Norsat posted annual Revenue and Adjusted
EBITDA(1) of $36.2 million
and $4.7 million
Annual net earnings per share up 14% to
$0.73
- Management to Host Conference Call at
8:30 am Pacific Time (11:30 am Eastern Time) -
VANCOUVER, March 4, 2015 /CNW/ - Norsat International
Inc. ("Norsat" or "the Company") (TSX: NII and NYSE MKT: NSAT),
a leading provider of innovative communication solutions that
enable the transmission of data, audio and video for remote and
challenging applications, today reported financial results for the
fourth quarter and full year ended December
31, 2014. Norsat serves global customers primarily through
three business units: Sinclair Technologies (Land Mobile Radio),
Satellite Solutions and Microwave Products. All financial results
are reported in U.S. dollars and have been prepared in accordance
with International Financial Reporting Standards ("IFRS"), unless
otherwise stated.
Financial Highlights
- Full-year revenue was $36.2
million, compared to $36.4
million in 2013.
- Adjusted EBITDA(1) (a non-IFRS
metric, see Table B) for full-year 2014 was $4.7 million, compared to $5.1 million in 2013.
- Net earnings for full-year 2014 increased to $4.2 million, from $3.7
million in 2013.
- Fourth quarter revenue was $9.4
million, compared to $10.7
million during the same period in 2013.
- Adjusted EBITDA(1) (a non-IFRS
metric, see Table A) for the fourth quarter of 2014 was
$742,000 compared to $2.1 million in the fourth quarter of 2013.
- Net earnings for the fourth quarter of 2014 were $51,000 compared to $1.7
million in the fourth quarter of 2013. Impacting the fourth
quarter of 2014 is an approximately $950,000 negative variance in foreign exchange
and a reduction in income tax recovery by an approximately
$580,000 compared to the fourth
quarter of 2013.
Recent Highlights
- In February 2015, the company
announced a $3.5 million order from a
major Eurasian defense contractor with the majority of the
shipments in late 2015 with follow on deliveries throughout 2016
and 2017.
- The company recently shipped a prototype of its next generation
ATOM series product, the Ka-band BUC, with general availability
anticipated in the third quarter of 2015.
- The company successfully commenced trading on the NYSE MKT
under the ticker "NSAT" on February 10,
2015 which included the ringing of the closing bell. The
Company's common shares also continue to trade on the Toronto Stock
Exchange (the "TSX") under the symbol "NII."
(1)
|
EBITDA and Adjusted
EBITDA is a Non-IFRS Measure that is defined in the 2014 Annual
Management's Discussion and Analysis posted on Norsat's website and
SEDAR.
|
Management Discussion
Dr. Amiee Chan, President and
Chief Executive Officer of Norsat, commented, "Fiscal 2014 was an
important year for Norsat where we continued our record of annual
profitability, made measurable progress in advancing into a
leadership position within the industry with our innovative
communications technology solutions and we successfully uplisted
our stock onto the New York Stock Exchange MKT. We enter 2015 as a
more advanced company with a strong and continued strategic focus
on developing next generation products and evolved our capabilities
as a provider of customized solutions that can be delivered
quickly; and we have provided our investors an additional trading
platform that can attract new investors and enhance their
liquidity. We also enter 2015 with an enhanced backlog driven
by new product development and new customers that have submitted
orders for delivery in 2015 through to 2017 setting the stage for
improved top line results in the coming year."
Arthur Chin, Chief Financial
Officer of Norsat, commented. "Revenue for fiscal 2014 was
essentially flat compared to 2013 due to the softness experienced
in quotation and backlog throughout the first half of the year. We
did, however, experience 29% revenue growth from our Microwave
Components division primarily attributable to the delivery of a
sizable order of our ATOM series of products. We continue to
receive strong interest in the ATOM series and have invested
in developing different versions, including our Ka-band prototype
to meet customer requests. The Land Mobile Radio (Sinclair)
division was flat for the year as we experienced some softness in
the latter part of 2014, which looks to be continuing into 2015.
The continued decrease in U.S. military spending impacted our
Satellite Solutions division, however, investments in the division
to develop new products have been well received by other global
militaries, and we believe that will translate into revenue growth
in fiscal 2015. Our financial position continues to strengthen as
we ended the quarter with $5.5
million in cash and equivalents, up nearly $2.2 million from the end of last year, while
subsequently paying down $2.1 million
from our acquisition loan. We believe we are nicely positioned to
expand our business going forward."
