Belzberg Reports Third Quarter 2009 Financial Results
"Belzberg has achieved many important milestones over the past three months." said
Major achievements in the third quarter include:
- Operating expenses (excluding restructuring charges and pass-
throughs) declined $0.6 million from the second quarter and $1.6
million from the first quarter.
- Average transaction fees have improved for both electronic equities
and options as we continue to focus on improving our business mix;
- Added 6 net new clients in the third quarter across equities and
options. New clearing clients are ramping up activity levels.
"In addition to product improvements, we continue to make meaningful improvements in our cost structure. Operating expenses net of pass-throughs in the third quarter were reduced 9% when compared to the second quarter and 20% when compared to the first quarter 2009." said
Revenues, net of pass-throughs, decreased by 14% to
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Revenues and Expenses
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(in millions of dollars)
(Unaudited) Q309 Q209 Q109
Revenue before pass-throughs $ 5.0 $ 5.8 $ 6.6
Operating expenses before pass-throughs (6.2) (6.8) (7.8)
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Total revenues for the third quarter, including pass-throughs on which the Company makes no margin, decreased 26% to
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Financial Highlights Three months ended Nine months ended
(in millions of dollars, September 30, September 30,
except per share data)
(unaudited) 2009 2008 2009 2008
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Revenue $ 8.2 $ 11.0 $ 30.3 $ 29.5
Revenue before pass-throughs $ 5.0 $ 7.3 $ 17.4 $ 21.4
Net earnings (loss) $ (2.4) $ (0.3) $ (5.6)* $ 0.4
Diluted earnings (loss)
per share $ (0.16) $ (0.02) $ (0.38) $ 0.02
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* Includes restructuring charges of $0.8 million
About Belzberg Technologies
Belzberg Technologies Inc. is a provider of trading technology and technology-based brokerage services for equities and options. Using Belzberg's suite of integrated trading tools and network connectivity, Belzberg's customers have direct access to all major North American markets. Belzberg Technologies is listed on the
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.
Notice
The consolidated financial statements have not been reviewed by an
external auditor
BELZBERG TECHNOLOGIES INC.
Consolidated Balance Sheets
(in thousands of Canadian dollars)
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September 30, December 31,
2009 2008
(Unaudited) (Audited)
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ASSETS
CURRENT
Cash and cash equivalents $ 12,863 $ 19,452
Cash and cash equivalents segregated under
regulations and other 3,071 184
Cash and cash equivalents on deposit with
clearing and depository organizations 2,524 1,989
Receivable from brokers, dealers and
clearing organizations 1,697 1,774
Accounts receivable 5,485 5,973
Prepaid expenses and other receivables 750 534
Other assets - 1,565
Income taxes receivable 95 89
Investment tax credits recoverable 34 84
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26,519 31,644
CAPITAL ASSETS 2,647 3,326
INVESTMENT 30 38
INVESTMENT TAX CREDITS RECOVERABLE 1,621 1,580
FUTURE INCOME TAX ASSETS 4,854 3,289
GOODWILL 1,608 1,608
OTHER INTANGIBLE ASSETS, NET 315 473
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$ 37,594 $ 41,958
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LIABILITIES
CURRENT
Accounts payable and accrued liabilities $ 4,975 $ 6,350
Payable to customers and correspondents 2,449 183
Payable to brokers, dealers and
clearing organizations - 131
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7,424 6,664
FUTURE INCOME TAX LIABILITIES 513 244
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7,937 6,908
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SHAREHOLDERS' EQUITY
CAPITAL STOCK 23,898 23,930
CONTRIBUTED SURPLUS 3,904 3,686
RETAINED EARNINGS 1,855 7,434
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29,657 35,050
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$ 37,594 $ 41,958
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BELZBERG TECHNOLOGIES INC.
