Belzberg Reports Third Quarter 2010 Financial Results
TORONTO, Nov. 12 /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 months ended September 30, 2010.
Major elements of the third quarter statements include:
- Net revenue declined approximately 9% from $3.8M in the second quarter to $3.5M in the third quarter.
- Operating expenses decreased approximately 6% or $0.2M from the previous quarter.
- Non-operating expenses of $0.4M in the third quarter versus a gain of $0.9M in the second quarter. (Foreign exchange translation loss of $0.4M versus a gain of $0.6M and a restructuring expense recovery of $0.2M).
- Loss of ($2.1M) or ($0.15) per share for the second quarter as compared to a loss of ($0.7M ) or ($0.05) per share for the second quarter of 2010.
- Working capital position of $ 12.0M at September 30, 2010, as compared to $13.8M at June 30, 2010.
"Trading volumes were down industry-wide in the third quarter," said Judith Robertson, President and CEO. "We are managing our resources carefully through this difficult period and continue to seek scale."
| Financial Highlights | Three Months Ended | ||||||
| (unaudited) (in thousands of dollars, except per share data) |
|
September 30 2010 |
June 30 2010 |
September 30 2009 |
|||
| Total revenue | $ | 3,432 | $ | 4,695 | $ | 8,161 | |
| Net revenue | $ | 3,484 | $ | 3,823 | $ | 5,348 | |
| Loss from operations (1) | $ | (1,708) | $ | (1,590) | $ | (1,592) | |
| Net loss | $ | (2,156) | $ | (721) | $ | (2,350) | |
| Diluted loss per share | $ | (0.15) | $ | (0.05) | $ | (0.16) | |
| (1) Before restructuring charges/recovery, government assistance, foreign exchange translation loss/gain, interest income/expense | |||||||
About Belzberg Technologies
Belzberg Technologies Inc. is a provider of trading technology and technology-based brokerage services for equities and options. Belzberg Technologies is listed on the Toronto Stock Exchange (Ticker-BLZ) - additional information is available at 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.
Interim Consolidated Balance Sheets
(In thousands of Canadian dollars)
| September 30, | December 31, | ||||
| 2010 | 2009 | ||||
| (Unaudited) | |||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 8,813 | $ | 15,670 | |
| Cash and cash equivalents segregated under regulations and other | 1,924 | 2,805 | |||
| Cash and cash equivalents on deposit with clearing and depository organizations | 1,404 | 1,363 | |||
| Receivable from brokers, dealers and clearing organizations | 509 | 947 | |||
| Accounts receivable | 1,867 | 2,405 | |||
| Prepaid expenses and other receivables | 538 | 468 | |||
| Income taxes receivable | - | 12 | |||
| 15,055 | 23,670 | ||||
| Capital assets | 1,241 | 2,233 | |||
| Investment | 30 | 30 | |||
| Investment tax credits recoverable | 144 | 147 | |||
| Intangible assets, net | 41 | 141 | |||
| $ | 16,511 | $ | 26,221 | ||
| Liabilities and Shareholders' Equity | |||||
| Current liabilities: | |||||
| Accounts payable and accrued liabilities | $ | 1,643 | $ | 5,176 | |
| Payable to customers and correspondents | 1,368 | 1,948 | |||
| Payable to brokers, dealers and clearing organizations | 28 | 345 | |||
| 3,039 | 7,469 | ||||
| Shareholders' equity: | |||||
| Capital stock | 23,612 | 23,754 | |||
| Contributed surplus | 4,328 | 4,044 | |||
| Deficit | (14,468) | (9,046) | |||
| 13,472 | 18,752 | ||||
| $ | 16,511 | $ | 26,221 | ||
Belzberg Technologies Inc.