Dr. Chan concluded, "We continue to aggressively review
acquisitions to expand our product and distribution capabilities,
but also remain prudent with shareholders' capital and focus on
opportunities that fit our criteria. We feel confident in our
business strategy as we experience higher quotation activity, which
has resulted in our pipeline of business being stronger today than
it has been in recent years. We are excited for the opportunities
to grow our business into 2015 and beyond."
Financial Review
For the three months ended December
31, 2014
For the three months ended December 31,
2014, total sales were $9.4
million, compared to $10.7
million from the same quarter of 2013. Sales from the
Sinclair Technologies segment were $5.8
million for the fourth quarter of 2014, compared to
$6.3 million during the same period
in 2014, reflecting continued softness in the infrastructure and
public safety markets. Fourth quarter Satellite Solutions sales
were $1.2 million, compared to
$0.9 million in Q4 2014, reflecting
the continuing decrease in military demand and budget constraints
among other non-military customers. Other service revenues
were $0.1 million, compared to
$0.5 million in Q4 2013, reflecting
the non-renewal of significant airtime contracts. Fourth quarter
Microwave Products were $2.4 million,
compared to $3.4 million in the
fourth quarter of 2013. The $1.0
million decrease was mainly due to the completion of a large
ATOM product contract in the fourth quarter of 2013, which was not
expected to repeat in Q4 2014.
On a consolidated basis, gross profit was $3.3 million compared to $3.2 million for the three months ended
December 31, 2013 and fourth quarter
gross margin percentages were 35% compared to gross margins of 30%
for the same period in 2013. The Sinclair Technologies segment
achieved a fourth quarter gross profit margin of 37%, compared to
43% gross margin in the same quarter in 2013. The decrease in gross
margin was due to increase in labor and overhead costs.
The Satellite Solutions segment recorded a gross profit margin of
17%, compared to negative gross margin of 93% during the same
quarter of 2013. The year-over-year change in gross margins
was due to a $1.2 million inventory
write-down in the fourth quarter of 2013 compared to $0.3 million in the same period of 2014.
Fourth quarter gross profit margin for Microwave Products was
consistent at 38% when compared to the same period last year.
For the three months ended December 31,
2014, total expenses increased to $3.3 million, from $2.1
million compared to the same quarter in 2013.
Fourth quarter selling and distribution expenses decreased to
$1.5 million, from $1.6 million in 2013, reflecting the
strengthening of the US dollar against the Canadian dollar, as a
significant portion of the Company's expenses are in Canadian
Dollars, and employee-related costs savings.
Fourth quarter general administration expenses increased to
$0.9 million, from $0.7 million incurred for the same period in
2013. The increase reflects investments in organizational
infrastructure, increased bonuses due to the Company substantially
tracking towards its 2014 targets and objectives, and offset by the
impact of certain employee-related cost savings implemented in
2013.
Fourth quarter direct product development expenses of
$0.7 million were on par with
$0.7 million during the same period
last year. This was offset by government contributions of
$0.4 million in the fourth quarter of
2014 which is on par with the government contributions of
approximately $0.4 million for the
same period in 2013, resulting in net product development expenses
of approximately $0.4 million in the
fourth quarter of 2014 compared to $0.4
million in the same period in 2013.
Other expenses for the fourth quarter of 2014 were $0.5 million, compared to a $0.5 million income during the same period last
year. The change reflects a $0.4
million loss on foreign exchange in the fourth quarter of
2014 compared to a $0.6 million gain
in the same period in 2013 and a $47,000 impairment charge on certain property and
equipment in the fourth quarter of 2014.
Fourth quarter loss before income taxes was $16,000, compared to a $1.0 million earnings before income taxes for the
same period in 2013.
Net income tax recovery was $67,000 in the fourth quarter of 2014, compared
to $0.6 million in the same period in
2013.
Fourth quarter net earnings were $51,000, or $0.01
per share, basic and diluted, compared to $1.7 million or $0.29 per share, basic and diluted for the fourth
quarter in 2013.
Adjusted EBITDA for the three months ended December 31, 2014 was $0.7
million compared to $2.1
million for the same period in 2013.
