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MTI Global Reports Fiscal 2008 Third Quarter Results Marketwire via Yahoo Finance MTI Global Reports Fiscal 2008 Third Quarter Results StreetInsidercomSun, 30 Nov 2008 19:54:23 +0000
MTI Global Reports Fiscal Third Quarter Results Sunday November pm ET MISSISSAUGA ONTARIO MARKET WIRE Nov MTI Global Inc. Toronto MTI.TO News today reported its financial results for the three month period ended September . Q Highlights MTI Global is optimizing Aerospace operations following the completed offload of manufacturing to Mexico and has largely completed the consolidation of operations in its N.A. Silicone division Sales for the three months ended September were . million an increase of . from last year s sales of . million Aerospace sales were . million for the quarter an increase of . over last year s sales of . million resulting from an increase in sales volume EBITDA for the quarter was negative . million although restructuring charges during the quarter were . million Gross margin for the quarter was . million an increase of . million or . over last year while the gross margin percentage increased to . from . The net loss for the quarter was . million or twenty four cents per share The Company breached the following financial covenants with its principal Canadian lenders and is in continuing discussions seeking to obtain a waiver of these breaches Earnings before interest taxes and depreciation Fixed charge coverage Due to changes in economic circumstances and the performance of the Company the Company determined that there had been impairment in the carrying value of N.A. Silicone s and Leewood s goodwill and accordingly recorded a write down in the amount of . million. The Company failing its Step One Goodwill and Intangible Asset Test was the cause of the delayed financial reporting announced in the November MTI Global news release as additional time was required to quantify the amount of the impairment. Bill Neill MTI Global s President and Chief Executive Officer stated We remain optimistic that we will report further improvements in sales and operating performance through the fourth quarter of despite sales slippage at MTI Milton caused by the downturn in the automotive industry. MTI Global s primary goal continues to be focused on improving margins with reduced operating costs in the fourth quarter and beyond. EBITDA consists of earnings before interest expense income taxes depreciation amortization goodwill impairment charges subordinated debt financing and warrant re pricing charges and non controlling interest. MTI Global believes EBITDA is a useful measure in the evaluation of performance. EBITDA is not a measure recognized under Generally Accepted Accounting Principles GAAP and does not have a standardized meaning as prescribed by GAAP. Therefore EBITDA may not be comparable to similar measures presented by other entities. Investors are cautioned that EBITDA should not be construed as an alternative to net loss determined in accordance with GAAP. We have finally begun to see benefits from the new calander line in Richmond and have also successfully completed the consolidation of our N.A. Silicone operations from three facilities into two. During the quarter our results were negatively affected due to a number of items including non cash charges such as goodwill impairment and warrant re pricing charges. Mr. Neill added From an operational standpoint while the third quarter showed some improvements the fourth quarter is expected to show continued improvements for both top and bottom lines. Additionally the Canadian dollar against the U.S. dollar has been working in our favour and is expected to positively affect our results. Sales Three months ended Nine months ended September September Polyfab Aerospace Fabricated Products Total Polyfab Silicone N.A. Silicone Leewood Sterne Total Income Loss Before Income Taxes and Non controlling Interest Three months ended Nine months ended September September Polyfab N.A. Silicone Leewood Sterne Corporate Total Financial Results Sales for the three months ended September were . million approximately . ahead of last year s sales of . million. This included an increase of approximately due to the impact of currency fluctuations in the U.S. dollar and the Euro compared to . Aerospace sales of . million for the quarter were ahead of prior year s sales for the comparable period due to an increase in sales volume. Coincidently sales decreased by approximately due to the lower U.S. dollar compared to exchange rates in effect last year. Fabricated Products sales of were approximately . less than prior year s sales of for the same period. This was primarily due to a decline in sales to the automotive and sporting goods markets. N.A. Silicone sales of . million in decreased by or approximately . compared to sales of . million for the three months ended September . The decrease is principally due to a weakening in the automotive sector. Sales decreased by as a result of the lower U.S. dollar compared to exchange rates in effect in . Leewood sales of . million for the three months ended September remained the same compared to prior year s sales. Sterne sales of . million for the three months ended September were higher than last year s sales. This included an increase of approximately due to the appreciation in the Euro. On a percentage basis Aerospace accounted for of total sales compared to for the same period last year. Silicone sales represented of total sales compared to for the comparable period last year. Fabricated Products accounted for of total sales compared to for last year. The gross margin for the three months ended September was . million an increase of or approximately . over the prior