Rutter Releases Third Quarter Unaudited Financial Statements

 ST. JOHN'S, July 14 /CNW/ - Today, Rutter Inc. (TSX: RUT) released its unaudited third quarter consolidated financial statements for the nine month period ended May 31, 2009. Summary financial information is provided in this press release which should be read in conjunction with the full financial statements and MD&A available on the Company's web site at [ www.rutter.ca ] or on SEDAR at[ www.sedar.com ]. Fraser H. Edison, President and CEO of the Company, and Karen M. Snook, Chief Financial Officer, will host a conference call on July 16, 2009, to discuss the results. Details of that call were announced in a press release dated July 13, 2009 and are also available on the Company's web site. SUMMARY OF RESULTS The Company's quarterly results are summarized in the tables below: ------------------------------------------------------------------------- (in thousands except per share amounts) ------------------------------------------------------------------------- Three Three Nine Nine Months Months Change Months Months Change 2009 2008 2009 2008 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Revenue $17,310 $11,643 $5,667 $42,999 $33,941 $9,058 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA(1) 1,501 (505) 2,006 3,874 (71) 3,945 ------------------------------------------------------------------------- Other (costs) income(2) (1,746) (2,284) 538 (3,856) (5,151) 1,295 ------------------------------------------------------------------------- Earnings (loss) from Continuing Operations (245) (2,789) 2,544 18 (5,222) 5,240 ------------------------------------------------------------------------- Net earnings (loss) - Discontinued Operations 3,727 (2,040) 5,767 1,992 (6,617) 8,609 ------------------------------------------------------------------------- Net earnings (loss) 3,482 (4,829) 8,311 2,010 (11,839) 13,849 ------------------------------------------------------------------------- Earnings (loss) Per Share $0.05 $(0.06) $0.11 $0.03 $(0.15) $0.18 ------------------------------------------------------------------------- --------------------- (1) EBITDA is identified in the Company's financial statements as "Earnings before undernoted items" and ismore fully defined in the Company's financial statements and MD&A. (2) Other (costs) income include: Depreciation and amortization; Interest on long-term debt; Interest and bankcharges; Other items; Write down of intangible assets and product development costs; Equity income; all ofwhich are separately disclosed in the Company's financial statements. ------------------------------------------------------------------------- (in thousands) ------------------------------------------------------------------------- Three Three Nine Nine Months Months Change Months Months Change 2009 2008 2009 2008 ------------------------------------------------------------------------- Technologies ------------------------------------------------------------------------- Revenue: ------------------------------------------------------------------------- Third party manufactu- ring $13,330 $6,113 $7,217 $30,432 $17,570 $12,862 ------------------------------------------------------------------------- Company owned products 3,384 5,003 (1,619) 10,987 14,795 (3,808) ------------------------------------------------------------------------- Total revenue 16,714 11,116 5,598 41,419 32,365 9,054 ------------------------------------------------------------------------- EBITDA 1,625 (164) 1,789 5,023 1,426 3,597 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Other ------------------------------------------------------------------------- Revenue 596 527 69 1,580 1,576 4 ------------------------------------------------------------------------- EBITDA (124) (341) 217 (1,149) (1,497) 348 ------------------------------------------------------------------------- RESULTS Overall, revenues increased by $5,667,000 for the third quarter as compared to the same quarter in the prior year. Technologies - Revenues in the Technologies segment account almost entirely for the total Company revenue increase and were driven by increased Third party manufacturing activity levels. The significant quarterly and year to date increases in Third party manufacturing revenues were offset by a drop in revenues from the sale of the Company's products. EBITDA performance has also improved significantly by $1,789,000 for the quarter and $3,597,000 year to date. Driving the improvement for both the quarter and year to date is improved gross margin performance achieved as a result of the large revenue growth experienced in Third party manufacturing. Profitability has also improved with respect to Company and product sales. The third quarter of the prior year was negatively impacted by a large warranty provision with respect to the Company's VDR product line. Earnings (Loss) from Continuing Operations - The Company's loss from continuing operations was $245,000 for the quarter and on a year to date basis a profit of $18,000 was recognized. This compares to losses of $2,789,000 and $5,222,000 in the prior year's quarter and year to date, respectively. Net Earnings (Loss) - Discontinued Operations and Net Earnings (Loss) - As a result of the sale of the Controls and Automation business on March 31, 2009, the statements reflect the results of this business as discontinued operations. Also reflected in discontinued operations for the prior year is the operation of Unicontrol International Ltda., a former subsidiary, disposed of in the final quarter of fiscal 2008. Net earnings for discontinued operations was $3,727,000 in the quarter and $1,992,000 year to date. Included in both the quarter and year to date is a gain on sale of $2,644,000 and recognition of a future income tax recovery of $1,537,000. Net loss from operations of the Controls and Automation business was $454,000 and $2,189,000 for the quarter and year to date respectively. CONCLUSION During the quarter, the Company concluded the sale of its Controls and Automation business, generating cash of $20,241,000 which enabled the Company to reduce its senior debt by $20,927,000. "The Rutter organization has had significant liquidity challenges to address throughout the prior year and into the third quarter of the current year," said Fraser H. Edison, President and CEO of the Company. "I am proud to say that we have successfully navigated those challenges. During that time, we have increased year to date revenues in our continuing business by 26.7% as compared to last year and significantly improved profitability. Also, since the end of Q3 we have made a further $1,000,000 early repayment on our debt. I believe our progress speaks to the true caliber of the organization and its people and I look forward to continued success in the future as we move forward, focusing on our core competencies," he concluded. About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies and engineering solutions. Rutter's global network supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors from its headquarters in the Province of Newfoundland and Labrador. Multidisciplinary consulting engineering services including civil, structural, mechanical and electrical engineering (other than automation engineering) as well as environmental and construction management services are provided to a diverse client base which includes all levels of government and the oil and gas and industrial sectors. For more information see [ www.rutter.ca ] Forward-Looking Statements This press release may contain forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to a number of risks and uncertainties including but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this press release will be realized. The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. %SEDAR: 00022015E

For further information: Karen Snook, Chief Financial Officer, Rutter Inc., (709) 368-3174; Dan Herder, Corporate Secretary, Rutter Inc., (709) 368-3174

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Rutter Releases Third Quarter Unaudited Financial Statements