The following table sets forth, for the periods indicated, a
reconciliation of IFRS to non-IFRS measures:
(Table
A)
|
|
('000s)
|
Three months ended
December 31,
|
|
|
|
2014
|
2013
|
Change
|
Change
|
|
$
|
$
|
$
|
%
|
Net earnings for the
period
|
51
|
1,698
|
(1,647)
|
(97)
|
Interest
expense
|
21
|
41
|
(20)
|
(49)
|
Amortization and
depreciation
|
375
|
372
|
3
|
1
|
Tax
recovery
|
(67)
|
(647)
|
580
|
(90)
|
EBITDA
|
380
|
1,464
|
(1,084)
|
(74)
|
Foreign exchange loss
(gain)
|
362
|
(588)
|
950
|
(100)
|
Acquisition
costs
|
-
|
4
|
(4)
|
(100)
|
Write-down of
inventory
|
-
|
1,264
|
(1,264)
|
(100)
|
Adjusted
EBITDA
|
742
|
2,144
|
(1,402)
|
(65)
|
For the year ended December 31,
2014
For the year ended December 31,
2014, Norsat recorded total sales of $36.2 million down slightly compared to
$36.4 million in 2013. Sinclair
Technologies sales were $21.7
million, compared to $22.5
million in 2013. The year-over-year decrease in revenues
reflects softness in the infrastructure and public safety markets.
Satellite Solutions sales were $2.8
million in 2014, compared to $4.8
million in 2013. Sales from this segment were impacted by
reduced military ordering of satellite equipment and
services. In addition, service revenues declined to
$0.7 million compared to $2.3 million as airtime contracts, warranties and
post-service contracts expired. Microwave Products sales were
$11.7 million for fiscal 2014,
compared to $9.1 million in fiscal
2013. The $2.6 million increase was
mainly driven by the product deliveries on the ATOM new line of
products.
On a consolidated basis, gross profit was $14.4 million compared to $13.8 million for the year ended December 31, 2013 and gross profit margin
percentage was 40% in 2014, compared to 38% in 2013. Sinclair
Technologies gross profit margin percentage was 40% in 2014,
compared to 43% achieved in 2013. The decrease in gross margin was
due to increase in labor and overheads costs. Gross profit
margins from the Satellite Solutions segment were 24%, compared to
9% in 2013, which reflects a decrease in inventory write-off of
$0.5 million in 2014, compared to
$1.2 million in 2013, partially
offset by a combination of a greater proportion of lower-margin
revenues and lower sales volume in the first three quarters of
2014. Gross profit margins from Microwave Products were 44%,
compared to 42% in 2013, reflecting higher margin products in the
sales mix.
For the year ended December 31,
2014, total expenses were $10.7
million, compared to $10.8
million in 2013.
Selling and distributing expenses decreased to $5.4 million, from $6.3
million, reflecting the strengthening of the US dollar
against the Canadian dollar, as a significant portion of the
Company's expenses are in Canadian Dollars, and employee-related
costs savings.
General and administrative expenses increased to $4.0 million for the year ended December 31, 2014, from $3.7 million in 2013. In 2014, corporate
development costs related to external costs to pursue a potential
acquisition increased to $0.2 million
compared to approximately $0.1
million in 2013. In addition, investments were made in
organizational infrastructure and bonuses increased due to the
Company substantially achieving its 2014 targets and
objectives. These increases were offset by the decrease in
expenses, reflecting the strengthening of the US dollar against the
Canadian Dollar, as a significant portion of the Company's expenses
are in Canadian dollars.
Direct product development expenses decreased to $2.6 million from $3.2
million for the same period last year. The decrease
reflects the accelerated development of the newly acquired CVG
product lines in 2013, costs not incurred in 2014, and the impact
of the strengthening of the US dollar against the Canadian Dollar,
as a significant portion of the Company's expenses are in Canadian
Dollars, and employee-related costs savings. Government
contributions decreased to $1.3
million for the year ended December
31, 2014 from $2.1 million in
the same period in 2013. In 2013 we secured a new repayable
government contribution under the SADI program, which enables the
Company to claim eligible costs incurred between July 27, 2013 and December
31, 2017. The timing of the award meant that over six
quarters worth of government contributions were recorded in 2013,
compared to just four quarters in 2014. As a result net
product development expenses increased to $1.6 million for the year ended December 31, 2014 from $1.4 million in the same period last year.
