SmarTire Systems Reports Q2 Results
17 March 1999
SmarTire Systems Reports Second Quarter Results
RICHMOND, British Columbia--March 16, 1999-- SmarTire Systems Inc. today released its financial results for the second quarter ended Jan. 31, 1999.During the period, gross revenues totaled CAN$0.5 million, compared with CAN$0.7 million for the same period last year. Expenses totaled $2.6 million, up from $1.3 million last year, primarily attributable to the Company's marketing programs and expanded operations. The net loss for the second quarter was $2.7 million ($0.28 per share) compared with $2.0 million ($0.50 per share) one year ago.
Subsequent to the end of the second quarter, the exercise of 1.5 million share purchase warrants raised net cash proceeds of CAN$5.4 million for the Company.
"The exercise of warrants bolsters our cash position and strengthens our balance sheet as we proceed with our marketing and product development plans," said Robert Rudman, President and Chief Executive Officer. "We have dedicated substantial resources to our 1999 direct marketing programs and we expect to see the returns from this investment as we move into the spring/summer tire buying season."
SmarTire Systems Inc. develops and markets proprietary tire monitoring systems for the North American and European automotive aftermarkets. Through a strategic alliance, SmarTire and TRW Inc. are committed to providing superior tire monitoring systems for both aftermarket and original equipment applications. Additional information is available at www.smartire.com.
On behalf of the Board of Directors,
Kevin A. Carlson, C.A., Chief Financial Officer
Except for the historical information contained herein, this news release contains forward looking statements that involve risks and uncertainties, including the impact of competitive products and pricing and general economic conditions as they affect the Company's customers. Actual results and developments may therefore differ materially from those described in this release.
SMARTIRE SYSTEMS INC.
Financial Summary
Expressed in Canadian dollars
Three months ended Six months ended
January 31, January 31,
1999 1998 1999 1998
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Revenue $ 530,595 683,576 $1,223,981 1,004,350
Cost of Good Sold 417,457 532,854 1,006,694 773,348
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Gross Profit 113,138 150,722 217,287 231,002
Expenses 2,571,684 1,319,000 4,691,322 2,447,324
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Loss From
Operations 2,458,546 1,168,278 4,474,035 2,216,322
Other Expense
(Income) 198,706 879,942 (6,936)1,177,028
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Net Loss $2,657,252 2,048,220 $4,467,099 3,393,350
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Loss Per Share $ 0.28 0.50 $ 0.47 0.87
SMARTIRE SYSTEMS INC.
Balance Sheet Summary
Expressed in Canadian dollars
January 31, July 31,
1999 1998
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Cash $ 4,445,018 $ 8,718,258
Total Current Assets $ 9,253,899 $12,778,885
Total Assets $ 10,488,249 $14,186,109
Current Liabilities $ 969,596 $ 801,832
Shareholders' Equity $ 9,518,653 $13,384,277
Total Liabilities and
Shareholders' Equity $ 10,488,249 $14,186,109