TORONTO, Aug. 10 /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 June 30, 2010.
Major elements of the second quarter statements include: - Loss of $0.7M ($0.05) per share for the second quarter as compared to a loss of $2.5M ($0.17) per share for the first quarter of 2010. - Operating expenses decreased 12% or $0.7M from the previous quarter. - Working capital position of $13.8M at June 30, 2010 as compared to $14.1M at March 31, 2010.
"We are pleased to see the benefits of our operating changes through these improved financial results in the second quarter," said Judith Robertson, President and CEO. "We are managing our resources carefully through this difficult period and continue to seek scale through partnerships or combinations. At the same time, we continue to invest in our products and services to position the company for future growth."
Financial Highlights Three months ended (in millions of dollars, except per share data) June 30, March 31, June 30, (Three month periods unaudited) 2010 2010 2009 ------------------------------------------------------------------------- Total revenue $ 4.7 $ 5.1 $ 10.8 Net revenue $ 3.8 $ 4.1 $ 6.0 Operating expenses $ 5.4 $ 6.1 $ 7.5 Net loss $ (0.7) $ (2.5) $ (1.7) Net loss before restructuring and unusual non-cash charges $ (0.9) $ (2.5) $ (1.7) Diluted loss per share $ (0.05) $ (0.17) $ (0.09) Diluted loss per share before restructuring and unusual non-cash charges $ (0.06) $ (0.17) $ (0.09) ------------------------------------------------------------------------- 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) ------------------------------------------------------------------------- June 30, December 31, 2010 2009 (Unaudited) (Audited) ----------- ----------- ASSETS CURRENT Cash and cash equivalents $ 10,562 $ 15,670 Cash and cash equivalents segregated under regulations and other 1,953 2,805 Cash and cash equivalents on deposit with clearing and depository organizations 1,303 1,363 Receivable from brokers, dealers and clearing organizations 1,247 947 Accounts receivable 2,197 2,405 Prepaid expenses and other receivables 641 468 Income taxes receivable 12 12 Investment tax credits recoverable 11 - ------------------------------------------------------------------------- 17,926 23,670 CAPITAL ASSETS 1,516 2,233 INVESTMENT 30 30 INVESTMENT TAX CREDITS RECOVERABLE 149 147 INTANGIBLE ASSETS, NET 67 141 ------------------------------------------------------------------------- $ 19,688 $ 26,221 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES CURRENT Accounts payable and accrued liabilities $ 2,658 $ 5,176 Payable to customers and correspondents 1,362 1,948 Payable to brokers, dealers and clearing organizations 102 345 ------------------------------------------------------------------------- 4,122 7,469 FUTURE INCOME TAX LIABILITIES - - ------------------------------------------------------------------------- 4,122 7,469 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY CAPITAL STOCK 23,612 23,754 CONTRIBUTED SURPLUS 4,266 4,044 DEFICIT (12,312) (9,046) ------------------------------------------------------------------------- 15,566 18,752 ------------------------------------------------------------------------- $ 19,688 $ 26,221 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BELZBERG TECHNOLOGIES INC. Consolidated Statements of Operations and Retained Earnings (Deficit) (in thousands of Canadian dollars, except per share amounts) (Unaudited) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2010 2009 2010 2009 ---------- ---------- ---------- ---------- REVENUE Equity order flow and clearing $ 1,663 $ 6,242 $ 3,817 $ 12,532 Options and futures contracts 1,829 2,997 3,540 6,186 Subscription fees 841 1,223 1,776 2,618 Other revenue 362 360 675 772 ------------------------------------------------------------------------- 4,695 10,822 9,808 22,108 Cost of exchange and clearance fees (872) (4,809) (1,884) (9,368) ------------------------------------------------------------------------- TOTAL NET REVENUE 3,823 6,013 7,924 12,740 ------------------------------------------------------------------------- EXPENSES Compensation and related benefits 2,157 3,162 4,709 6,917 Telecommunication and datafeed services 1,560 2,067 3,260 4,117 Administrative and