B2Gold Corp. press release
Miranda reports fourth quarter and fiscal year 2005 results
TSX - Toronto Stock Exchange · Gold · Canada
MONTREAL, Feb. 23 /CNW Telbec/ - Miranda Technologies Inc. (TSX: MT), a global developer, manufacturer and marketer of high-performance hardware and software for the television broadcast industry, today reported results for the fourth quarter and full fiscal year ended December 31, 2005.
Highlights
Sales increased 32% in the quarter and 31% in fiscal year 2005 EBITDA(1) reached $7.7 million for the quarter and $23.5 million for the year Net earnings were $4.9 million for the quarter and $16.4 million for the year Fully diluted net earnings per share stood at $0.23 for the quarter and $0.83 for the year
In the fourth quarter, revenues were $27.3 million, an increase of $6.6 million or 32% over the same period last year, while fiscal 2005 revenues were $96.5 million, an increase of $22.9 million or 31% over the previous year. This significant increase in sales, both for the quarter and for the year, is the result of the rising adoption of the Company's products and solutions, particularly in projects involving upgrading to HDTV (High Definition Television) formats, as well as for monitoring and control systems for IPTV (Internet Protocol Television) projects. Net earnings from continuing operations were $4.9 million in the fourth quarter of 2005 compared with $7.4 million in the corresponding period in 2004, which included non-recurring gains. For the full year 2005, net earnings from continuing operations were $16.4 million, compared with $16.8 million in 2004. Both years included non-recurring gains. Earnings per share (EPS) were $0.23 in the fourth quarter of 2005 compared with $0.39 in the same period in 2004, and were $0.83 for the twelve-month period ended December 31, 2005, compared with $0.99 for the same period in 2004. Income from continuing operations before restructuring, other and income taxes grew from $13.3 million in 2004 to $23.5 million in 2005, which included $4.0 million of incremental R&D tax credits, a non-recurring event related to previous years' unrecorded R&D tax credits. On a fully diluted basis, it represents an after tax gain of $0.14 per share. EBITDA, which the Company considers a more appropriate measure of its performance, increased both during the quarter and the year.
<< Reconciliation of net income to EBITDA
Quarter ended Year ended December December December December 31, 2005 31, 2004 31, 2005 31, 2004 Net income 4,916 7,417 16,357 18,826 Interest 59 247 508 1,321 Income taxes 1,803 (3,873) 7,483 (2,707) Depreciation 458 390 1,594 1,497 Amortization of intangible assets 460 459 1,837 1,836 EBITDA before non-recurring items 7,696 4,640 27,780 20,773 Net income from discontinued operations - - - (2,046) Previous year's investment tax credit recorded in period - - (4,000) - Restructuring charge (reversal) - 706 (300) 706 Other - 200 - (1,464) EBITDA excluding non-recurring items 7,696 5,546 23,479 17,969 >>
Excluding non-recurring items, EBITDA was $7.7 million in the fourth quarter of 2005 compared with $5.5 million in the fourth quarter of 2004, an increase of 39%. This increase was realised despite the recording of a foreign exchange loss of $0.7 million due to the strength of the Canadian dollar versus other currencies. Selling, general and administrative expenses increased $1.1 million in the fourth quarter of 2005 compared with the corresponding quarter in 2004 due to sales growth and the recording of expenses related to operating as a public company. For the twelve-month period ended December 31, 2005, EBITDA reached $23.5 million, at 24% of sales, compared with $18 million in 2004, at 24% of sales, representing an increase of 31%. The percentage increase in EBITDA was equal to the percentage increase in sales despite the additional investments in R&D, which grew 38% in fiscal 2005. "We directly benefited from an escalating demand from broadcasters worldwide for HDTV equipment," said Mr. Strath Goodship, Miranda's President and Chief Executive Officer. "Broadcasters are finally selecting HDTV as their format of choice for major sporting and political events. For instance, Miranda is providing significant HDTV equipment to major broadcasters for the 2006 Torino Winter Games which, for the first time, are being entirely simulcast in HD. This is the first worldwide showcase for HD and we are thrilled to be part of it," added Mr. Goodship. Strong growth was achieved throughout the year in all territories served by the Company. Sales increases reached 40% when adjusted for the exchange rate variation, both for the quarter and for the year. This variation was due to the strengthening of the Canadian dollar against the US dollar, the Euro, the British pound and the Yen, currencies that have declined versus the Canadian dollar in 2005. The variation in the exchange rate negatively impacted Miranda's sales by $1.7 million and $6.7 million respectively in the fourth quarter and fiscal 2005. The year produced strong cash flows. In addition to the $45.1 million raised as a result of the IPO in December 2005, the Company generated $16.5 million from operating activities. The balance of long-term debt was fully repaid in the last quarter and as a result, the Company's cash position stood at $58.7 million at the end of 2005.
