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Frontline Reports First Quarter 2011 Financial Results
Jun 14, 2011 (06:06 PM EDT)


TORONTO, June 14, 2011 /PRNewswire/ - Frontline Technologies Inc. (TSX: FLC), a provider of technology-based equity and options trading services, announced today its financial results for the quarter ended March 31, 2011.

Major elements of the first quarter statements include:

  • Revenue decreased by 12% to $1.25 million for the first quarter of 2011 from the same year ago quarter.
  • Operating expenses decreased 7% or $0.23 million for the first quarter of 2011 from the same year ago quarter reflecting the cost containment measures taken.
  • Loss of $2.0 million or ($0.14) per share for the first quarter of 2011 as compared to a loss of $2.3 million or ($0.15) per share in the same year ago quarter.
  • Working capital position of $8.3 million at March 31, 2011 as compared to $10.3 million at December 31, 2010.

"The first quarter of 2011 presented a challenging operating environment with continued reduction of revenues and an increase in administrative expenses on account of acquisition costs," said Hoss Astaraki, Chief Executive Officer.  "Since the completion of the acquisition of Frontline Technologies Corporation we are starting to realize the benefit of cost reductions from synergies in infrastructure."

               
Financial Highlights     Three months ended March 31
(in millions of dollars, except per share data)              
(Three month periods unaudited)     20111   20101   % change  
               
Revenue      $ 1.3    $ 1.4   -12%
               
Operating Expenses       $ 3.1    $ 3.3   -7%
               
Loss before discontinued operations      $ (1.8)    $ (2.1)   -12%
               
Net Loss      $ (2.0)    $ (2.3)   -10%
               
Basic and diluted loss per share      $ (0.14)    $ (0.15)   -7%

 

Note 1 - The financial statements for the period ended March 31, 2011 have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The company adopted IFRS as at January 1, 2011 with a transition date of January 1, 2010. The comparative figures for 2010 have been restated to comply with IFRS and are presented accordingly.

About Frontline Technologies

Frontline Technologies Inc. is a provider of trading technology services for equities and options and also offers IT infrastructure support and network managed services.  Frontline Technologies is listed on the Toronto Stock Exchange (Ticker-FLC) - additional information is available at www.belzberg.com / www.frontline.ca.

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.

      

FRONTLINE TECHNOLOGIES INC.

(FORMERLY BELZBERG TECHNOLOGIES INC.)

Condensed Interim Consolidated Statements of Financial Position
(In thousands of Canadian dollars)
(Not audited or reviewed by the Company's external auditor)

         
  March 31,  December 31,  January 1,
  2011  2010  2010
Assets
Current assets:
  Cash and cash equivalents  $ 6,482  $ 8,319 $ 15,670
  Cash segregated under regulations and other  2,143 2,805
  Cash and cash equivalents on deposit with clearing and depository organizations  1,630 1,363
  Receivable from brokers, dealers and clearing organizations  -  168 947
  Accounts receivable  625 1,718 2,405
  Prepaid expenses and other receivables  217 346 468
  Securities borrowed  - 6,186 -
  Income taxes receivable  - - 12
  Assets held for sale  6,208 - -
  13,532 20,510 23,670
Property and equipment  888 1,075 2,233
Investments  - 30 30
Long-term investment tax credits recoverable  - - 147
Intangible assets  4 77 141
  892 1,182 2,551
Total assets  $ 14,424 $ 21,692 $ 26,221
 
Liabilities and Shareholders' Equity
Current liabilities:
  Accounts payable and accrued liabilities  $ 1,351 $ 2,336 $ 5,176
  Payable to customers  - 1,733 1,948
  Payable to brokers and clearing organizations  - 345
  Securities loaned  - 6,186 -
  Liabilities held for sale  3,887 -  -
  Total liabilities  5,238 10,255 7,469
Shareholders' equity:
  Share capital  23,612 23,612 23,754
  Contributed surplus  4,594 4,570 4,182
  Deficit  (18,260)  (16,220) (9,184)
  Foreign currency translation reserve  (760) (525)  -
  Total equity  9,186 11,437 18,752
Total liabilities and shareholders' equity  $ 14,424 $ 21,692 $ 26,221



FRONTLINE TECHNOLOGIES INC.

(FORMERLY BELZBERG TECHNOLOGIES INC.)

Condensed Interim Consolidated Statements of Comprehensive Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
(Not audited or reviewed by the Company's external auditor)

         
  Three months ended
  March 31,
  2011 2010
Revenue  $ 1,252  $ 1,416
     
Operating expenses:
  Compensation and related benefits  922  1,184
  Telecommunication and data-feed services  951  1,105
  Administrative and other   1,184  1,002
  3,057  3,291
     
Loss before the undernoted  (1,805)  (1,875)
     
Foreign exchange loss  32  208
Interest expense  1
Interest income  (2)
  33  207
     
Loss before discontinued operations  (1,838)  (2,082)
     
Loss from discontinued operations  (202)  (190)
     
Loss for the period  (2,040)  (2,272)
     
Other comprehensive income (loss):
  Change in accumulated foreign currency translation adjustment:
    Current operations  (946)  284
    Discontinued operations  711  (835)
  (235)  (551)
Total comprehensive loss  $ (2,275)  $ (2,823)
     
Loss per share:
  Loss from continuing operations per common share - basic and diluted  $ (0.13)  $ (0.14)
   Loss per common share - basic and diluted  (0.14)  (0.15)
       
Weighted average number of common shares outstanding
(in thousands) 
14,638  14,676



FRONTLINE TECHNOLOGIES INC.

(FORMERLY BELZBERG TECHNOLOGIES INC.)

Condensed Interim Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)
(Not audited or reviewed by the Company's external auditor)

         
  Three months ended
  March 31,
  2011  2010
Cash provided by (used in):
         
Operating activities:
  Loss for the period  $ (2,040) $ (2,272)
  Loss from discontinued operations  202  190
  Loss from continuing operations  (1,838) (2,082)
       
Adjusted for:
    Depreciation of property and equipment  204  353
    Amortization of intangible assets  23
    Unrealized foreign exchange loss  (217) (293)
    Interest expense  1
    Interest income  - (2)
    Stock-based compensation  24  93
  Changes in non-cash working capital items  264  (425)
  Interest paid  (1) (1)
  Interest received  - 2
    (1,559) (2,331)
 
Financing activities:
  Repurchase of common shares  - (67)
       
Investing activities:
  Purchase of property and equipment  (227) (88)
Net decrease in cash and cash equivalents from
  continuing operations 
(1,786) (2,486)
     
Net decrease in cash and cash equivalents from
  discontinued operations 
(51) (2,387)
     
Net change in cash and cash equivalents  (1,837) (4,873)
     
Cash and cash equivalents, beginning of period  8,319  15,670
     
Cash and cash equivalents, end of period  $ 6,482  $ 10,797

 

 

SOURCE Frontline Technologies Inc.