LOREX Announces First Quarter 2012 Results

TORONTO, March 20, 2012 /CNW/ - LOREX Technology Inc. ("LOREX" or the "Company") [TSXV: LOX] announces results* for the three month period ended December 31, 2011. 

LOREX Technology is pleased to announce record quarterly revenue and EBITDA results for its three month period ended December 31, 2011.  Revenue for the current three month period grew by $4.3 million or 26% over the prior year to $20.5 million; and the company's EBITDA grew by 33% or $0.7 million over the prior year to $2.8 million.

"We are very proud of the revenue and profitability achieved in the quarter, as we continue to grow our business in this competitive business environment," stated Reuben Klein, Chairman and CEO.  "Our revenue during the quarter grew organically by 26% over the prior year. Growth for the current quarter came from all business units across the board, as increasing demand and awareness for both the Lorex and Digimerge brands continues to contribute to our growth rate that presently exceeds industry averages in the North American "Do-It-Yourself" video surveillance market. The prior year comparative quarter included our introduction and initial load-in of the LIVE Snap Home Monitor, which resulted in higher comparative sales in that category last year. This was significantly offset in the current quarter by higher than anticipated DVR sales resulting from supply concerns regarding the hard disk drive shortage in the industry.  Our EBITDA dollars for the quarter grew by 33% over the prior year; and as a percentage of revenue improved to 13.6% from 12.9% the prior year. This makes it thirteen consecutive quarters for positive EBITDA."

"When reading the financial information noted below, it should be noted that $0.7 million of previously unrecognized loss carry-forward was available and utilized in the prior year quarter to reduce the tax expense," continued Mr. Klein. "The result was tax expense for the prior year quarter of $0.2 million, as compared to $0.9 million in the current year.  The benefit of North American loss carry-forwards that reduced tax expense in fiscal 2011 have been fully utilized."

Highlights of the three month operating results are as follows:

(Thousands of US $, unless otherwise noted)
						Three months ended December 31
						2011				2010
Revenue						$ 20,501				$ 16,245
Earnings before interest, taxes, amortization **						2,786				2,102
Earnings before income taxes						2,634				1,984
Income tax expense						(922)				(179)
Net earnings						1,712				1,805
Earnings per common share, basic						$ 0.05				$0.06
Earnings per common share, diluted						$ 0.04				$0.04
Weighted average number of shares -basic						35,549,489				31,290,278
Weighted average number of shares - diluted						44,361,095				43,790,278

*Unaudited financial information is available at  www.sedar.com.

**EBITDA is not a measure of performance under Canadian GAAP. EBITDA should not be considered in isolation or as a substitute for profit nor as a measure of operating performance or profitability.

"We are pioneers and leaders of do-it-yourself video security solutions, and we continue to innovate our products, introduce new solutions and offer secure industry leading, internet-connected plug and play video technology to our customers.  We believe that the new look, intuitive operation and ease of remote connectivity will continue to cater to growing demand from our consumers. Our record sales and earnings this quarter continued to strengthen our balance sheet and improve our working capital position. We will continue to increase our marketing and product development initiatives throughout the remainder of 2012 and beyond and expect to continue our growth and profitability," concluded Mr. Klein.

About LOREX Technology Inc.:

LOREX Technology Inc. ('LOREX') (TSXV:LOX) provides businesses and consumers with leading edge video surveillance security solutions and sells its products under the LOREX and Digimerge brands. The LOREX brand, which caters to both small business and consumer markets, is available in thousands of retail locations across North America. The Digimerge division distributes its products through major distributors in North America. Both brands concentrate on the sale of wired, wireless and IP security surveillance and monitoring equipment including cameras, digital video recorders and all-in-one systems.

LOREX subsidiaries include; LOREX Canada Inc., LOREX Corporation and Strategic Vista Corporation Limited, Hong Kong.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.

Cautionary Statement on Forward-Looking Information

This news release contains certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this press release relate to the Company's projected revenue. The forward-looking information reflects predictions and does not in any way reflect a guarantee. Factors which could cause actual results to differ materially from current projections include, among other things: competitive conditions in which the Company participates; changes in consumer spending; general economic conditions and normal business uncertainty; customer preferences towards product offerings; the occurrence of a pandemic or other catastrophic event which could create shortages of labour, products or services required to operate the business profitably; fluctuations in foreign currency exchange rates; changes in the Company's relationships with its suppliers. The Company cautions that this is not an exhaustive list of factors that may affect the forward-looking information contained in this press release. Potential investors and readers are urged to give careful consideration to all of these factors in evaluating any forward-looking information and are cautioned not to place undue reliance on such information. While the Company believes that its projections are reasonable, results predicted in this forward-looking information may differ materially from actual results. The Company disclaims any obligation to update forward-looking information, except as may be required by law.

 

Reuben Klein
Chairman and Chief Executive Officer
LOREX Technology Inc.
Phone: [phone], extension 120
[email protected]
www.lorextechnology.com