year. The gross margin percentage increased to . from . . The increase was primarily due to improved margins at Leewood with the operation of the continuous oven line and the elimination of redundant costs in Polyfab that were present in as a result of outsourcing the majority of Aerospace manufacturing to Mexico. Total operating expenses for the three months ended September of . million were . million higher than in the same period in and include . million of restructuring costs largely attributable to changes in the business operations. Plant and laboratory expenses of were higher than in the same period last year due to Polyfab costs associated with the Mexican contract manufacturing operation and additional staff at Leewood. Sales and marketing expenses of . million increased from the prior year due to increased headcount at Leewood and Sterne. Administrative expenses of . million increased from the same period last year. The increase is primarily due to an increase in professional fees. MTI Polyfab s loss before taxes and non controlling interest for the three months ended September of was lower than last year s loss of million. The decrease in the loss is due to reduced operating costs in Canada and the outsourcing of its Aerospace manufacturing to Mexico. These costs were significantly eliminated in the third quarter of . Loss before income taxes and non controlling interest for the nine months ended September of . million was higher than last year s loss of . The net loss for the quarter was . million or twenty four cents per share compared to a net loss in the prior year of . million or eight cents per share. Goodwill Impairment As at September due to changes in economic circumstances and the performance of the Company the Company assessed the fair value of all the reporting units to which underlying goodwill is attributed. As a result of this assessment the Company determined that there had been impairment in the carrying value of N.A. Silicone s and Leewood s goodwill and accordingly recorded a write down in the amount of . million. The determination that the fair value of N.A. Silicone s and Leewood s goodwill was less than its carrying value arose from the application of a higher discount rate and a more modest forecast due to changes in economic circumstances and the performance of the Company that in combination resulted in goodwill impairment. The Company failing its Step One Goodwill and Intangible Asset Test was the cause of the delayed financial reporting announced in the November MTI Global news release as additional time was required to quantify the amount of the impairment. Outlook While revenues improved mainly as a result of increased sales in Aerospace and gross margin improvements realized at Polyfab and Leewood third quarter results remained below expectations. The Company continued to incur higher than expected outsourced manufacturing costs as material and conversion costs remained elevated in addition to incurred restructuring costs related to the consolidation of N.A. Silicone and goodwill impairment charges. At Polyfab margins were lower as the Company incurred higher than expected material conversion costs all of which the Company is addressing. MTI Global expects sales in Aerospace to continue growing as well as margin improvements in the fourth quarter of and into fiscal . We expect margin improvements will be driven by actions taken to improve the effectiveness of manufacturing processes in Mexico. Additionally as the transition of our Aerospace manufacturing to Mexico is complete and consequently our costs and revenues are now better aligned in U.S. dollars the Company expect this will positively affect our results going forward. In Fabricated Products MTI Global continues to experience difficult sales volume as a result of the automotive sector downturn and a softening in the seasonal sporting goods market. However the Company has augmented its sales group in Fabricated Products and continues to seek a broader range in its offering to customers. In N.A. Silicone activity with transit seating foam customers began to increase in the latter half of the second quarter and continued into the third quarter. Sales of Magnifoam the principal product at the Richmond Virginia plant were ahead of expectations. While this increase was insufficient to offset sales slippage at MTI Milton a new calander oven line at the Richmond plant went into production during the quarter. This division is now able to sell and ship a wider variety of silicone materials and the Company expects full production to begin as materials are certified. The consolidation is now substantially complete and the Company expects to see improvements in margins beginning in the fourth quarter of and into fiscal . As a result of the consolidation of N.A. Silicone the land and building in Buchanan Virginia has been listed for sale. The N.A. Silicone division also continues to experience the pressure of higher raw material prices. At Leewood management expects continued sales growth in as it finally begins to ship in increasing volumes on the Airbus A . The third quarter showed a marginal increase in year over year sales. Margin improvement is a key goal in and the division is delivering on this goal. Leewood is realizing stronger margins from its new business lines and operational savings on its current business although it is facing pressure from higher material input prices. Management expects further improvements through scrap reduction and quality control as well as more strategic pricing. At Sterne management expects sales to continue to grow in the last quarter of and beyond in . Success will be primarily dependent on Sterne s ability to grow clean room manufacturing sales and to expand its