NORSAT INTERNATIONAL INC - 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.
