TORONTO, Dec. 18 /PRNewswire-FirstCall/ -- Xenos Group Inc. (TSX:XNS) today reported on its unaudited financial results for the year which recorded year-over-year increases in revenues and earnings for the fiscal 2009 fourth quarter and record revenues for the full year.
For the three months ended September 30, 2009, Xenos revenues increased 19% to $4,521,000 as compared to revenues of $3,803,000 for the same period in 2008. The fourth quarter of fiscal 2009 represents more than three straight years of consistent year-over-year quarterly revenue growth.
For the twelve months ended September 30, 2009, Xenos reported revenues of $17,247,000, EBITDA of $2,449,000 and net income of $1,197,000, or $0.12 per share, as compared to revenues of $15,908,000, EBITDA of $2,118,000 and net income of $1,496,000, or $0.15 per share, for the twelve months of fiscal 2008 respectively.
"It is particularly gratifying to report record corporate revenues and significant profitability during a year in which we launched a new product in a very challenging economic environment," said Stu Butts, Chairman & CEO of Xenos Group Inc.
Total expenses in the fourth quarter were $3,338,000 as compared to $2,666,000 for the fourth quarter of fiscal 2008. Sales and marketing expenses increased 19% as a result of sales force expansion and increased marketing expenses related to the Xenos Enterprise Server(TM) (ES).
Gross margin in the quarter increased to 86% as compared to 80% in the same quarter of fiscal 2008. Gross margins have been benefiting from an increase in Xenos licensed product revenues. Xenos Enterprise Server (ES), released near the end of fiscal 2008 has been a successful product offering throughout fiscal 2009 in a variety of different markets.
Research and development expenses in the quarter increased 45% year-over-year to $1,045,000 from $722,000, reflecting Xenos' ongoing commitment to its industry leading technology.
EBITDA for the period increased 16% to $751,000, as compared to $649,000 in the same period in 2008.
Xenos reported net income of $683,000 or $0.07 per share, a 42% increase as compared to net income of $479,000 or $0.05 per share in the fourth quarter of fiscal 2008.
Comparative results and revenues continue to be impacted by gyrations in the value of the Canadian dollar against major trading currencies, particularly the US dollar. Xenos incurred a foreign exchange loss of $419,000 for the fiscal year compared to a gain of $241,000 in fiscal 2008.
At September 30, 2009, Xenos held cash of $9,311,000 or $0.93 per common share, and does not hold significant long-term debt. This compares to $8,115,000, or $0.81 per common share, at September 30, 2008.
On December 8, 2009, Xenos entered into an agreement to be acquired by Actuate Corporation. An outline of the transaction was described in a press release of that date, which can be accessed through our website. Details of the Offer and materials relating to the transaction are expected to be mailed to shareholders the week of December 20, 2009.
A full update on Xenos' activities, together with Management Discussion and Analysis of the results for fiscal 2009, will be provided with the audited financial statements filed on http://www.sedar.com/ later in December.
Financial Highlights - (complete statements are attached): ------------------------------------------------------------------------- Three Months Twelve months ------------------------------------------------------------------------- Period Ended September 30, 2009 2008 2009 2008 (in CDN$000s except per share amounts) Sales 4,521 3,803 17,247 15,908 Gross profit 3,872 3,041 14,399 12,489 EBITDA 751 649 2,449 2,118 Net income 683 479 1,197 1,496 Net income per share 0.07 0.05 0.12 0.15 Cash & cash equivalents 9,311 8,115 Cash per Share $0.93 $0.81 Common Shares Outstanding 10,005 10,005 ------------------------------------------------------------------------- See discussion of non-GAAP financial measures below. About Xenos Group Inc.
Xenos (TSX:XNS) is the market-leading provider of high-performance software solutions that deliver a superior Return on Information(TM) by Streamlining Enterprise Information Supply Chains(TM). The company's solutions, based on the scalable Xenos Enterprise Server(TM) and its components, process, extract, transform, repurpose and personalize high volumes of data and documents for storage, real-time access, ePresentment, printing and delivery in numerous formats across multiple channels. By readily repurposing, integrating with and extending the business value of existing technology, infrastructure and business applications, Xenos solutions empower organizations to adapt to changing market demands. They also improve operational efficiency, enhance business processes, reduce risk for compliance management and increase employee productivity with lowered total cost of ownership both for the enterprise and for its customers. Xenos supports Green IT initiatives by empowering organizations to "Reduce Reuse Recycle" information resources.
