- Management to Host Conference Call at
8:30 am Pacific Time (11:30 am Eastern Time) -
VANCOUVER, May 4, 2016 /CNW/ - Norsat International
Inc. ("Norsat" or the "Company") (TSX: NII and NYSE MKT:
NSAT), a provider of unique and customized communication
solutions for remote and challenging applications, today reported
financial results for the first quarter ended March 31, 2016.
Quarter Highlights
- $9.6 million in revenue for
the quarter, an increase of 14% compared to $8.4 million for the same period last year.
- Gross profit margin of 44% for the quarter, an increase
of 4% from 40% for the same period last year.
- Net earnings for the quarter were $1.2 million, or $0.20 per share, basic and diluted, compared
to $0.6 million, or $0.10 per share, basic and diluted, for the same
period last year.
- $7.2 million of cash and cash
equivalents at March 31, 2016, an
increase of $2.6 million compared to
$4.6 million at December 31, 2015.
- $21.2 million of working
capital at March 31, 2016, an
increase of $1.8 million compared to
$19.4 million at December 31, 2015.
- Adjusted EBITDA1 of $1.7 million for the quarter, an increase of
78% from $0.9 million for the same
period last year.
"We are very pleased with the first quarter results. Despite
continued headwinds in our Sinclair Technologies division, our
total revenue has increased by 14% as our Satellite Communications
division delivered a significant number of satellite terminals to a
major Eurasian defense contractor during the quarter, bringing
total shipments to-date of approximately $2.8 million of our $4.2
million contract. The timing of product deliveries on
our large order resulted in strong quarterly results," said Dr.
Amiee Chan, President and CEO of
Norsat. "We have also continued to manage our cost structure and
were able to deliver another strong quarter of profitability and
Adjusted EBITDA. To capitalize on new market opportunities
over the coming years, we have continued with our product
development initiatives during the quarter and we were able to
introduce new products and solutions, including the introduction of
the MEDIAN series of Ku-band Block Up Converters ("BUCs") and ATOM
250 Watt Ku-band BUCs and solid-state power amplifiers," added
Dr. Chan.
_______________________
1 Adjusted EBITDA is a measure that the Company uses to
reflect the results of its core earnings. Adjusted EBITDA is
defined as earnings before income tax expense, financing costs,
depreciation and amortization, foreign exchange gain or loss,
corporate development costs, write-down of inventory, impairment
charges or recoveries, discontinued operations and other non-cash
charges.
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, May 4, 2016 at
8:30 am Pacific Time (11:30 am Eastern Time) to discuss its fiscal year
2016 first quarter results. To access the conference call, please
dial toll-free 1-888-886-7786 or 416-764-8658. The conference call
title 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 after the live call at:
http://www.norsat.com/investors/financial-information/conference-call-recordings/
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Norsat
International Inc.
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Condensed Interim
Consolidated Statements of Financial Position
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(Expressed in United
States dollars, except when otherwise indicated)
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(Unaudited)
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|
|
|
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|
|
|
March 31,
2016
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December 31,
2015
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ASSETS
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|
|
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Current
assets
|
|
|
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Cash and cash
equivalents
|
$
|
7,171,748
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$
|
4,585,754
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|
Trade and other
receivables
|
8,582,428
|
8,987,392
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|
Inventories
|
10,693,529
|
10,956,524
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|
Prepaid expenses and
other
|
337,162
|
394,617
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|
26,784,867
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24,924,287
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|
Non-current
assets
|
|
|
|
Property and
equipment, net
|
518,744
|
558,609
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Intangible assets,
net
|
4,550,131
|
4,724,490
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Goodwill
|
4,090,962
|
4,097,751
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Investment tax
credits recoverable
|
5,076,349
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4,985,139
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Deferred income tax
assets
|
1,784,413
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2,218,848
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|
16,020,599
|
16,584,837
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Total
assets
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$
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42,805,466
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$
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41,509,124
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|
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LIABILITIES
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Current
liabilities
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|
|
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Trade and other
payables
|
$
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2,323,728
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$
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1,906,703
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Accrued
liabilities
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2,223,207
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2,375,107
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Provisions
|
870,889
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947,682
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Taxes
payable
|
-
|
-
|
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Deferred
revenue
|
191,415
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286,432
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|
5,609,239
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5,515,924
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Non-current
liabilities
|
|
|
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Long-term deferred
revenue
|
25,068
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45,889
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Total
liabilities
|
5,634,307
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5,561,813
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SHAREHOLDERS'
EQUITY
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Issued
capital
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39,850,648
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39,850,648
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Treasury
shares
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(320,750)
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(320,750)
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Contributed
surplus
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4,363,363
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4,318,487
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Accumulated other
comprehensive loss
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(4,656,874)
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(4,673,811)
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Deficit
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(2,065,228)
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(3,227,263)
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Total
shareholders' equity
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37,171,159
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35,947,311
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Total liabilities
and shareholders' equity
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$
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42,805,466
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$
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41,509,124
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Norsat
International Inc.
