- Management to Host Conference Call at
8:30 am Pacific Time (11:30 am Eastern Time) -
VANCOUVER, Aug. 4, 2016 /CNW/ - Norsat
International Inc. ("Norsat" or the "Company") (TSX: NII and NYSE
MKT: NSAT), a provider of unique and customized communication
solutions for remote and challenging applications, today reported
financial results for the second quarter ended June 30, 2016.
Financial Highlights
For the three months ended June 30,
2016
- $9.0 million in revenue for
the quarter, consistent with the amount for the same period
last year.
- Gross profit margin of 46% for the quarter, an increase
of 7% from 39% for the same period last year.
- Net earnings for the quarter were $0.9 million, or $0.16 per share, basic and diluted, compared
to $0.7 million, or $0.12 per share, basic and diluted, for the same
period last year.
- Adjusted EBITDA1 of $1.7 million for the quarter, an increase of
50% from $1.2 million for the same
period last year.
For the six months ended June 30,
2016
- $18.5 million in revenue for
the six months ended June 30,
2016, an increase of 7% compared to $17.4 million for the same period last year.
- Gross profit margin of 45% for the six months ended
June 30, 2016, an increase of 6%
from 39% for the same period last year.
- Net earnings for the six months ended June 30, 2016 were $2.1
million, or $0.36 per share,
basic and diluted, compared to $1.2
million, or $0.21 per share,
basic and diluted, for the same period last year.
- Adjusted EBITDA1 of $3.4 million for the six months ended
June 30, 2016, an increase of 63%
from $2.1 million for the same period
last year.
- $9.3 million of cash and cash
equivalents at June 30, 2016, an
increase of $4.7 million compared to
$4.6 million at December 31, 2015.
- $22.6 million of working
capital at June 30, 2016, an
increase of $3.2 million compared to
$19.4 million at December 31, 2015.
__________________
1Adjusted EBITDA is a measure that the Company uses to
reflect the results of its core earnings. Adjusted EBITDA is
defined as earnings before income tax expense, financing costs,
depreciation and amortization, foreign exchange gain or loss,
corporate development costs, write-down of inventory, impairment
charges or recoveries, discontinued operations and other non-cash
charges.
|
|
"We are very pleased with the second quarter results. Despite
continued softness in the Canadian infrastructure and public safety
markets, our total revenue and profitability have remained strong
as we continue to manage our cost structure while challenging
ourselves to develop and market reliable products to meet customer
needs," said Dr. Amiee Chan,
President and CEO of Norsat. "To demonstrate our continued
commitment to our long-term strategy to expand our market share in
remote and challenging applications, we have introduced new
products and solutions during the quarter, including the Median 40W
Ku-band BUC, along with a range of LNBs to our microwave product
line," added Dr. Chan.
A full set of financial statements and Management's Discussion
and Analysis for Norsat is available at www.norsat.com and will be
available at www.sedar.com.
Conference Call Details
Norsat will host a conference call today, August 4, 2016 at 8:30 am
Pacific Time (11:30 am Eastern
Time) to discuss its fiscal year 2016 second quarter
results. To access the conference call, please dial toll-free
1-888-886-7786 or 416-764-8658. The conference call title is:
'Norsat Investor Call'. Please connect approximately 10 – 15
minutes prior to the beginning of the call to ensure participation.
A digital recording and transcript of the call will be available
after the live call at:
http://www.norsat.com/investors/financial-information/conference-call-recordings/
Norsat International
Inc.
