Trojan Technologies Announces First Quarter Results.Business Editors LONDON London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , Ontario--(BUSINESS WIRE)--Jan. 29, 2001 Trojan A program that appears legitimate, but performs some illicit activity when it is run. It may be used to locate password information or make the system more vulnerable to future entry or simply destroy programs or data on the hard disk. Technologies Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :TUV (Technischer Überwachungs-Verein) Literally "Technical Watch-Over Association." A German certifying body involved with product safety for the European community. .) today announced its financial and operating results for the first quarter of fiscal year 2001, ended November November: see month. 30, 2000. Revenue for the quarter was $18.4 million, an increase of 12% compared to $16.5 million in the same quarter last year. Earnings before interest, taxes, amortization and income from equity investment were $271,500 compared to a loss of $3.3 million in the first quarter of fiscal 2000. In the first quarter of fiscal 2001, Trojan reported a net loss after tax of $0.6 million or $0.03 per share compared to a loss of $4.1 million or $0.24 per share in the first quarter of the prior year. Last year's results included a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $2.5 million before tax. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: gross margin was 36.4% or $6.7 million in the quarter compared to 24.7% or $4.1 million in the same quarter last year. These results demonstrate the positive effect of changes introduced over the last year. Gross margins in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. markets were particularly strong at over 40% reflecting the benefits of cost reductions and improved operations. In addition, improvements to the Company's financial and information systems have provided better information to ensure improvement in the bidding process. However, the gross margin in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). was just over 10%. One large
contract, manufactured this quarter, was committed to in fiscal 1999 at
a low margin. That, together with the impact of the weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. Euro since
1999, has negatively impacted the Company's performance overall
reducing gross margin gains made in the prior quarter.
Mr. Hank hank n. 1. A coil or loop. 2. Nautical A ring on a stay attached to the head of a jib or staysail. 3. A looped bundle, as of yarn. Vander Vander can refer to: People
Administrative, selling and research and development costs were reduced to $6.4 million or 34.9% of sales compared to $7.3 million and 44.5% in the first quarter of last year. In addition to these expenses, last year's first quarter results reflected a restructuring charge of $2.5 million At November 30, 2000, the Company's net bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. was $16.1 million, compared to $20.6 million at August 31, 2000 as a result of the production realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. program and reductions in inventory. Accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. revenue at November 30, 2000 was $11.6 million, compared to $16.3 million at August 31, 2000 and $23.1 million at the same time last year, reflecting Trojan's success in aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. production with customer delivery requirements The stipulation that requires that an item of materiel must be delivered in the total quantity required by the date required. . Outlook For the last two years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time wastewater Wastewater is any water that has been adversely affected in quality by anthropogenic influence. It comprises liquid waste discharged by domestic residences, commercial properties, industry, and/or agriculture and can encompass a wide range of potential contaminants and treatment industry has experienced project delays that in turn have reduced sales volumes. Given the slowing in the US economy, it is not clear how soon this market will rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective . In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , Trojan has identified additional applications for UV technology, including municipal drinking water drinking water supply of water available to animals for drinking supplied via nipples, in troughs, dams, ponds and larger natural water sources; an insufficient supply leads to dehydration; it can be the source of infection, e.g. leptospirosis, salmonellosis, or of poisoning, e.g. and has launched new products for these markets. The Company is receiving requests for proposals for its Trojan UVSwift(TM) drinking water systems, but the long decision cycle makes it likely that significant new revenues from these market will not emerge until fiscal 2002 and beyond. During the last year, the Company has placed considerable emphasis on improving its gross margins and believes it can achieve margins. Because of the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the business, it is anticipated that the second quarter revenues will not be at a sufficient level to generate profits during the period. Given the expected revenue growth in the balance of the year, management believes profitability can be achieved for the year overall. Later today, the Company's Annual Meeting of Shareholders will be held in London, Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. . Copies of the presentations made by Mr. Vander Laan and Mr. Alexander will be available on the Company's website at www.trojanuv.com. Trojan Technologies is a 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. based, high technology environmental company operating internationally. With more than 20 years of experience, Trojan has the largest installed base of UV disinfection disinfection, n the process of destroying pathogenic organisms or rendering them inert. disinfection, full oral cavity, n a procedure used to reduce active periodontal disease, usually completed within a certain short time frame. systems operating around the world. Trojan designs, manufactures and sells ultraviolet disinfection Ultraviolet disinfection is a form of wastewater treatment. It is commonly used in garden pond filtration systems to kill algae. Large scale urban UV wastewater treatment is performed in cities such as Edmonton, Alberta. systems for municipal wastewater, drinking water systems for residential, municipal and commercial use, and industrial systems for food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. , pharmaceutical, and semiconductor applications. This document contains certain statements that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. relative to the company's future strategy and performance. They involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to be materially different from any future performance suggested in this document. Further, the Company operates in an industry where it may be influenced by economic and other factors beyond the Company's control.
