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Offshore Systems International Reports Strong Fiscal First-Quarter Earnings & Revenues
Vancouver, Canada - April 17, 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 2002 first quarter ended February 28, 2002.
Financial Highlights
Quarterly revenues increased 74% to C$3,285,518 (US$2,070,000) from C$1,889,364 (US$1,190,000) in the first quarter of fiscal 2001. Net earnings in the period climbed to C$267,852 (US$168,700), equal to C$.01 per diluted share, up from C$12,175 (US$7,600), or $.00 a diluted share, in the year-earlier first quarter.
Offshore Systems' balance sheet continued to strengthen. First-quarter 2002 earnings before interest, tax, depreciation and amortization (EBITDA) were C$268,051 (US$168,800), an increase of 119% over C$122,599 (US$77,200) in the same quarter a year ago. Cash and cash equivalents at February 28, 2002 were C$1,249,395 (US$787,000) compared to C$134,348 (US$84,600) a year earlier and C$2,037,625 (US$1,283,700) at fiscal 2001 year-end, which included sizeable initial payments on some large new orders.
Offshore's order backlog at the end of the fiscal 2002 first quarter totalled in excess of C$7,600,000 (US$4,780,000) versus C$1,800,000 (US$1,130,000) the year earlier - a jump of 322%.
"We are enormously pleased with our ninth profitable quarter in a row," said John Jacobson, President and CEO. "Our mission since the 1999 management reorganization and business restructuring has been to penetrate the international military market for Electronic Chart Systems, and we've achieved some major milestones - particularly in the last nine months, which are reflected in strong financial results in recent quarters. Moreover, we continue to see growing interest in our technology and products from the world's navies and we are receiving inquiries at an unprecedented rate.
"We're also very excited about the prospects for new 'command and control' products that we are developing with our new industrial teammate, TERMA A/S of Denmark. We believe that the prospects for command and control products based on our proprietary ECPINS® core technology are excellent and should be a significant contributor to future sales and profits," Mr. Jacobson added.
The Offshore Systems CEO continued: "In addition to building Offshore's customer base and technologies over the past three years, we have also been tightly focused on enhancing Offshore's intrinsic value by careful management of company resources, tight cost controls and a constant eye on cash flow. Our attention to these basics was a key element in transforming Offshore's financial condition and our Company's operating position into a solid and strategic foundation for future growth. Our focus on prudent management has enabled us to weather capital market storms and other business uncertainties as well as to attract and retain top talent. At the same time, we have always worked proactively to ensure that our reporting and disclosure practices are transparent and conform to the latest applicable standards, and that our communications are clear and concise. We intend to continue these practices."
Quarter in Review
In December 2001 - Offshore Systems was awarded an order by the U.S. Coast Guard. The contract value to Offshore is approximately C$1.0 million (US$650,000) and delivery is scheduled in 2002.
In January 2002 - Offshore Systems announced that its proprietary Electronic Chart Precise Integrated Navigation System (ECPINS-M) has been re-validated to meet the latest published chart data and display library standards by the National Imagery and Mapping Agency of the U.S. Department of Defense for Direct Read of NIMA Digital Nautical Charts.
Also in January 2002 - The Company received an order for its ECPINS-M software to provide an improved Navigation Situational Awareness capability for some select ships being deployed as part of the USS GEORGE WASHINGTON Carrier Battle Group and USS NASSAU Amphibious Readiness Group.
In February 2002 - Offshore continued to receive significant new orders. After announcing the major new order in December, it received C$1.7 million (US$1.1 million) in additional new orders - bringing the total new business booked to date in the fiscal first quarter to C$2.7 million (US$1.7 million). The new orders are from three of Offshore's key customers - the Royal Danish Navy, the U.S. Coast Guard and the U.S. Navy, and were for Offshore's ECPINS-M systems, and for electronic charts and chart services.
Recent Corporate Developments
In March 2002 - The Company announced the release of an advanced version of its proprietary ECPINS-M software technology. This technology forms the functional core of the company's ECPINS-M electronic chart system product suite. The advanced version of the software supports emerging requirements for system and data interoperability in naval navigation.
Also in March 2002 - Offshore announced that it has signed a memorandum of agreement with the leading "command and control systems" company, TERMA A/S of Denmark. The non-exclusive agreement is moving towards the joint development of a new Electronic Chart System product for command and control applications to meet specific Royal Danish Navy requirements.
Offshore Systems International Ltd.
Selected Consolidated Financial Information (Unaudited)
(Canadian dollars - Canadian GAAP)
| Statement of Earnings Information |
Three months ended February 28 (unaudited)
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2002
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2001
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| Revenue |
3,285,518 |
1,889,364 |
| Earnings before interest, taxes, depreciation, and amortization |
268,051 |
122,599 |
| Earnings for the period |
267,852 |
12,175 |
| Basic earnings per share |
0.01 |
0.00 |
| Fully diluted earnings per share |
0.01 |
0.00 |
| Balance Sheet Information |
February 28 2002 (unaudited)
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November 30 2001 (unaudited)
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| Cash |
1,249,395 |
2,037,625 |
| Working capital |
3,052,868 |
2,848,151 |
| Total assets |
7,961,410 |
7,375,007 |
| Long-term debt |
257,301 |
371,484 |
| Total liabilities |
3,713,774 |
3,545,645 |
| Shareholder's equity |
4,247,636 |
3,829,362 |
Offshore Systems International Ltd.
Founded in 1977, Offshore Systems designs, develops and markets the proprietary ECPINS® (Electronic Chart Precise Integrated Navigation System) 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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