- Management to Host Conference Call at
8:30 am Pacific Time (11:30 am Eastern Time) -
VANCOUVER, May 3, 2017 /PRNewswire/ - Norsat
International Inc. ("Norsat" or the "Company") (TSX: NII and NYSE
MKT: NSAT), a provider of unique and customized communication
solutions for remote and challenging applications, today reported
financial results for the first quarter ended March 31, 2017.
Quarter Highlights
- $8.2 million in revenue for
the quarter, a decrease of 14% compared to $9.6 million for the same period last year.
- Gross profit margin of 41% for the quarter, a decrease
of 3% from 44% for the same period last year.
- Net earnings for the quarter were $0.2 million, or $0.04 and $0.03 per
share, basic and diluted, compared to $1.2 million, or $0.20 per share, basic and diluted, for the same
period last year.
- $15.6 million of cash and cash
equivalents at March 31, 2017, an
increase of $0.6 million compared to
$15.0 million at December 31, 2016.
- $27.2 million of working
capital at March 31, 2017, an
increase of $0.6 million compared to
$26.6 million at December 31, 2016.
- Adjusted EBITDA(1) of
$1.0 million for the quarter, a
decrease of 43% from $1.7 million for
the same period last year.
"While first quarter revenue and profitability were lower than
the comparable period in 2016, we have experienced solid quoting
and booking activities. For our Satellite Communications
division, we secured several larger orders which include an
approximately $3.3 million order for
our satellite terminals from a U.S. government organization,
building a strong backlog for the remainder of the year. The
business opportunities for the Sinclair Technologies division also
look steady," said Dr. Amiee Chan,
President and CEO of Norsat. "We also continued to manage our cost
structure while also challenging ourselves to develop and market
new products and solutions. During the quarter, we have
announced the expansion of our Ka-band product lines with the
launch of the ATOM 50 Watt Ka-band BUCs and SSPAs, and industry
leading 4- and 5-band LNBs to meet the broadest range of customer
needs," added Dr. Chan.
A full set of financial statements and Management's Discussion
and Analysis for Norsat is available at www.norsat.com and will be
available at www.sedar.com.
|
________________________________________
(1) Adjusted EBITDA is a measure that the Company uses to
reflect the results of its core earnings. Adjusted EBITDA is
defined as earnings before income tax expense, financing costs,
depreciation and amortization, foreign exchange gain or loss,
corporate development costs incurred to pursue strategic
opportunities, write-down of inventory, impairment charges or
recoveries, discontinued operations and other non-cash
charges.
|
Conference Call Details
Norsat will host a
conference call today, May 3, 2017 at
8:30 am Pacific Time (11:30 am Eastern Time) to discuss its fiscal year
2017 first quarter financial results. To access the conference
call, please dial toll-free 1-888-886-7786 or 416-764-8658. The
conference call title is: 'Investor Call – Q1 2017'. Please connect
approximately 10 – 15 minutes prior to the beginning of the call to
ensure participation. A digital recording and transcript of the
call will be available after the live call at:
http://www.norsat.com/investors/financial-information/conference-call-recordings/
|
Norsat
International Inc.
|
|
|
|
Condensed Interim
Consolidated Statements of Financial Position
|
|
|
|
(Expressed in United
States dollars)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
December 31,
2016
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
15,626,931
|
$
|
15,044,742
|
|
Trade and other
receivables
|
8,074,508
|
8,263,447
|
|
Inventories
|
10,807,251
|
10,462,354
|
|
Prepaid expenses and
other
|
393,569
|
332,676
|
|
34,902,259
|
34,103,219
|
|
Non-current
assets
|
|
|
|
Property and
equipment, net
|
564,916
|
616,495
|
|
Intangible assets,
net
|
4,073,121
|
4,176,244
|
|
Goodwill
|
4,097,751
|
4,097,751
|
|
Investment tax
credits recoverable
|
4,875,031
|
4,820,185
|
|
Deferred income tax
assets
|
1,081,300
|
1,185,907
|
|
14,692,119
|
14,896,582
|
|
Total
assets
|
$
|
49,594,378
|
$
|
48,999,801
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
liabilities
|
|
|
|
Trade and other
payables
|
$
|
1,530,715
|
$
|
2,774,889
|
|
Accrued
liabilities
|
2,950,388
|
2,685,970
|
|
Warranty
provision
|
1,030,962
|
869,259
|
|
Deferred
revenue
|
2,217,408
|
1,217,083
|
|
7,729,473
|
7,547,201
|
|
Non-current
liabilities
|
|
|
|
Long-term
provisions
|
2,051,884
|
1,863,542
|
|
Long-term deferred
revenue
|
62,098
|
70,014
|
|
Total
liabilities
|
9,843,455
|
9,480,757
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Issued
capital
|
40,016,360
|
40,016,360
|
|
Treasury
shares
|
(431,208)
|
(431,208)
|
|
Contributed
surplus
|
4,325,028
|
4,276,584
|
|
Accumulated other
comprehensive loss
|
(4,419,838)
|
(4,395,651)
|
|
Retained
earnings
|
260,581
|
52,959
|
|
Total
shareholders' equity
|
39,750,923
|
39,519,044
|
|
Total liabilities
and shareholders' equity
|
$
|
49,594,378
|
$
|
48,999,801
|
|
Norsat
International Inc.
