UBS reports fiscal 2009 results
Updates shareholders following closing of Look's Inukshuk transaction
The major event for fiscal 2009 was the sale of Look's spectrum and broadcast licence to the Inukshuk Wireless Partnership ("Inukshuk") (a joint venture between Rogers Communications and
"The last quarter of fiscal 2009 and the first quarter of fiscal 2010 were very busy for the Company. Following Look's sale of its major operating assets, Look obtained regulatory approval for the transfer of its spectrum licenses and, as a result, received the full consideration of
While the Agreement contemplated Inukshuk making up to three separate payments to Look over a period of up to three years, depending upon regulatory approval, the parties were able to complete the transaction in less than four months. The majority of the human resource restructuring expenses were contingent upon, among other things, the entire consideration of
"I am pleased with the speed of closing the transaction and the dedication of all employees towards a 'soft landing' for all of our subscribers, suppliers and regulatory authorities. This is a tremendous accomplishment considering the complex nature of a seven party transaction in an economic and financial environment that is more severe than anyone had anticipated" said Gerald McGoey.
Look's Board of Directors and management will continue to pursue various opportunities available to it while attempting to monetize its approximately
Look's remaining assets consist of the Milton facility and related infrastructure, which has been listed for sale, approximately
Operating highlights include the following:
- Look entered into an agreement, as discussed above, with Inukshuk for
the sale of its spectrum and broadcast licence for $80 million of
cash. The final $50 million short-term receivable, outstanding at
August 31, 2009, was collected by Look in September 2009;
- During the first and fourth quarters of fiscal 2009, Look completed
the sale of its web hosting and domain name business and its Internet
business recording gains of $4.2 million and $1.6 million
respectively. Look also successfully executed an agreement whereby
its video subscribers transitioned to Bell; and
- Look has reduced its full-time equivalent staff from:
- 70 at August 31, 2008, to
- 64 at August 31, 2009, to
- ~ 5 by December 31, 2009.
Financial highlights for the year ended
- Cash and cash equivalents at August 31, 2009 totalled $17.4 million
which represents an increase of $12.2 million from August 31, 2008 as
a result of the first instalment of $30 million paid to Look by
Inukshuk which was partially offset by a net payment of $12 million
in settlement of related litigation;
- Income for the year was $20.7 million, or $0.20 per share (basic and
diluted); and
- Operating expenses for the year, excluding impairment and
restructuring charges related to the sale of the spectrum and
broadcast licence to Inukshuk, totalled $16.6 million, a decrease of
$2.7 million or 13.8% from the $19.3 million incurred during the year
ended August 31, 2008.
For further information on the Company's financial results, please review the Company's annual audited consolidated financial statements and management's discussion and analysis of financial condition and results of operations for the years ended
About Unique Broadband Systems, Inc.
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UBS is a publicly listed Canadian company that has a 51.8% fully diluted economic interest in Look Communications Inc. and other assets. The Company's website may be found at www.uniquebroadband.com.
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.
Forward looking statements
--------------------------
The corporate information contained in this release includes forward-looking statements regarding future events and the future performance of the Company 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 the Company 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 the Company that actual results achieved will be the same in whole or in part as those forecasts.
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.
This press release should be read in conjunction with Look's press release of
Unique Broadband Systems, Inc.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands of dollars)
Years ended August 31,
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2009 2008
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ASSETS
Total current assets $ 68,091 $ 6,057
Restricted cash 430 490
Property and equipment 1,995 7,503
Deferred charges - 63
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$ 70,516 $ 14,113
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LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Total current liabilities 32,805 19,486
Liability component of convertible debentures 917 903
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Total liabilities 33,722 20,389
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Non-controlling interest 21,940 422
Shareholders equity (deficit)
Share capital 58,139 58,139
Contributed surplus 3,459 2,643
Deficit (46,744) (67,480)
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Total shareholders' equity (deficit) 14,854 (6,698)
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$ 70,516 $ 14,113
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Unique Broadband Systems, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND DEFICIT
(in thousands, except per share amounts)
Years ended August 31,
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2009 2008
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Service and sales revenue $ 12,518 $ 16,884
Carrier charges and cost of sales 7,295 9,085
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Gross margin 5,223 7,799
Operating Expenses 45,356 19,252
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Loss from continuing operations
before the under noted: (40,133) (11,453)
Accretion on liability component of
convertible debentures (120) (116)
Net interest income (expense) (124) (3)
Gain on sale of property and equipment 2 10
Gain on settlement of Inukshuk litigation 4,000 -
Gain on sale of spectrum and broadcast licence 78,106 -
Gain on sale of Internet business 1,630 -
Loss on settlement of Bell litigation (5,457) -
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Income (loss) for the year from continuing
operations before income taxes 37,904 (11,562)
Income taxes - -
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Income (loss) for the year from continuing
operations before non-controlling interests 37,904 (11,562)
Non-controlling interests (21,399) 2,471
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Income (loss) for the year from
continuing operations 16,505 (9,091)
Income for the year from discontinued operations 4,231 1,600
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Income (loss) and comprehensive income
(loss) for the year 20,736 (7,491)
Deficit, beginning of year (67,480) (59,989)
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Deficit, end of year $ (46,744) $ (67,480)
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Continuing operations:
Basic income (loss) per share $ 0.16 $ (0.09)
Diluted income (loss) per share $ 0.16 $ (0.09)
Discontinued operations:
Basic income per share $ 0.04 $ 0.02
Diluted income per share $ 0.04 $ 0.02
Income (loss) per share:
Basic $ 0.20 $ (0.07)
Diluted $ 0.20 $ (0.07)
Weighted average of number of shares
outstanding (in thousands)
Basic 102,748 102,748
Diluted 104,501 102,748
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Unique Broadband Systems, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
Years ended August 31,
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2009 2008
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OPERATING ACTIVITIES
Income (loss) for the year $ 20,736 $ (7,491)
Less: Income from discontinued
operations for the year (4,231) (1,600)
Items not affecting cash (46,377) 3,407
Changes in non-cash working capital 25,309 804
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Cash used in continuing operations (4,563) (4,880)
Cash provided by discontinued operations 34 529
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Cash used in operating activities (4,529) (4,351)
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Cash used in financing activities - (14)
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Cash provided by (used in) investing activities
Cash provided by (used in) continuing operations 13,310 (117)
Cash provided by discontinued operations 3,440 -
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Cash provided by (used in) investing activities 16,750 (117)
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Net cash provided by (used in) continuing operations 8,747 (5,011)
Net cash provided by discontinued operations 3,474 529
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Increase (decrease) in cash and cash equivalents 12,221 (4,482)
Cash and cash equivalents, beginning of year 5,168 9,650
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Cash and cash equivalents, end of year $ 17,389 $ 5,168
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%SEDAR: 00010550E
For further information: Peter Block, Investor and Media Relations, [email protected], (647) 259-3284
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