TROJAN TECHNOLOGIES INC.
FINANCIAL HIGHLIGHTS
(in thousands of dollars)
(unaudited)
For the three months ended
November 30
2000 1999
----------------------------------------------------------------------
Revenue $ 18,418.5 $ 16,492.6
Earnings (loss) before interest,
taxes, amortization, equity income
and restructuring charge $ 271.5 $ (3,267.6)
Net loss $ (589.6) $ (4,080.2)
Loss per share (in dollars)
Basic $ (0.03) $ (0.24)
Fully diluted $ (0.03) $ (0.24)
Number of shares (in thousands)
Basic 17,168.4 17,124.5
Fully diluted 17,807.0 17,896.0
TROJAN TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands of dollars)
(unaudited)
For the three months ended
November, 30
2000 1999
----------------------------------------------------------------------
REVENUE $ 18,418.5 $ 16,492.6
Cost of goods sold 11,719.6 12,418.4
----------------------------------------------------------------------
Gross Margin 6,698.9 4,074.2
----------------------------------------------------------------------
EXPENSES
Administrative and selling 5,498.2 5,437.0
Research and development 929.2 1,904.8
----------------------------------------------------------------------
6,427.4 7,341.8
----------------------------------------------------------------------
----------------------------------------------------------------------
Earnings (loss) before interest,
taxes, amortization, income from
equity investment and restructuring charge 271.5 (3,267.6)
Other expenses (income)
Interest on long-term debt 68.7 107.0
Interest and bank charges 447.7 411.2
Amortization 764.4 712.3
Interest income (34.7) (119.9)
Income from equity investment (195.0) (150.0)
Restructuring charge [note 2] - 2,500.0
----------------------------------------------------------------------
Operating loss (779.6) (6,728.2)
Income taxes [note 3] (190.0) (2,648.0)
----------------------------------------------------------------------
Net loss (589.6) (4,080.2)
Retained earnings, beginning of period 3,190.1 10,907.7
----------------------------------------------------------------------
Retained earnings, end of period $ 2,600.5 $ 6,827.5
----------------------------------------------------------------------
----------------------------------------------------------------------
Loss per share (in dollars)
Basic $ (0.03) $ (0.24)
Fully diluted $ (0.03) $ (0.24)
----------------------------------------------------------------------
----------------------------------------------------------------------
Number of shares (in thousands)
Basic 17,168.4 17,124.5
Fully diluted 17,807.0 17,896.0
----------------------------------------------------------------------
See accompanying notes
TROJAN TECHNOLOGIES INC.