Other income for the year ended December
31, 2014 decreased to $0.3
million from a $0.6 million
income during the same period last year. The decrease
reflects a $0.6 million gain on
foreign exchange for the year ended December
31, 2014, compared to a $0.9
million gain in the same period in 2013, the change reflects
a $47,000 impairment charge on
certain property and equipment in 2014 and $0.1 million less in interest charges compared to
2013.
Earnings before income taxes for the year ending December 31, 2014 increased to $3.7 million, from $3.0
million in 2013, reflecting a $0.6
million higher gross profit, $0.4
million less net expenses, and $0.1
million less interest charges compared to the same period in
2013. This was offset by $0.3
million less gain on foreign exchange for the year ended
December 31, 2014 compared to same
period in 2013.
Income tax expense for the year ended December 31, 2014 was $0.5
million compared to income tax recovery of $0.7 million for the same period in 2013,
reflecting a current income tax recovery of $0.2 million for the year ended December 31, 2014 compared to a current tax
expense of $0.3 million in
2013. Deferred income tax recovery of $0.3 million for the year ended December 31, 2014, compared to a deferred income
tax recovery of $1.0 million in
2013.
For the year ended December 31,
2014, net earnings increased to $4.2
million, or $0.73 per share,
basic and diluted, from net earnings of $3.7
million, or $0.64 per share,
basic and diluted, during the same period in 2013.
Adjusted EBITDA for the year ended December 31, 2014 was $4.7
million, compared to $5.1
million the same period in 2013.
The following table sets forth, for the periods indicated, a
reconciliation of IFRS to non-IFRS measures:
(Table
B)
|
|
('000s)
|
Year ended December
31,
|
|
|
|
2014
|
2013
|
Change
|
Change
|
|
$
|
$
|
$
|
%
|
Net earnings for the
period
|
4,195
|
3,707
|
488
|
13
|
Interest
expense
|
115
|
236
|
(121)
|
(51)
|
Amortization and
depreciation
|
1,275
|
1,401
|
(126)
|
(9)
|
Tax
recovery
|
(494)
|
(731)
|
237
|
(32)
|
EBITDA
|
5,091
|
4,613
|
478
|
10
|
Foreign exchange loss
(gain)
|
(586)
|
(888)
|
302
|
(34)
|
Acquisition
costs
|
180
|
131
|
49
|
37
|
Write-down of
inventory
|
-
|
1,264
|
(1,264)
|
(100)
|
Adjusted
EBITDA
|
4,685
|
5,120
|
(435)
|
(8)
|
Financial Position
The Company ended the year with cash and cash equivalents of
$5.5 million, compared to
$3.3 million as at December 31, 2013 and the outstanding loan
balance was $2.4 million as at
December 31, 2014. The Company
also has access to net credit facilities totaling $3.3 million as at March
3, 2015.
Adjusted Working Capital(2) as at December 31, 2014 was $16.1 million, compared to $14.4 million at December
31, 2013. The Adjusted Current Ratio(2) as at
December 31, 2014 was 3.2 times,
compared to 3.5 times as at December 31,
2013.
(2)
|
Adjusted Working
Capital and Adjusted Capital Ratio are Non-IFRS Measure that are
defined in the 2014 Annual Management's Discussion
and Analysis posted on Norsat's website and
SEDAR.
|
Outlook
For fiscal 2015 the Company is expecting modest revenue growth
compared to 2014 due to the increased quotation activity and
backlog. The Company expects solid growth from its satellite
solutions division from 2014 levels, due to a healthy backlog of
military spending from our Datacom contract and our recently
announced contract from a Eurasian defense contractor to deliver an
array of satellite terminals. The Company's Land Mobile Radio
products (Sinclair) division's prospects are expected to remain
strong, driven by the PTC market, while government spending
continues to be slow, especially in Canada. The Microwave segment, while supported
by Norsat's diversification activities, including the additions
into the ATOM product portfolio may not initially be able to
replicate the same volumes of the Harris deliveries in 2014.
Going forward, the Company will continue to work to diversify
its business by broadening its product portfolio and expanding its
customer base on a geographic and market sector basis. Norsat
continues to focus on markets beyond the US, as well as on the
commercial, resource, transportation and public safety segments.
The Company is also continuing to pursue other new revenue
opportunities.
The current global economic uncertainties, coupled with Norsat's
stable financial position and capital structure, continue to create
excellent conditions for realizing growth through business
combinations. The Company will continue to actively pursue merger
and acquisition opportunities that provide strong value, further
key strategic objectives and have the potential to be accretive to
shareholders.