Interim Consolidated Statements of Operations and Retained Earnings (Deficit)
(In thousands of Canadian dollars)
(Unaudited)
| Three months ended | Nine months ended | ||||||||
| September 30, | September 30, | ||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||
| Revenue: | |||||||||
| Equity order flow and clearing | $ | 616 | $ | 4,147 | $ | 4,433 | $ | 16,679 | |
| Options and futures contracts | 1,692 | 2,437 | 5,232 | 8,623 | |||||
| Subscription fees | 803 | 1,214 | 2,579 | 3,832 | |||||
| Other | 321 | 363 | 996 | 1,135 | |||||
| 3,432 | 8,161 | 13,240 | 30,269 | ||||||
| Recovery (cost) of exchange and clearance fees | 52 | (2,813) | (1,832) | (12,181) | |||||
| Net revenue | 3,484 | 5,348 | 11,408 | 18,088 | |||||
| Expenses: | |||||||||
| Compensation and related benefits | 2,085 | 3,026 | 6,794 | 9,943 | |||||
| Telecommunication and datafeed services | 1,564 | 1,815 | 4,824 | 5,932 | |||||
| Administrative and other expenses | 736 | 872 | 2,233 | 3,114 | |||||
| Brokerage fees | 418 | 650 | 1,602 | 2,304 | |||||
| Amortization of capital assets | 363 | 522 | 1,215 | 1,579 | |||||
| Amortization of intangible assets | 26 | 55 | 100 | 165 | |||||
| 5,192 | 6,940 | 16,768 | 23,037 | ||||||
| Loss before the undernoted | (1,708) | (1,592) | (5,360) | (4,949) | |||||
| Restructuring charges (recovery) | - | - | (221) | 839 | |||||
| Government assistance | - | - | (11) | (95) | |||||
| Foreign exchange loss | 445 | 1,200 | 291 | 1,732 | |||||
| Interest expense | 4 | 4 | 7 | 22 | |||||
| Interest income | (1) | (40) | (4) | (171) | |||||
| 448 | 1,164 | 62 | 2,327 | ||||||
| Loss before income taxes | (2,156) | (2,756) | (5,422) | (7,276) | |||||
| Future income tax recovery | - | (406) | - | (1,697) | |||||
| Loss for the period | (2,156) | (2,350) | (5,422) | (5,579) | |||||
| Retained earnings (deficit), beginning of period | (12,312) | 4,205 | (9,046) | 7,434 | |||||
| Retained earnings (deficit), end of period | $ | (14,468) | $ | 1,855 | $ | (14,468) | $ | 1,855 | |
| Loss per share: | |||||||||
| Basic | $ | (0.15) | $ | (0.16) | $ | (0.37) | $ | (0.38) | |
| Diluted | (0.15) | (0.16) | (0.37) | (0.38) | |||||
| Weighted average number of common equivalent shares outstanding (000's): | |||||||||
| Basic | 14,638 | 14,822 | 14,654 | 14,828 | |||||
| Diluted | 14,638 | 14,822 | 14,654 | 14,828 | |||||
Belzberg Technologies Inc.
Interim Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)
(Unaudited)
| Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||
| Cash provided by (used in): | ||||||||||||
| Operating activities: | ||||||||||||
| Loss for the period | $ | (2,156) | $ | (2,350) | $ | (5,422) | $ | (5,579) | ||||
| Items not involving cash: | ||||||||||||
| Amortization of capital assets | 363 | 522 | 1,215 | 1,579 | ||||||||
| Amortization of intangible assets | 26 | 55 | 100 | 165 | ||||||||
| Unrealized foreign exchange loss (gain) | 268 | 664 | (321) | 1,026 | ||||||||
| Gain on sale of investment | - | - | - | (5) | ||||||||
| Stock-based compensation | 62 | 75 | 209 | 218 | ||||||||
| Future income taxes | - | (171) | - | (1,296) | ||||||||
| Change in non-cash operating working capital | 44 | 1,348 | (2,669) | (745) | ||||||||
| (1,393) | 143 | (6,888) | (4,637) | |||||||||
| Financing activities | ||||||||||||
| Repurchase of common shares | - | (22) | (67) | (32) | ||||||||
| Investing activities: | ||||||||||||
| Purchase of capital assets | (88) | (58) | (223) | (900) | ||||||||
| Purchase of intangible assets | - | - | - | (7) | ||||||||
| Purchase of investment | - | - | - | (2) | ||||||||
| Proceeds from sale of investment | - | - | - | 15 | ||||||||
| (88) | (58) | (223) | (894) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (268) | (664) | 321 | (1,026) | ||||||||
| Decrease in cash and cash equivalents | (1,749) | (601) | (6,857) | (6,589) | ||||||||
| Cash and cash equivalents, beginning of period | 10,562 | 13,464 | 15,670 | 19,452 | ||||||||
| Cash and cash equivalents, end of period | $ | 8,813 | $ | 12,863 | $ | 8,813 | $ | 12,863 | ||||
| Cash and cash equivalents: | ||||||||||||
| Cash | $ | 2,920 | $ | 4,679 | $ | 2,920 | $ | 4,679 | ||||
| Cash equivalents | 5,893 | 8,184 | 5,893 | 8,184 | ||||||||
| $ | 8,813 | $ | 12,863 | $ | 8,813 | $ | 12,863 | |||||
| Supplemental cash flow information: | ||||||||||||
| Interest received | $ | 1 | $ | 40 | $ | 3 | $ | 179 | ||||
| Interest paid | 4 | 4 | 3 | 22 | ||||||||
| Income taxes paid | - | 3 | - | 18 | ||||||||
SOURCE Belzberg Technologies Inc.
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