Forward-looking Statement
This press release contains forward-looking statements reflecting Miranda's objectives, estimates and expectations. Such statements may be marked by the use of verbs such as 'believe', 'anticipate', 'estimate', 'looking ahead' and 'expect' as well as the use of conditional or future tense. By their very nature, such statements involve risks and uncertainty. Consequently, results could differ materially from the Company's expectations. Our business remains subject to the risk factors described in our prospectus dated November 30, 2005 under the heading "Risk Factors" and there can be no assurance that we will be able to complete any acquisition. The forward- looking statements contained in this press release represent our current expectations and, accordingly, are subject to change. However, we disclaim any intention and assume no obligation to update or revise any forward-looking statements, whether as a result of new information or events or otherwise.
Conference Call
Miranda Technologies Inc. will hold a conference call with financial analysts to present its fourth quarter and fiscal year 2005 results today at 10:00 a.m. (Eastern Standard Time). Those interested should call (514) 940-2795 (Montreal or overseas) or 1 800 814-4862 (elsewhere in North America). The call can also be accessed via a direct broadcast site at the following addresses: www.miranda.com/investors, www.cnw.ca and www.q1234.com. Those unable to participate can hear a recording of the call by dialing 1 877 289-8525 and entering the code 21177676(pound key) on the telephone keypad. This recording will be accessible from 1:00 p.m. on Thursday, February 23, 2006 until 11:59 p.m. on Thursday, March 2, 2006. The webcast of the conference call will also be available during a period of 60 days at www.miranda.com/investors, www.cnw.ca and www.q1234.com.
About Miranda
Miranda Technologies Inc. (TSX: MT) develops, manufactures and markets high-performance hardware and software for the television broadcast industry. Its solutions are purchased by content creators, broadcasters, specialty channels and television service providers to enable and enhance the transition to a complex multi-channel digital and HDTV broadcast environment. This equipment allows customers to generate additional revenue while reducing costs through the more efficient distribution and management of content as well as the automation of previously manual processes. Miranda employs over 350 people at its Montreal headquarters and in its offices located in Wallingford (UK), Paris (France), Tokyo (Japan), Hong Kong, Beijing (China) and Springfield (New Jersey). Miranda became a public company on December 8, 2005 and is listed on the Toronto Stock Exchange. For more information, please visit www.miranda.com.
(1) The Company uses EBITDA (earnings before interests, taxes, depreciation and amortization) to compare performance from one period to another. In doing so, it excludes certain items (interests, taxes, depreciation and amortization) as well as restructuring, other non- recurring items and discontinued operations, which it views as outside its core operating results. EBITDA is not an earnings measure recognized by Canadian generally accepted accounting principles (GAAP) and does not have a standardized meaning prescribed by GAAP. Our method of calculating EBITDA may differ from the method used by other issuers and, accordingly, our EBITDA may not be comparable to similarly titled measures used by other issuers. (See reconciliation of net income to EBITDA).
The selected consolidated financial information set out below for the fiscal years ended December 31, 2005 and 2004 is unaudited, presented in Canadian dollars and prepared in accordance with Canadian generally accepted accounting principles.
