UBS reports second quarter 2010 results
Look not recommencing Management Services Agreement with UBS
TORONTO, April 22 /CNW/ - Unique Broadband Systems, Inc. ("UBS" or the "Company") (TSX Venture: UBS) today reported its operating and financial results for the second quarter of fiscal 2010, ended February 28, 2010.
As part of its ongoing restructuring plan, Look Communications ("Look") today notified UBS that it will not be recommencing the Management Services Agreement ("MSA") on its May 19, 2010 anniversary date. The decision not to recommence the MSA means that it will expire on the completion of the existing term, being May 19, 2012, or such earlier date that is mutually agreed to by UBS and Look. Since Look has maintained an annual pre-paid fee of $2.4 million, the cash impact to UBS for annual fees over the remaining term of the MSA will be $2.4 million.
Operating highlights for the quarter include the following:
- As of December 31, 2009 Look has decommissioned its wireless
network across Ontario and Quebec; and
- Look has reduced its full-time equivalent staff from 21 at
November 30, 2009 to six by February 28, 2010.
Financial highlights for the quarter included the following:
- Cash and cash equivalents and short-term investments at
February 28, 2010 totalled $37.6 million, which represents an
increase of $20.2 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
Look's restructuring charges;
- Operating expenses for the quarter totalled $2.1 million, a
decrease of $3.1 million or 60.1 per cent from the $5.2 million
incurred during the quarter a year ago; and
- Net loss for the quarter was $1.2 million, or a basic loss per
share of $0.01.
Look 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 $35 million, approximately $360 million of tax attributes and the Milton facility and related infrastructure.
About Unique Broadband Systems, Inc.
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UBS is a publicly listed Canadian company that has a 51.8 per cent 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 April 22, 2010 announcing its results for the second quarter of fiscal 2010.
Unique Broadband Systems, Inc.
INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands of dollars)
as at
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February 28, August 31,
2010 2009
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ASSETS
Total current assets $ 38,817 $ 68,091
Restricted cash 366 430
Property and equipment 1,831 1,995
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$ 41,014 $ 70,516
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LIABILITIES AND SHAREHOLDERS' EQUITY
Total current liabilities $ 8,426 $ 32,805
Liability component of convertible debentures 935 917
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Total liabilities 9,361 33,722
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Non-controlling interest 19,612 21,940
Shareholders' equity
Share capital 58,139 58,139
Contributed surplus 3,519 3,459
Deficit (49,617) (46,744)
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Total shareholders' equity 12,041 14,854
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$ 41,014 $ 70,516
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Unique Broadband Systems, Inc.
INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
DEFICIT
(in thousands, except per share amounts)
Three and six months ended February 28, 2010 and 2009
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Three months ended Six months ended
February 28, February 28,
2010 2009 2010 2009
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Service and sales
revenue $ - $ 3,327 $ 434 $ 6,915
Carrier charges and
cost of sales - 1,814 425 3,754
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Gross margin from
continuing operations - 1,513 9 3,161
Operating expenses 2,059 5,163 5,159 9,750
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Loss from continuing
operations before the
under noted (2,059) (3,650) (5,150) (6,589)
Accretion on liability
component of convertible
debentures (111) (28) (142) (58)
Net interest expense (4) (22) (15) (37)
Adjustment to gain on
sale of spectrum and
broadcast licence - - (61) -
Gain on sale of other
property and equipment 5 - 5 2
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Loss for the period from
continuing operations
before income taxes (2,169) (3,700) (5,363) (6,682)
Income taxes - - - -
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Loss for the period from
continuing operations
before non-controlling
interest (2,169) (3,700) (5,363) (6,682)
Non-controlling interest 931 65 2,450 65
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Loss for the period from
continuing operations (1,238) (3,635) (2,913) (6,617)
Income for the period
from discontinued
operations - - 40 4,531
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Loss and comprehensive
loss for the period (1,238) (3,635) (2,873) (2,086)
Deficit, beginning of
period (48,379) (65,931) (46,744) (67,480)
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Deficit, end of period $ (49,617) $ (69,566) $ (49,617) $ (69,566)
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Continuing operations:
Basic and diluted loss
per share $ (0.01) $ (0.04) $ (0.03) $ (0.06)
Discontinued operations:
Basic and diluted
income per share 0.00 0.00 0.00 0.04
Loss per share:
Basic and diluted $ (0.01) $ (0.04) $ (0.03) $ (0.02)
Weighted average of
number of shares
outstanding:
Basic and diluted 102,748 102,748 102,748 102,748
Unique Broadband Systems, Inc.
INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
Three and six months ended February 28, 2010 and 2009
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Three months ended Six months ended
February 28, February 28,
2010 2009 2010 2009
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OPERATING ACTIVITIES
Loss for the period $ (1,238) $ (3,635) $ (2,873) $ (2,086)
Less: Income from
discontinued
operations for
the period - - (40) (4,531)
Items not affecting
cash (792) 1,007 (2,101) 2,317
Change in non-cash
operating assets
and liabilities (708) 524 (23,000) 128
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Cash used in
continuing operations (2,738) (2,104) (28,014) (4,172)
Cash provided by
(used in) discontinued
operations - (12) 78 495
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Cash used in operating
activities (2,738) (2,116) (27,936) (3,677)
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FINANCING ACTIVITIES
Cash provided by (used in)
financing activities (1,841) 1 (1,841) 1
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INVESTING ACTIVITIES
Cash provided by (used in)
continuing operations 3,033 (5) 16,951 (12)
Cash provided by
discontinued operations - 1,436 - 3,393
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Cash provided by
investing activities 3,033 1,431 16,951 3,381
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Net cash used in
continuing operations (1,546) (2,108) (12,904) (4,183)
Net cash provided by
discontinued operations - 1,424 78 3,888
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Decrease in cash and
cash equivalents (1,546) (684) (12,826) (295)
Cash and cash equivalents,
beginning of period 6,109 5,557 17,389 5,168
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Cash and cash equivalents,
end of period $ 4,563 $ 4,873 $ 4,563 $ 4,873
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%SEDAR: 00010550E
For further information: Peter Block, Investor and Media Relations, [email protected], (647) 259-3284
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