distribution sales for MTI Leewood s products. The Company has experienced operating losses caused by major delays in customer orders unfavourable foreign exchange rates and changes in economic conditions affecting some of its customer markets. MTI Global has responded quickly and implemented a number of measures and restructuring actions to address these issues which have necessitated higher capital requirements. In order to strengthen the Company s balance sheet and realize on its restructuring investments MTI Global is evaluating all alternatives available to the Company on an ongoing basis. Finally disciplined operations management is integral to achieving sales growth and improved results. Based on early indications of the Canadian dollar value against the U.S. dollar the Company is increasingly confident about a return to profitability with aerospace programs fully relocated to Mexico consolidated operations in N.A. Silicone and growth in European operations. About MTI Global Inc. MTI Global Inc. Toronto MTI.TO News designs develops and manufactures custom engineered products using silicone and other cellular materials. The Company serves a variety of specialty markets focused on three main product categories Silicone Aerospace and Fabricated Products. MTI Global s manufacturing divisions develop and produce silicone foam using patented technology. The Company designs and fabricates energy management systems from a variety of flexible cellular materials. MTI Global also produces and distributes specialty silicone elastomer products. MTI Global s primary markets are aerospace and mass transit. Secondary markets include sporting goods automotive industrial institutional electronics and the medical market through a interest in MTI Sterne SARL of Cavaillon France. MTI Global s head office and Canadian manufacturing operations are located in Mississauga Ontario with international manufacturing operations located in Richmond Virginia Pensacola Florida Bremen Germany and a contract manufacturer venture in Ensenada Mexico. The Company also has sales operations in England and Sweden and an engineering support centre in Brazil. The Company s website is www.mtiglobalinc.com . Investors analysts and the media are invited to participate in a conference call to discuss the Third Quarter results on Monday December at a.m. Eastern . To join the conference call please dial Canada and U.S . The conference call can also be accessed via the web at www.newswire.ca . A replay of the conference call will be available for one week by dialing Toronto area only or and entering reservation no. . Notes to financial statements and additional financial reporting details can be found at www.sedar.ca . The foregoing press release contains forward looking statements and is subject to important risks and uncertainties. Although MTI Global believes that the expectations reflected in any forward looking statements are reasonable the results or events predicted in these statements may differ materially from actual results or events. Forward looking statements are based on estimates and assumptions derived from past experience historical trends current conditions and expected future developments. Many factors could cause results or events to differ from current expectations including the impact of price and product competition general industry and market conditions and growth rates and reliance on key customers. For additional information with respect to these and other factors see the reports filed by MTI Global Inc. with the applicable securities regulatory authorities at www.sedar.com . MTI Global Inc. disclaims any intention or obligation to update or revise any forward looking statements except as may be required under applicable securities laws. Financial Statements Follow Unaudited Interim Consolidated Balance Sheets As at As at September December In thousands of Canadian dollars ASSETS Current assets Cash and cash equivalents Cash deposited as collateral Short term investment Accounts receivable Income taxes recoverable Inventories Prepaid expenses and deposits Property plant and equipment Asset held for sale Goodwill Intangibles Deferred development costs LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Bank indebtedness Accounts payable and accrued expenses Subordinated debt Current portion of long term debt Long term debt Non controlling interest Commitments and contingencies Shareholders equity Share capital Contributed surplus Warrants Accumulated other comprehensive loss Deficit MTI Global Inc. Unaudited Interim Consolidated Statements of Deficit Nine months Nine months ended September ended September In thousands of Canadian dollars Deficit beginning of period Cumulative effect of adopting new accounting standards Net loss for the period Deficit end of period MTI Global Inc. Unaudited Interim Consolidated Statements of Operations Three Three Nine Nine months months months months In thousands of Canadian ended ended ended ended dollars except per September September September September share amounts Sales Cost of sales Gross margin Operating expenses Plant and laboratory Sales and marketing Administrative Restructuring costs Foreign exchange loss Operating loss before the following items Amortization of property plant and equipment Amortization of intangibles Amortization of deferred development costs Goodwill impairment Loss before other items income taxes and non controlling interest Other items Interest on long term debt Interest on subordinated debt Other interest expense Write down of equipment Subordinated debt financing and warrant re pricing charges Interest and other income Loss before income taxes and non controlling Interest Income taxes Current income tax expense recovery Future income tax expense