Continued Growth Highlighted by $128 Million in Revenues for the Quarter as Compared to $31 Million for Comparable Period the Previous Year
July 16, 2008
Titan Global Holdings, Inc (Pink Sheets:TTGL), a high growth diversified holding company, reported financial results for its third fiscal quarter ended May 31, 2008, highlighted by the Company's continued growth in revenues to approximately $128 million, representing a significant increase over the $31 million for the comparable period the previous year. The increase in revenue was due to the Company's ongoing restructuring efforts to streamline its various divisions.
Titan has announced an investor conference call to take place this Friday, July 18, 2008 at 12 PM EST to discuss the Company's quarterly earnings results. Callers within the United States can access the conference call by calling 877-407-9210; when prompted tell the operator you would like to connect to the 'Titan Global Holdings conference call.' International callers can dial 201-689-8049. An online audio web simulcast of the call will also be accessible at http://www.trilogy-capital.com/tcp/titan/.
Titan also reported a net loss of $7.3 million, or a loss of $.13 per diluted share, for the third quarter, compared to a consolidated net income of $4.7 million, or $.03 per diluted share for the third quarter ended May 31, 2007.
Additionally, Titan reported revenue of $372 million and a consolidated net loss of $34.8 million or $.66 per diluted share for the nine months ended May 31, 2008, compared to revenue of $97 million and a consolidated net income of $731,000 or $.02 per diluted share for the third quarter ended May 31, 2007.
Results for the nine months ended May 31 include extraordinary charges totaling $36.9 million. These extraordinary charges include an asset impairment charge of $14.6 million and bad debt expense of $9.9 million primarily in Titan's Communications division and losses from discontinued operations of $12.4 million in Titan's Global Brands division.
"Our team is committed restoring and growing Titan through a concerted effort to expand core operations in Titan Global Energy Group and restore and reposition its operations in our communications and consumer products," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "Titan Global Energy Group represented over 93% of our revenues in our third quarter of 2008, compared to our Communications division representing 80% of our revenues in the same fiscal quarter the previous year. We expect to accelerate our growth in the fourth quarter of 2008 as we pursue additional energy distribution locations through synergistic acquisitions and organic means, continue to increase our pursuit and distribution of renewable sources of energy, restore and re-launch our Communications division and introduce new product lines in our Global Brands division."
Key Third Quarter Highlights
Titan Global Energy Group reported revenue of $120 million and a net operating loss of $86,000 for Q3 2008. The Energy division also reported $1 million in earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter.
"The continued rising cost of petroleum products and the weak retail environment have resulted in a difficult operating environment for our Energy division," said Mr. Chance. "We are improving our financial performance during these difficult times by increasing our sourcing of renewable energy sources such as ethanol, improving our retail margins and tightly managing our operating cost. We also plan to leverage our scale through incremental growth in our distribution network during the fourth quarter."
Titan's Communications division continued its re-positioning efforts during the third quarter as the Company furthered its "wind down" of Oblio Telecom, Inc. and Starttalk, Inc. operations. Additionally, Titan formed Planet Direct, Inc. to focus on the marketing and distribution of prepaid international long distance calling solutions created from partnerships and ventures with foreign incumbent phone companies. Planet Direct is in late stage negotiations with several foreign incumbent carriers and plans significant new product launches in the fourth quarter of 2008.
"Fiscal year 2008 represented both great challenges and opportunities for our Communications division," said Kurt Jensen, President and Chief Executive Officer of Titan Global Communications. "In the aftermath of our troubles at the Oblio Telecom unit, we leveraged these experiences to build sound and additional business models that will enable us to achieve scale and profitability across our communication businesses. We anticipate a number of new product launches in our fourth quarter. Our new product offerings will offer our customers more efficient means to connect with friends and family throughout the world."
Titan Global Brands division also continued its re-positioning in the third quarter of 2008 as Global Feet, Inc. as the primary operating company in this division. Global Feet designs, develops, distributes and markets stylish footwear for men, women and children in over 145 countries worldwide. GFI is the owner of Dry-shoD, NOMASS, Mehandi and FunFlopps brands. GFI also owns and operates retail stores in leading markets in the Western United States. Global Feet commenced an aggressive push to expand the Company's own established brands in the marketplace and pursue new licensing agreements with major global brand names to complement an existing brand portfolio during the third quarter.
Titan's Electronics and Homeland Security division announced in its fiscal third quarter of 2008 its intention to divest and or more aggressively pursue turnaround strategies to significantly improve the operating results of its printed circuit board manufacturing businesses. Titan has already agreed to sell the assets of Titan PCB East, Inc. to a management led buyout group although this transaction has not closed as of July 15, 2008.
"We believe our plan to restore and grow Titan is progressing well," said David Marks, Chairman of Titan Global Holdings. "We are poised to achieve organic and strategic growth in our fourth quarter. We thank our long term shareholders for their support during this year of transition in Titan's history."
About Titan Global Holdings
Titan Global Holdings is a diversified holding company with a dynamic portfolio of subsidiaries spanning international telecommunications, electronics and homeland security, consumer products and energy resources and distribution.
Titan's operating divisions include the following:
The Titan Global Energy Division owns and operates traditional and next-generation renewable energy and fuel assets that can provide significant opportunities for growth in one of the world's largest and most critical markets.
Titan's Communications Division serves the communication needs of those individuals that have emigrated from their host country to the United States or other countries and plans to addresses a range of high-growth markets in the international telecommunication segments, including communication technology, platform management, international wholesale communication and the distribution of prepaid international telecommunication products.
Titan Global Brands designs, develops, and distributes consumer products from value categories to high end branded categories, through its existing distribution channels and new ones suitable for such products. Together, it integrates, protects and expands its consumer brand management capabilities to leverage and optimize growth across Titan's worldwide distribution channels.
Titan Card Services plans to capitalize on the burgeoning multibillion-dollar international prepaid money transfer sector. Titan Card Services' proprietary technology provides for convenient and efficient international money transfers.
Titan's Electronics and Homeland Security Division includes Titan PCB East, Inc., Titan Electronics Inc., and NEO EMS, Inc. These companies specialize in the manufacture of advanced circuit boards and other electronic products for classified military and defense department customers, and other high-tech clients.
For more information, please visit: www.titanglobalholdings.com.
For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0.
To view current news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.
Forward-Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rates and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.
Trilogy Capital Partners
Financial Communications:
Ryon Harms, Toll-free: 800-592-6067
info@trilogy-capital.com