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
(unaudited)
November 30 August 31
2000 2000
----------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents $ 1,701.6 $ 718.0
Accounts receivable 23,969.1 23,943.6
Accrued revenue on contracts in progress 11,630.8 16,289.7
Inventory 11,517.8 12,283.2
Prepaid expenses 174.8 394.0
Income taxes receivable 973.1 950.4
----------------------------------------------------------------------
Total current assets 49,967.2 54,578.9
Investments in other companies 1,941.9 1,746.9
Investment tax credits recoverable 3,378.0 3,178.0
Future income taxes 3,409.4 2,922.0
Capital assets 23,540.6 23,722.7
Patents, trademarks and licenses 1,308.1 1,305.8
Goodwill 827.7 782.2
----------------------------------------------------------------------
$ 84,372.9 $ 88,236.5
----------------------------------------------------------------------
----------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness $ 17,848.7 $ 21,347.8
Accounts payable and accrued charges 15,458.2 15,127.2
Current portion of long-term debt 915.8 915.0
----------------------------------------------------------------------
Total current liabilities 34,222.7 37,390.0
----------------------------------------------------------------------
Long-term debt 4,192.2 4,298.9
----------------------------------------------------------------------
Shareholders' equity
Share capital 43,357.5 43,357.5
Retained earnings 2,600.5 3,190.1
----------------------------------------------------------------------
45,958.0 46,547.6
----------------------------------------------------------------------
$ 84,372.9 $ 88,236.5
----------------------------------------------------------------------
See accompanying notes
TROJAN TECHNOLOGIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars) For the three months ended
(unaudited) November, 30
2000 1999
----------------------------------------------------------------------
OPERATING ACTIVITIES
Net loss $ (589.6) $ (4,080.2)
Add (deduct) charges (credits) to
operations not involving cash
Amortization 764.4 712.3
Income from equity investment (195.0) (150.0)
Future income taxes (190.0) (1,300.0)
Investment tax credits recoverable (200.0) -
Net change in non-cash working capital
balances related to operations 5,869.6 1,935.8
----------------------------------------------------------------------
Cash provided by (used in) operating
activities 5,459.4 (2,882.1)
----------------------------------------------------------------------
INVESTMENT ACTIVITIES
Additions to capital assets, net (438.2) (1,412.1)
Additions to patents, trademarks and
licenses (69.5) (136.5)
Acquisitions (115.2) (149.5)
----------------------------------------------------------------------
Cash used in investment activities (622.9) (1,698.1)
----------------------------------------------------------------------
FINANCING ACTIVITIES
Decrease in bank indebtedness (3,715.6) (2,895.2)
Issuance of common shares - 348.5
Repayment of long-term debt (137.2) (137.6)
----------------------------------------------------------------------
Cash used in financing activities (3,852.8) (2,684.3)
----------------------------------------------------------------------
Net increase (decrease) in cash and
cash equivalents during the period 983.6 (7,264.5)
Cash and cash equivalents, beginning of
period 718.0 11,985.6
----------------------------------------------------------------------
Cash and cash equivalents, end of period 1,701.6 4,721.1
----------------------------------------------------------------------
----------------------------------------------------------------------
See accompanying notes
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have
been prepared by the Company in accordance with accounting principles
generally accepted in Canada. These unaudited condensed notes to the
consolidated financial statements should be read in conjunction with
the audited financial statements and notes included in the Company's
Annual Report for the fiscal year ended August 31, 2000.
2. RESTRUCTURING CHARGE
The restructuring charge in fiscal 2000 represented costs
associated with the Company's restructuring plan including severance
and benefits continuation for terminated staff, diagnostic review of
the Company's information systems and various legal and related costs.
3. INCOME TAXES
The Company's effective tax rate for the quarter is 24.4% of the
operating loss for the quarter as it includes a charge of $60,000 due
to tax rate reductions as well as $51,000 for the Federal Large
Corporations Tax.
4. SEGMENT INFORMATION [in thousands of dollars]
Three months ended November 30, 2000
----------------------------------------------------------------------
Municipal Clean Water All Other Total
$ $ $ $
----------------------------------------------------------------------
Revenue 16,058.9 2,359.6 - 18,418.5
----------------------------------------------------------------------
Operating income (loss) 154.8 117.2 (1,051.1) (779.6)
----------------------------------------------------------------------
Three months ended November 30, 1999
----------------------------------------------------------------------
Municipal Clean Water All Other Total
$ $ $ $
----------------------------------------------------------------------
Revenue 15,291.6 1,201.0 - 16,492.6
----------------------------------------------------------------------
Operating income (loss) (3,875.3) 43.2 (2,896.1) (6,728.2)
----------------------------------------------------------------------
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