Loss before non controlling interest Non controlling interest Net loss for the period Loss per share Basic and diluted . . . . MTI Global Inc. Unaudited Interim Consolidated Statements of Comprehensive Loss Three Three Nine Nine months months months months ended ended ended ended September September September September In thousands of Canadian dollars Net loss for the period Other comprehensive income loss Net change in cumulative translation adjustment Unrecognized gain loss on foreign currency forward contracts Comprehensive loss MTI Global Inc. Unaudited Interim Consolidated Statements of Cash Flows Three Three Nine Nine months months months months ended ended ended ended September September September September In thousands of Canadian dollars Cash flows from operating activities Net loss for the period Adjustments for non cash items Amortization Future income taxes Write down of equipment Unrealized foreign exchange loss Stock option expense recovery Subordinated debt financing and warrant re pricing charges Goodwill impairment Non controlling interest Cumulative effect of adopting new accounting standards Net change in non cash working capital balances Cash used in operating activities Cash flows from investing activities Purchase of property plant and equipment Acquisition Deferred development costs capitalized Cash used in investing activities Cash flows from financing activities Repayments of long term debt Proceeds from subordinated debt Decrease increase short term investment Proceeds from term loan Increase decrease in bank indebtedness Decrease increase in cash deposited as collateral Cash provided by financing activities Foreign exchange on cash and cash equivalents Net decrease in cash during the period Cash and cash equivalents beginning of period Cash and cash equivalents end of period Supplemental cash flow information Cash paid for interest Cash paid for income taxes Contact Contacts MTI Global Inc. Bill Neill President Chief Executive Officer Email mtimagnifoam.ca Website http www.mtiglobalinc.com Fleishman Hillard Canada Anne Lachance Investor Relations Source MTI Global Inc. Email Story Set News Alert Print Story Copyright Yahoo Inc. All rights reserved. Privacy Policy Terms of Service Copyright Marketwire . All rights reserved. All the news releases provided by Marketwire are copyrighted. Any forms of copying other than an individual user s personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden including but not limited to posting emailing faxing archiving in a public database redistributing via a computer network or in a printed form. We decided to provide a program that is easy to navigate fully customizable and allows users to make informed decisions regarding their financial future. 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Delays Announcement and Filing of Its Third Quarter Financial Statements and Related MD A More News related to MTI More News related to Press Releases C Motech the World s Number One Wireless Data Modem Company Boosts Foreign Market Strategies Yahoo oneSearch TM Named as the Exclusive Search Service on Virgin Media s Mobile Portal in the UK MTI Global Reports Fiscal Third Quarter Results MTI Global Reports Fiscal Third Quarter Results NASA s Shuttle Endeavour Glides Home After Successful Mission More News related to Press Releases November PM EST MISSISSAUGA ONTARIO MARKET WIRE MTI Global Inc. TSX MTI today reported its financial results for the three month period ended September . Q Highlights MTI Global is optimizing Aerospace operations following the completed offload of manufacturing to Mexico and has largely completed the consolidation of operations in its N.A. Silicone division Sales for the three months ended September were . million an increase of . from last year s sales of . million Aerospace sales were . million for the quarter an increase of . over last year s sales of . million resulting from an increase in sales volume EBITDA for the quarter was negative . million although restructuring charges during the quarter were . million Gross margin for the quarter was . million an increase of . million or . over last year while the gross margin percentage increased to . from . The net loss for the quarter was . million or twenty four cents per share The Company breached the following financial covenants with its principal Canadian lenders and is in continuing discussions seeking to obtain a waiver of these breaches Earnings before interest taxes and depreciation Fixed charge coverage Due to changes in economic circumstances and the performance of the Company the Company determined that there had been impairment in the carrying value of N.A. Silicone s and Leewood s goodwill and accordingly recorded a write down in the amount of . million. The Company failing its Step One Goodwill and Intangible Asset Test was the cause of the delayed financial reporting announced in the November MTI Global news release as additional time was required to quantify the amount of the impairment. Bill Neill MTI Global s President and Chief Executive Officer stated We remain optimistic that we will report further improvements in sales and operating performance through the fourth quarter of despite sales slippage at MTI Milton caused by the downturn in the automotive industry. MTI Global s primary goal continues to be focused on improving margins with reduced operating costs in the fourth quarter and beyond. EBITDA consists of earnings before interest expense income taxes depreciation amortization goodwill impairment charges subordinated debt financing and warrant re pricing charges and non controlling interest. MTI Global believes EBITDA is a useful measure in the evaluation of performance. EBITDA is not a measure recognized under Generally