UBS reports third quarter 2010 results
TORONTO, July 28 /CNW/ - Unique Broadband Systems, Inc. ("UBS") (TSX Venture: UBS) today reported its operating and financial results for the third quarter of fiscal 2010, ended May 31, 2010.
Financial and operating highlights for the quarter included the following:
- During May 2010, debenture-holders of Look Communications Inc.
("Look") converted $916,000 of debentures into 6,106,661 Multiple
Voting Shares and 6,106,661 Subordinate Voting Shares of Look and Look
redeemed the remaining $3.2 million of debentures, including
$3 million held by UBS, for cash. As a result, effective May 25, 2010,
UBS now holds a 39.2 per cent economic interest and a 37.6 per cent
voting interest in Look's issued and outstanding shares;
- As UBS no longer has a controlling interest in Look, UBS will, with
effect from May 25, 2010, no longer be consolidating the results of
Look but will be accounting for its investment in Look using the
equity method;
- Cash and cash equivalents of UBS at May 31, 2010 totalled
$5.5 million, which represents an increase of $2.4 million from
August 31, 2009. This increase is due mainly to the redemption of
Look's debenture of $3 million;
- Net loss for the quarter was $1.8 million, or a basic loss per share
of $0.02 compared with net earnings of $39.1 million or basic income
per share of $0.38 a year ago;
- UBS has three full-time equivalent employees.
Look continues to pursue opportunities with interested parties to maximize the value of its remaining non-cash assets consisting of approximately $360 million of tax attributes and the Milton facility and related infrastructure.
About Unique Broadband Systems, Inc.
------------------------------------
UBS is a publicly listed Canadian company that has a 39.2 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 July 20, 2010 announcing its results for the third quarter of fiscal 2010.
Unique Broadband Systems, Inc.
INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands of dollars)
as at
-------------------------------------------------------------------------
May 31, August 31,
2010 2009
-------------------------------------------------------------------------
ASSETS
Total current assets $ 5,683 $ 68,091
Restricted cash 50 430
Property and equipment - 1,995
Investment in Look 13,107 -
-------------------------------------------------------------------------
$ 18,840 $ 70,516
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Total current liabilities $ 8,914 $ 32,805
Liability component of convertible debentures - 917
-------------------------------------------------------------------------
Total liabilities 8,914 33,722
-------------------------------------------------------------------------
Non-controlling interest - 21,940
Shareholders' equity
Share capital 58,139 58,139
Contributed surplus 3,237 3,459
Deficit (51,450) (46,744)
-------------------------------------------------------------------------
Total shareholders' equity 9,926 14,854
-------------------------------------------------------------------------
$ 18,840 $ 70,516
-------------------------------------------------------------------------
-------------------------------------------------------------------------
INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
DEFICIT
(in thousands, except per share amounts)
Three and nine months ended May 31, 2010 and 2009
-------------------------------------------------------------------------
Three months ended Nine months ended
May 31, May 31,
2010 2009 2010 2009
(Restated) (Restated)
-------------------------------------------------------------------------
Service and sales revenue $ 39 $ 3,096 $ 473 $ 10,011
Carrier charges and cost
of sales - 2,470 425 6,224
-------------------------------------------------------------------------
Gross margin from
continuing operations 39 626 48 3,787
Operating expenses 2,093 7,366 7,252 17,116
-------------------------------------------------------------------------
Loss from continuing
operations before the
under noted (2,054) (6,740) (7,204) (13,329)
Accretion on liability
component of convertible
debentures (90) (29) (232) (87)
Net interest expense 47 (50) 32 (87)
Gain on sale of other
property and equipment 5 - 10 2
Gain on settlement of
Inukshuk litigation - 4,000 - 4,000
Gain (loss) on sale of
spectrum and broadcast
licence - 78,243 (61) 78,243
Loss on settlement of Bell
litigation - (5,817) - (5,817)
Equity interest in Look's
losses (39) - (39) -
Dilution loss due to change
in shareholding in Look (677) - (677) -
-------------------------------------------------------------------------
Income (loss) for the period
from continuing operations
before income taxes (2,808) 69,607 (8,171) 62,925
Income taxes - - - -
-------------------------------------------------------------------------
Income (loss) for the period
from continuing operations
before non-controlling
interest (2,808) 69,607 (8,171) 62,925
Non-controlling interest 975 (30,466) 3,425 (30,401)
-------------------------------------------------------------------------
Income (loss) for the period
from continuing operations (1,833) 39,141 (4,746) 32,524
Income for the period from
discontinued operations - - 40 4,531
-------------------------------------------------------------------------
Income (loss) and
comprehensive income (loss)
for the period (1,833) 39,141 (4,706) 37,055
Deficit, beginning of
period (49,617) (69,566) (46,744) (67,480)
-------------------------------------------------------------------------
Deficit, end of period $(51,450) $(30,425) $(51,450) $(30,425)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Continuing operations:
Basic income (loss)
per share $ (0.02) $ 0.38 $ (0.05) $ 0.32
Diluted income (loss)
per share (0.02) 0.36 (0.05) 0.31
Discontinued operations:
Basic income per share 0.00 0.00 0.00 0.04
Diluted income per share 0.00 0.00 0.00 0.04
Income (loss) per share:
Basic $ (0.02) $ 0.38 $ (0.05) $ 0.36
Diluted $ (0.02) $ 0.36 $ (0.05) $ 0.35
Weighted average of number
of shares outstanding:
Basic 102,748 102,748 102,748 102,748
Diluted 102,748 108,172 102,748 104,556
Unique Broadband Systems, Inc.
INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
Three and nine months ended May 31, 2010 and 2009
-------------------------------------------------------------------------
Three months ended Nine months ended
May 31, May 31,
2010 2009 2010 2009
(Restated) (Restated)
-------------------------------------------------------------------------
OPERATING ACTIVITIES
Income (loss) for the
period $ (1,833) $ 39,141 $ (4,706) $ 37,055
Less: Income from
discontinued operations
for the period - - (40) (4,531)
Items not affecting cash (141) (38,062) (2,248) (35,745)
Change in non-cash
operating assets and
liabilities (170) 3,116 (23,170) 3,245
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Cash provided by (used
in) continuing operations (2,144) 4,195 (30,164) 24
Cash provided by
discontinued operations - 12 78 507
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash provided by (used in)
operating activities (2,144) 4,207 (30,086) 531
-------------------------------------------------------------------------
-------------------------------------------------------------------------
FINANCING ACTIVITIES
-------------------------------------------------------------------------
Cash used in financing
activities (274) - (2,115) -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
INVESTING ACTIVITIES
Cash provided by
continuing operations 3,351 12,273 20,308 12,261
Cash provided by (used
in) discontinued
operations - (12) - 3,381
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash provided by investing
activities 3,351 12,261 20,308 15,642
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net cash provided by
(used in) continuing
operations 933 16,468 (11,971) 12,285
Net cash provided by
discontinued operations - - 78 3,888
-------------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents 933 16,468 (11,893) 16,173
Cash and cash equivalents,
beginning of period 4,563 4,873 17,389 5,168
-------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 5,496 $ 21,341 $ 5,496 $ 21,341
-------------------------------------------------------------------------
-------------------------------------------------------------------------
%SEDAR: 00010550E
For further information: Robert Ulicki, Chairman of the Board, [email protected], 416-642-5703
Share this article