Sierra Systems Reports Fourth Quarter and Fiscal 2001 Results.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , B.C.--(BUSINESS WIRE)--Dec. 6, 2001 Grant Gisel, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Sierra Systems Sierra Systems Group Inc. ("Sierra Systems") is a private information technology and business consulting corporation headquartered in Vancouver, BC, Canada. The company provides services to both the public and private sectors. Group Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :SSG SSG abbr. staff sergeant .), commented on the Company's fourth quarter and fiscal 2001 results, "Revenue and net earnings in Q4 increased 13% and 107% compared to the same period last year. Despite events of September September: see month. 11, new sales success continued with only minor negative impacts while relatively few billable hours Billable Hours is a Canadian comedy series, which airs on Showcase. Set in the fictional Toronto law firm of Fagen & Harrison, the series focuses on three young lawyers struggling to balance their expectations in life with the difficult realities of building a career were lost. Our sales successes have positioned Sierra Systems Group Inc. well for the start of fiscal 2002."
Amounts in tables are in thousands of Canadian dollars except
earnings per share.
3 Months Ended September 30
2001 2000
-----------------------------
Revenue 30,706 27,098
Net Earnings (Loss) for the Period 158 (2,218)
Basic and Fully Diluted Earnings (Loss)
Per Share $0.02 ($0.24)
Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Fourth Quarter Fiscal 2001 Results Fourth quarter revenue was 13% higher than the same period last year. Compensation costs were higher by 8%, a result of the increased use of outside consultant costs supporting the increase in revenue and annual salary increases. Other costs were reduced by 8% with cost savings made in the areas of non-recoverable travel expenses and advertising and promotion. The gross margin percentage improved to 18% from 13% leading to an increase in gross profit of 62%. General and administrative expenses declined 14%. There was a significant provision in the fourth quarter of fiscal 2000 for bad debts, with no such charge in the comparative quarter of fiscal 2001. The Company recorded a foreign exchange gain of $0.4 million. The tax treatment of this gain means it has a significant effect on the earnings per share, increasing it by $0.04. On a sequential One after the other in some consecutive order such as by name or number. quarterly basis, revenue declined modestly by 2%. Services revenue was consistent (a reduction of 1%). The average headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. was flat but there was a 4% drop in utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be due to the timing of summer vacations Summer vacation (also called summer holidays or summer break) is a vacation in the summertime between school years in which students are off for 3 months, depending on the country and district. . Compensation costs dropped by 3%. This reduction arose from the timing of benefits, offset in part by additional travel bonuses. The ratio of compensation costs as a percentage of services revenue improved as a result of the reduction in costs. Expenditures on other costs dropped by 13% and the ratio of other costs as a percentage of services revenue improved slightly to 8%. The gross margin percentage increased to 18% from 16%, leading to increased gross profit of 9%. General and administrative increased by 4%, a result of increased legal costs on contract negotiations and other risk management activities.
Amounts in tables are in thousands of Canadian dollars except
earnings per share.
Fiscal 2001 12 Months Ended September 30
2001 2000
------------------------------
Revenue 127,329 120,683
Net Earnings (Loss) for the Year 1,535 (1,201)
Basic and Fully Diluted Earnings (Loss)
Per Share $0.17 ($0.13)
Services revenue for the year increased 5% compared to fiscal 2000 while compensation costs rose only 1%, a result of increased utilization. Expenditures on other costs dropped 2%. The gross margin percentage has increased to 19% from 16% leading to an increase in gross profit of 27%. General and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. increased 5%. On November November: see month. 30, 2001, Leslie Leslie (Gaelic, derived from a surname meaning 'garden of hollies,'grey fortress, or'garden by the pool')[1] can refer to any of the following: Places in Scotland:
Ingram may mean: In geography:
Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to in the building of the Company. She will be sorely sore·ly adv. 1. Painfully; grievously. 2. Extremely; greatly: Their skills were sorely needed. missed. Thank you, Leslie Ann, from all of us. About Sierra Systems Sierra Systems Group Inc. (TSE:SSG), proudly celebrating its 35th anniversary, delivers consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" to create solutions to clients' business challenges across North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Sierra Systems combines extensive business knowledge with the latest information technologies to apply new thinking about technology to health, justice, government, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and insurance, utilities, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , and enterprise solutions. Thirty-five years of discipline, commitment, and technology leadership distinguish Sierra Systems as a leader in an industry renowned for constant change and intense competition. Visit www.SierraSystems.com for more information. There will be a conference call on Thursday Thursday: see week. , December 6, 2001 at 1:30 p.m. Pacific (4:30 p.m. Eastern) time. People wishing to participate should call 1-800-491-3423 and enter the passcode #1361747 ten minutes prior to the scheduled time In rallying, the Scheduled Time of any crew is the time, calculated at the beginning of the event, that they should arrive at any given control. It is different from Due Time in that Due Time is dynamic, ie it can change throughout the event as competitors drop time; whereas . A digital playback Playback could mean:
The statements that are not historical facts contained in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Sierra (company, games) Sierra - (Or "Sierra On-Line") A computer game developer founded in the early 1980s by Ken and Roberta Willams in the small mountain town of Oakhurst California. Sierra was named after the local mountian range, 15 miles from the famous Yosemite National Park. Systems' actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, technological shifts, employee retention, fixed price contract delivery, competition, general economic conditions, and other risks detailed in the Company's filings with Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities .
