP. EBITDA should
not be considered in isolation or as a substitute for profit nor as a measure of
operating performance or profitability.
"As a leader in do-it-yourself consumer and professional advanced video security
market, we continue to invest in the business in order to provide one of the
broadest, most advanced product lines in the industry. The recent introductions
of the LOREX High Definition (HD) Series recorder and cameras, and the pilot
launch of the Active line of sport action cameras catering to the outdoor
enthusiast, serve as examples of our continued focus to maintain our leadership
position. We will continue to invest in product development to consistently
deliver first-to-market features with the highest emphasis on user experience
and connectivity compared to our competitors. At the same time, we are expanding
our distribution into the Latin American countries. Our record revenue and
earnings for the first nine months of fiscal 2012 continued to strengthen our
balance sheet and improve our working capital position. We will continue to
increase our marketing and product development initiatives throughout the
remainder of 2012 and beyond to increase shareholder value; and expect to
continue our growth and profitability," concluded Mr. Klein.
About LOREX Technology Inc.:
LOREX Technology Inc. ('LOREX') (TSX VENTURE:LOX) provides businesses and
consumers with leading edge video surveillance security solutions and sells its
products under the LOREX and Digimerge brands. The LOREX brand, which caters to
both small business and consumer markets, is available in thousands of retail
locations across North America. The Digimerge division distributes its products
through major distributors in North America. Both brands concentrate on the sale
of wired, wireless and IP security surveillance and monitoring equipment
including cameras, digital video recorders and all-in-one systems.
LOREX subsidiaries include; LOREX Canada Inc., LOREX Corporation and Strategic
Vista Corporation Limited, Hong Kong.
Cautionary Statement on Forward-Looking Information
This news release contains certain statements that may be deemed
"forward-looking statements". Forward-looking statements are statements that are
not historical facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Forward-looking statements in
this press release relate to the Company's projected revenue. The
forward-looking information reflects predictions and does not in any way reflect
a guarantee. Factors which could cause actual results to differ materially from
current projections include, among other things: competitive conditions in which
the Company participates; changes in consumer spending; general economic
conditions and normal business uncertainty; customer preferences towards product
offerings; the occurrence of a pandemic or other catastrophic event which could
create shortages of labour, products or services required to operate the
business profitably; fluctuations in foreign currency exchange rates; changes in
the Company's relationships with its suppliers. The Company cautions that this
is not an exhaustive list of factors that may affect the forward-looking
information contained in this press release. Potential investors and readers are
urged to give careful consideration to all of these factors in evaluating any
forward-looking information and are cautioned not to place undue reliance on
such information. While the Company believes that its projections are
reasonable, results predicted in this forward-looking information may differ
materially from actual results. The Company disclaims any obligation to update
forward-looking information, except as may be required by law.
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