TORONTO, Aug. 7 /CNW/ -- TORONTO, Aug. 7 /CNW/ - Belzberg Technologies Inc. (TSX -BLZ), a provider of technology-based equity and options trading services, announced today that in the second quarter ended June 30, 2008, the net loss was $0.4 million as compared to earnings of $1.7 million same quarter last year.
Total revenues for the second quarter decreased 19% to $9.0 million versus $11.1 million in the same year-ago period. Diluted loss per share for the second quarter was ($0.03) per share as compared to earnings of $0.11 per share in the same year-ago period.
<<
-------------------------------------------------------------------------
Financial Highlights
(in millions of dollars, Three months ended Six months ended
except per share data) June 30, June 30,
(unaudited) 2008 2007 2008 2007
-------------------------------------------------------------------------
Revenue $ 9.0 $ 11.1 $ 18.6 $ 22.0
Net earnings (loss) $ (0.4) $ 1.7 $ 0.7 $ 3.4
Diluted earnings (loss)
per share $ (0.03) $ 0.11 $ 0.05 $ 0.22
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
The Company's financial position at June 30, 2008 included cash and cash equivalents of $22.6 million and working capital of $28.9 million.
"Results in the second quarter were impacted by higher costs that have been incurred in anticipation of the company initiating its clearing business," said Sid Belzberg, CEO of Belzberg. "It is currently expected that we will have all the necessary approvals in place to commence clearing operations in the near future. We have also made good progress in building a pipeline of new clearing and execution customers."
Revenue
Total revenue from option contracts traded both electronically and non-electronically was $3.7 million in the second quarter of 2008 compared to $4.8 million in the same year-ago quarter. Options revenue in the second quarter decreased by approximately $0.3 million from a strengthening Canadian dollar.
Average total daily volume of electronic equity and index options contracts traded both electronically and non-electronically on the floor of the CBOE and on other exchanges were 266,000 contracts per day in the second quarter of 2008 compared to 287,000 contracts per day in the same year-ago quarter.
Total revenue from U.S. equity order flow was $2.6 million in the second quarter of 2008 compared to $3.5 million in the same year-ago quarter. A strengthening Canadian dollar impacted U.S. equity revenue by approximately $0.2 million.
About Belzberg Technologies
Belzberg Technologies Inc. is a provider of technology-based brokerage services, trading equities and options through Electronic Brokerage Systems, Belzberg Technologies' wholly owned agency-only broker-dealer. Electronic Brokerage Systems is a member of most North American stock exchanges, options exchanges and clearing organizations, including the NYSE, NASDAQ, CBOE, NSCC and OCC. Using Belzberg's suite of integrated trading tools and network connectivity, Belzberg's customers have direct access to all North American equities and options markets. The firm's client-base includes over 200 leading U.S and international brokerage houses and financial institutions. Belzberg Technologies is listed on the Toronto Stock Exchange (Ticker-BLZ) - additional information is available at www.belzberg.com.
Forward looking statement disclaimer
Except for historical information contained herein, the matters discussed in this press release are based on forward-looking statements that involve risk and uncertainty. A variety of important factors could cause results to differ materially from such statements, including but not limited to economic, competitive, governmental and technological factors affecting the company's operation, markets, products, prices and other factors.
<<
Notice
The consolidated financial statements have not been reviewed by an
external auditor
BELZBERG TECHNOLOGIES INC.
Consolidated Balance Sheets
(in thousands of Canadian dollars)
-------------------------------------------------------------------------
June 30, December 31,
2008 2007
(Unaudited) (Audited)
------------- -------------
ASSETS
CURRENT
Cash and cash equivalents $ 22,627 $ 21,081
Cash and cash equivalents on deposit with
clearing and depository organizations 1,687 2,971
Receivable from brokers, dealers and
clearing organizations 481 2,521
Accounts receivable 4,721 4,601
Prepaid expenses and other receivables 577 380
Other assets 597 925
Investment tax credits recoverable 529 489
Future income tax assets 1,808 2,201
-------------------------------------------------------------------------
33,027 35,169
CAPITAL ASSETS 3,428 2,955
INVESTMENT 38 38
INVESTMENT TAX CREDITS RECOVERABLE 1,049 972
FUTURE INCOME TAX ASSETS 458 290
GOODWILL 1,608 1,608
OTHER INTANGIBLE ASSETS, NET 208 240
-------------------------------------------------------------------------
$ 39,816 $ 41,272
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES
CURRENT
Accounts payable and accrued liabilities $ 3,778 $ 4,053
Payable to brokers, dealers and clearing
organizations - 1,915
Income taxes payable 7 13
Future income tax liabilities 345 439
Obligations under capital lease - 27
-------------------------------------------------------------------------
4,130 6,447
FUTURE INCOME TAX LIABILITIES 236 233
-------------------------------------------------------------------------
4,366 6,680
-------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
CAPITAL STOCK 23,945 39,599
CONTRIBUTED SURPLUS 3,499 3,677
RETAINED EARNINGS (DEFICIT) 8,006 (8,684)
-------------------------------------------------------------------------
35,450 34,592
-------------------------------------------------------------------------
$ 39,816 $ 41,272
-------------------------------------------------------------------------
-------------------------------------------------------------------------
BELZBERG TECHNOLOGIES INC.