SIERRA SYSTEMS GROUP INC.
CONSOLIDATED STATEMENTS of EARNINGS
(in thousands of Canadian dollars except per share and share figures)
Three months ended Year ended
Sept 30 Sept 30
2001 2000 2001 2000
--------------------------------------------
Revenue
Services $ 30,687 $ 26,870 $ 126,069 $ 119,807
Product sales 19 228 1,260 876
--------------------------------------------
30,706 27,098 127,329 120,683
--------------------------------------------
Cost of sales
Compensation 22,630 20,931 91,198 90,018
Other costs 2,415 2,635 10,848 11,108
Product costs (10) 33 1,065 559
--------------------------------------------
25,035 23,599 103,111 101,685
--------------------------------------------
Gross profit 5,671 3,499 24,218 18,998
General & administration 4,585 5,355 17,312 16,527
Amortization of capital
assets 950 1,083 3,146 3,142
--------------------------------------------
Earnings (loss) from
operations 136 (2,939) 3,760 (671)
Other (expenses) income 622 346 1,344 877
--------------------------------------------
Earnings (loss) before
income taxes and
goodwill amortization 758 (2,593) 5,104 206
Provision (recovery) for
income taxes 332 (631) 2,498 577
--------------------------------------------
Earnings (loss) before
goodwill amortization 426 (1,962) 2,606 (371)
Goodwill amortization 268 256 1,071 830
--------------------------------------------
Net earnings (loss) for
the period $ 158 $ (2,218) $ 1,535 $ (1,201)
--------------------------------------------
Earnings (loss) per share
before goodwill
amortization $ 0.05 $ (0.21) $ 0.28 $ (0.04)
--------------------------------------------
Earnings (loss) per share
(basic and fully
diluted) $ 0.02 $ (0.24) $ 0.17 $ (0.13)
--------------------------------------------
Weighted average number
of common shares 9,179,803 9,176,311 9,192,908 9,100,992
--------------------------------------------
SIERRA SYSTEMS GROUP INC.
CONSOLIDATED BALANCE SHEETS
(in thousands of Canadian dollars)
Sept 30 Sept 30
2001 2000
-----------------------
ASSETS
Current assets
Cash $ 2,976 $ 1,454
Temporary investments 13,752 13,441
Accounts receivable, including unbilled work
in progress 28,092 28,166
Other current assets 5,235 6,447
-----------------------
50,055 49,508
-----------------------
Long-term accounts receivable 851 2,651
Capital assets 10,959 8,908
Future income taxes 2,406 1,741
Goodwill 11,406 12,668
-----------------------
$ 75,677 $ 75,476
-----------------------
-----------------------
LIABILITIES
Current liabilities
Accounts payable & accrued liabilities 11,928 11,714
Other current liabilities 4,274 3,856
-----------------------
16,202 15,570
Project financing 851 2,651
-----------------------
17,053 18,221
-----------------------
SHAREHOLDERS' EQUITY
Capital stock 40,070 40,236
Retained earnings 18,554 17,019
-----------------------
58,624 57,255
-----------------------
$ 75,677 $ 75,476
-----------------------
-----------------------
SIERRA SYSTEMS GROUP INC.