Accepted Accounting Principles GAAP and does not have a standardized meaning as prescribed by GAAP. Therefore EBITDA may not be comparable to similar measures presented by other entities. Investors are cautioned that EBITDA should not be construed as an alternative to net loss determined in accordance with GAAP. We have finally begun to see benefits from the new calander line in Richmond and have also successfully completed the consolidation of our N.A. Silicone operations from three facilities into two. During the quarter our results were negatively affected due to a number of items including non cash charges such as goodwill impairment and warrant re pricing charges. Mr. Neill added From an operational standpoint while the third quarter showed some improvements the fourth quarter is expected to show continued improvements for both top and bottom lines. Additionally the Canadian dollar against the U.S. dollar has been working in our favour and is expected to positively affect our results. Sales Three months ended Nine months ended September September Polyfab Aerospace Fabricated Products Total Polyfab Silicone N.A. Silicone Leewood Sterne Total Income Loss Before Income Taxes and Non controlling Interest Three months ended Nine months ended September September Polyfab N.A. Silicone Leewood Sterne Corporate Total Financial Results Sales for the three months ended September were . million approximately . ahead of last year s sales of . million. This included an increase of approximately due to the impact of currency fluctuations in the U.S. dollar and the Euro compared to . Aerospace sales of . million for the quarter were ahead of prior year s sales for the comparable period due to an increase in sales volume. Coincidently sales decreased by approximately due to the lower U.S. dollar compared to exchange rates in effect last year. Fabricated Products sales of were approximately . less than prior year s sales of for the same period. This was primarily due to a decline in sales to the automotive and sporting goods markets. N.A. Silicone sales of . million in decreased by or approximately . compared to sales of . million for the three months ended September . The decrease is principally due to a weakening in the automotive sector. Sales decreased by as a result of the lower U.S. dollar compared to exchange rates in effect in . Leewood sales of . million for the three months ended September remained the same compared to prior year s sales. Sterne sales of . million for the three months ended September were higher than last year s sales. This included an increase of approximately due to the appreciation in the Euro. On a percentage basis Aerospace accounted for of total sales compared to for the same period last year. Silicone sales represented of total sales compared to for the comparable period last year. Fabricated Products accounted for of total sales compared to for last year. The gross margin for the three months ended September was . million an increase of or approximately . over the prior year. The gross margin percentage increased to . from . . The increase was primarily due to improved margins at Leewood with the operation of the continuous oven line and the elimination of redundant costs in Polyfab that were present in as a result of outsourcing the majority of Aerospace manufacturing to Mexico. Total operating expenses for the three months ended September of . million were . million higher than in the same period in and include . million of restructuring costs largely attributable to changes in the business operations. Plant and laboratory expenses of were higher than in the same period last year due to Polyfab costs associated with the Mexican contract manufacturing operation and additional staff at Leewood. Sales and marketing expenses of . million increased from the prior year due to increased headcount at Leewood and Sterne. Administrative expenses of . million increased from the same period last year. The increase is primarily due to an increase in professional fees. MTI Polyfab s loss before taxes and non controlling interest for the three months ended September of was lower than last year s loss of million. The decrease in the loss is due to reduced operating costs in Canada and the outsourcing of its Aerospace manufacturing to Mexico. These costs were significantly eliminated in the third quarter of . Loss before income taxes and non controlling interest for the nine months ended September of . million was higher than last year s loss of . The net loss for the quarter was . million or twenty four cents per share compared to a net loss in the prior year of . million or eight cents per share. Goodwill Impairment As at September due to changes in economic circumstances and the performance of the Company the Company assessed the fair value of all the reporting units to which underlying goodwill is attributed. As a result of this assessment the Company determined that there had been impairment in the carrying value of N.A. Silicone s and Leewood s goodwill and accordingly recorded a write down in the amount of . million. The determination that the fair value of N.A. Silicone s and Leewood s goodwill was less than its carrying value arose from the application of a higher discount rate and a more modest forecast due to changes in economic circumstances and the performance of the Company that in combination resulted in goodwill impairment. The Company failing its Step One Goodwill and Intangible Asset Test was the cause of the delayed financial reporting announced in the November MTI Global news release as additional time was required to quantify the amount of the impairment. Outlook While revenues improved mainly as a result of increased sales in Aerospace and gross margin improvements