<< Miranda Technologies Inc. Consolidated statements of earnings (in thousands of Canadian dollars, except for earnings per share data)
Quarter ended Year ended December December December December 31, 2005 31, 2004 31, 2005 31, 2004 ----- unaudited ------ ----- unaudited ------
Sales 27,328 20,732 96,503 73,607 Cost of sales 10,127 7,616 37,439 27,913 17,201 13,116 59,064 45,694
Selling, general and administrative 6,566 5,470 24,092 20,568 Research and development 3,501 2,834 12,883 9,323 Research and development tax credits (875) (400) (6,000) (1,600) Interest 59 247 508 1,321 Foreign exchange loss (gain) 654 (58) 1,747 778 Stock-based compensation 117 114 457 153 Amortization of intangible assets 460 459 1,837 1,836 10,482 8,666 35,524 32,379 Income from continuing operations before restructuring charge, other and income taxes 6,719 4,450 23,540 13,315 Restructuring charge - 706 (300) 706 Other - 200 - (1,464) Income from continuing operations before income taxes 6,719 3,544 23,840 14,073 Income taxes: Current 390 679 4,610 1,845 Future 1,413 (4,552) 2,873 (4,552) 1,803 (3,873) 7,483 (2,707) Net income from continuing operations 4,916 7,417 16,357 16,780 Income from discontinued operations - - - 2,046 Net income 4,916 7,417 16,357 18,826
Net earnings per share from continuing operations: -Basic 0.25 0.42 0.90 1.05 -Diluted 0.23 0.39 0.83 0.99
Net earnings per share from discontinued operations: -Basic - - - 0.13 -Diluted - - - 0.12
Net earnings per share: -Basic 0.25 0.42 0.90 1.18 -Diluted 0.23 0.39 0.83 1.11
Basic weighted average number of outstanding shares (in thousands) 19,394 17,819 18,245 15,997 Diluted weighted average number of outstanding shares (in thousands) 21,386 18,951 19,773 16,913
Miranda Technologies Inc. Consolidated Balance Sheet (in thousands of Canadian dollars) December December 31, 2005 31, 2004 unaudited unaudited
Current assets: Cash and cash equivalents 58,664 13,615 Accounts receivable 17,201 10,672 Inventories 9,281 6,691 Income taxes receivable 3,287 - Prepaid expenses 805 541 Future income taxes 1,519 370 90,757 31,889
Capital assets 12,139 11,512 Intellectual property 612 2,449 Investment - 200 Future income taxes 4,643 4,917 108,151 50,967
Liabilities and Shareholders'Equity Current liabilities: Accounts payable and accrued charges 16,006 14,104 Deferred revenue 2,182 - Income taxes payable 1,845 1,687 Future income taxes 814 - Current portion of long-term debt - 3,439 20,847 19,230
Deferred revenue 590 -
Future income taxes 2,148 735
Long-term debt - 10,603
Shareholders' equity: Share capital 107,611 59,062 Contributed surplus 531 199 Deficit (23,576) (38,862) 84,566 20,399 108,151 50,967
Miranda Technologies Inc. Consolidated statements of cash flows (in thousands of Canadian dollars)
Quarter ended Year ended December December December December 31, 2005 31, 2004 31, 2005 31, 2004 ----- unaudited ------ ----- unaudited ------
Cash flows from operating activities: Net earnings 4,916 7,417 16,357 18,826
Ajustments for : Capitalized interest on long-term debt (2) 49 21 417 Depreciation of capital assets 458 390 1,594 1,497 Write-off and impairment of investment - 200 - 200 Amortization of intangible assets 460 459 1,837 1,836 Stock-based compensation 117 114 457 153 Gain on forgiveness of debt - - - (1,664) Future income taxes 1,413 (4,552) 2,873 (4,552) Net income from discontinued operations - - - (2,046) Unrealized loss on foreign exchange - (73) 36 20 Effect of exchange rates on cash and cash equivalents 586 (380) 1,180 (327) 7,948 3,624 24,355 14,360 Net change in operating working capital items (173) 1,904 (7,838) (355) 7,775 5,528 16,517 14,005 Cash flows from discontinued operations - - - 1,526 7,775 5,528 16,517 15,531
Cash flows from financing activities: Increase in long-term debt - - - 4,000 Repayment of long-term debt (7,822) (1,522) (12,291) (6,212) Net decrease in bank loan - - - (2,320) Issuance of share capital 50,000 - 50,000 - Share issuance costs (4,905) - (4,905) - Redemption of warrants (1,071) - (1,071) - 36,202 (1,522) 31,733 (4,532)
Cash flows from investing activities: Decrease in investment - - 200 - Additions to capital assets (1,213) (576) (2,221) (1,464) Proceeds from disposal of discontinued operations - - - 2,340 (1,213) (576) (2,021) 876 Effect of exchange rates on cash and cash equivalents (586) 380 (1,180) 327
Net increase in cash and cash equivalents 42,178 3,810 45,049 12,202
Cash and cash equivalents, beginning of period 16,486 9,805 13,615 1,413
Cash and cash equivalents, end of period 58,664 13,615 58,664 13,615
Miranda Technologies Inc. Segmented information (in thousands of Canadian dollars)
Quarter ended Year ended December December December December 31, 2005 31, 2004 31, 2005 31, 2004 ----- unaudited ------ ----- unaudited ------
Sales America 15,289 12,570 58,456 41,204 Europe, Middle East, Africa ("EMEA") 7,611 5,731 25,911 22,191 Asia 4,428 2,431 12,136 10,212 27,328 20,732 96,503 73,607 %SEDAR: 00022869EF