Xenos customers are among the largest organizations worldwide, spanning numerous industries including financial services and insurance. Xenos has offices in Canada, the United States, the United Kingdom and France and a global partner network. For more information, visit http://www.xenos.com/.
Certain statements made in this press release are forward-looking within the meaning of certain securities laws. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company or developments in the Company's business or its industry to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. The Company urges you not to place undue reliance on these estimates, opinions and projections. The Company assumes no obligation to update forward-looking statements if assumptions or these plans, estimates, opinions or projections should change.
The Company uses financial measures including, but not limited to, "EBITDA" to supplement its consolidated financial statements, which are presented in accordance with GAAP. EBITDA is not a recognized measure under GAAP and should not be construed as an alternative to net income (loss). Xenos' method of calculating EBITDA may differ from other companies and accordingly may not be comparable to measures used by other companies.
Cash per share is a non-GAAP measure and is calculated by dividing the cash and cash equivalents by the number of common shares outstanding.
(C)2009 All rights reserved. Xenos, the Xenos logo, Xenos Enterprise Server, Xenos ES, Xenos Integrated Document Solution, Xenos IDS, Xenos Loader, Xenos DSR, Xenos OnLine, Xenos ePresentment, Xenos d2e Vision, Xenos terminalONE, Streamlining Enterprise Information Supply Chains, and Return on Information are either registered Trademarks or Trademarks of Xenos Group Inc. All other trademarks and trade names are the property of their respective owners.
Xenos Group Inc. Consolidated Statements of Operations (Unaudited) Three Months Ended Twelve Months Ended September 30 September 30 2009 2008 2009 2008 --------------------------- --------------------------- Sales $ 4,520,634 $ 3,802,755 $ 17,246,526 $ 15,908,301 Cost of sales 648,512 761,365 2,847,985 3,418,876 ------------- ------------- ------------- ------------- Gross profit 3,872,122 3,041,390 14,398,541 12,489,425 ------------- ------------- ------------- ------------- Expenses Sales and marketing 1,405,679 1,179,768 5,828,834 4,895,248 Research and development 1,045,225 722,415 3,835,560 3,202,134 Administration and general 644,924 463,143 2,180,526 2,177,384 Amortization 199,190 224,369 823,784 945,188 Stock based compensation 25,306 27,195 104,346 96,828 Interest and bank charges 17,660 48,745 44,674 81,124 ------------- ------------- ------------- ------------- 3,337,984 2,665,635 12,817,724 11,397,906 ------------- ------------- ------------- ------------- Income before undernoted items 534,138 375,755 1,580,817 1,091,519 Interest and other 6,066 40,589 90,489 218,332 Foreign exchange gain (loss) 163,924 52,202 (419,312) 240,657 ------------- ------------- ------------- ------------- 169,990 92,791 (328,823) 458,989 ------------- ------------- ------------- ------------- Income before income taxes 704,128 468,546 1,251,994 1,550,508 Provision (recovery) for income taxes 21,187 (10,759) 54,499 54,137 ------------- ------------- ------------- ------------- Net income $ 682,941 $ 479,305 $ 1,197,495 $ 1,496,371 ------------- ------------- ------------- ------------- Net income per common share - Basic $ 0.07 $ 0.05 $ 0.12 $ 0.15 - Diluted $ 0.07 $ 0.05 $ 0.12 $ 0.15 Weighted average number of shares - Basic 10,005,444 9,995,562 - Diluted 10,101,916 10,146,085 ------------------------------------------------------------------------- Deficit, beginning of year $(35,710,117) $(37,206,488) Net income 