|
|
|
Condensed Interim
Consolidated Statements of Financial
Position
|
|
(Expressed in United States
dollars)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
June 30,
2016
|
December 31,
2015
|
ASSETS
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
|
9,318,248
|
$
|
4,585,754
|
Trade and other
receivables
|
8,753,411
|
8,987,392
|
Inventories
|
11,339,377
|
10,956,524
|
Prepaid expenses and
other
|
258,347
|
394,617
|
|
29,669,383
|
24,924,287
|
Non-current
assets
|
|
|
Property and equipment,
net
|
570,756
|
558,609
|
Intangible assets,
net
|
4,434,258
|
4,724,490
|
Goodwill
|
4,097,751
|
4,097,751
|
Investment tax credits
recoverable
|
4,694,480
|
4,985,139
|
Deferred income tax
assets
|
1,704,126
|
2,218,848
|
|
15,501,371
|
16,584,837
|
Total
assets
|
$
|
45,170,754
|
$
|
41,509,124
|
|
|
|
LIABILITIES
|
|
|
Current
liabilities
|
|
|
Trade and other
payables
|
$
|
2,545,612
|
$
|
1,906,703
|
Accrued
liabilities
|
2,149,332
|
2,375,107
|
Provisions
|
957,466
|
947,682
|
Taxes
payable
|
-
|
-
|
Deferred
revenue
|
1,430,914
|
286,432
|
|
7,083,324
|
5,515,924
|
Non-current
liabilities
|
|
|
Long-term deferred
revenue
|
14,199
|
45,889
|
Total
liabilities
|
7,097,523
|
5,561,813
|
SHAREHOLDERS'
EQUITY
|
|
|
Issued
capital
|
39,995,215
|
39,850,648
|
Treasury
shares
|
(431,547)
|
(320,750)
|
Contributed
surplus
|
4,148,106
|
4,318,487
|
Accumulated other
comprehensive
loss
|
(4,508,316)
|
(4,673,811)
|
Deficit
|
(1,130,227)
|
(3,227,263)
|
Total shareholders'
equity
|
38,073,231
|
35,947,311
|
Total liabilities and
shareholders'
equity
|
$
|
45,170,754
|
$
|
41,509,124
|
|
|
|
Norsat International
Inc.
|
|
|
|
Condensed Interim
Consolidated Statements of Earnings and Comprehensive
Income
|
|
(Expressed in United States
dollars, except per share
amount)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months ended June
30
|
Six months ended June
30
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Revenue
|
$
|
8,959,936
|
$
|
8,950,091
|
$
|
18,513,363
|
$
|
17,360,416
|
Cost of
sales
|
4,846,117
|
5,467,065
|
10,224,397
|
10,519,547
|
Gross
profit
|
4,113,819
|
3,483,026
|
8,288,966
|
6,840,869
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Selling and
distributing
|
1,259,794
|
1,271,795
|
2,663,736
|
2,538,788
|
General and
administrative
|
821,057
|
734,713
|
1,703,158
|
1,759,170
|
Product
development
|
856,782
|
730,932
|
1,640,777
|
1,489,708
|
|
Less: Government
contributions
|
(387,703)
|
(312,933)
|
(767,178)
|
(643,957)
|
Loss on foreign
exchange
|
131,550
|
210,792
|
82,391
|
388,541
|
Interest and bank
charges
|
27,583
|
40,908
|
54,383
|
76,306
|
Total
expenses
|
2,709,063
|
2,676,207
|
5,377,267
|
5,608,556
|
|
|
|
|
|
Earnings before income
taxes
|
1,404,756
|
806,819
|
2,911,699
|
1,232,313
|
|
|
|
|
|
Current income tax
expense/(recovery)
|
3,373
|
-
|
3,373
|
(66,068)
|
Deferred income tax
expense
|
466,382
|
132,710
|
811,290
|
64,585
|
Net
earnings
|
$
|
935,001
|
$
|
674,109
|
$
|
2,097,036
|
$
|
1,233,796
|
|
|
|
|
|
Other comprehensive
income
(loss)
|
|
|
|
|
|
Exchange differences on
translation of
operations
|
|
|
|
|
|
in currencies other than
United States
dollars
|
148,558
|
464,402
|
165,495
|
(79,377)
|
Total comprehensive
income
|
$
|
1,083,559
|
$
|
1,138,511
|
$
|
2,262,531
|
$
|
1,154,419
|
|
|
|
|
|
Net earnings per
share
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.16
|
$
|
0.12
|
$
|
0.36
|
$
|
0.21
|
|
Diluted earnings per
share
|
$
|
0.16
|
$
|
0.12
|
$
|
0.36
|
$
|
0.21
|
|
|
|
|
|
Weighted average number
of shares
outstanding
|
|
|
|
|
|
Basic
|
5,764,892
|
5,759,439
|
5,765,922
|
5,762,789
|
|
Diluted
|
5,815,681
|
5,783,048
|
5,800,064
|
5,785,985
|
|
|
|
|
|
Norsat International
Inc.