Consolidated Statements of Operations and Retained Earnings (Deficit)
(in thousands of Canadian dollars)
(Unaudited)
-------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
REVENUE
Transaction fees:
Equity order flow $ 3,157 $ 4,142 $ 6,936 $ 8,351
Options and
futures contracts 3,672 4,778 7,288 9,227
-------------------------------------------------------------------------
6,829 8,920 14,224 17,578
Subscription fees 1,787 1,864 3,640 3,749
Other revenue 358 322 700 677
-------------------------------------------------------------------------
TOTAL REVENUE 8,974 11,106 18,564 22,004
-------------------------------------------------------------------------
EXPENSES
Exchange, clearing
and brokerage fees 3,136 3,504 5,456 6,734
Compensation and
related benefits 2,951 2,716 5,731 5,517
Telecommunication
and datafeed
services 1,662 1,554 3,216 3,079
Administrative and
other expenses 1,416 1,107 2,509 2,322
Strategic process
expenses - 10 - 98
Amortization of
capital assets 496 347 981 677
Amortization of
intangible assets 16 16 32 32
Foreign exchange loss 58 343 117 531
-------------------------------------------------------------------------
9,735 9,597 18,042 18,990
-------------------------------------------------------------------------
EARNINGS (LOSS) BEFORE
THE UNDERNOTED (761) 1,509 522 3,014
Interest expense - 2 - 7
Interest income (149) (195) (336) (376)
-------------------------------------------------------------------------
(149) (193) (336) (369)
-------------------------------------------------------------------------
EARNINGS (LOSS) BEFORE
INCOME TAXES (612) 1,702 858 3,383
PROVISION FOR (RECOVERY
OF) INCOME TAXES
Current - - 7 -
Future (184) - 161 -
-------------------------------------------------------------------------
(184) - 168 -
-------------------------------------------------------------------------
NET EARNINGS (LOSS) (428) 1,702 690 3,383
DEFICIT, BEGINNING
OF PERIOD (7,659) (14,266) (8,684) (15,947)
REPURCHASE OF COMMON
SHARES 93 - - -
REDUCTION OF STATED
CAPITAL 16,000 - 16,000 -
-------------------------------------------------------------------------
RETAINED EARNINGS
(DEFICIT), END OF
PERIOD 8,006 (12,564) 8,006 (12,564)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
EARNINGS (LOSS) PER
SHARE:
Basic $ (0.03) $ 0.12 $ 0.05 $ 0.23
Diluted $ (0.03) $ 0.11 $ 0.05 $ 0.22
-------------------------------------------------------------------------
-------------------------------------------------------------------------
WEIGHTED AVERAGE
NUMBER OF COMMON AND
COMMON EQUIVALENT
SHARES OUTSTANDING
Basic 14,846 14,665 14,819 14,650
Diluted 14,938 15,208 14,936 15,245
-------------------------------------------------------------------------
-------------------------------------------------------------------------
BELZBERG TECHNOLOGIES INC.
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(Unaudited)
-------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
CASH PROVIDED BY
(USED FOR)
OPERATING ACTIVITIES
Net earnings (loss) $ (428) $ 1,702 $ 690 $ 3,383
Items not affecting
cash
Amortization of
capital assets 496 347 981 677
Amortization of
intangible assets 16 16 32 32
Unrealized foreign
exchange loss 49 620 (195) 695
Stock-based
compensation 39 43 78 86
Future income taxes (178) 125 134 140
Changes in non-cash
working capital items (568) (1,158) 1,021 (1,644)
-------------------------------------------------------------------------
(574) 1,695 2,741 3,369
-------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of capital
assets (389) (756) (1,454) (1,121)
-------------------------------------------------------------------------
(389) (756) (1,454) (1,121)
-------------------------------------------------------------------------
FINANCING ACTIVITIES
Repayment of
obligations under
capital lease - (35) (27) (65)
Repurchase of
common shares (37) - (273) -
Proceeds from the
exercise of stock
options 14 40 364 202
-------------------------------------------------------------------------
(23) 5 64 137
-------------------------------------------------------------------------
Effect of exchange
rate changes on cash
and cash equivalents (49) (620) 195 (695)
NET INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS (1,035) 324 1,546 1,690
CASH AND CASH
EQUIVALENTS, BEGINNING
OF PERIOD 23,662 17,802 21,081 16,436
-------------------------------------------------------------------------
CASH AND CASH
EQUIVALENTS, END OF
PERIOD $ 22,627 $ 18,126 $ 22,627 $ 18,126
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CASH AND CASH
EQUIVALENTS:
Cash $ 4,983 $ 4,824 $ 4,983 $ 4,824
Cash equivalents 17,644 13,302 17,644 13,302
-------------------------------------------------------------------------
$ 22,627 $ 18,126 $ 22,627 $ 18,126
-------------------------------------------------------------------------
-------------------------------------------------------------------------
SUPPLEMENTAL CASH
FLOW INFORMATION
Interest received $ 164 $ 164 $ 345 $ 346
Interest paid - 2 - 7
Income taxes paid 77 - 130 -
>>
Copyright 2008 PR Newswire. All Rights Reserved