Look Communications reports first quarter 2010 results
Recent operating highlights include the following:
- On September 11, 2009, the Corporation received the final $50 million of consideration due from the Inukshuk Wireless Partnership ("Inukshuk") following the receipt of regulatory approval of the transaction from Industry Canada and the satisfaction of all remaining conditions precedent to the sale of Look's spectrum and broadcast licence; - Following the sale of its web hosting, domain name, and Internet businesses during fiscal 2009, the Corporation successfully executed an agreement whereby its video subscribers were transitioned to Bell Canada; - As of November 15, 2009 the Corporation was no longer offering service to any subscribers; - As of December 31, 2009 the Corporation has decommissioned its wireless network across the provinces of Ontario and Quebec; and - The Corporation has reduced its full-time equivalent staff from 63 at August 31, 2009 to six by December 31, 2009.
Financial highlights for the quarter ended
- Cash and cash equivalents and short-term investments at November 30, 2009 totalled $39.1 million which represents an increase of $24.8 million from August 31, 2009. This increase is due primarily to the receipt of the final $50 million of consideration due from Inukshuk partially offset by the payment of the Corporation's restructuring charges; - Net loss for the quarter was $3.0 million, or a basic loss per share of $0.02; and - Operating expenses for the quarter totalled $2.9 million, a decrease of $1.4 million or 31.1 per cent from the $4.3 million incurred during the quarter ended November 30, 2008.
The Corporation's remaining assets consist primarily of its present cash and short-term investment position of approximately
The Corporation continues to pursue opportunities with interested parties, including income trusts, to maximize the value of its remaining tax assets. To facilitate achieving this objective, the Board of Directors has retained BMO Capital Markets to assist in this process.
As the Corporation finalizes its strategic direction, it will disclose this to shareholders at its next Annual and Special Meeting scheduled for
The Board of Directors and Management would like to acknowledge the ongoing support of Look's parent company, Unique Broadband Systems, Inc., in helping Look to realize the maximum value for its remaining assets by, among other things, indicating that it will consider the sale of its controlling interest in Look to facilitate the full value of Look's tax losses.
About Look Communications Inc.
Look's shares are listed on the TSX Venture Exchange under the symbols "LOK" for Multiple Voting Shares and "LOK.A" for Subordinate Voting Shares. Look's website may be found at www.look.ca.
The corporate information contained in this release includes forward-looking statements regarding future events and the future performance of Look that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by Look at the time of preparation, may prove to be incorrect. The actual results achieved may vary from the information provided herein and the variations may be material. Consequently, there is no representation by Look that actual results achieved will be the same in whole or in part as those forecast.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Look Communications Inc. INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS As at (In thousands of dollars) ------------------------------------------------------------------------- November 30 August 31 2009 2009 ------------------------------------------------------------------------- ASSETS Total current assets $ 42,836 $ 67,288 Restricted cash 350 380 Property and equipment 1,901 1,995 ------------------------------------------------------------------------- $ 45,087 $ 69,663 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Total current liabilities $ 4,552 $ 26,144 Long-term liability component of convertible debentures 3,328 3,291 ------------------------------------------------------------------------- Total liabilities 7,880 29,435 ------------------------------------------------------------------------- Shareholders' equity Share capital 33,568 33,566 Equity component of convertible debentures 1,478 1,479 Contributed surplus 11,152 11,151 Deficit (8,991) (5,968) ------------------------------------------------------------------------- Total shareholders' equity 37,207 40,228 ------------------------------------------------------------------------- $ 45,087 $ 69,663 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Look Communications Inc. INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND DEFICIT Three months ended November 30, 2009 and 2008 (In thousands, except per share amounts) ------------------------------------------------------------------------- 2009 2008 ------------------------------------------------------------------------- Service and sales revenue $ 434 $ 3,588 Carrier charges and cost of sales 425 1,940 ------------------------------------------------------------------------- Gross margin from continuing operations 9 1,648 ------------------------------------------------------------------------- Operating expenses 2,927 4,251 ------------------------------------------------------------------------- Loss from continuing operations before the undernoted (2,918) (2,603) Interest and finance charges, net (11) (24) Accretion on liability component of convertible debentures (111) (107) Adjustment to gain on sale of spectrum and broadcast licence (61) - Gain on sale of other property and equipment - 2 ------------------------------------------------------------------------- Loss for the period from continuing operations (3,101) (2,732) Income for the period from discontinued operations 78 4,531 ------------------------------------------------------------------------- Income (loss) and comprehensive income (loss) for the period (3,023) 1,799 Deficit, beginning of period (5,968) (51,489) ------------------------------------------------------------------------- Deficit, end of period $ (8,991) $ (49,690) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Continuing operations Basic loss per share $ (0.02) $ (0.02) Diluted loss per share (0.02) (0.02) Discontinued operations Basic income per share - 0.04 Diluted income per share - 0.04 Income (loss) per share Basic (0.02) 0.02 Diluted (0.02) 0.02 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of shares outstanding Basic 127,484 125,946 Diluted 127,484 125,946 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Look Communications Inc. INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS Three months ended November 30, 2009 and 2008 (In thousands of dollars) ------------------------------------------------------------------------- 2009 2008 ------------------------------------------------------------------------- OPERATING ACTIVITIES Income (loss) for the period $ (3,023) $ 1,799 Less: Income for the period from discontinued operations (78) (4,531) Items not affecting cash 291 1,322 Changes in non-cash operating assets and liabilities (22,292) (96) ------------------------------------------------------------------------- Cash used in continuing operations (25,102) (1,506) Cash provided by discontinued operations 78 507 ------------------------------------------------------------------------- Cash used in operating activities (25,024) (999) ------------------------------------------------------------------------- ------------------------------------------------------------------------- INVESTING ACTIVITIES Cash provided by (used in) continuing operations 13,880 (7) Cash provided by discontinued operations - 1,957 ------------------------------------------------------------------------- Cash provided by investing activities 13,880 1,950 ------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents (11,144) 951 Cash and cash equivalents, beginning of period 14,254 3,565 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 3,110 $ 4,516 ------------------------------------------------------------------------- -------------------------------------------------------------------------
%SEDAR: 00013414E
For further information: Peter Block, Investor and Media Relations, [email protected], (647) 259-3284
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