Norsat International — Q2 2011 Earnings Presentation
19 slides from Norsat International's earnings presentation, Aug 11, 2011
Slide 1: EBITDA reconciliation
EBITDA® (000s) For the three-months ended, Ime 30,2011 Sune 30, 2010 Chan; EBITDA s 436 S$ 995 $409) Interest (163) 0) (443) Amortization (652) (op) 75) Taxes (160) - (460) Foreign exchange 192 19 173 Reorganization 88) - (88) et (loss) /eamings for the period: 3) 5 ws
Slide 2: EBITDA, Working Capital and Current Ratio notes
Note 1 EBITDA refers to earnings before interest, taxes, depreciation, amortization, reorganization costs and foreign exchange. EBITDA is a non-IFRS performance measure. We believe that, in addition to net (loss) / earnings, EBITDA is a useful complementary measure of pre-tax profitability and is co
Slide 3: Selected financial information, three months ended
(0005), except per share amounts For the three-months ended, Tune 30,2011 June 30,2010 Change Sales S$ 8644 $5199 S 3,445 66% Eamings before income taxes s (a2) $s 817 S$ (42) (115%) Income fx expense s (160) $ = S$ (160) >100% EBITDA s 496 S$ 895 S$ 409) (46%) EBITDA per share s ool $ 002 $ (001) (
Slide 4: Selected financial information, six months ended
(0005), except per share amounts For the six-month ended, Tune 30,2011 Tune 30, 2010 Change Sales S$ 17358 $ 10.085 $7273 72% Eamings before income taxes s 75 S$ 1322 $ (1247) 04%) Income fx expense s 347 = $ 547 >100% EBITDA S$ 1541 $1551 $ (lO) 0%) EBITDA per share s 003 $ 003 S$ - et (loss) / eam
Slide 5: Sales and gross margin by segment, three months
For the thiee-months ended, ane 30,2011 Tune 30,2010 Chan; Sales (in 000's) Antenna andRF Conditioning Products S 5218 NA $5,218 100% Satllite Solutions 132 $ 3.039717) 78H) Microwave Products 1934 2.077 @8) 02%) Maritime Solutions 270 83 187 226% Toul, S864 5 S199 $3445 66% Gross Profit Margin Ante
Slide 6: Quarterly segment seasonality
Quarterly results on a segment basis may fluctuate from quarter to quarter because sales volumes are seasonal. Sinclair’s first and second quarters ending March 31 and June 30, respectively, are historically its strongest while its third and fourth quarters are the weakest. The first quarter ending
Slide 7: Expenses, three months ended
(ors) For the three-months ended, June 30,2011 Sune 30, 2010 Chan; Selling, general andadmini trative S 2886 $ 1,700 $1,186 70% Product development 292 49 243 495% Amortization 993 1 476 21% Other (incom e/expense a3) 1 (46) _>(100%) Toul expenses S316 S187 S189 103%
Slide 8: Cost structure and total expenses
The Company’s commitment to prudent spending has not wavered and this philosophy continues to be reflected in the cost structure. However, when necessary, staff levels have gradually been increased to ensure appropriate investments in operations are made and commitments to research and development p
Slide 9: Loss before income taxes and summary of quarterly results
Loss before income taxes was approximately $0.1 million for the three months ended June 30, 2011 compared to earnings of $0.8 million same period in 2010. Earnings before income taxes was approximately $0.1 million for the six months ended June 30, 2011 compared to earnings of $1.3 million for the s
Slide 10: Acquisition of Sinclair
We have restated our 2010 comparative data in accordance with IFRS. We are not required to apply IFRS to periods prior to 2010. Our 2009 comparative data was prepared in accordance with Canadian GAAP. 3.7 Acquisition of Sinclair On January 21, 2011, the Company acquired 100% of the outstanding share
Slide 11: Purchase consideration
The Company estimates that all cash flows related to trade and other receivables will be collected. Purchase consideration The fair value of the purchase consideration is summarized as follows:
Slide 12: Canadian GAAP to IFRS reconciliation, December 31, 2010
The Canadian GAAP statement of financial position at December 31, 2010 has been reconciled to IFRS as follows:
Slide 13: Canadian GAAP to IFRS reconciliation, June 2010
The Canadian GAAP statement of financial position at June 30, 2010 has been reconciled to IFRS as follows:
Slide 14: Statement of earnings reconciliation, twelve months 2010
The Canadian GAAP statement of earnings and comprehensive income for the twelve months ended December 31, 2010 has been reconciled to IFRS as follows:
Slide 15: Statement of earnings reconciliation, three and six months 2010
The Canadian GAAP statement of earnings and comprehensive income for the three and six months ended June 30, 2010 has been reconciled to IFRS as follows:
Slide 16: Three months ended June 30, 2010 under IFRS
eS Previoudy payment reported umder (ote 21e) Restated Three Months Ended June 30, 2010 Canadian GAAP @)_under IFRS Sales S 5,198,568 $5,198,568 Cost of sales 2,554,717 2,554,717 Gross Profit, 2,653,851 2,643,851 Expenses: Selling, general andadmini trative 1,689,686 10,755 1,700,441 Product develop
Slide 17: Statement of cash flows reconciliation, six months 2010
The Canadian GAAP statement of cash flows for the six months ended June 30, 2010 has been reconciled to IFRS as follows:
Slide 18: Financial Instruments and Risk Exposures
10.0 Financial Instruments and Risk Exposures Fair value measurement The Company’s financial assets include cash and cash equivalents, short term investments, and trade and other receivables. The Company’s financial liabilities include trade and other accounts payable, accrued liabilities, interest
Slide 19: Outstanding Share Data and Risks and Uncertainties
11.0 Outstanding Share Data The Company has 100,000,000 shares of Common Stock authorized, of which 58,367,532 were outstanding at June 30, 2011 and at August 9, 2011. As at August 9, 2011, the Company had 1,753,000 options outstanding to acquire common shares at prices ranging from $0.67 to $6.15 p