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Offshore Systems International Reports Record 2002 Results
Q4 and year long revenue and earnings driven by robust global defence sales
Vancouver, Canada - February 6, 2003 - Offshore Systems International Ltd. (TSX:OSI/ OTCBB:OFSYF), today announced record operating results for the quarter and year ended November 30, 2002.
"We have had a steady stream of contract wins throughout 2002 and made some particularly impressive inroads into the U.S. Navy," said John Jacobson, President and CEO of Offshore Systems International. "In the fourth quarter, we not only sustained this momentum but announced an expansion, through our subsidiary OSI Geomatics, into land-based mapping products. We believe that this two-pronged growth strategy positions us well to continue our growth into 2003."
Financial Highlights
During the fiscal fourth quarter of 2002, revenues increased 56% to $4.1 million (US$2.6 million) compared to $2.6 million (US$1.6 million) in the same quarter last year. Net earnings increased to $519,179 or $0.02 per diluted share, from $352,309, or $0.01 a diluted share, in the previous years fourth quarter. All amounts are in Canadian dollars unless otherwise specified.
For the fiscal year 2002, revenues were up 75% to $13.9 million (US$8.9 million) compared to $7.9 million (US$5.06 million) for the fiscal year 2001. Net earnings increased to $1.6 million or $0.06 per diluted share, from $496,409, or $0.02 a diluted share, in the fiscal year 2001.
The Company's profitable growth also helped to strengthen its balance sheet. At November 30, 2002, OSI had working capital of $4.4 million compared to $2.8 million at November 30, 2001, including cash and cash equivalents of $3.2 million.
Operational Highlights
In October 2002, the Company announced a strategic expansion initiative to increase the business scope of its wholly-owned subsidiary Offshore Charts Ltd. beyond the production of electronic navigation charts, to include the production of land-based mapping products. The Offshore Charts Ltd. subsidiary was also renamed to OSI Geomatics Ltd. to better reflect its business expansion. The Company also announced it had received initial land-mapping orders totaling in excess of $575,000.
In the same month, the Company announced that it received a $450,000 order for its proprietary Electronic Chart Precise Integrated Navigation System-Military (ECPINS-M) software to provide an enhanced Navigation Situational Awareness capability for certain undisclosed United States Navy Carrier Battle Groups (CBG) and their associated Amphibious Readiness Groups (ARG).
Again in October 2002, the Company announced that it's common shares will be quoted for trading in the United States on the Over The Counter Electronic Bulletin Board, under the ticker symbol: OFSYF. Subsequent to the year end, the Company announced orders totaling $850,000 from follow on business with the Canadian Navy and the Royal Danish Navy.
In January 2003, the Company announced that it intends to proceed with a normal course issuer bid whereby it will purchase its own common shares out of the market through the facilities of the TSX. The board of directors of the Company has authorized the repurchase of up to 1,300,000 common shares, representing approximately 5% of the issued and outstanding common shares of the Company. All shares repurchased by the Company will be cancelled.
About Offshore Systems International Limited
Offshore Systems International Ltd. (OSI) provides precise electronic display systems and geo-spatial data for situational awareness. Founded in 1977, OSI maintains a position of technological leadership in its field, a record appreciated by military, government, and commercial customers around the world. OSI conducts its operations through two business units: Offshore Systems Ltd. provides systems for the dynamic display of geo-spatial data for mission-critical operations such as fleet navigation; and OSI Geomatics which provides analysis, production, and distribution of geo-spatial data for electronic display. OSI is listed on the Toronto Stock Exchange (TSX:OSI) and in the United States of America on the Over the Counter Bulletin Board (OTCBB:OFSYF).
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.
Offshore Systems International Ltd.
Selected Consolidated Financial Information (Unaudited)
(Canadian dollars - Canadian GAAP)
| Statement of Earnings Information |
Three months ended November 30 2002 (unaudited)
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Years ended November 30 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 |
4,058,028 |
2,596,002 |
13,868,779 |
7,919,632 |
| Earnings (loss) |
519,179 |
352,309 |
1,635,031 |
496,409 |
| Basic earnings per share |
0.02 |
0.01 |
0.06 |
0.02 |
| Fully diluted earnings per share |
0.02 |
0.01 |
0.06 |
0.02 |
| Balance Sheet Information |
November 30 2002 (unaudited)
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November 30 2001 (unaudited)
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| Cash and cash equivalents |
3,244,048 |
2,037,625 |
| Working capital |
4,449,492 |
2,848,151 |
| Total assets |
10,766,438 |
7,375,007 |
| Long-term debt |
372,717 |
371,484 |
| Total liabilities |
4,733,793 |
3,545,645 |
| Shareholder's equity |
6,032,645 |
3,829,362 |
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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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