FSC / Press Release
Glenbriar Reports 2009 Q2 Results
Waterloo, Ontario CANADA, May 13, 2009 /FSC/ - Glenbriar Technologies Inc. (GTI - CNQ, G1Q - FWB), today released its unaudited financial results for the 6 months ended March 31, 2009:
-***-
Glenbriar Technologies Inc. 6 MONTHS ENDED MARCH 31
2009 2008
------------------------------------------------------------------
Revenue $3,127,565 $2,921,484
Gross profit 681,580 742,977
EBITAS* before R&D 80,750 173,061
EBITAS* after operating and 20,750 (56,051)
capitalized R&D
Loss (169,526) (82,614)
Earnings per share $(0.005) $(0.003)
Average Common Shares outstanding 32,827,370 30,902,811
-****-
*EBITAS = Earnings before interest, taxes, amortization, stock compensation expense and other noncash items. EBITAS is not recognized by GAAP.
Results from Operations
Revenue increased 7% for the 6 months ended March 31, 2009 from the same period of 2008, despite a substantial reduction in hardware sales in the second quarter of 2009 due to the global recession. EBITAS (earnings before interest, taxes, amortization, stock compensation expense and other noncash items) after R&D (both operating and capitalized portions) improved by 137% as product improvements and completion of certain components resulted in decreased R&D expenditures. Loss doubled over the same period due to the combined effects of expensing R&D and CICA Handbook accounting policy changes and estimates that were implemented at year end.
The full impact of the global recession hit Glenbriar in January 2009, which resulted in the largest monthly operating loss in Glenbriar's history. With quick and strong management response, that loss was substantially reduced in February 2009, and Glenbriar was back to breakeven by March 2009. April 2009 showed an operating profit. Management's response included staff reductions, reduced working hours for certain employees, implementation of new time and billing tracking programs, restructuring of reporting relationships, and increased use of Peartree's new Professional Services module for internal operations. With costs now substantially under control and delivering improved margins, management has initiated the first steps of a coordinated marketing program, which will be implemented in the coming months.
About Glenbriar
Glenbriar Technologies Inc. (CNSX: GTI) is a leader in Enterprise IT Innovation for small and medium businesses. Glenbriar integrates information technology, voice and software strategies in a number of market verticals spearheaded by an internally developed Managed Infrastructure Services (MIS) approach. Glenbriar's software division, Peartree Software Inc., based in Waterloo, Ontario, develops advanced software solutions for targeted industries such as dealerships and manufacturing. See www.glenbriar.com for more details.
For further information call:
Robert Matheson
Glenbriar Technologies Inc.
+1 (403) 450-7410
The CNSX has not reviewed and does not accept responsibility for the adequacy and accuracy of this information.
This news release may contain forward-looking statements. These forward-looking statements do not guarantee future events or performance and should not be relied upon. Actual outcomes may differ materially due to any number of factors and uncertainties, many of which are beyond Glenbriar's control. Some of these risks and uncertainties may be described in Glenbriar's corporate filings (posted at www.sedar.com). Glenbriar has no intention or obligation to update or revise any forward looking statements due to new information or events.
-***-
Statements of Earnings & Deficits For the 6 months ended March 31
2009 2008
-------------------------------------------------------------------------
Revenue
Managed information services $ 1,758,212 $1,580,814
Equipment and software sales 1,355,053 1,339,691
Interest and other income 14,300 979
3,127,565 2,921,484
-------------------------------------------------------------------------
Expenses
Managed information services 1,425,194 1,187,173
Cost of goods sold 1,020,791 991,334
General and administrative 489,860 469,569
Sales and marketing 110,970 102,347
-------------------------------------------------------------------------
3,046,815 2,748,423
-------------------------------------------------------------------------
Earnings before the following: 80,750 173,061
-------------------------------------------------------------------------
Research and development 60,000 48,000
Amortization 107,713 137,892
Interest and bank charges 21,829 21,404
Stock compensation expense 52,923 6,230
Unrealized loss on marketable securities 7,811 -
Foreign exchange loss - 2,149
-------------------------------------------------------------------------
Earnings before income tax (169,526) (42,614)
Provision for future income tax - 20,000
-------------------------------------------------------------------------
Net loss (169,526) (82,614)
-------------------------------------------------------------------------
Deficit, beginning of year (3,334,841) (805,303)
-------------------------------------------------------------------------
Deficit, end of year $ (3,504,367) $ (887,917)
=========================================================================
Net earnings (loss) per share $(0.005) $(0.003)
=========================================================================
-****-
-***-
As at
----------------------------------------------------------------------
Balance Sheets March 31 September 30
----------------------------------------------------------------------
2009 2008
----------------------------------------------------------------------
Assets
Accounts receivable $ 787,213 $ 1,038,557
Inventory 76,135 33,266
Marketable securities, at fair value 23,423 31,243
Prepaid expenses 22,573 28,708
----------------------------------------------------------------------
Total current assets 909,353 1,131,774
----------------------------------------------------------------------
Capital assets 755,257 813,657
----------------------------------------------------------------------
$ 1,664,610 $ 1,945,431
======================================================================
Liabilities
Revolving credit facility $ 323,894 $ 438,610
Accounts payable 626,778 645,392
Deferred revenue 186,851 314,245
Loans payable * current portion 50,000 50,000
----------------------------------------------------------------------
Total current liabilities 1,187,523 1,448,247
----------------------------------------------------------------------
Deferred leasehold allowances 11,450 21,600
Loans payable 285,000 260,000
----------------------------------------------------------------------
$ 1,483,973 $ 1,729,847
----------------------------------------------------------------------
Shareholders' equity
----------------------------------------------------------------------
Common shares $ 3,685,004 $ 3,550,425
Retained earnings (3,504,367) (3,334,481)
----------------------------------------------------------------------
$ 180,637 $ 215,584
----------------------------------------------------------------------
$ 1,664,610 $ 1,945,431
======================================================================
-****-
-***-
Statements of Cash Flow For the 6 months ended
March 31
-------------------------------------------------------------------------
2009 2008
-------------------------------------------------------------------------
Operating
Net earnings (loss) $ (169,526) $ (82,614)
Future income taxes - 40,000
Amortization 107,713 137,892
Stock compensation expense 52,923 6,230
Unrealized loss on marketable securities 7,811 -
-------------------------------------------------------------------------
(1,079) 101,508
Change in non-cash working capital 98,298 170,618
-------------------------------------------------------------------------
97,219 272,126
-------------------------------------------------------------------------
Financing
Increase in shareholder advances 25,000 10,000
Issue of common shares * net 21,427 6,230
Reduction in revolving credit facility (114,716) (98,244)
-------------------------------------------------------------------------
(68,289) (82,014)
-------------------------------------------------------------------------
Investing
Increase in capital assets
(2008 includes R&D) (17,930) (190,112)
Acquisition of Micro-Aid (11,000) -
-----------------------------------------------------------------------
(28,930) (190,112)
-----------------------------------------------------------------------
Net change and cash, end of year $ - $ -
=======================================================================
-****-
Source: Glenbriar Technologies Inc. (CNQ: GTI) http://www.glenbriar.com
Maximum News Dissemination by Filing Services Canada Inc. *
www.usetdas.com
© Filing Services Canada
