Frontline Reports First Quarter 2011 Financial Results
TORONTO, June 14, 2011 /PRNewswire/ - Frontline Technologies Inc. (TSX: FLC), a provider of technology-based equity and options trading services, announced today its financial results for the quarter ended March 31, 2011.
Major elements of the first quarter statements include:
- Revenue decreased by 12% to $1.25 million for the first quarter of 2011 from the same year ago quarter.
- Operating expenses decreased 7% or $0.23 million for the first quarter of 2011 from the same year ago quarter reflecting the cost containment measures taken.
- Loss of $2.0 million or ($0.14) per share for the first quarter of 2011 as compared to a loss of $2.3 million or ($0.15) per share in the same year ago quarter.
- Working capital position of $8.3 million at March 31, 2011 as compared to $10.3 million at December 31, 2010.
"The first quarter of 2011 presented a challenging operating environment with continued reduction of revenues and an increase in administrative expenses on account of acquisition costs," said Hoss Astaraki, Chief Executive Officer. "Since the completion of the acquisition of Frontline Technologies Corporation we are starting to realize the benefit of cost reductions from synergies in infrastructure."
| Financial Highlights | Three months ended March 31 | |||||||
| (in millions of dollars, except per share data) | ||||||||
| (Three month periods unaudited) | 20111 | 20101 | % change | |||||
| Revenue | $ 1.3 | $ 1.4 | -12% | |||||
| Operating Expenses | $ 3.1 | $ 3.3 | -7% | |||||
| Loss before discontinued operations | $ (1.8) | $ (2.1) | -12% | |||||
| Net Loss | $ (2.0) | $ (2.3) | -10% | |||||
| Basic and diluted loss per share | $ (0.14) | $ (0.15) | -7% | |||||
Note 1 - The financial statements for the period ended March 31, 2011 have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The company adopted IFRS as at January 1, 2011 with a transition date of January 1, 2010. The comparative figures for 2010 have been restated to comply with IFRS and are presented accordingly.
About Frontline Technologies
Frontline Technologies Inc. is a provider of trading technology services for equities and options and also offers IT infrastructure support and network managed services. Frontline Technologies is listed on the Toronto Stock Exchange (Ticker-FLC) - additional information is available at www.belzberg.com / www.frontline.ca.
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.
FRONTLINE TECHNOLOGIES INC.
(FORMERLY BELZBERG TECHNOLOGIES INC.)
Condensed Interim Consolidated Statements of Financial Position
(In thousands of Canadian dollars)
(Not audited or reviewed by the Company's external auditor)
| March 31, | December 31, | January 1, | ||
| 2011 | 2010 | 2010 | ||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 6,482 | $ 8,319 | $ 15,670 | |
| Cash segregated under regulations and other | - | 2,143 | 2,805 | |
| Cash and cash equivalents on deposit with clearing and depository organizations | - | 1,630 | 1,363 | |
| Receivable from brokers, dealers and clearing organizations | - | 168 | 947 | |
| Accounts receivable | 625 | 1,718 | 2,405 | |
| Prepaid expenses and other receivables | 217 | 346 | 468 | |
| Securities borrowed | - | 6,186 | - | |
| Income taxes receivable | - | - | 12 | |
| Assets held for sale | 6,208 | - | - | |
| 13,532 | 20,510 | 23,670 | ||
| Property and equipment | 888 | 1,075 | 2,233 | |
| Investments | - | 30 | 30 | |
| Long-term investment tax credits recoverable | - | - | 147 | |
| Intangible assets | 4 | 77 | 141 | |
| 892 | 1,182 | 2,551 | ||
| Total assets | $ 14,424 | $ 21,692 | $ 26,221 | |
| Liabilities and Shareholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable and accrued liabilities | $ 1,351 | $ 2,336 | $ 5,176 | |
| Payable to customers | - | 1,733 | 1,948 | |
| Payable to brokers and clearing organizations | - | - | 345 | |
| Securities loaned | - | 6,186 | - | |
| Liabilities held for sale | 3,887 | - | - | |
| Total liabilities | 5,238 | 10,255 | 7,469 | |
| Shareholders' equity: | ||||
| Share capital | 23,612 | 23,612 | 23,754 | |
| Contributed surplus | 4,594 | 4,570 | 4,182 | |
| Deficit | (18,260) | (16,220) | (9,184) | |
| Foreign currency translation reserve | (760) | (525) | - | |
| Total equity | 9,186 | 11,437 | 18,752 | |
| Total liabilities and shareholders' equity | $ 14,424 | $ 21,692 | $ 26,221 |
|
FRONTLINE TECHNOLOGIES INC.
