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Belzberg Reports Fourth Quarter and Annual 2008 Financial Results.

TORONTO, March 9 /PRNewswire-FirstCall/ -- Belzberg Technologies Inc. (TSX -BLZ), a provider of technology-based equity and options trading services, announced today its financial results for the three and twelve months ended December 31, 2008 - as well as a number of initiatives to improve profitability, enhance operations and position for growth.

"Belzberg's core business came under pressure in 2008. Revenues were negatively affected by the market downturn, while investments were made to support increased trade and data volumes and clearing," said Judith Robertson, President and CEO. "Our objective is to reverse the decline in profitability and position Belzberg for future growth. We have narrowed our strategic focus to our core strengths. We expect to introduce clearing as an extension of our execution business in the U.S. in the second quarter. We will strengthen our sales presence with a coordinated effort focused on our strengths in the options markets. We will introduce new products and features that are aligned with this vision."
 Major activities to date include:

 - Recruited Chris Jackson, President, Canadian Operations. Chris has
 overall responsibility for strategy, sales and service delivery for
 the Canadian business;
 - Closed London, UK office; to provide full focus to North American
 growth
 - Revamped development queue process and re-assigned resources to
 product development to enhance innovation and delivery
 - Consolidated US sales and product leadership to pursue a sales
 strategy with a focus on electronic products and strength in options
 - Reassigned resources to enhance delivery of clearing services -
 tightly controlled launch of first client in the next quarter




"Notwithstanding the challenging market conditions, Belzberg is well-positioned as a low cost provider to build on its large installed base and its strengths in electronic trading and the options markets," said Judith Robertson, President and CEO. "The negative trends evident in the 4th quarter results will take some time to reverse, however we are already making significant improvements in operations and client service which are expected to show results in the second half of 2009."

Financial Results

In the fourth quarter ended December 31, 2008, the net loss was $0.3 million (including restructuring charges of $1.1 million and a net income tax recovery of $0.7 million) as compared to net earnings of $2.1 million (including $0.8 million of federal investment tax credits not previously recorded) same quarter last year.

Total revenues for the fourth quarter, including pass-throughs on which the Company makes no margin, increased 37% to $12.2 million versus $9.0 million in the same year-ago period. Revenues net of pass-throughs increased by 9% to $7.6 million from $6.9 million in the same year-ago period. Approximately $1.0 million of the revenue increase net of pass-throughs resulted from a strengthening US dollar.

Total operating expenses for the fourth quarter, including pass-throughs, increased 52% to $11.7 million versus $7.7 million in the same year ago period. Operating expenses net of pass-throughs increased 21% to $7.0 million versus $5.8 million in the same year ago period.

Diluted loss per share for the fourth quarter was ($0.02) per share as compared to earnings of $0.14 per share in the same year-ago period.

The Company's financial position included cash and cash equivalents of $19.5 million and working capital of $25.0 million at December 31, 2008.
 -------------------------------------------------------------------------
 Financial Highlights
 (in millions of dollars,
 except per share data) Three months ended Twelve months ended
 (Three month periods December 31, December 31,
 unaudited) 2008 2007 2008 2007
 -------------------------------------------------------------------------
 Revenue $ 12.2 $ 9.0 $ 41.8 $ 40.7
 Net earnings (loss) $ (0.3)* $ 2.1** $ 0.1* $ 7.3**
 Diluted earnings (loss)
 per share $ (0.02) $ 0.14 $ 0.01 $ 0.48
 -------------------------------------------------------------------------
 -------------------------------------------------------------------------
 * Includes restructuring charges of $1.1 million
 ** Includes $0.8 million of federal investment tax credits not
 previously recorded

 Business Line Revenues




Total equity revenues before pass-throughs were $3.2 million in the fourth quarter of 2008 compared to $2.8 million in the same year-ago quarter. A strengthening US dollar accounted for approximately $0.4 million of the increase.

Total revenue of option contracts traded both electronically and non-electronically was $3.7 million in the fourth quarter of 2008 compared to $3.3 million in the same year-ago quarter. A strengthening US dollar accounted for approximately $0.7 million of the increase in option revenues.

Average total daily volume of electronic equity and index options contracts traded both electronically and non electronically on the floor of the CBOE and on other exchanges were 214,000 contracts per day in the fourth quarter of 2008 as compared to 231,000 contracts per day in the same year-ago quarter.

About Belzberg Technologies

Belzberg Technologies Inc. is a provider of technology-based brokerage services, trading equities and options through Electronic Brokerage Systems, Belzberg Technologies' wholly owned broker-dealer. Electronic Brokerage Systems is a member of most North American stock exchanges, options exchanges and clearing organizations, including the NYSE, NASDAQ, CBOE, NSCC and OCC. Using Belzberg's suite of integrated trading tools and network connectivity, Belzberg's customers have direct access to all major equities and options markets in Canada and the U.S.. The firm's client-base includes over 200 leading U.S and international brokerage houses and financial institutions. Belzberg Technologies is listed on the Toronto Stock Exchange (Ticker-BLZ) - additional information is available at http://www.belzberg.com/.

