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Offshore Systems International Reports Record Fiscal Third Quarter & Nine-Month Earnings & Revenues
Vancouver, Canada - October 2, 2002 - Offshore Systems International Ltd. (TSX: OSI), a marine electronic navigation company with a strong defense niche, today announced record operating results for its three and nine month periods ended August 31, 2002.
"In addition to achieving our eleventh successive profitable quarter we had strong revenue growth," said John Jacobson, President and CEO Offshore Systems International. "New business, including a major new order from the United States Coast Guard, continued to flow as interest in our technology grew among navies around the world."
Financial Highlights
During the fiscal third quarter of 2002, revenues increased 50% to $2.7 million (US$1.7 million) compared to $1.8 million in the same quarter last year. Net earnings increased to $536,535 or $0.02 per diluted share, from $120,512, or $0.00 a diluted share, in the year-earlier third quarter. All amounts are in Canadian dollars unless otherwise specified.
For the first nine months of 2002, revenues were up 84% to $9.8 million (US$6.2 million) compared to $5.3 million for the nine months ended August 31, 2001. Net earnings increased to $1.1 million or $0.04 per diluted share, from $144,100, or $0.01 a diluted share, in the first nine months of fiscal 2001.
Offshore Systems' order backlog at the end of the fiscal 2002 third quarter was in excess of $5.7 million versus $4.9 million the year earlier - an increase of 17%.
The Company's profitable growth helped to strengthen its balance sheet during the quarter. At August 31, 2002, the Company had working capital of $4.1 million compared to $2.8 million at November 30, 2001, OSI's year-end, including cash and cash equivalents of $2.2 million.
"Our cash position continues to strengthen, in fact, at the end of September, our cash and equivalents was just under $4 million," said Mr. Jacobson. "This positive cash flow trend allows us to confidently support our R&D activities and increase our business development initiatives."
Operational Highlights
In June, 2002, the U.S. Coast Guard placed an order for $2.2 million for Offshore Systems' ECPINS-M systems and upgrades. The order represents follow-on business with the Coast Guard subsequent to Offshore's ECPINS® systems being installed earlier in the year on two of the Coast Guard's 'Polar-class' icebreakers.
In July 2002, the Company announced that it has received Type Approval of its ECPINS® product line as an International Maritime Organization standard Electronic Chart Display and Information Systems (ECDIS). The Type Approval was issued by the Federal Maritime and Hydrographic Agency of Germany, one of a small number of testing laboratories worldwide that are authorized to issue these certifications.
In the same month the Company announced that it completed the installation of its latest ECPINS®-M system aboard Lockheed Martin's Sea SLICE advanced technology demonstration vessel. Developed by the United States Navy Office of Naval Research and the Naval Electronics & Surveillance Systems division of Lockheed Martin, Sea SLICE participated in the United States Navy's Fleet Battle Experiment - Juliet. The U.S. Navy's Fleet Battle Experiments are underway-exercises designed to evaluate new technology and new operational concepts for future development and deployment.
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.
Offshore Systems International Ltd.
Selected Consolidated Financial Information (Unaudited)
(Canadian dollars - Canadian GAAP)
| Statement of Earnings Information |
Three months ended August 31 2002 (unaudited)
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Nine months ended August 31 2002 (unaudited)
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2002
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2001
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2002
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2001
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| Revenue |
2,697,781 |
1,802,300 |
9,810,751 |
5,323,630 |
| Earnings for the period |
536,535 |
120,512 |
1,115,852 |
144,100 |
| Basic earnings per share |
0.02 |
0.01 |
0.04 |
0.01 |
| Fully diluted earnings per share |
0.02 |
0.00 |
0.04 |
0.01 |
| Balance Sheet Information |
August 31 2002 (unaudited)
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November 30 2001 (unaudited)
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| Cash and cash equivalents |
2,163,797 |
2,037,625 |
| Working capital |
4,134,425 |
2,848,151 |
| Current assets |
8,939,066 |
6,022,312 |
| Total assets |
10,313,798 |
7,375,007 |
| Current liabilities |
4,804,641 |
3,174,161 |
| Long-term debt |
212,211 |
371,484 |
| Total liabilities |
5,016,852 |
3,545,645 |
| Shareholder's equity |
5,296,946 |
3,829,362 |
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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| Toll-Free: (888) 880-9797 |
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