(FORMERLY BELZBERG TECHNOLOGIES INC.)
Condensed Interim Consolidated Statements of Comprehensive Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
(Not audited or reviewed by the Company's external auditor)
| Three months ended | ||||
| March 31, | ||||
| 2011 | 2010 | |||
| Revenue | $ 1,252 | $ 1,416 | ||
| Operating expenses: | ||||
| Compensation and related benefits | 922 | 1,184 | ||
| Telecommunication and data-feed services | 951 | 1,105 | ||
| Administrative and other | 1,184 | 1,002 | ||
| 3,057 | 3,291 | |||
| Loss before the undernoted | (1,805) | (1,875) | ||
| Foreign exchange loss | 32 | 208 | ||
| Interest expense | 1 | 1 | ||
| Interest income | - | (2) | ||
| 33 | 207 | |||
| Loss before discontinued operations | (1,838) | (2,082) | ||
| Loss from discontinued operations | (202) | (190) | ||
| Loss for the period | (2,040) | (2,272) | ||
| Other comprehensive income (loss): | ||||
| Change in accumulated foreign currency translation adjustment: | ||||
| Current operations | (946) | 284 | ||
| Discontinued operations | 711 | (835) | ||
| (235) | (551) | |||
| Total comprehensive loss | $ (2,275) | $ (2,823) | ||
| Loss per share: | ||||
| Loss from continuing operations per common share - basic and diluted | $ (0.13) | $ (0.14) | ||
| Loss per common share - basic and diluted | (0.14) | (0.15) | ||
| Weighted average number of common shares outstanding (in thousands) |
14,638 | 14,676 | ||
FRONTLINE TECHNOLOGIES INC.
(FORMERLY BELZBERG TECHNOLOGIES INC.)
Condensed Interim Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)
(Not audited or reviewed by the Company's external auditor)
| Three months ended | |||||
| March 31, | |||||
| 2011 | 2010 | ||||
| Cash provided by (used in): | |||||
| Operating activities: | |||||
| Loss for the period | $ (2,040) | $ (2,272) | |||
| Loss from discontinued operations | 202 | 190 | |||
| Loss from continuing operations | (1,838) | (2,082) | |||
| Adjusted for: | |||||
| Depreciation of property and equipment | 204 | 353 | |||
| Amortization of intangible assets | 4 | 23 | |||
| Unrealized foreign exchange loss | (217) | (293) | |||
| Interest expense | 1 | 1 | |||
| Interest income | - | (2) | |||
| Stock-based compensation | 24 | 93 | |||
| Changes in non-cash working capital items | 264 | (425) | |||
| Interest paid | (1) | (1) | |||
| Interest received | - | 2 | |||
| (1,559) | (2,331) | ||||
| Financing activities: | |||||
| Repurchase of common shares | - | (67) | |||
| Investing activities: | |||||
| Purchase of property and equipment | (227) | (88) | |||
| Net decrease in cash and cash equivalents from continuing operations |
(1,786) | (2,486) | |||
| Net decrease in cash and cash equivalents from discontinued operations |
(51) | (2,387) | |||
| Net change in cash and cash equivalents | (1,837) | (4,873) | |||
| Cash and cash equivalents, beginning of period | 8,319 | 15,670 | |||
| Cash and cash equivalents, end of period | $ 6,482 | $ 10,797 | |||
SOURCE Frontline Technologies Inc.
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