Titan Logix Corp. Reports Fiscal 2023 Financial Results
Edmonton, Alberta--(Newsfile Corp. - November 16, 2023) - Titan Logix Corp., (TSXV: TLA) ("Titan" or the "Company"), a technology company specializing in mobile liquid measurement solutions, announces its results for the twelve and three month periods ended August 31, 2023.
Financial Highlights Summary
(in Canadian dollars)
Three months ended | Twelve months ended |
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Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2023 | Aug 31, 2022 | |||||||||
Revenue | $ | 1,561,386 | $ | 1,324,453 | $ | 6,214,348 | $ | 4,328,588 | ||||
Gross profit (GP) | $ | 670,085 | $ | 720,606 | $ | 3,083,652 | $ | 2,392,764 | ||||
GM % | 43% | 54% | 50% | 55% | ||||||||
Operating earnings (loss) before other items and income tax | $ | (382,976 | ) | $ | 205,974 | $ | (165,287 | ) | $ | (225,660 | ) | |
Finance income and other items | $ | 373,259 | $ | 816,238 | $ | 248,221 | $ | 1,351,521 |
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Net earnings (loss) | $ | (9,717 | ) | $ | 1,022,212 | $ | 82,934 | $ | 1,125,861 |
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EPS (diluted) | $ | (0.00 | ) | $ | 0.04 | $ | 0.00 | $ | 0.04 |
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| Financial Position | As at August 31, 2023 | As at August 31 2022 |
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| Working capital | $ | 14,536,282 | $ | 15,857,691 |
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| Total assets | $ | 18,347,317 | $ | 17,499,282 |
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| Long-term liabilities | $ | 681,476 | $ | 117,321 |
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| Total equity | $ | 16,877,549 | $ | 16,698,323 |
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2023 HIGHLIGHTS
Revenues for fiscal 2023 increased 44% over the comparative prior year and 76% off the pandemic low in fiscal 2021. Tanker OEMs are at peak production capacity resulting in elevated demand for the Company's core product line. Revenues for fiscal 2023 were $6,214,348, compared with $4,328,588 in the previous year, resulting in a $1,885,760 increase. The backlog for new tanker builds in crude oil, recycled oil, and aviation refueling sectors is anticipated to be a source of continued revenue.
Gross profit for fiscal 2023 improved 29% to $3,083,652 or 50% of revenue compared to $2,392,764 or 55% of revenue for fiscal 2022. The $690,888 improvement in gross profit was the result of greater volume of sales offset by an increase in unit manufacturing input costs due to inflationary price increases in components.
Total expenses in fiscal 2023 increased by $630,515, or 24%, to $3,248,939 as compared with $2,618,424 in fiscal 2022. Increased expenses were $258,000 to support increased activity in our core markets and $372,000 towards developing products for new markets. Increased spending was primarily in employee related costs. During fiscal 2023 engineering activities included development and launch of the multi-compartment Finch II to address a common configuration in recycled oil and refined fuels market. The Company's sales and marketing spending was primarily focused on servicing our core markets and gaining inroads to new markets for the Company's product line.
In fiscal 2023, the Company reported an operating loss before other items of $165,287 compared to an operating loss of $225,660 in fiscal 2022. Excluding the aforementioned development costs, the Company would have reported an operating profit before other items in the fiscal year.
Net earnings after other items and income taxes for fiscal 2023 amounted to $82,934 compared to net earnings after taxes of $1,125,861 in fiscal 2022. This reduction in net earnings was largely due to the recording of a $339,500 unrealized loss on the investment in Bri-Chem Corp. common shares compared with an unrealized gain of $732,250 in fiscal 2022, for a combined year-over-year impact of $1,071,750 on net earnings. The Company invested $771,250 in fiscal 2022 on Bri-Chem Corp common shares and based on the market price as of August 31, 2023 the fair value of its investment in Bri-Chem Corp shares was $1,164,000.
"2023 marks another strong year for Titan," says CEO, Nick Forbes. "We were successful in stabilizing the business across our core markets, providing a foundation to begin executing on our long-term growth strategy. Our investments in product innovation, sales and marketing initiatives and key hires will enable us to penetrate new markets and strengthen Titan's value to the tanker truck market."
The Company's audited consolidated annual financial statements and the management's discussion and analysis ("MD&A") which includes the Company's Business Outlook, for the full fiscal and three month periods ended August 31, 2023, 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.
Contact Information:
Nick Forbes
Chief Executive Officer
Ph: (403) 561-8095
Email: invest@titanlogix.com
www.titanlogix.com
TSX Venture, TLA
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