Forward looking statement disclaimer

Except for historical information contained herein, the matters discussed in this press release are based on forward-looking statements that involve risk and uncertainty. A variety of important factors could cause results to differ materially from such statements, including but not limited to economic, competitive, governmental and technological factors affecting the company's operation, markets, products, prices and other factors.
 BELZBERG TECHNOLOGIES INC.
 Consolidated Balance Sheets
 (in thousands of Canadian dollars)
 -------------------------------------------------------------------------
 December 31, December 31,
 2008 2007
 (Audited) (Audited)
 ------------- -------------
 ASSETS

 CURRENT
 Cash and cash equivalents $ 19,452 $ 21,081
 Cash segregated under regulations and other 184 -
 Cash and cash equivalents on deposit with
 clearing and depository organizations 1,989 2,971
 Receivable from brokers, dealers and
 clearing organizations 1,774 2,521
 Accounts receivable 5,973 4,601
 Prepaid expenses and other receivables 534 380
 Other assets 1,565 925
 Income taxes receivable 89 -
 Investment tax credits recoverable 84 489
 Future income tax assets - 2,201
 -------------------------------------------------------------------------
 31,644 35,169

 CAPITAL ASSETS 3,609 2,955

 INVESTMENT 38 38

 INVESTMENT TAX CREDITS RECOVERABLE 1,580 972

 FUTURE INCOME TAX ASSETS 3,289 290

 GOODWILL 1,608 1,608

 OTHER INTANGIBLE ASSETS, NET 190 240
 -------------------------------------------------------------------------
 $ 41,958 $ 41,272
 -------------------------------------------------------------------------
 -------------------------------------------------------------------------

 LIABILITIES

 CURRENT
 Accounts payable and accrued liabilities $ 6,350 $ 4,054
 Payable to customers 183 -
 Payable to brokers, dealers and
 clearing organizations 131 1,915
 Income taxes payable - 13
 Future income tax liabilities - 439
 Obligations under capital lease - 27
 -------------------------------------------------------------------------
 6,664 6,448

 FUTURE INCOME TAX LIABILITIES 244 233
 -------------------------------------------------------------------------
 6,908 6,681
 -------------------------------------------------------------------------

 SHAREHOLDERS' EQUITY

 CAPITAL STOCK 23,930 39,598

 CONTRIBUTED SURPLUS 3,686 3,677

 RETAINED EARNINGS (DEFICIT) 7,434 (8,684)
 -------------------------------------------------------------------------
 35,050 34,591
 -------------------------------------------------------------------------
 $ 41,958 $ 41,272
 -------------------------------------------------------------------------
 -------------------------------------------------------------------------



 BELZBERG TECHNOLOGIES INC.
 Consolidated Statements of Operations and Retained Earnings (Deficit)
 (in thousands of Canadian dollars)
 (Three month periods unaudited)
 -------------------------------------------------------------------------
 Three months ended Twelve months ended
 December 31, December 31,
 2008 2007 2008 2007
 ----------- ----------- ----------- -----------
 REVENUE
 Transaction fees:
 Equity order flow $ 6,463 $ 3,455 $ 17,942 $ 15,202
 Options and futures
 contracts 3,679 3,294 15,220 16,644
 -------------------------------------------------------------------------
 10,142 6,749 33,162 31,846

 Subscription fees 1,683 1,885 7,087 7,455

 Other revenue 409 328 1,512 1,352
 -------------------------------------------------------------------------
 TOTAL REVENUE 12,234 8,962 41,761 40,653
 -------------------------------------------------------------------------

 EXPENSES
 Exchange, clearing and
 brokerage fees 5,371 2,236 16,021 11,203
 Compensation and
 related benefits 3,610 2,598 12,502 10,783
 Telecommunication and
 datafeed services 2,051 1,459 6,988 6,069
 Administrative and
 other expenses 1,511 1,294 5,279 4,605
 Strategic process
 expenses - - - 191
 Restructuring charges 1,052 - 1,052 -
 Amortization of
 capital assets 544 434 2,031 1,507
 Amortization of
 intangible assets 23 16 71 64
 Government assistance (60) (936) (60) (936)
 Foreign exchange
 (gain) loss (814) 156 (727) 845
 -------------------------------------------------------------------------
 13,288 7,257 43,157 34,331
 -------------------------------------------------------------------------