Consolidated Statements of Operations and Retained Earnings
(in thousands of Canadian dollars, except per share amounts)
(Unaudited)
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Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
----------- ----------- ----------- -----------
REVENUE
Transaction fees:
Equity order
flow and
clearing $ 4,147 $ 4,543 $ 16,679 $ 11,479
Options and
futures
contracts 2,437 4,253 8,623 11,541
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6,584 8,796 25,302 23,020
Subscription fees 1,214 1,764 3,832 5,404
Other revenue 363 403 1,135 1,103
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TOTAL REVENUE 8,161 10,963 30,269 29,527
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EXPENSES
Exchange, clearing
and brokerage fees 3,463 5,194 14,485 10,650
Compensation and
related benefits 3,026 3,161 9,943 8,892
Telecommunication and
datafeed services 1,815 1,721 5,932 4,937
Administrative and
other expenses 872 1,259 3,114 3,768
Restructuring expenses - - 839 -
Government assistance - - (95) -
Amortization of capital
assets 522 469 1,579 1,397
Amortization of
intangible assets 55 53 165 138
Foreign exchange (gain)
loss 1,200 (30) 1,732 87
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10,953 11,827 37,694 29,869
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LOSS BEFORE THE
UNDERNOTED (2,792) (864) (7,425) (342)
Interest expense 4 3 22 3
Interest income (40) (129) (171) (465)
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(36) (126) (149) (462)
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EARNINGS (LOSS) BEFORE
INCOME TAXES (2,756) (738) (7,276) 120
PROVISION FOR (RECOVERY
OF) INCOME TAXES
Current - 2 - 9
Future (406) (418) (1,697) (257)
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(406) (416) (1,697) (248)
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NET EARNINGS (LOSS) (2,350) (322) (5,579) 368
RETAINED EARNINGS
(DEFICIT), BEGINNING
OF PERIOD 4,205 8,006 7,434 (8,684)
REDUCTION OF STATED
CAPITAL - - - 16,000
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RETAINED EARNINGS, END
OF PERIOD 1,855 7,684 1,855 7,684
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EARNINGS (LOSS) PER
SHARE:
Basic $ (0.16) $ (0.02) $ (0.38) $ 0.02
Diluted $ (0.16) $ (0.02) $ (0.38) $ 0.02
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WEIGHTED AVERAGE
NUMBER OF COMMON AND
COMMON EQUIVALENT
SHARES OUTSTANDING:
(in thousands)
Basic 14,822 14,841 14,828 14,827
Diluted 14,822 14,879 14,828 14,918
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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 Nine months ended
September 30, September 30,
2009 2008 2009 2008
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CASH PROVIDED BY
(USED FOR)
OPERATING ACTIVITIES
Net earnings
(loss) $ (2,350) $ (322) $ (5,579) $ 368
Items not affecting
cash
Amortization of
capital assets 522 469 1,579 1,397
Amortization of
intangible assets 55 53 165 138
Unrealized foreign
exchange loss
(gain) 664 (219) 1,026 (358)
Gain on sale of
investment - - (5) -
Stock-based
compensation 75 42 218 120
Future income taxes (171) (466) (1,296) (332)
Changes in non-cash
working capital
items 1,348 (3,095) (745) (2,074)
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143 (3,538) (4,637) (741)
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INVESTING ACTIVITIES
Purchase of capital
assets (58) (736) (900) (1,978)
Purchase of
intangibles - - (7) (212)
Purchase of investment - - (2) -
Proceeds from sale of
investment - - 15 -
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(58) (736) (894) (2,190)
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FINANCING ACTIVITIES
Repayment of
obligations under
capital lease - - - (27)
Repurchase of common
shares (22) (33) (32) (306)
Proceeds from the
exercise of stock
options - - - 364
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(22) (33) (32) 31
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Effect of exchange rate
changes on cash and
cash equivalents (664) 219 (1,026) 358
NET INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS (601) (4,088) (6,589) (2,542)
CASH AND CASH
EQUIVALENTS,
BEGINNING OF PERIOD 13,464 22,627 19,452 21,081
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CASH AND CASH
EQUIVALENTS,
END OF PERIOD $ 12,863 $ 18,539 $ 12,863 $ 18,539
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CASH AND CASH
EQUIVALENTS:
Cash $ 4,679 $ 4,834 $ 4,679 $ 4,834
Cash equivalents 8,184 13,705 8,184 13,705
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$ 12,863 $ 18,539 $ 12,863 $ 18,539
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SUPPLEMENTAL CASH
FLOW INFORMATION
Interest received $ 40 $ 119 $ 179 $ 464
Interest paid 4 3 22 3
Income taxes paid 3 67 18 197
For further information: Judith Robertson, President and Chief Executive Officer, Phone: (416) 360-1812, E-mail: [email protected]
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