Management will also continue to execute a balanced growth
strategy that incorporates investment in staffing levels, new
product introductions, continued enhancement of existing product
lines, greater diversification by geographic region as well as by
industry verticals, and a broadening of the solutions we provide to
customers. In addition, the Company continues to evaluate
other strategic opportunities for improving overall operating and
financial performance.
Based on the outlook and information currently available to the
company, due to the timing on delivery of orders, backlog and the
impact of the large Harris contract in 2014, the Company expects
revenues in the first quarter of 2015 to be lower compared to the
first quarter of 2014.
A full set of financial statements and Management's Discussion
and Analysis for Norsat is available at www.norsat.com and will be
available at www.sedar.com.
Conference Call Details
Norsat will host a conference call today, March 4, 2015 at 8:30 am
Pacific Time (11:30 am Eastern
Time) to discuss 2014 fourth quarter and full-year results.
To access the conference call, please dial toll-free 1-888-886-7786
or 416-764-8658. The conference call ID is: 'Norsat Investor Call'.
Please connect approximately 10 – 15 minutes prior to the beginning
of the call to ensure participation. A digital recording and
transcript of the call will be available later today at:
http://www.norsat.com/investors/financial-information/conference-call-recordings/
Norsat
International Inc.
|
|
|
Consolidated
Statements of Financial Position
|
|
|
(Expressed in US
Dollars)
|
|
|
|
|
|
|
As at December
31
|
|
2014
|
2013
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
5,513,733
|
$
3,272,595
|
Trade and other
receivables
|
7,570,110
|
6,821,155
|
Inventories
|
10,120,374
|
9,566,289
|
Prepaid expenses and
other
|
426,093
|
572,038
|
Current
assets
|
23,630,310
|
20,232,077
|
Non-current
assets
|
|
|
Property and
equipment, net
|
855,978
|
1,055,160
|
Intangible assets,
net
|
6,360,336
|
7,377,107
|
Goodwill
|
4,736,470
|
5,104,370
|
Long-term prepaid
expenses and other
|
9,340
|
9,340
|
Deferred income tax
assets
|
4,900,000
|
4,900,000
|
Non-current
assets
|
16,862,124
|
18,445,977
|
Total
assets
|
$
40,492,434
|
$
38,678,054
|
|
|
|
LIABILITIES
|
|
|
Current
liabilities
|
|
|
Trade and other
payables
|
$
2,831,911
|
$
2,162,196
|
Accrued
liabilities
|
2,601,163
|
1,956,998
|
Provisions
|
766,371
|
851,437
|
Taxes
payable
|
120,038
|
270,263
|
Deferred
revenue
|
1,169,816
|
586,925
|
Current liabilities
before acquisition loan
|
7,489,299
|
5,827,819
|
|
Acquisition
loan
|
2,371,266
|
4,413,296
|
Current
liabilities
|
9,860,565
|
10,241,115
|
Non-current
liabilities
|
|
|
Long-term deferred
revenue
|
18,426
|
10,457
|
Deferred income tax
liabilities
|
1,629,001
|
2,002,973
|
Non-current
liabilities
|
1,647,427
|
2,013,430
|
Total
liabilities
|
11,507,992
|
12,254,545
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
Issued
capital
|
39,850,648
|
39,850,648
|
Treasury
shares
|
(326,527)
|
(318,255)
|
Contributed
surplus
|
4,371,778
|
4,278,843
|
Accumulated other
comprehensive loss
|
(3,033,963)
|
(1,315,478)
|
Deficit
|
(11,877,494)
|
(16,072,249)
|
Total
shareholders' equity
|
28,984,442
|
26,423,509
|
Total liabilities
and shareholders' equity
|
$
40,492,434
|
$
38,678,054
|
Norsat
International Inc.