1,197,495 1,496,371 ------------- ------------- Deficit, end of year (34,512,622) (35,710,117) ------------- ------------- Xenos Group Inc. Consolidated Balance Sheets (Unaudited) As at September 30 September 30 2009 2008 --------------------------- ASSETS CURRENT Cash and cash equivalents $ 9,311,112 $ 8,115,259 Trade receivables 2,876,941 2,471,700 Other receivables 23,260 23,767 Non-hedging financial derivatives 480,395 82,524 Prepaids 644,872 597,052 Income taxes recoverable 25,837 26,766 ------------- ------------- 13,362,417 11,317,068 LONG TERM Future income taxes 1,191,797 1,193,086 Capital assets 877,214 998,436 Intangibles and other assets 2,082,578 1,999,370 ------------- ------------- 4,151,589 4,190,892 ------------- ------------- TOTAL ASSETS $ 17,514,006 $ 15,507,960 ------------- ------------- LIABILITIES CURRENT Payables and accruals $ 2,418,300 $ 2,259,583 Income taxes payable 122,056 97,921 Deferred revenue 3,679,136 3,099,644 Current portion - capital lease 2,543 61,170 ------------- ------------- 6,222,035 5,518,318 LONG TERM Capital lease obligations - 2,543 Deferred revenue 36,942 14,812 Deferred lease inducements 106,635 125,734 ------------- ------------- 143,577 143,089 TOTAL LIABILITIES 6,365,612 5,661,407 SHAREHOLDERS' EQUITY Capital stock 45,125,209 45,125,209 Contributed surplus 535,807 431,461 Deficit (34,512,622) (35,710,117) ------------- ------------- TOTAL SHAREHOLDERS' EQUITY 11,148,394 9,846,553 ------------- ------------- TOTAL LIABILITIES & EQUITY $ 17,514,006 $ 15,507,960 ------------- ------------- Xenos Group Inc. Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Twelve Months Ended September 30 September 30 2009 2008 2009 2008 --------------------------- --------------------------- Cash derived from (applied to) Operating activities Net income $ 682,941 $ 479,305 $ 1,197,495 $ 1,496,371 Amortization 199,190 224,369 823,784 945,188 Unrealized foreign exchange loss (gain) 191,776 48,177 138,315 (13,245) Unrealized gain on non-hedging financial derivatives (536,167) (82,524) (397,871) (82,524) Loss on disposal of capital assets - 9,656 406 24,527 Future income taxes 15,242 (30,758) 1,289 (35,229) Stock based compensation 25,306 27,195 104,346 96,828 Change in non-cash working capital (615,116) (686,383) 313,750 (729,030) ------------- ------------- ------------- ------------- (36,828) (10,963) 2,181,514 1,702,886 ------------- ------------- ------------- ------------- Financing activities Capital lease payments (15,848) (20,658) (61,170) (87,277) Proceeds on issue of shares - - - 93,480 ------------- ------------- ------------- ------------- (15,848) (20,658) (61,170) 6,203 ------------- ------------- ------------- ------------- Investing activities Purchase of capital assets (19,445) (30,418) (204,080) (240,872) Proceeds on disposal of capital assets - 6 - 505 Development costs incurred (121,028) (267,812) (582,096) (723,516) ------------- ------------- ------------- ------------- (140,473) (298,224) (786,176) (963,883) ------------- ------------- ------------- ------------- Effect of foreign exchange rate fluctuations on cash and cash equivalents (191,776) (48,177) (138,315) 13,245 ------------- ------------- ------------- ------------- Net (decrease) increase in cash and cash equivalents (384,925) (378,022) 1,195,853 758,451 Cash and cash equivalents Beginning of period 9,696,037 8,493,281 8,115,259 7,356,808 ------------- ------------- ------------- ------------- End of period $ 9,311,112 $ 8,115,259 $ 9,311,112 $ 8,115,259 ------------- ------------- ------------- -------------
Xenos Group Inc.
CONTACT: Editorial Contact: George Kypreos, Xenos Group Inc., (905)
709-1020, gkypreos@xenos.com; Investor Relations Contact: Cory Pala, Xenos
Group Inc., (416) 657-2400, cpala@xenos.com
