Edmonton, Alberta--(Newsfile Corp. - April 17, 2024) - Titan Logix Corp., (TSXV: TLA) ("Titan" or the "Company"), a technology company specializing in mobile liquid measurement solutions, announces its interim results for the three- and six-month periods ended February 29, 2024.
"We are seeing steady demand for our products in the crude and used oil markets, focusing our sales and marketing efforts on gaining market share with existing fleet turnover and new developing new fleet accounts," says Nick Forbes, CEO at Titan. "We are also excited to be gaining traction in the fuels market, and we will continue to focus on our diversification strategy over the coming quarters.
"The second quarter results reflect a stable production rate from Tanker OEMs, mirroring the activity seen in the first fiscal quarter. We expect a similar level of demand in the 3rd quarter for Titan's TD100™ series products in the Crude and Used Oil segments. We also have several new business opportunities in the Refined Fuel and Chemical market segments, as a result of our key business development initiatives.
"Titan has been focusing on business development activities with key players in the Refined Fuels market. Undertaking several pilot trials in the third and fourth quarter of this year, the pilot trials are expected to take 3-5 months, equipping 1-5 trucks with Titan TD100™ systems and Titan's Rack Control Module (RCM).
"Longer term, our product development initiatives are focused on a next generation of product that will be cost-effective and designed to fit multiple end-use applications. As part of our technology modernization strategy, we are conducting pilot trials with T-Connect, Titan's first mobile application that works on iOS and Android devices. T-Connect is a software tool that will drive adoption of the TD100™ system in new and existing market segments. We currently have 8 fleet customers piloting T-Connect, and we expect to scale this number over the course of the 3rd and 4th quarter in fiscal 2024. T-Connect underscores Titan's commitment to being the market leader in advanced technology for tanker trucks.
"Our investment strategy is to commit the necessary resources to penetrate new mobile liquid market segments, and the development of value-added products and software solutions to these market segments. The Company invests its non-operating cash reserves in conservative interest-bearing accounts and marketable securities. Acquisition opportunities are considered where it complements our growth strategy or enables the monetization of our connected strategy."
Q2 FISCAL 2024 HIGHLIGHTS
Financial Highlights Summary
(in Canadian dollars)
Three months ended | Six months ended | |||
2024 | 2023 | 2024 | 2023 | |
$ | $ | $ | $ | |
Revenue | 1,750,979 | 1,521,908 | 3,264,837 | 3,025,028 |
Cost of sales | (928,433) | (722,756) | (1,662,272) | (1,389,255) |
Gross profit | 822,546 | 799,152 | 1,602,565 | 1,635,773 |
Gross margin (%) | 47% | 53% | 49% | 54% |
Operating EBITDA (1) | 275,492 | 224,630 | 481,372 | 594,273 |
Product research and development expenses (1) | (247,463) | (34,698) | (513,121) | (48,704) |
EBITDA (1) | 28,029 | 189,932 | (31,749) | 545,569 |
Net earnings (loss) | 244,716 | 90,236 | (159,896) | 504,920 |
EPS - Basic and Diluted | 0.01 | - | (0.01) | 0.01 |
Financial Position | As at February 29, 2024 | As at August 31, 2023 | ||||||
Working capital | $ | 14,304,326 | $ | 14,536,282 | ||||
Total assets | $ | 18,219,368 | $ | 18,347,317 | ||||
Long-term liabilities | $ | 677,679 | $ | 681,476 | ||||
Total equity | $ | 16,749,029 | $ | 16,877,549 |
(1) See non-IFRS measures below.
The Company's interim consolidated financial statements and the management's discussion and analysis ("MD&A") which includes the Company's Business Outlook, for the three- and six-month periods ended February 29, 2024, are available on SEDAR+ at www.sedarplus.ca and the Company's website, www.titanlogix.com.
NON-IFRS MEASURES
The Company uses certain measures in this MD&A that do not have a standardized meaning as prescribed by IFRS (International Financial Reporting Standards) and thus are prohibited from being disclosed in the consolidated financial statements. These measures, which are derived from information reported in the Company's consolidated financial statements, may not be consistent with similar measures presented and disclosed by other reporting issuers. However, management believes that this information provides increased insight into the Company's strategic plan to address the broader mobile liquid markets. Readers are cautioned that these non-IFRS measures should not be construed as alternatives to other measures of financial performance calculated in accordance with IFRS
The table below provides a reconciliation of the Company's EBITDA and Operating EBITDA to the Operating income (loss) before other items per the interim consolidated financial statements for the periods presented:
Fiscal Period Ended | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 |
Operating income (loss) before other items | (88,635) | 87,190 | (246,887) | 329,984 |
Add: Depreciation and amortization | 97,054 | 86,559 | 183,762 | 172,699 |
Add: Non-cash stock-based compensation | 19,610 | 16,183 | 31,376 | 42,886 |
EBITDA | 28,029 | 189,932 | (31,749) | 545,569 |
Add: Product research and development expenses | 247,463 | 34,698 | 513,121 | 48,704 |
Operating EBITDA | 275,492 | 224,630 | 481,372 | 594,273 |
The table below, removes the recurring engineering expenses from the total to isolate the product research and development expenses excluded in Management's calculation of Operating EBITDA:
Fiscal Period Ended | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 |
Engineering, product research and development expenses | 301,526 | 140,104 | 616,133 | 221,465 |
Less: Recurring engineering expenses | (54,063) | (105,406) | (103,012) | (172,761) |
Product research and development expenses | 247,463 | 34,698 | 513,121 | 48,704 |
A detailed definition of these non-IFRS measures can be reviewed in the Company's MD&A
About Titan Logix Corp.:
For over 25 years, Titan Logix Corp. has designed and manufactured mobile liquid measurement solutions to help businesses reduce risk and maximize efficiencies in bulk liquids transportation. Titan's TD Series of tank level monitors are a market leader in mobile fluid measurement, and are known for their high level of accuracy, rugged design, and solid-state reliability. Our solutions are designed for hazardous and non-hazardous applications, and we serve customers in a wide range of applications including petroleum, environmental solutions, chemical, and agriculture.
Founded in 1979, Titan Logix Corp. is a public company listed on the TSX Venture Exchange and its shares trade under the symbol TLA.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that the actual performance of the company is subject to many risks and uncertainties and could differ materially from what is expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our Management Discussion and Analysis in respect of the year ended August 31, 2023, which is available at www.sedarplus.ca. In addition, the occurrence of pandemics, such as the outbreak of the novel coronavirus COVID-19 in any of the areas in which the Company, its customers or its suppliers operate could cause interruptions in the Company's operations. In addition, pandemics, natural disasters, or other unanticipated events could negatively impact the demand for, and price of, oil and natural gas which in turn could have a material adverse effect on the Company's business, financial condition, results of operations and cash flows. The forward-looking information contained in this press release is based on our current estimates, expectations, and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any time, whether a result of new information, future events or otherwise, except as required by applicable securities law
Contact Information:
Nick Forbes
Chief Executive Officer
Ph: (403) 561-8095
Email: [email protected]
www.titanlogix.com
TSX Venture, TLA
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