realized at Polyfab and Leewood third quarter results remained below expectations. The Company continued to incur higher than expected outsourced manufacturing costs as material and conversion costs remained elevated in addition to incurred restructuring costs related to the consolidation of N.A. Silicone and goodwill impairment charges. At Polyfab margins were lower as the Company incurred higher than expected material conversion costs all of which the Company is addressing. MTI Global expects sales in Aerospace to continue growing as well as margin improvements in the fourth quarter of and into fiscal . We expect margin improvements will be driven by actions taken to improve the effectiveness of manufacturing processes in Mexico. Additionally as the transition of our Aerospace manufacturing to Mexico is complete and consequently our costs and revenues are now better aligned in U.S. dollars the Company expect this will positively affect our results going forward. In Fabricated Products MTI Global continues to experience difficult sales volume as a result of the automotive sector downturn and a softening in the seasonal sporting goods market. However the Company has augmented its sales group in Fabricated Products and continues to seek a broader range in its offering to customers. In N.A. Silicone activity with transit seating foam customers began to increase in the latter half of the second quarter and continued into the third quarter. Sales of Magnifoam the principal product at the Richmond Virginia plant were ahead of expectations. While this increase was insufficient to offset sales slippage at MTI Milton a new calander oven line at the Richmond plant went into production during the quarter. This division is now able to sell and ship a wider variety of silicone materials and the Company expects full production to begin as materials are certified. The consolidation is now substantially complete and the Company expects to see improvements in margins beginning in the fourth quarter of and into fiscal . As a result of the consolidation of N.A. Silicone the land and building in Buchanan Virginia has been listed for sale. The N.A. Silicone division also continues to experience the pressure of higher raw material prices. At Leewood management expects continued sales growth in as it finally begins to ship in increasing volumes on the Airbus A . The third quarter showed a marginal increase in year over year sales. Margin improvement is a key goal in and the division is delivering on this goal. Leewood is realizing stronger margins from its new business lines and operational savings on its current business although it is facing pressure from higher material input prices. Management expects further improvements through scrap reduction and quality control as well as more strategic pricing. At Sterne management expects sales to continue to grow in the last quarter of and beyond in . Success will be primarily dependent on Sterne s ability to grow clean room manufacturing sales and to expand its distribution sales for MTI Leewood s products. The Company has experienced operating losses caused by major delays in customer orders unfavourable foreign exchange rates and changes in economic conditions affecting some of its customer markets. MTI Global has responded quickly and implemented a number of measures and restructuring actions to address these issues which have necessitated higher capital requirements. In order to strengthen the Company s balance sheet and realize on its restructuring investments MTI Global is evaluating all alternatives available to the Company on an ongoing basis. Finally disciplined operations management is integral to achieving sales growth and improved results. Based on early indications of the Canadian dollar value against the U.S. dollar the Company is increasingly confident about a return to profitability with aerospace programs fully relocated to Mexico consolidated operations in N.A. Silicone and growth in European operations. About MTI Global Inc. MTI Global Inc. TSX MTI designs develops and manufactures custom engineered products using silicone and other cellular materials. The Company serves a variety of specialty markets focused on three main product categories Silicone Aerospace and Fabricated Products. MTI Global s manufacturing divisions develop and produce silicone foam using patented technology. The Company designs and fabricates energy management systems from a variety of flexible cellular materials. MTI Global also produces and distributes specialty silicone elastomer products. MTI Global s primary markets are aerospace and mass transit. Secondary markets include sporting goods automotive industrial institutional electronics and the medical market through a interest in MTI Sterne SARL of Cavaillon France. MTI Global s head office and Canadian manufacturing operations are located in Mississauga Ontario with international manufacturing operations located in Richmond Virginia Pensacola Florida Bremen Germany and a contract manufacturer venture in Ensenada Mexico. The Company also has sales operations in England and Sweden and an engineering support centre in Brazil. The Company s website is www.mtiglobalinc.com . Investors analysts and the media are invited to participate in a conference call to discuss the Third Quarter results on Monday December at a.m. Eastern . To join the conference call please dial Canada and U.S . The conference call can also be accessed via the web at www.newswire.ca . A replay of the conference call will be available for one week by dialing Toronto area only or and entering reservation no. . Notes to financial statements and additional financial reporting details can be found at www.sedar.ca . The foregoing press release contains