Belzberg Reports Second Quarter 2010 Financial Results
TORONTO, Aug. 10 /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 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
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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)
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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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June 30, December 31,
2010 2009
(Unaudited) (Audited)
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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 -
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17,926 23,670
CAPITAL ASSETS 1,516 2,233
INVESTMENT 30 30
INVESTMENT TAX CREDITS RECOVERABLE 149 147
INTANGIBLE ASSETS, NET 67 141
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$ 19,688 $ 26,221
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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
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4,122 7,469
FUTURE INCOME TAX LIABILITIES - -
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4,122 7,469
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SHAREHOLDERS' EQUITY
CAPITAL STOCK 23,612 23,754
CONTRIBUTED SURPLUS 4,266 4,044
DEFICIT (12,312) (9,046)
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15,566 18,752
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$ 19,688 $ 26,221
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BELZBERG TECHNOLOGIES INC.
Consolidated Statements of Operations and Retained Earnings (Deficit)
(in thousands of Canadian dollars, except per share amounts)
(Unaudited)
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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
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4,695 10,822 9,808 22,108
Cost of exchange and
clearance fees (872) (4,809) (1,884) (9,368)
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TOTAL NET REVENUE 3,823 6,013 7,924 12,740
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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
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5,413 7,539 11,576 16,097
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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)
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(869) 237 (386) 1,163
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LOSS BEFORE INCOME TAXES (721) (1,763) (3,266) (4,520)
RECOVERY OF INCOME TAXES
Current - -
Future - (358) - (1,291)
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- (358) - (1,291)
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NET LOSS (721) (1,405) (3,266) (3,229)
RETAINED EARNINGS (DEFICIT),
BEGINNING OF PERIOD (11,591) 5,610 (9,046) 7,434
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RETAINED EARNINGS (DEFICIT),
END OF PERIOD $ (12,312) $ 4,205 $ (12,312) 4,205
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EARNINGS (LOSS) PER SHARE:
Basic $ (0.05) $ (0.09) $ (0.22) $ (0.22)
Diluted $ (0.05) $ (0.09) $ (0.22) $ (0.22)
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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
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BELZBERG TECHNOLOGIES INC.
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(Unaudited)
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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)
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(650) 6,380 (4,998) (4,760)
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INVESTING ACTIVITIES
Purchase of capital assets (42) (415) (135) (842)
Purchase of intangibles - - - (7)
Purchase of investment - - - (2)
Proceeds from sale of
investment - - - 15
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(42) (415) (135) (836)
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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 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
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CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 10,562 $ 13,464 $ 10,562 $ 13,464
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CASH AND CASH EQUIVALENTS:
Cash $ 4,565 $ 4,648 $ 4,565 $ 4,648
Cash equivalents 5,997 8,816 5,997 8,816
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$ 10,562 $ 13,464 $ 10,562 $ 13,464
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SUPPLEMENTAL CASH FLOW
INFORMATION
Interest received $ 1 $ 49 $ 3 $ 139
Interest paid - 12 3 18
Income taxes paid - - - 15
For further information: Judith Robertson, President and Chief Executive Officer, Phone: (416) 360-1812, E-mail: [email protected]
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