|
|
|
|
Condensed Interim
Consolidated Statements of Cash
Flows
|
|
|
(Expressed in United States
dollars)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three months ended June
30
|
Six months ended June
30
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Cash and cash equivalents
provided by/(used
in)
|
|
|
|
|
Operating
activities:
|
|
|
|
|
Net earnings for the
period
|
$
|
935,001
|
$
|
674,109
|
$
|
2,097,036
|
$
|
1,233,796
|
Income taxes
paid
|
(3,373)
|
(43,270)
|
(3,373)
|
(43,270)
|
Adjustments for items not
affecting
cash:
|
|
|
|
|
|
Depreciation and
amortization
|
201,919
|
329,742
|
431,247
|
657,791
|
|
Write-off of property and
equipment
|
-
|
-
|
-
|
31,139
|
|
Unrealized foreign exchange
loss
|
119,569
|
210,793
|
144,425
|
388,541
|
|
Acquisition loan cost
amortization
|
-
|
-
|
-
|
2,262
|
|
Other
income
|
-
|
(198,997)
|
-
|
(198,997)
|
|
Current income tax
expense/(recovery)
|
3,373
|
-
|
3,373
|
(66,068)
|
|
Deferred income tax
expense
|
466,382
|
132,710
|
811,290
|
64,585
|
|
Share-based
payments
|
84,531
|
64,410
|
129,407
|
118,361
|
|
Vesting of
RSUs
|
-
|
(14,632)
|
-
|
(14,632)
|
|
Government
contributions
|
(387,703)
|
(312,933)
|
(767,178)
|
(643,957)
|
Changes in non-cash working
capital
|
1,065,497
|
(1,977,058)
|
1,298,835
|
(2,888,486)
|
Net cash flows provided
by/(used in) operating
activities
|
2,485,196
|
(1,135,126)
|
4,145,062
|
(1,358,935)
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
Purchase of intangible
assets, property
and
|
|
|
|
|
|
equipment, net of
SADI
|
(111,222)
|
(43,454)
|
(134,640)
|
(99,549)
|
Net cash flows used in
investing
activities
|
(111,222)
|
(43,454)
|
(134,640)
|
(99,549)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
Repayment of acquisition
loan
|
-
|
(1,306,762)
|
-
|
(2,286,762)
|
Purchase of treasury
shares, including purchase
costs
|
(266,018)
|
(273,298)
|
(266,018)
|
(273,298)
|
Government
contributions
|
46,058
|
69,727
|
1,000,518
|
833,211
|
Net cash flows (used
in)/provided by financing
activities
|
(219,960)
|
(1,510,333)
|
734,500
|
(1,726,849)
|
|
|
|
|
|
Effect of foreign
currency translation
on
|
|
|
|
|
|
cash and cash
equivalents
|
(7,514)
|
(73,410)
|
(12,428)
|
266,812
|
|
|
|
|
|
Increase/(decrease) in cash
and cash
equivalents
|
2,146,500
|
(2,762,323)
|
4,732,494
|
(2,918,521)
|
Cash and cash equivalents,
beginning of
period
|
7,171,748
|
5,357,535
|
4,585,754
|
5,513,733
|
Cash and cash
equivalents, end of
period
|
$
|
9,318,248
|
$
|
2,595,212
|
$
|
9,318,248
|
$
|
2,595,212
|
|
|
|
|
|
|
|
|
|
|
Norsat International
Inc.