|
|
|
|
Consolidated
Statements of Earnings and Comprehensive Income
|
|
|
(Expressed in US
Dollars)
|
|
|
|
|
|
|
|
|
Year Ended
December 31
|
|
2014
|
2013
|
2012
|
|
|
|
|
|
|
|
|
Revenue
|
$
36,179,180
|
$
36,417,698
|
$
42,428,760
|
Cost of
sales
|
21,800,384
|
22,594,407
|
24,268,619
|
Gross
profit
|
14,378,796
|
13,823,291
|
18,160,141
|
|
|
|
|
Expenses:
|
|
|
|
Selling and
distributing expenses
|
5,413,026
|
6,276,842
|
7,212,626
|
General and
administrative expenses
|
3,981,932
|
3,708,873
|
5,096,920
|
Product development
expenses, gross
|
2,845,898
|
3,512,958
|
3,419,951
|
|
Less: Government
contributions
|
(1,266,824)
|
(2,079,572)
|
(1,046,603)
|
Total
expenses
|
10,974,032
|
11,419,101
|
14,682,894
|
Earnings before
other expenses/(income)
|
3,404,764
|
2,404,190
|
3,477,247
|
|
|
|
|
|
|
|
|
(Gain)/ loss on
disposal of property and equipment
|
-
|
(13,653)
|
53,345
|
Impairment of
property and equipment
|
46,708
|
-
|
-
|
Interest and bank
charges
|
242,844
|
329,866
|
620,203
|
(Gain)/ loss on
foreign exchange
|
(586,020)
|
(887,777)
|
250,485
|
Earnings before
income taxes
|
3,701,232
|
2,975,754
|
2,553,214
|
|
|
|
|
Current income tax
(recovery)/ expense
|
(214,355)
|
269,812
|
782,034
|
Deferred income tax
recovery
|
(279,168)
|
(1,000,962)
|
(3,283,132)
|
Net earnings from
continuing operations
|
4,194,755
|
3,706,904
|
5,054,312
|
|
|
|
|
Net earnings from
discontinued operations
|
-
|
-
|
80,690
|
Net
earnings
|
$
4,194,755
|
$
3,706,904
|
$
5,135,002
|
|
|
|
|
Other
comprehensive (loss)/ income
|
|
|
|
Items that will be
reclassified to net earnings subsequently
|
-
|
-
|
-
|
Exchange differences
on translation of operations in currencies other than US
Dollars
|
(1,718,485)
|
(1,567,304)
|
322,572
|
Total
comprehensive income
|
$
2,476,270
|
$
2,139,600
|
$
5,457,574
|
Net earnings per
share
|
|
|
|
Basic earnings per
share
|
|
|
|
|
Earnings from
continuing operations
|
$
0.73
|
$
0.64
|
$
0.87
|
|
Earnings from
discontinued operations
|
-
|
-
|
0.01
|
|
Total
|
$
0.73
|
$
0.64
|
$
0.88
|
Diluted earnings per
share
|
|
|
|
|
Earnings from
continuing operations
|
$
0.73
|
$
0.64
|
$
0.87
|
|
Earnings from
discontinued operations
|
-
|
-
|
0.01
|
|
Total
|
$
0.73
|
$
0.64
|
$
0.88
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
Basic
|
5,757,518
|
5,780,268
|
5,814,605
|
|
Diluted
|
5,761,472
|
5,782,481
|
5,814,871
|
Norsat
International Inc.
|
|
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
|
|
(Expressed in US
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31
|
|
|
|
2014
|
2013
|
2012
|
|
|
|
|
|
|
Cash and cash
equivalents provided by/ (used in)
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
Net earnings for the
period
|
|
|
$
4,194,755
|
$
3,706,904
|
$
5,135,002
|
Income taxes refund/
(paid)
|
|
|
57,549
|
(134,804)
|
(1,344,364)
|
Non-cash adjustments
to reconcile net earnings to net cash flows:
|
|
|
|
|
|
Amortization
|
|
|
1,274,536
|
1,401,323
|
1,475,795
|
|
Impairment of
property and equipment
|
|
|
46,708
|
-
|
-
|
|
Foreign exchange
(gain) / loss
|
|
|
(586,020)
|
(887,777)
|
363,392
|
|
Loan acquisition cost
amortization
|
|
|
27,146
|
27,146
|
26,844
|
|
(Gain) /loss on
disposal of property and equipment
|
|
|
-
|
(13,653)
|
53,345
|
|
Gain on sale of
subsidiary
|
|
|
-
|
-
|
(93,986)
|
|
Current income tax
(recovery) / expense
|
|
|
(214,356)
|
269,812
|
782,034
|
|
Deferred income tax
(recovery) / expense
|
|
|
(279,168)
|
(1,000,962)
|
(3,283,132)
|
|
Share-based
payments
|
|
|
272,064
|
288,033
|
229,564
|
|
Vesting of
RSUs
|
|
|
(69,495)
|
(7,805)
|
-
|
|
Accretion of
promissory notes
|
|
|
-
|
31,871
|
95,904
|
|
Government
contribution
|
|
|
(1,266,824)
|
(2,113,720)
|
(1,108,673)
|
|
Changes in non-cash
working capital
|
|
|
463,711
|
(1,523,806)
|
(55,534)
|
Net cash flows
provided by operating actitivies
|
|
|
3,920,606
|
42,562
|
2,276,191
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Acqusition of
business
|
|
|
-
|
(530,170)
|
-
|
Purchase of