 EARNINGS (LOSS) BEFORE
 THE UNDERNOTED (1,054) 1,705 (1,396) 6,322

 Interest expense 1 2 4 10
 Interest income (117) (220) (582) (811)
 -------------------------------------------------------------------------
 (116) (218) (578) (801)
 -------------------------------------------------------------------------

 EARNINGS (LOSS) BEFORE
 INCOME TAXES (938) 1,923 (818) 7,123

 PROVISION FOR (RECOVERY
 OF) INCOME TAXES
 Current (9) 123 - 123
 Future (679) (263) (936) (263)
 -------------------------------------------------------------------------
 (688) (140) (936) (140)
 -------------------------------------------------------------------------

 NET EARNINGS (LOSS) (250) 2,063 118 7,263

 RETAINED EARNINGS (DEFICIT),
 BEGINNING OF PERIOD 7,684 (10,747) (8,684) (15,947)

 REDUCTION OF STATED CAPITAL - - 16,000 -

 -------------------------------------------------------------------------
 RETAINED EARNINGS (DEFICIT),
 END OF PERIOD 7,434 (8,684) 7,434 (8,684)
 -------------------------------------------------------------------------
 -------------------------------------------------------------------------

 EARNINGS (LOSS) PER SHARE:
 Basic $ (0.02) $ 0.14 $ 0.01 $ 0.49
 Diluted $ (0.02) $ 0.14 $ 0.01 $ 0.48
 -------------------------------------------------------------------------
 -------------------------------------------------------------------------

 WEIGHTED AVERAGE NUMBER
 OF COMMON AND COMMON
 EQUIVALENT SHARES
 OUTSTANDING

 Basic 14,835 14,786 14,829 14,693
 Diluted 14,835 14,964 14,879 15,122
 -------------------------------------------------------------------------
 -------------------------------------------------------------------------


 BELZBERG TECHNOLOGIES INC.
 Consolidated Statements of Cash Flows
 (in thousands of Canadian dollars)
 (Three month periods unaudited)
 -------------------------------------------------------------------------
 Three months ended Twelve months ended
 December 31, December 31,
 2008 2007 2008 2007
 ----------- ----------- ----------- -----------
 CASH PROVIDED BY
 (USED FOR)

 OPERATING ACTIVITIES
 Net earnings (loss) $ (250) $ 2,063 $ 118 $ 7,263
 Items not affecting cash
 Amortization of
 capital assets 544 434 2,031 1,507
 Amortization of
 intangible assets 23 16 71 64
 Unrealized foreign
 exchange loss (gain) (764) 23 (1,413) 1,151
 Stock-based compensation 163 45 283 177
 Future income taxes (894) (263) (1,226) (24)
 Changes in non-cash
 working capital items 1,843 (297) (231) (2,793)
 -------------------------------------------------------------------------
 665 2,021 (367) 7,345
 -------------------------------------------------------------------------

 INVESTING ACTIVITIES
 Purchase of capital
 assets (495) (470) (2,685) (2,166)
 Contribution for interest
 in joint venture (21) - (21) -
 Purchase of investment - (2) - (2)
 -------------------------------------------------------------------------
 (516) (472) (2,706) (2,168)
 -------------------------------------------------------------------------

 FINANCING ACTIVITIES
 Repayment of obligations
 under capital lease - (25) (27) (121)
 Repurchase of common
 shares - - (306) -
 Proceeds from the
 exercise of stock options - 25 364 740
 -------------------------------------------------------------------------
 - - 31 619
 -------------------------------------------------------------------------

 Effect of exchange rate
 changes on cash and cash
 equivalents 764 (23) 1,413 (1,151)
 NET INCREASE (DECREASE)
 IN CASH AND CASH
 EQUIVALENTS 913 1,526 (1,629) 4,645

 CASH AND CASH EQUIVALENTS,
 BEGINNING OF PERIOD 18,539 19,555 21,081 16,436
 -------------------------------------------------------------------------
 CASH AND CASH EQUIVALENTS,
 END OF PERIOD $ 19,452 $ 21,081 $ 19,452 $ 21,081
 -------------------------------------------------------------------------
 -------------------------------------------------------------------------

 CASH AND CASH EQUIVALENTS:
 Cash $ 2,703 $ 5,676 $ 2,703 $ 5,676
 Cash equivalents 16,749 15,405 16,749 15,405
 -------------------------------------------------------------------------
 $ 19,452 $ 21,081 $ 19,452 $ 21,081
 -------------------------------------------------------------------------
 -------------------------------------------------------------------------

 SUPPLEMENTAL CASH FLOW
 INFORMATION
 Interest received $ 169 $ 235 $ 633 $ 775
 Interest paid 1 2 4 10
 Income taxes paid 22 49 219 104



CONTACT: Judith Robertson, President and Chief Executive Officer, Phone: (416) 360-1812, E-mail: investorinfo@belzberg.com
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