CONSOLIDATED STATEMENTS of CASH FLOWS
(in thousands of Canadian dollars)
Three months ended Year ended
Sept 30 Sept 30
2001 2000 2001 2000
--------------------------------------------
Cash provided from (used
for)
Operating Activities
Net earnings (loss) for
the period $ 158 $ (2,218) $ 1,535 $ (1,201)
Items not affecting cash
Amortization 1,218 1,339 4,217 3,972
Future income taxes (194) (1,782) (461) (1,782)
Net change in non-cash
operating working
capital (323) 4,978 1,714 4,183
Net change in long-term
accounts receivable 589 620 1,800 2,126
--------------------------------------------
1,448 2,937 8,805 7,298
Financing Activities
Project financing (588) (620) (1,800) (1,798)
Shares purchased for
long-term incentive
plan (note 5) - - (340) -
Shares issued 68 136 365 934
--------------------------------------------
(520) (484) (1,775) (864)
Investing Activities
Temporary investments (378) (409) (311) 1,765
Purchase of capital
assets (965) (361) (5,197) (4,331)
Investment in TWA - - - (1,633)
--------------------------------------------
(1,343) (770) (5,508) (4,199)
(Decrease) increase in
cash (415) 1,683 1,522 2,235
Cash (bank indebtedness)
- beginning of period 3,391 (229) 1,454 (781)
--------------------------------------------
Cash (bank indebtedness)
- end of period $ 2,976 $ 1,454 $ 2,976 $ 1,454
--------------------------------------------
Interest and income taxes (note 3)
Comparative figures have been restated to reflect changes in
presentation
Notes to Interim Consolidated Financial Statements (unaudited)
1. Business segment information
(in thousands of Canadian dollars)
The Company operates in one business segment - providing IT
services. The Company operates in Canada and the United States.
For the three months ended September 30, 2001
---------------------------------------------
Canada U.S. Total
Revenue 18,530 12,176 30,706
For the three months ended September 30, 2000
---------------------------------------------
Canada U.S. Total
Revenue 17,285 9,813 27,098
For the year ended September 30, 2001
---------------------------------------------
Canada U.S. Total
Revenue 81,120 46,209 127,329
For the year ended September 30, 2000
---------------------------------------------
Canada U.S. Total
Revenue 78,171 42,512 120,683
As at September 30, 2001
---------------------------------------------
Canada U.S. Total
Capital assets and
Goodwill 19,264 3,101 22,365
As at September 30, 2000
---------------------------------------------
Canada U.S. Total
Capital assets and
Goodwill 18,210 3,366 21,576
2. Capital stock
Issued As at September 30, 2001 As at September 30, 2000
---------------------------------------------------
Common shares 9,182,520 9,178,603
Amount (000's) $ 40,070 $ 40,236
3. Statement of cash flows
(in thousands of Canadian dollars)
Three months ended Year ended
September 30 September 30
---------------------------------------
2001 2000 2001 2000
Interest paid 56 225 349 711
Interest received 61 463 891 1,395
Income taxes paid 673 255 3569 4,274
Income taxes refunded 1,696 472 2,013 915
Non-cash financing activities
Shares issued for acquisitions - - - 1,254
Retraction of shares held in
escrow - - 191 -
Non-cash investing activities
Reduction in purchase price of
acquisitions - - 191 -
4. Future income taxes Effective October October: see month. 1, 2000, the Company adopted the liability method of accounting for income taxes. Under the liability method, future tax assets and liabilities are determined based upon differences between financial reporting and tax bases of assets and liabilities measured using current income tax rates. The Company has adopted the new recommendations retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin . The cumulative effect of adopting the liability method of accounting for income taxes was not material; therefore there has been no change to retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. for the year ended September 30, 2000. Prior to October 1, 2000, income taxes were accounted for by the deferral deferral - Waiting for quiet on the Ethernet. method. 5. Long-Term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. Incentive Plan In April 2001, the Company adopted a Long-Term Incentive Plan whereby certain key employees are provided with common share-based awards. The funding for awards under this plan of $340,000 was paid into a trust, which purchased 46,431 common shares of Sierra Systems Group Inc. on the open market. The shares are recorded as treasury stock and presented as a reduction of capital stock. For participating employees, full vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: occurs upon completion of three years' service. Compensation expense is recognized on a straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. basis over the vesting period. |
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