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Condensed Interim
Consolidated Statements of Earnings and Comprehensive
Income
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(Expressed in United
States dollars, except when otherwise indicated)
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(Unaudited)
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Three months ended
March 31
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2016
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2015
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Revenue
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$
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9,553,427
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$
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8,410,325
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Cost of
sales
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5,378,280
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5,052,482
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Gross
profit
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4,175,147
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3,357,843
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Expenses:
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Selling and
distributing
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1,403,942
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1,266,993
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General and
administrative
|
882,101
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1,024,457
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Product
development
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783,995
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758,776
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Less: Government
contributions
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(379,475)
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(331,024)
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(Gain)/loss on
foreign exchange
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(49,159)
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177,749
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Interest and bank
charges
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26,800
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35,398
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Total
expenses
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2,668,204
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2,932,349
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|
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Earnings before
income taxes
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1,506,943
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425,494
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|
|
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Current income tax
recovery
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-
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(66,068)
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Deferred income tax
expense/(recovery)
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344,908
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(68,125)
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Net
earnings
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$
|
1,162,035
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$
|
559,687
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Other
comprehensive income (loss)
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Items that may
subsequently be reclassified to income:
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Exchange differences
on translation of operations
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|
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in currencies other
than United States dollars
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16,937
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(543,779)
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Total
comprehensive income
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$
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1,178,972
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$
|
15,908
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Net earnings per
share
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|
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Basic earnings per
share
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$
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0.20
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$
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0.10
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Diluted earnings per
share
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$
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0.20
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$
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0.10
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Weighted average
number of shares outstanding
|
|
|
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Basic
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5,766,952
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5,766,177
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Diluted
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5,789,421
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5,788,977
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Norsat
International Inc.
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Condensed Interim
Consolidated Statements of Cash Flows
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(Expressed in United
States dollars, except when otherwise indicated)
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(Unaudited)
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|
|
|
|
|
|
|
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Three months ended
March 31
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2016
|
2015
|
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Cash and cash
equivalents provided by/(used in)
|
|
|
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Operating
activities:
|
|
|
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Net earnings for the
period
|
$
|
1,162,035
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$
|
559,687
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Adjustments for items
not affecting cash:
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Depreciation and
amortization
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229,328
|
328,049
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Write-off of property
and equipment
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-
|
31,139
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|
Unrealized foreign
exchange loss
|
24,856
|
177,748
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Acquisition loan cost
amortization
|
-
|
2,262
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Current income tax
recovery
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-
|
(66,068)
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Deferred income tax
expense/(recovery)
|
344,908
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(68,125)
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Share-based
payments
|
44,876
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53,951
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Government
contributions
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(379,475)
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(331,024)
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Changes in non-cash
working capital
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233,338
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(911,428)
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Net cash flows
provided by/(used in) operating activities
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1,659,866
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(223,809)
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Investing
activities:
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Purchase of
intangible assets, property and equipment
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(23,418)
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(56,095)
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Net cash flows
used in investing activities
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(23,418)
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(56,095)
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Financing
activities:
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Repayment of
acquisition loan
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-
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(980,000)
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Government
contributions
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954,460
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763,484
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Net cash flows
provided by/(used in) financing activities
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954,460
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(216,516)
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Effect of foreign
currency translation on
|
|
|
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cash and cash
equivalents
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(4,914)
|
340,221
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|
|
|
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Increase/(decrease)
in cash and cash equivalents
|
2,585,994
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(156,199)
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Cash and cash
equivalents, beginning of period
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4,585,754
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5,513,733
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Cash and cash
equivalents, end of period
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$
|
7,171,748
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$
|
5,357,534
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Norsat
International Inc.
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|
|
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Reconciliation of
IFRS to non-IFRS Measures
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|
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(Expressed in United
States dollars, except when otherwise indicated)
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|
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|
|
Three months ended
March 31
|
|
2016
|
2015
|
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Net earnings for the
period
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$
|
1,162,035
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$
|
559,687
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Interest
(income)/expense
|
(1,558)
|
14,505
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Depreciation and
amortization
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229,328
|
328,049
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Tax
expense/(recovery)
|
344,908
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(134,193)
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EBITDA(2)
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$
|
1,734,713
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$
|
768,048
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(Gain)/loss on
foreign exchange
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(49,159)
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177,749
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Adjusted
EBITDA(2)
|
$
|
1,685,554
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$
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945,797
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(2)
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We disclose non-IFRS
measures as we believe they provide useful information on actual
operating results and assist in
comparisons from one period to another. Readers are cautioned that
non-IFRS measures do not have any standardized
meaning prescribed by IFRS and therefore may not be comparable to
similar measures presented by other companies.
For a more detailed description of non-IFRS measures, please refer
to Management's Discussion and Analysis for the
three months ended March 31, 2016 posted on Norsat's website and
SEDAR.
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About Norsat International Inc.
Founded in 1977, Norsat International Inc. is a provider of
unique and customized communication solutions 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 Statements
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.