intangible assets, property and equipment
|
|
|
(623,286)
|
(584,787)
|
(547,662)
|
Proceeds from
government contributions for
acquisition of property and equipment
|
|
|
49,043
|
124,883
|
260,214
|
Proceeds from sale of
property and equipment
|
|
|
-
|
4,200
|
42,390
|
Proceeds from sale of
asset held for sale
|
|
|
-
|
54,768
|
-
|
Redemption of short
term investment
|
|
|
-
|
-
|
67,918
|
Proceeds from sale of
subsidiary
|
|
|
-
|
13,583
|
76,369
|
Net cash flows
used in investing activities
|
|
|
(574,243)
|
(917,523)
|
(100,771)
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Repayment of
acquisition loan
|
|
|
(1,920,000)
|
(2,370,000)
|
(2,800,000)
|
Payment of promissory
note
|
|
|
-
|
(725,000)
|
-
|
Purchase of treasury
shares, including purchase costs
|
|
|
(117,906)
|
(229,881)
|
(131,474)
|
Proceeds from
government contributions
|
|
|
997,783
|
2,356,450
|
1,554,669
|
Net cash flows
used in financing activities
|
|
|
(1,040,123)
|
(968,431)
|
(1,376,805)
|
|
|
|
|
|
|
Effect of foreign currency translation
on cash and cash
equivalents
|
|
|
(65,102)
|
62,542
|
61,955
|
|
|
|
|
|
|
Increase/ (decrease)
in cash and cash equivalents
|
|
|
2,241,138
|
(1,780,850)
|
860,570
|
Cash and cash
equivalents, beginning of period
|
|
|
3,272,595
|
5,053,445
|
4,192,875
|
Cash and cash
equivalents, end of period
|
|
|
$
5,513,733
|
$
3,272,595
|
$
5,053,445
|
About Norsat International Inc.
Founded in 1977, Norsat International Inc. is a leading provider
of innovative communication solutions that enable the transmission
of data, audio and video for remote and challenging applications.
Norsat's products and services include leading-edge product design
and development, production, distribution and infield support and
service of fly-away satellite terminals, microwave components,
antennas, Radio Frequency (RF) conditioning products, maritime
based satellite terminals and remote network connectivity
solutions. More information is available at www.norsat.com, via
email at investor@norsat.com or by phone at 1-604-821-2800.
Forward Looking
The discussion and analysis of this news release contains
forward-looking statements concerning anticipated developments in
Norsat's operations in future periods, the adequacy of its
financial resources and other events or conditions that may occur
in the future. Forward-looking statements are frequently, but not
always, identified by words such as "expects," "anticipates,"
"believes," "intends," "estimates,", "predicts," "potential,"
"targeted," "plans," "possible" and similar expressions, or
statements that events, conditions or results "will," "may,"
"could" or "should" occur or be achieved. These forward-looking
statements include, without limitation, statements about Norsat's
market opportunities, strategies, competition, expected activities
and expenditures as it pursues its business plan, the adequacy of
available cash resources and other statements about future events
or results. Forward-looking statements are statements about the
future and are inherently uncertain, and actual achievements of the
Company or other future events or conditions may differ materially
from those reflected in the forward-looking statements due to a
variety of risks, uncertainties and other factors, such as business
and economic risks and uncertainties. The forward-looking
statements are based on the beliefs, expectations and opinions of
management on the date the statements are made. Consequently, all
forward-looking statements made in this news release are qualified
by this cautionary statement and there can be no assurance that
actual results or anticipated developments will be realized. For
the reasons set forth above, investors should not place undue
reliance on forward-looking statements. These forward-looking
statements are made as of the date of this news release and Norsat
assumes no obligation to update or revise them to reflect new
events or circumstances, other than as required by law.
SOURCE Norsat International Inc.