|
|
|
|
Reconciliation of IFRS
to non-IFRS
Measures
|
|
|
|
(Expressed in United States
dollars)
|
|
|
|
|
|
|
|
|
|
Three months ended June
30
|
Six months ended June
30
|
|
2016
|
2015
|
2016
|
2015
|
Net earnings for the
period
|
$
|
935,001
|
$
|
674,109
|
$
|
2,097,036
|
$
|
1,233,796
|
Interest
(income)/expense
|
(2,258)
|
7,139
|
(3,816)
|
21,644
|
Depreciation and
amortization
|
201,919
|
329,742
|
431,247
|
657,791
|
Tax
expense/(recovery)
|
469,755
|
132,710
|
814,663
|
(1,483)
|
EBITDA(2)
|
$
|
1,604,417
|
$
|
1,143,700
|
$
|
3,339,130
|
$
|
1,911,748
|
Loss on foreign
exchange
|
131,550
|
210,792
|
82,391
|
388,541
|
Other
income
|
-
|
(198,997)
|
-
|
(198,997)
|
Adjusted
EBITDA(2)
|
$
|
1,735,967
|
$
|
1,155,495
|
$
|
3,421,521
|
$
|
2,101,292
|
|
|
|
|
|
(2)
|
We disclose non-IFRS
measures as we believe they provide useful information on actual
operating results and assist in comparisons from one period to
another. Readers are cautioned that non-IFRS measures do not have
any standardized meaning prescribed by IFRS and therefore may not
be comparable to similar measures presented by other
companies. For a more detailed description of non-IFRS
measures, please refer to Management's Discussion and Analysis for
the three and six months ended June 30, 2016 posted on Norsat's
website and SEDAR.
|
|
|
About Norsat International Inc.
Founded in 1977, Norsat International Inc. is a provider of
unique and customized communication solutions for remote and
challenging applications. Norsat's products and services include
leading-edge product design and development, production,
distribution and infield support and service of fly-away satellite
terminals, microwave components, antennas, Radio Frequency (RF)
conditioning products, maritime based satellite terminals and
remote network connectivity solutions. More information is
available at www.norsat.com, via email at investor@norsat.com or by
phone at 1-604-821-2800.
Forward Looking Statements
The discussion and analysis of this news release contains
forward-looking statements concerning anticipated developments in
Norsat's operations in future periods, the adequacy of its
financial resources and other events or conditions that may occur
in the future. Forward-looking statements are frequently, but not
always, identified by words such as "expects," "anticipates,"
"believes," "intends," "estimates,", "predicts," "potential,"
"targeted," "plans," "possible" and similar expressions, or
statements that events, conditions or results "will," "may,"
"could" or "should" occur or be achieved. These forward-looking
statements include, without limitation, statements about Norsat's
market opportunities, strategies, competition, expected activities
and expenditures as it pursues its business plan, the adequacy of
available cash resources and other statements about future events
or results. Forward-looking statements are statements about the
future and are inherently uncertain, and actual achievements of the
Company or other future events or conditions may differ materially
from those reflected in the forward-looking statements due to a
variety of risks, uncertainties and other factors, such as business
and economic risks and uncertainties. The forward-looking
statements are based on the beliefs, expectations and opinions of
management on the date the statements are made. Consequently, all
forward-looking statements made in this news release are qualified
by this cautionary statement and there can be no assurance that
actual results or anticipated developments will be realized. For
the reasons set forth above, investors should not place undue
reliance on forward-looking statements. These forward-looking
statements are made as of the date of this news release and Norsat
assumes no obligation to update or revise them to reflect new
events or circumstances, other than as required by law.
SOURCE Norsat International Inc.