other expenses 732 1,052 1,497 2,242 Brokerage fees 517 669 1,184 1,654 Amortization of capital assets 410 534 852 1,057 Amortization of intangible assets 37 55 74 110 ------------------------------------------------------------------------- 5,413 7,539 11,576 16,097 ------------------------------------------------------------------------- LOSS BEFORE THE UNDERNOTED (1,590) (1,526) (3,652) (3,357) Restructuring expenses (recovery) (221) - (221) 839 Government assistance (11) (95) (11) (95) Foreign exchange loss (gain) (636) 364 (154) 532 Interest expense - 12 3 18 Interest income (1) (44) (3) (131) ------------------------------------------------------------------------- (869) 237 (386) 1,163 ------------------------------------------------------------------------- LOSS BEFORE INCOME TAXES (721) (1,763) (3,266) (4,520) RECOVERY OF INCOME TAXES Current - - Future - (358) - (1,291) ------------------------------------------------------------------------- - (358) - (1,291) ------------------------------------------------------------------------- NET LOSS (721) (1,405) (3,266) (3,229) RETAINED EARNINGS (DEFICIT), BEGINNING OF PERIOD (11,591) 5,610 (9,046) 7,434 ------------------------------------------------------------------------- RETAINED EARNINGS (DEFICIT), END OF PERIOD $ (12,312) $ 4,205 $ (12,312) 4,205 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EARNINGS (LOSS) PER SHARE: Basic $ (0.05) $ (0.09) $ (0.22) $ (0.22) Diluted $ (0.05) $ (0.09) $ (0.22) $ (0.22) ------------------------------------------------------------------------- ------------------------------------------------------------------------- WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in thousands) Basic 14,638 14,829 14,657 14,832 Diluted 14,638 14,829 14,657 14,832 ------------------------------------------------------------------------- ------------------------------------------------------------------------- BELZBERG TECHNOLOGIES INC. Consolidated Statements of Cash Flows (in thousands of Canadian dollars) (Unaudited) ------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, 2010 2009 2010 2009 ---------- ---------- ---------- ---------- CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES Net loss $ (721) $ (1,405) $ (3,266) $ (3,229) Items not affecting cash Amortization of capital assets 410 534 852 1,057 Amortization of intangible assets 37 55 74 110 Unrealized foreign exchange loss (gain) (457) 68 (92) 382 Gain on sale of investment - - - (5) Stock-based compensation 68 80 147 143 Future income taxes - (111) - (1,125) Changes in non-cash working capital items 13 7,159 (2,713) (2,093) ------------------------------------------------------------------------- (650) 6,380 (4,998) (4,760) ------------------------------------------------------------------------- INVESTING ACTIVITIES Purchase of capital assets (42) (415) (135) (842) Purchase of intangibles - - - (7) Purchase of investment - - - (2) Proceeds from sale of investment - - - 15 ------------------------------------------------------------------------- (42) (415) (135) (836) ------------------------------------------------------------------------- FINANCING ACTIVITIES Repurchase of common shares - - (67) (10) ------------------------------------------------------------------------- - - (67) (10) ------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents 457 (68) 92 (382) NET DECREASE IN CASH AND CASH EQUIVALENTS (235) 5,897 (5,108) (5,988) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 10,797 7,567 15,670 19,452 ------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 10,562 $ 13,464 $ 10,562 $ 13,464 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS: Cash $ 4,565 $ 4,648 $ 4,565 $ 4,648 Cash equivalents 5,997 8,816 5,997 8,816 ------------------------------------------------------------------------- $ 10,562 $ 13,464 $ 10,562 $ 13,464 ------------------------------------------------------------------------- ------------------------------------------------------------------------- SUPPLEMENTAL CASH FLOW INFORMATION Interest received $ 1 $ 49 $ 3 $ 139 Interest paid - 12 3 18 Income taxes paid - - - 15
Belzberg Technologies Inc.
CONTACT: Judith Robertson, President and Chief Executive Officer, Phone:
(416) 360-1812, E-mail: investorinfo@belzberg.com
