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Burntsand Releases Third Quarter 2009 Results

^{Published on 2009-11-05 05:11:32 - Market Wire}
 

 Third Quarter 2009 Financial Results Highlights (000's) - unaudited Three months ended Nine months ended September 30, September 30, 2009 2008 2009 2008 ------------- ------------- ------------- ------------- Service revenue $ 4,564 $ 5,577 $ 15,855 $ 15,736 Adjusted EBITDA (loss)(1) (47) 350 (21) 153 Net income (loss) (140) 217 (394) (235) As at As at As at 30-Sep-09 31-Dec-08 30-Sep-08 ------------- ------------- ------------- Cash and cash equivalents $ 3,664 $ 4,876 $ 4,697 Working capital 5,903 6,359 5,111 

 Note (1) Adjusted EBITDA ------------------- Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation expense as well as any realized foreign currency translation losses or gains. Burntsand uses Adjusted EBITDA, amongst other measures, to assess the operating performance of its on-going businesses. The term Adjusted EBITDA does not have a standardized meaning prescribed by Canadian generally accepted accounting principles and therefore may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA should not be construed as the equivalent of net cash flows from operating activities. The following is a reconciliation of net income (loss) to Adjusted EBITDA for the periods indicated: Three months ended Nine months ended September 30, September 30, --------------------------- --------------------------- 2009 2008 2009 2008 ------------- ------------- ------------- ------------- Net income (loss) for the period $ (140,446) $ 216,821 $ (393,841) $ (234,810) Amortization of capital assets and intangibles 61,196 78,554 202,769 249,097 Interest and investment income (6,062) (13,908) (21,728) (54,477) Interest expense and financing costs 4,307 10,260 44,600 28,216 Income tax expense - 13,477 - 38,674 --------------------------- --------------------------- Standardized EBITDA (81,005) 305,204 (168,200) 26,700 Realized currency translation loss - - 53,550 - Stock-based compensation 33,867 44,949 93,745 126,374 --------------------------- --------------------------- Adjusted EBITDA (loss) $ (47,138) $ 350,153 $ (20,905) $ 153,074 --------------------------- --------------------------- --------------------------- --------------------------- BURNTSAND INC. Consolidated Balance Sheets ------------------------------------------------------------------------- September 30, December 31, 2008 2007 ------------- ------------- (unaudited) ASSETS CURRENT Cash and cash equivalents $ 3,663,574 $ 4,876,377 Accounts receivable 3,775,880 5,216,377 Prepaid expenses 599,553 241,252 ------------------------------------------------------------------------- 8,039,007 10,334,006 Capital assets 490,180 815,441 Goodwill 156,092 177,566 ------------------------------------------------------------------------- $ 8,685,279 $ 11,327,013 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES CURRENT Accounts payable and accrued liabilities $ 1,773,768 $ 2,828,319 Deferred revenue 332,450 1,046,277 Current portion of obligations under capital leases 29,883 100,089 ------------------------------------------------------------------------- 2,136,101 3,974,685 Long-term portion of obligations under capital leases - 4,926 ------------------------------------------------------------------------- 2,136,101 3,979,611 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Common shares 9,611,454 9,611,454 Contributed surplus 1,418,762 1,325,017 Deficit (2,632,902) (2,239,061) Accumulated other comprehensive loss (1,848,136) (1,350,008) ------------------------------------------------------------------------- (4,481,038) (3,589,069) ------------------------------------------------------------------------- 6,549,178 7,347,402 ------------------------------------------------------------------------- $ 8,685,279 $ 11,327,013 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BURNTSAND INC. Consolidated Statements of Operations ------------------------------------------------------------------------- Three months ended Nine months ended September 30, September 30, --------------------------- --------------------------- 2009 2008 2009 2008 ------------- ------------- ------------- ------------- (unaudited) (unaudited) (unaudited) (unaudited) REVENUE Services $ 4,563,787 $ 5,576,956 $ 15,854,591 $ 15,736,434 License and maintenance 33,010 845,259 134,364 1,432,195 Other revenue 175,054 254,042 611,156 676,592 --------------------------------------------- --------------------------- 4,771,851 6,676,257 16,600,111 17,845,221 --------------------------------------------- --------------------------- COSTS