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Offshore Systems International Reports Strong Year-End Earnings & Revenues
Vancouver, Canada - March 4, 2002 - Offshore Systems International Ltd. (TSE: OSI), a marine electronic navigation company with a strong defense niche, today announced strong operating results for its fiscal fourth quarter and year ended November 30, 2001.
Financial Highlights
For the fourth quarter, revenues increased 192% to $2,596,002 from $889,448 in the year-ago closing quarter. The company recorded net earnings after discontinued operations of $352,309, equal to $.01 per diluted share, compared to a net loss after discontinued operations of $36,185, or $.00 a diluted share, in the year-earlier fourth quarter.
For the fiscal 2001 year, revenues totalled $7,919,632, a 40% increase over the $5,651,665 recorded in the prior year. Net earnings after discontinued operations rose 234% to $496,409, equal to $.02 per diluted share, from $148,810, or $.01 a diluted share, in fiscal 2000.
Fiscal 2001 earnings before interest, tax, depreciation and amortization (EBITDA) was $718,657, equal to $.03 per diluted share, and $727,222, or $.03 a diluted share, in fiscal 2000.
Cash and cash equivalents at the end of fiscal 2001 increased 167% to $2,037,625 compared to $762,323 at fiscal 2000 year-end.
Offshore Systems'order backlog at the end of fiscal 2001 was in excess of $8,100,000 versus $2,300,000 the year earlier - an increase of 252%.
"Fiscal 2001 was a great year for Offshore," said John Jacobson, President and CEO. "We've maintained our focused strategy, building our business in niches where we believe we can achieve superior returns. Our growth, profit and cash-flow performance reflect the effectiveness of this approach, particularly in these turbulent times. Once again, we generated a strong operating profit the past year. For the second year in a row, we generated significant free cash flow. Our cash position and working capital have improved dramatically over the last two years, and our balance sheet is correspondingly stronger. The two largest orders in Offshore's history, received in last year's second half, give us a sizable order backlog. And, as recently announced, we are continuing to receive significant new orders in 2002. The past year was one of many achievements and several milestones for Offshore Systems. We look forward to even greater accomplishments and growth in the future."
Year In Review
February 2001: Canada Steamship Lines (CSL) purchases a fleet-wide upgrade to all its Offshore Systems proprietary ECPINS® (Electronic Chart Precise Integrated Navigation System) installations and agrees to cooperate on research and development initiatives regarding the integration of highly detailed bathymetric data into ECPINS® and CSL's navigation process.
February 2001: Offshore is now a listed-supplier under the U.S. General Services Administration (GSA) Federal Supply Schedules Program. U.S. federal government customers can now purchase listed Offshore products and services without the usual extensive paperwork burden associated with government procurements.
March 2001: American Steamship Company proceeds with a fleet-wide upgrade of ECPINS® to all systems installed throughout its bulk carrier fleet.
April 2001: Offshore receives new orders worth more than US$450,000 (C$650,000) from the U.S. Coast Guard.
June 2001: Offshore signs a new contract for the production of electronic charts for approximately US$150,000 (C$225,000) with the U.S. Coast Guard.
June 2001: Offshore receives its first significant order as a U.S. General Services Administration approved supplier. The order is for the production of Electronic Charts for the U.S. Coast Guard's buoy tender fleet operations by Offshore Charts Ltd., a wholly-owned subsidiary of Offshore Systems.
July 2001: U.S. Coast Guard issues a blanket authorization for Coast Guard Cutters smaller than 1600 gross tons to operate with ECPINS® as their primary navigation system.
August 2001: Offshore signs a C$5 million (US$3.3 million) Prime Contract with the Royal Danish Navy to provide fleet-wide deployment of ECPINS® and related navigation products. Offshore worked closely with two Danish contractors, Furuno Danmark AS and Danelec Electronics AS, to assemble the full suite of products for this contract - the largest single order in Offshore's history and the first with a European member of NATO.
September 2001: U.S. Navy orders two ECPINS-N systems for field trials. The systems were ordered by the Naval Sea Systems Command (NAVSEA), the largest of the Navy's five systems commands. This represents the first order and field testing of ECPINS-M by the U.S. Navy.
October 2001: Canadian Navy places a new order for ECPINS® systems worth more than C$450,000 (US$300,000) to Offshore to support urgent operational requirements on board Navy ships deploying as part of Canada's contribution to the international war on terrorism.
October 2001: U.S. Navy issues an order for Offshore's ECPINS-N software for the Naval Surface Warfare Officer's School training facility in Newport, Rhode Island.
October 2001: U.S. Coast Guard issues several new orders worth approximately US$525,000 (C$800,000) to Offshore under a recently announced Blanket Purchase Agreement and other contracting mechanisms. The new orders are for a mix of electronic chart systems, electronic charts and services related to electronic charts.
November 2001: Offshore awarded an order by the Canadian Department of National Defence. The contract value is approximately C$4.8 million (US$3.2 million) and delivery is scheduled through into 2002. This represents the second largest, single order received to date by Offshore.
The Company
Founded in 1977, Offshore Systems designs, develops and markets the proprietary ECPINS® line of electronic chart navigation systems for ships. ECPINS® helps to reduce the risk of navigation-related incidents by giving bridge crews a precise, real-time display of their position, course and speed, against a background of fixed obstacles and other navigational hazards. Offshore Systems has developed a strong market position in military navigation, and has ECPINS® systems deployed with the United States Coast Guard, the Canadian Navy, the Royal Danish Navy and the United States Navy.
Forward-Looking Statements
This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws including Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, OSI's analysis of opportunities in the acquisition and development of various project interests and other matters. These statements are made under the 'safe harbour' provisions of the Private Securities Litigation Reform Act of 1995 and, as such, involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Although Offshore Systems International believes the expectations reflected in such forward-look statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include the effects of general economic conditions, changing foreign exchange rates, actions by government authorities, uncertainties associated with contract negotiations, industry supply.
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Jane Hayward
Investor Relations |
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| Phone: (613) 287-0462 |
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