|
|
|
|
|
Condensed Interim
Consolidated Statements of Earnings and Comprehensive
Income
|
|
|
(Expressed in United
States dollars)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31
|
|
|
2017
|
2016
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
8,228,048
|
$
|
9,553,427
|
|
Cost of
sales
|
|
4,890,436
|
5,378,280
|
|
Gross
profit
|
|
3,337,612
|
4,175,147
|
|
|
|
|
|
Expenses:
|
|
|
|
|
General and
administrative
|
|
1,238,053
|
983,077
|
|
Selling and
distributing
|
|
1,128,393
|
1,302,966
|
|
Product
development
|
|
875,932
|
783,995
|
|
Less: Government
contributions
|
|
(320,234)
|
(379,475)
|
|
Add: Government
repayment obligation
|
|
114,397
|
-
|
|
Gain on foreign
exchange
|
|
(29,952)
|
(49,159)
|
|
Interest and bank
charges
|
|
72,871
|
26,800
|
|
Total
expenses
|
|
3,079,460
|
2,668,204
|
|
|
|
|
|
Earnings before
income taxes
|
|
258,152
|
1,506,943
|
|
|
|
|
|
Current income tax
expense
|
|
767
|
-
|
|
Deferred income tax
expense
|
|
49,763
|
344,908
|
|
|
50,530
|
344,908
|
|
|
|
|
|
Net
earnings
|
|
$
|
207,622
|
$
|
1,162,035
|
|
|
|
|
|
Other
comprehensive income/(loss)
|
|
|
|
|
Items that may
subsequently be reclassified to income:
|
|
|
|
|
(Loss)/gain on
translation of foreign subsidiaries
|
|
(24,187)
|
16,937
|
|
Total
comprehensive (loss)/income
|
|
$
|
183,435
|
$
|
1,178,972
|
|
|
|
|
|
Net earnings per
share
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.04
|
$
|
0.20
|
|
Diluted earnings per
share
|
|
$
|
0.03
|
$
|
0.20
|
|
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
|
Basic
|
|
5,769,271
|
5,766,952
|
|
Diluted
|
|
5,937,669
|
5,789,421
|
|
Norsat
International Inc.
|
|
|
|
Condensed Interim
Consolidated Statements of Cash Flows
|
|
|
|
(Expressed in United
States dollars)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
Three months ended
March 31
|
|
2017
|
2016
|
|
|
|
|
Cash and cash
equivalents provided by/(used in)
|
|
|
|
Operating
activities:
|
|
|
|
Net earnings for the
period
|
$
|
207,622
|
$
|
1,162,035
|
|
Income taxes
paid
|
(572)
|
-
|
|
Adjustments for items
not affecting cash:
|
-
|
|
|
Depreciation and
amortization
|
209,647
|
229,328
|
|
Unrealized foreign
exchange (gain)/loss
|
(26,682)
|
24,856
|
|
Current income tax
expense
|
767
|
-
|
|
Deferred income tax
expense
|
49,763
|
344,908
|
|
Share-based
payments
|
48,444
|
44,876
|
|
Government
contributions
|
(320,234)
|
(379,475)
|
|
Government repayment
obligation
|
114,397
|
-
|
|
Accretion of
long-term provisions
|
56,820
|
-
|
|
Deferred
revenue
|
992,409
|
(116,683)
|
|
Changes in non-cash
working capital
|
(1,076,398)
|
350,021
|
|
Net cash flows
provided by operating activities
|
255,983
|
1,659,866
|
|
|
|
|
Investing
activities:
|
|
|
|
Purchase of
intangible assets, property and
|
|
|
|
equipment, net of
SADI
|
(78,585)
|
(23,418)
|
|
Net cash flows
used in investing activities
|
(78,585)
|
(23,418)
|
|
|
|
|
|
Financing
activities:
|
|
|
|
Government
contributions
|
404,441
|
954,460
|
|
Net cash flows
provided by financing activities
|
404,441
|
954,460
|
|
|
|
|
|
Effect of foreign
currency translation on
|
|
|
|
cash and cash
equivalents
|
350
|
(4,914)
|
|
|
|
|
|
Increase in cash and
cash equivalents
|
582,189
|
2,585,994
|
|
Cash and cash
equivalents, beginning of period
|
15,044,742
|
4,585,754
|
|
Cash and cash
equivalents, end of period
|
$
|
15,626,931
|
$
|
7,171,748
|
|
Norsat
International Inc.
