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For Release: November 10, 2005
OMT Reports
Financial Results for Third Quarter 2005
Winnipeg, Manitoba, November 10, 2005 --
OMT Inc. (TSXV: OMT) announced today the Company’s consolidated results for the period
ended September 30, 2005.
Third Quarter Financial
Highlights
-
Completed the strongest third quarter
results in the company’s history for its
radio broadcasting iMediaTouch and
iMediaLogger product lines with new clients
including Platinum Broadcasting, New England
Institute of Technology, and Backyard
Broadcasting.
-
Deployed new Intertain Retail Preview
kiosks in Best Buy and Future Shop stores in
the third quarter, now reaching 90 stores
across these national retail chains.
-
Launched a next generation solid state
audio player device for the Intertain Retail
Radio service, which is superior in
reliability to the hard-drive based devices
that are available on the market today.
-
Celebrated
eight successful years of delivering top
quality continuous music programming with
Galaxie - CBC’s Continuous Music Network,
which uses iMediaTouch to reach over 4.5
million Canadian homes and businesses.
Description of Business
OMT Inc. (TSXV: OMT) is a digital media content
and technology solution provider to retailers of
media products and radio broadcasters. Intertain
Media, the digital entertainment division,
offers media previewing systems to major
retailers in North America such as Best Buy as
well as background music and messaging services.
The iMediaTouch division delivers radio
automation systems with over 1,400 domestic and
international clients. OMT's broadcasting,
multi-media technology, and content are heard
daily by over 50 million people worldwide
through radio, satellite, television and
Internet delivered broadcasts.
To learn more about
the Company, its products and services, visit
its website at
www.omt.net.
Management’s Discussion and Analysis
Certain statements made in the following Management’s
Discussion and Analysis contain forward-looking
statements including, but not limited to,
statements concerning possible or assumed future
results of operations of the Company.
Forward-looking statements represent the
Company’s intentions, plans, expectations and
beliefs, and are not guarantees of future
performance. Such forward-looking statements
represent our current views based on information
as at the date of this report. They involve
risks, uncertainties and assumptions and the
Company’s actual results could differ, which in
some cases may be material, from those
anticipated in these forward-looking
statements. Unless otherwise required by
applicable securities law, we disclaim any
intention or obligation to publicly update or
revise this information, whether as a result of
new information, future events or otherwise.
The Company cautions investors not to place
undue reliance upon forward-looking statements.
Results of Operations
This review contains Management’s discussion of
the Company’s operational results and financial
condition, and should be read in conjunction
with the consolidated financial statements for
the previous quarter ended June 30, 2005 and the
associated notes and the audited consolidated
financial statements for the year ended December
31, 2004.
The unaudited consolidated financial statements
provide a comparison of the three months ended
September 30, 2005 to the three months ended
September 30, 2004. These interim financial
statements have not been reviewed by the
company’s auditors.
Eight Quarter Review (in 000’s)
(Unaudited)
|
|
|
2005 |
|
|
|
2004 |
|
|
|
2003 |
|
|
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
|
Total
Sales |
$1,105 |
$1,044 |
$888
|
|
$1,072
|
$645
|
$849
|
$916
|
|
$942
|
|
Gross
Profit |
$695 |
$611 |
$628
|
|
$616
|
$435
|
$572
|
$594
|
|
$480
|
|
Gross
Profit % |
62.9% |
58.5% |
70.7% |
|
57.5% |
67.4% |
67.4% |
64.8% |
|
51.0% |
|
Operating
Expenses |
$578 |
$635 |
$559
|
|
$698
|
$544
|
$570
|
$566
|
|
$728
|
|
EBITDA |
$97 |
($25) |
$89 |
|
($85) |
($123) |
4 |
$29 |
|
($182) |
|
Net Income
(Loss) |
($117) |
($236) |
($126)
|
|
($324) |
($284) |
($139) |
($137) |
|
($404) |
|
Net Income
(Loss) per share |
|
|
|
|
|
|
|
|
|
|
|
(basic &
diluted) |
($0.004) |
($0.008) |
($0.004) |
|
$ (0.03) |
($0.02) |
$ (0.01) |
$ (0.01) |
|
$ (0.04) |
|
Dividends
declared |
Nil |
Nil |
Nil |
|
Nil |
Nil |
Nil |
Nil |
|
Nil |
Sales for the quarter ended September 30, 2005
increased by $460,000, which was 71% higher than
the same quarter last year. This increase is
largely attributable to added sales of Intertain
Retail Preview kiosks and the iMediaTouch
product line. Year to date, revenue was
$3,038,000, as compared to $2,409,000 last year,
an increase of 26%. Gross profit increased by
$260,000, which was 60% higher than the same
quarter last year. Year to date, gross profit
was $1,934,000, as compared to $1,600,000 last
year, an increase of 21%. The gross profit
growth was largely due to the increase in
iMediaTouch sales.
Operating expenses at $578,000 were 6% higher
than in the same period in 2004, but 9% lower
than the second quarter of 2005. The increase
over the previous year is largely related to the
increased revenues in iMediaTouch, which
involved an expanded sales team and the
associated higher selling costs.
Earnings before Interest, Taxes, Depreciation
and Amortization (EBITDA) was $97,000, as
compared to a loss of $123,000 in the same
quarter last year. Net loss after all costs and
expenses was $117,000, or $0.004 cents per
share.
Liquidity
OMT had a working capital balance of
$232,000 as of September 30, 2005. This is a
decrease of $114,000 since December 31, 2004.
The current ratio of current assets to current
liabilities is 1.23:1 as compared to 1.25:1 at
December 31, 2004 and 0.5:1 at December 31,
2003. The improvement over 2003 is a result of
the financing that closed in December 2004. The
company has no borrowings on its operating
credit line as of September 30, 2005.
During the third quarter, the cash position was
reduced by $56,000.
Funds were used for operations of $8,000,
capital expense of $9,000, and payments of
long-term debt of $39,000.
Subsequent Events
Options
On October 25,
2005, OMT granted 1,400,000 incentive stock
options to directors and officers, each of which
entitles the recipient to purchase one common
share of OMT at an exercise price of $.10
in years 1 and 2 and $0.11 thereafter.
The options were issued pursuant to the stock
option plan of OMT, which vest in three years
and are exercisable for a period of five years
from the grant date.
Bank Line of Credit
On October 28,
2005, OMT signed a term sheet with ENSIS
Management Inc. for the ENSIS Growth Fund to
provide a $400,000 bank guarantee in support of
its existing line of credit facility for a
period of twenty-four months at an annual cost
of 3% and a monthly administration fee of
$1,000. This guarantee is subject to final
documentation and approvals.
For additional information, contact:
The TSX Venture Exchange has neither approved
nor disapproved the contents of this press
release.
INDUSTRY: MUL - Multimedia
SUBJECT: BFC - BUSINESS CONTRACTS
-30-
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