forward looking statements and is subject to important risks and uncertainties. Although MTI Global believes that the expectations reflected in any forward looking statements are reasonable the results or events predicted in these statements may differ materially from actual results or events. Forward looking statements are based on estimates and assumptions derived from past experience historical trends current conditions and expected future developments. Many factors could cause results or events to differ from current expectations including the impact of price and product competition general industry and market conditions and growth rates and reliance on key customers. For additional information with respect to these and other factors see the reports filed by MTI Global Inc. with the applicable securities regulatory authorities at www.sedar.com . MTI Global Inc. disclaims any intention or obligation to update or revise any forward looking statements except as may be required under applicable securities laws. Financial Statements Follow Unaudited Interim Consolidated Balance Sheets As at As at September December In thousands of Canadian dollars ASSETS Current assets Cash and cash equivalents Cash deposited as collateral Short term investment Accounts receivable Income taxes recoverable Inventories Prepaid expenses and deposits Property plant and equipment Asset held for sale Goodwill Intangibles Deferred development costs LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Bank indebtedness Accounts payable and accrued expenses Subordinated debt Current portion of long term debt Long term debt Non controlling interest Commitments and contingencies Shareholders equity Share capital Contributed surplus Warrants Accumulated other comprehensive loss Deficit MTI Global Inc. Unaudited Interim Consolidated Statements of Deficit Nine months Nine months ended September ended September In thousands of Canadian dollars Deficit beginning of period Cumulative effect of adopting new accounting standards Net loss for the period Deficit end of period MTI Global Inc. Unaudited Interim Consolidated Statements of Operations Three Three Nine Nine months months months months In thousands of Canadian ended ended ended ended dollars except per September September September September share amounts Sales Cost of sales Gross margin Operating expenses Plant and laboratory Sales and marketing Administrative Restructuring costs Foreign exchange loss Operating loss before the following items Amortization of property plant and equipment Amortization of intangibles Amortization of deferred development costs Goodwill impairment Loss before other items income taxes and non controlling interest Other items Interest on long term debt Interest on subordinated debt Other interest expense Write down of equipment Subordinated debt financing and warrant re pricing charges Interest and other income Loss before income taxes and non controlling Interest Income taxes Current income tax expense recovery Future income tax expense Loss before non controlling interest Non controlling interest Net loss for the period Loss per share Basic and diluted . . . . MTI Global Inc. Unaudited Interim Consolidated Statements of Comprehensive Loss Three Three Nine Nine months months months months ended ended ended ended September September September September In thousands of Canadian dollars Net loss for the period Other comprehensive income loss Net change in cumulative translation adjustment Unrecognized gain loss on foreign currency forward contracts Comprehensive loss MTI Global Inc. Unaudited Interim Consolidated Statements of Cash Flows Three Three Nine Nine months months months months ended ended ended ended September September September September In thousands of Canadian dollars Cash flows from operating activities Net loss for the period Adjustments for non cash items Amortization Future income taxes Write down of equipment Unrealized foreign exchange loss Stock option expense recovery Subordinated debt financing and warrant re pricing charges Goodwill impairment Non controlling interest Cumulative effect of adopting new accounting standards Net change in non cash working capital balances Cash used in operating activities Cash flows from investing activities Purchase of property plant and equipment Acquisition Deferred development costs capitalized Cash used in investing activities Cash flows from financing activities Repayments of long term debt Proceeds from subordinated debt Decrease increase short term investment Proceeds from term loan Increase decrease in bank indebtedness Decrease increase in cash deposited as collateral Cash provided by financing activities Foreign exchange on cash and cash equivalents Net decrease in cash during the period Cash and cash equivalents beginning of period Cash and cash equivalents end of period Supplemental cash flow information Cash paid for interest Cash paid for income taxes Contacts MTI Global Inc. Bill Neill President Chief Executive Officer Email mtimagnifoam.ca Website www.mtiglobalinc.com Fleishman Hillard Canada Anne Lachance Investor Relations Related Categories Press Releases Stocks Mentioned MTI . . . Volume Track MTI Add Your Comment Name Subject Body Verification can t see the text click here to refresh the image. what s this Sign up for StreetInsider Free Receive full access to all new and archived articles unlimited portfolio tracking e mail alerts custom newswires and RSS feeds and more Free News Feed Get our RSS Feed Copyright StreetInsider.com Custom Website Design by Active Media Architects Home Member s Home Premium Content Links Entities About StreetInsider Get Our Content Advertise with Us Contact Us Disclaimer Privacy Policy
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