Look Communications reports third quarter 2010 results
TORONTO, July 20 /CNW/ - Look Communications Inc. ("Look" or the "Corporation") (TSX Venture: LOK and LOK.A) today reported its financial and operating results for the third quarter of fiscal 2010, ended May 31, 2010.
Financial and operating highlights for the quarter included the following:
- Cash and cash equivalents and short-term investments at May 31, 2010
totalled $29.8 million, which represents an increase of $15.5 million
from August 31, 2009. This increase is due to, among other things, the
receipt of the final $50 million of consideration due from Inukshuk
partially offset by the payment of the Corporation's restructuring
charges and losses from ongoing operations;
- Operating expenses for the quarter totalled $2.0 million, a decrease
of $4.8 million or 70.8 per cent from the $6.8 million incurred during
the same quarter one year prior;
- Net loss for the quarter was $2.1 million, or a basic loss per share
of $0.02;
- During May 2010, debenture-holders converted $916 thousand of
debentures into 6,106,661 Multiple Voting Shares and 6,106,661
Subordinate Voting Shares and the Corporation redeemed the remaining
$3.2 million of debentures for cash. As a result, at May 31, 2010 the
Corporation had no remaining debenture-related liabilities; and
- The Corporation has maintained its full-time equivalent staff at six
through May 31, 2010.
The Corporation continues to pursue opportunities with interested parties to maximize the value of its remaining assets consisting primarily of its cash and short-term investment position of approximately $30 million, approximately $360 million of tax attributes and the Milton facility and related infrastructure.
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)
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May 31 August 31
2010 2009
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ASSETS
Total current assets $ 33,116 $ 67,288
Restricted cash - 380
Property and equipment 1,781 1,995
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$ 34,897 $ 69,663
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LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Total current liabilities $ 1,460 $ 26,144
Liability component of convertible debentures - 3,291
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Total liabilities 1,460 29,435
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Shareholders' equity
Share capital 34,484 33,566
Equity component of convertible debentures - 1,479
Contributed surplus 11,934 11,151
Deficit (12,981) (5,968)
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Total shareholders' equity 33,437 40,228
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$ 34,897 $ 69,663
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Look Communications Inc.
INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
DEFICIT
Three and nine months ended May 31, 2010 and 2009
(In thousands, except per share amounts)
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Three months ended Nine months ended
May 31 May 31
2010 2009 2010 2009
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Service and sales revenue $ - $ 3,096 $ 434 $ 10,011
Carrier charges and cost of sales - 2,470 425 6,224
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Gross margin from continuing
operations - 626 9 3,787
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Expenses 1,977 6,754 6,692 15,827
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Loss from continuing operations
before the undernoted (1,977) (6,128) (6,683) (12,040)
Interest and finance charges, net 46 (51) 29 (99)
Accretion on liability component
of convertible debentures (164) (109) (386) (323)
Gain on sale of spectrum and
broadcast licence - 78,243 (61) 78,243
Loss on settlement of Bell
litigation - (5,817) - (5,817)
Gain on sale of property and
equipment 5 - 10 2
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Income(loss) for the period from
continuing operations (2,090) 66,138 (7,091) 59,966
Income for the period from
discontinued operations - - 78 4,531
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Income(loss) and comprehensive
income(loss) for the period (2,090) 66,138 (7,013) 64,497
Deficit, beginning of period (10,891) (53,130) (5,968) (51,489)
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Surplus(deficit), end of period $(12,981) $ 13,008 $(12,981) $ 13,008
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Continuing operations
Basic income(loss) per share $ (0.02) $ 0.52 $ (0.06) $ 0.47
Diluted income(loss) per share (0.02) 0.36 (0.06) 0.33
Discontinued operations
Basic income per share - - - 0.04
Diluted income per share - - - 0.02
Income(loss) per share
Basic (0.02) 0.52 (0.06) 0.51
Diluted (0.02) 0.36 (0.06) 0.35
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Weighted average number of
shares outstanding
Basic 128,801 126,841 127,924 126,427
Diluted 128,801 184,298 127,924 184,015
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Look Communications Inc.
INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Three and nine months ended May 31, 2010 and 2009
(In thousands of dollars)
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Three months ended Nine months ended
May 31 May 31
2010 2009 2010 2009
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OPERATING ACTIVITIES
Income(loss) for the period $ (2,090) $ 66,138 $ (7,013) $ 64,497
Less: Income for the period
from discontinued operations - - (78) (4,531)
Items not affecting cash 160 (68,893) 524 (66,484)
Changes in non-cash operating
assets and liabilities (70) 4,411 (22,769) 4,850
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Cash provided by(used in)
continuing operations (2,000) 1,656 (29,336) (1,668)
Cash provided by discontinued
operations - 12 78 507
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Cash provided by(used in)
operating activities (2,000) 1,668 (29,258) (1,161)
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FINANCING ACTIVITIES
Cash provided by(used in)
financing activities (3,358) - (5,304) 1
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INVESTING ACTIVITIES
Cash provided by continuing
operations 5,530 12,273 22,487 12,261
Cash provided by(used in)
discontinued operations - (12) - 3,381
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Cash provided by investing
activities 5,530 12,261 22,487 15,642
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Increase(decrease) in cash
and cash equivalents 172 13,929 (12,075) 14,482
Cash and cash equivalents,
beginning of period 2,007 4,118 14,254 3,565
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Cash and cash equivalents, end
of period $ 2,179 $ 18,047 $ 2,179 $ 18,047
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%SEDAR: 00013414E
For further information: Peter Block, Investor and Media Relations, [email protected], (647) 259-3284
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