Cost of services 3,095,493 3,652,635 11,203,371 10,829,516 Cost of license and maintenance 27,378 813,969 107,081 1,366,443 Cost of other revenue 162,032 237,915 566,882 628,106 --------------------------------------------- --------------------------- 3,284,903 4,704,519 11,877,334 12,824,065 --------------------------------------------- --------------------------- GROSS PROFIT 1,486,948 1,971,738 4,722,777 5,021,156 --------------------------------------------- --------------------------- EXPENSES Sales and marketing 485,264 498,253 1,599,884 1,468,231 General and administrative 645,053 599,045 1,868,729 1,849,133 Other expenses 437,636 569,236 1,368,814 1,677,092 --------------------------------------------- --------------------------- 1,567,953 1,666,534 4,837,427 4,994,456 --------------------------------------------- --------------------------- Income (loss) before the undernoted (81,005) 305,204 (114,650) 26,700 Realized currency translation loss - - (53,550) - Amortization of capital assets (61,196) (78,554) (202,769) (249,097) Interest and investment income 6,062 13,908 21,728 54,477 Interest expense and financing costs (4,307) (10,260) (44,600) (28,216) --------------------------------------------- --------------------------- Income (loss) before income taxes (140,446) 230,298 (393,841) (196,136) Income tax expense - (13,477) - (38,674) --------------------------------------------- --------------------------- NET INCOME (LOSS) FOR THE PERIOD $ (140,446) $ 216,821 $ (393,841) $ (234,810) --------------------------------------------- --------------------------- --------------------------------------------- --------------------------- Net income (loss), basic and diluted, per share $ (0.00) $ 0.00 $ (0.01) $ (0.00) --------------------------------------------- --------------------------- --------------------------------------------- --------------------------- Weighted average number of common shares used to calculate per share amounts, basic and diluted 72,660,220 72,660,220 72,660,220 72,622,264 --------------------------------------------- --------------------------- BURNTSAND INC. Consolidated Statements of Cash Flows ------------------------------------------------------------------------- Three months ended Nine months ended September 30, September 30, --------------------------- --------------------------- 2009 2008 2009 2008 ------------- ------------- ------------- ------------- (unaudited) (unaudited) (unaudited) (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) for the period $ (140,446) $ 216,821 $ (393,841) $ (234,810) Items not affecting cash: Amortization of capital assets and intangibles 61,196 78,554 202,769 249,097 Amortization of assets used in outsourcing contract 36,883 44,260 125,403 132,780 Realized currency translation loss - - 53,550 - Stock-based compensation 33,867 44,949 93,745 126,374 ---------------------------------------- --------------------------- (8,500) 384,584 81,626 273,441 Changes in operating assets and liabilities: Accounts receivable (615,272) (55,412) 1,133,032 (129,029) Prepaid expenses (349,117) (58,946) (371,530) (128,102) Accounts payable and accrued liabilities 42,123 752,460 (932,707) 528,112 Deferred revenue 81,150 586,676 (711,186) 484,819 --------------------------------------------- --------------------------- (849,616) 1,609,362 (800,765) 1,029,241 --------------------------------------------- --------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of capital assets, net of related accounts payable (6,099) (10,300) (8,873) (115,400) --------------------------------------------- --------------------------- (6,099) (10,300) (8,873) (115,400) --------------------------------------------- --------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Payments on capital lease obligations (30,301) (31,645) (98,747) (94,324) Issue of common shares - - - - --------------------------------------------- --------------------------- (30,301) (31,645) (98,747) (89,324) --------------------------------------------- --------------------------- NET CASH INFLOW (OUTFLOW) (886,016) 1,567,417 (908,385) 824,517 EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH (184,966) 134,471 (304,418) 228,774 CASH (EXCLUDING SHORT TERM INVESTMENTS), BEGINNING OF PERIOD 4,734,556 2,995,335 4,876,377 3,643,932 --------------------------------------------- --------------------------- CASH (EXCLUDING SHORT TERM INVESTMENTS), END OF PERIOD $ 3,663,574 $ 4,697,223 $ 3,663,574 $ 4,697,223 --------------------------------------------- --------------------------- --------------------------------------------- ---------------------------