TORONTO, May 11 /PRNewswire-FirstCall/ -- Belzberg Technologies Inc. (TSX -BLZ), a provider of technology-based equity and options trading services, announced today its financial results for the three months ended March 31, 2010.
Major elements of the first quarter statements include: - Net revenue decreased by 29% to $4.1 million for the first quarter of 2010 from the previous quarter. - Operating expenses decreased 14% or $1.0M for the first quarter of 2010 from the previous quarter. - Loss of $2.5M ($0.17) per share for the first quarter of 2010 as compared to a loss of $10.9M ($0.74) per share in the previous quarter. - Working capital position of $14.1M at March 31, 2010 as compared to $16.2M at December 31, 2009.
"The first quarter of 2010 presented a challenging operating environment," said Judith Robertson, President and CEO. "We are starting to see the benefits of our cost reductions and restructuring program in lower operating costs. In addition, we continue to seek scale through partnerships and combinations."
------------------------------------------------------------------------- Financial Highlights (in millions of dollars, except Three Months Ended per share data) March 31 December 31 March 31 (Three month periods unaudited) 2010 2009 2009 ------------------------------------------------------------------------- Total revenue $ 5.1 $ 7.9 $ 11.2 Net revenue $ 4.1 $ 5.0 $ 6.7 Net loss $ (2.5) $ (10.9) $ (1.8) Net loss before restructuring and unusual non-cash charges $ (2.5) $ (2.6) $ (1.0) Diluted loss per share $ (0.17) $ (0.74) $ (0.12) Diluted loss per share before restructuring and unusual non-cash charges $ (0.17) $ (0.17) $ (0.07) ------------------------------------------------------------------------- About Belzberg Technologies
Belzberg Technologies Inc. is a provider of trading technology and technology-based brokerage services for equities and options. Belzberg Technologies is listed on the Toronto Stock Exchange (Ticker-BLZ) - additional information is available at http://www.belzberg.com/.
Forward looking statement disclaimer
Except for historical information contained herein, the matters discussed in this press release are based on forward-looking statements that involve risk and uncertainty. A variety of important factors could cause results to differ materially from such statements, including but not limited to economic, competitive, governmental and technological factors affecting the company's operation, markets, products, prices and other factors.
BELZBERG TECHNOLOGIES INC. Consolidated Balance Sheets (in thousands of Canadian dollars) ------------------------------------------------------------------------- March 31, December 31, 2010 2009 (Unaudited) (Audited) ------------ ------------ ASSETS CURRENT Cash and cash equivalents $ 10,797 $ 15,670 Cash and cash equivalents segregated under regulations and other 2,863 2,805 Cash and cash equivalents on deposit with clearing and depository organizations 1,647 1,363 Receivable from brokers, dealers and clearing organizations 622 947 Accounts receivable 2,842 2,405 Prepaid expenses and other receivables 487 468 Income taxes receivable 12 12 ------------------------------------------------------------------------- 19,270 23,670 CAPITAL ASSETS 1,884 2,233 INVESTMENT 30 30 INVESTMENT TAX CREDITS RECOVERABLE 142 147 OTHER INTANGIBLE ASSETS, NET 104 141 ------------------------------------------------------------------------- $ 21,430 $ 26,221 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES CURRENT Accounts payable and accrued liabilities $ 3,146 $ 5,176 Payable to customers and correspondents 2,065 1,948 Payable to brokers, dealers and clearing organizations - 345 ------------------------------------------------------------------------- 5,211 7,469 SHAREHOLDERS' EQUITY CAPITAL STOCK 23,612 23,754 CONTRIBUTED SURPLUS 4,198 4,044 DEFICIT (11,591) (9,046) ------------------------------------------------------------------------- 16,219 18,752 ------------------------------------------------------------------------- $ 21,430 $ 26,221 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BELZBERG TECHNOLOGIES INC. Consolidated Statements of Operations and Retained Earnings (Deficit) For the three months ended March 31, 2010 and 2009 (in thousands of Canadian dollars, except per share amounts) (Unaudited) ------------------------------------------------------------------------- 2010 2009 ------------ ------------ REVENUE Equity order flow and clearing $ 2,154 $ 6,290 Options and futures contracts 1,711 3,189 Subscription fees 935 1,395 Other revenue 313 412 ------------------------------------------------------------------------- 5,113 11,286 Cost of exchange and clearance fees (1,012) (4,559) ------------------------------------------------------------------------- TOTAL NET REVENUE 4,101 6,727 ------------------------------------------------------------------------- EXPENSES Compensation and related benefits 2,552 3,755 Telecommunication and datafeed services 1,700 2,050 Administrative and other expenses 765 1,190 Brokerage fees 667 985 Amortization of capital assets 442 523 Amortization of intangible assets 37 55 ------------------------------------------------------------------------- 6,163 8,558 ------------------------------------------------------------------------- LOSS BEFORE THE UNDERNOTED (2,062) (1,831) Restructuring expenses - 839 Foreign exchange loss 482 168 Interest expense 3 6 Interest income (2) (87) ------------------------------------------------------------------------- 483 926 ------------------------------------------------------------------------- LOSS BEFORE INCOME TAXES (2,545) (2,757) RECOVERY OF INCOME TAXES Future - (933) ------------------------------------------------------------------------- - (933) ------------------------------------------------------------------------- NET LOSS (2,545) (1,824) RETAINED EARNINGS (DEFICIT), BEGINNING OF PERIOD (9,046) 7,434 ------------------------------------------------------------------------- RETAINED EARNINGS (DEFICIT), END OF PERIOD $(11,591) $ 5,610 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LOSS PER SHARE: Basic $ (0.17) $ (0.12) Diluted $ (0.17) $ (0.12) ------------------------------------------------------------------------- ------------------------------------------------------------------------- WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in thousands) Basic 14,676 14,835 Diluted 14,676 14,835 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BELZBERG TECHNOLOGIES INC. Consolidated Statements of Cash Flows For the three months ended March 31, 2010 and 2009 (in thousands of Canadian dollars) (Unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2010 2009 ------------ ------------ CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Net loss $ (2,545) $ (1,824) Items not affecting cash Amortization of capital assets 442 523 Amortization of intangible assets 37 55 Unrealized foreign exchange loss (gain) 365 (18) Gain on sale of investment - (5) Stock-based compensation 79 63 Future income taxes - (1,014) Changes in non-cash working capital items (2,726) (9,252) ------------------------------------------------------------------------- (4,348) (11,472) ------------------------------------------------------------------------- INVESTING ACTIVITIES Purchase of capital assets (93) (427) Purchase of intangibles - (7) Purchase of investment - (2) Proceeds from sale of investment - 15 ------------------------------------------------------------------------- (93) (421) ------------------------------------------------------------------------- FINANCING ACTIVITIES Repurchase of common shares (67) (10) ------------------------------------------------------------------------- (67) (10) ------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents (365) 18 NET DECREASE IN CASH AND CASH EQUIVALENTS (4,873) (11,885) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 15,670 19,452 ------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 10,797 $ 7,567 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS: Cash $ 3,003 $ 1,016 Cash equivalents 7,794 6,551 ------------------------------------------------------------------------- $ 10,797 $ 7,567 ------------------------------------------------------------------------- ------------------------------------------------------------------------- SUPPLEMENTAL CASH FLOW INFORMATION Interest received $ 3 $ 90 Interest paid 3 6 Income taxes paid 8 15
Belzberg Technologies Inc.
CONTACT: Judith Robertson, President and Chief Executive Officer, Phone:
(416) 360-1812, E-mail: investorinfo@belzberg.com