|
|
|
|
|
Reconciliation of
IFRS to non-IFRS Measures
|
|
|
|
|
(Expressed in United
States dollars)
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31
|
|
|
2017
|
2016
|
|
Net earnings for the
period
|
|
$
|
207,622
|
$
|
1,162,035
|
|
Interest and
accretion
|
|
43,526
|
(1,558)
|
|
Depreciation and
amortization
|
|
209,647
|
229,328
|
|
Tax
expense
|
|
50,530
|
344,908
|
|
EBITDA(2)
|
|
$
|
511,325
|
$
|
1,734,713
|
|
Gain on foreign
exchange
|
|
(29,952)
|
(49,159)
|
|
Corporate development
costs
|
|
363,277
|
-
|
|
Long-term portion of
government repayment obligation
|
|
114,397
|
-
|
|
Adjusted
EBITDA(2)
|
|
$
|
959,047
|
$
|
1,685,554
|
|
|
(2) We
disclose non-IFRS measures as we believe they provide useful
information on actual operating results and assist in comparisons
from one period to another. Readers are cautioned that non-IFRS
measures do not have any standardized meaning prescribed by IFRS
and therefore may not be comparable to similar measures presented
by other companies. For a more detailed description of non-IFRS
measures, please refer to Management's Discussion and Analysis for
the three months ended March 31, 2017 posted on Norsat's website
and SEDAR.
|
About Norsat International Inc.
Founded in 1977, Norsat International Inc. is a provider of
unique and customized communication solutions for remote and
challenging applications. Norsat's products and services include
leading-edge product design and development, production,
distribution and infield support and service of fly-away satellite
terminals, microwave components, antennas, Radio Frequency (RF)
conditioning products, maritime based satellite terminals and
remote network connectivity solutions. More information is
available at www.norsat.com, via email at investor@norsat.com or by
phone at 1-604-821-2800.
Forward Looking Statements
The discussion and analysis of this news release contains
forward-looking statements concerning anticipated developments in
Norsat's operations in future periods, the adequacy of its
financial resources and other events or conditions that may occur
in the future. Forward-looking statements are frequently, but not
always, identified by words such as "expects," "anticipates,"
"believes," "intends," "estimates,", "predicts," "potential,"
"targeted," "plans," "possible" and similar expressions, or
statements that events, conditions or results "will," "may,"
"could" or "should" occur or be achieved. These forward-looking
statements include, without limitation, statements about Norsat's
market opportunities, strategies, competition, expected activities
and expenditures as it pursues its business plan, the adequacy of
available cash resources and other statements about future events
or results. Forward-looking statements are statements about the
future and are inherently uncertain, and actual achievements of the
Company or other future events or conditions may differ materially
from those reflected in the forward-looking statements due to a
variety of risks, uncertainties and other factors, such as business
and economic risks and uncertainties. The forward-looking
statements are based on the beliefs, expectations and opinions of
management on the date the statements are made. Consequently, all
forward-looking statements made in this news release are qualified
by this cautionary statement and there can be no assurance that
actual results or anticipated developments will be realized. For
the reasons set forth above, investors should not place undue
reliance on forward-looking statements. These forward-looking
statements are made as of the date of this news release and Norsat
assumes no obligation to update or revise them to reflect new
events or circumstances, other than as required by law.
SOURCE Norsat International Inc.