Belzberg Reports First Quarter 2010 Financial Results
TORONTO, May 11 /CNW/ - 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."
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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
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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)
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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 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)
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March 31, December 31,
2010 2009
(Unaudited) (Audited)
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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
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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
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$ 21,430 $ 26,221
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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
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5,211 7,469
SHAREHOLDERS' EQUITY
CAPITAL STOCK 23,612 23,754
CONTRIBUTED SURPLUS 4,198 4,044
DEFICIT (11,591) (9,046)
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16,219 18,752
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$ 21,430 $ 26,221
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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)
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2010 2009
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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
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5,113 11,286
Cost of exchange and clearance fees (1,012) (4,559)
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TOTAL NET REVENUE 4,101 6,727
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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
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6,163 8,558
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LOSS BEFORE THE UNDERNOTED (2,062) (1,831)
Restructuring expenses - 839
Foreign exchange loss 482 168
Interest expense 3 6
Interest income (2) (87)
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483 926
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LOSS BEFORE INCOME TAXES (2,545) (2,757)
RECOVERY OF INCOME TAXES
Future - (933)
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- (933)
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NET LOSS (2,545) (1,824)
RETAINED EARNINGS (DEFICIT),
BEGINNING OF PERIOD (9,046) 7,434
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RETAINED EARNINGS (DEFICIT), END OF PERIOD $(11,591) $ 5,610
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LOSS PER SHARE:
Basic $ (0.17) $ (0.12)
Diluted $ (0.17) $ (0.12)
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WEIGHTED AVERAGE NUMBER OF COMMON AND
COMMON EQUIVALENT SHARES OUTSTANDING
(in thousands)
Basic 14,676 14,835
Diluted 14,676 14,835
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BELZBERG TECHNOLOGIES INC.
Consolidated Statements of Cash Flows
For the three months ended March 31, 2010 and 2009
(in thousands of Canadian dollars)
(Unaudited)
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2010 2009
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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)
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(4,348) (11,472)
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INVESTING ACTIVITIES
Purchase of capital assets (93) (427)
Purchase of intangibles - (7)
Purchase of investment - (2)
Proceeds from sale of investment - 15
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(93) (421)
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FINANCING ACTIVITIES
Repurchase of common shares (67) (10)
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(67) (10)
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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
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CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 10,797 $ 7,567
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CASH AND CASH EQUIVALENTS:
Cash $ 3,003 $ 1,016
Cash equivalents 7,794 6,551
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$ 10,797 $ 7,567
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SUPPLEMENTAL CASH FLOW INFORMATION
Interest received $ 3 $ 90
Interest paid 3 6
Income taxes paid 8 15
For further information: Judith Robertson, President and Chief Executive Officer, Phone: (416) 360-1812, E-mail: [email protected]
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