Plaintree Systems Inc Releases Fiscal 2011 Results and Declaration of Dividend on Class A Preferred Shares

Fiscal 2011 Results
Plaintree announced today that it has released its audited financial statements and related management discussion and analysis for the year ended March 31, 2011.
During fiscal 2011, Plaintree realized revenues of $11,040,555 compared to $9,087,383 in fiscal 2010 and net income of $333,380, compared to a net loss of $1,239,922 in fiscal 2010. Basic loss per share was $0.09 and $0.22 in fiscals 2011 and 2010 respectively. Diluted loss per share was $0.09 and $0.22 in fiscals 2011 and 2010 respectively. The basic and diluted loss per share takes into account Plaintree's obligations to pay an 8% per annum cumulative dividend on its issued and outstanding Class A preferred shares before any distributions can be made to Plaintree's common shareholders. While the dividend is only paid when declared by the board of directors of Plaintree, any unpaid amounts accrue in the amount of $1,466,000 per annum. As a result, notwithstanding that Plaintree recorded a profit during fiscal 2011, after taking into account the accrued dividends on the Class A preferred shares, this resulted in a loss per share for Plaintree's common shareholders.
"Overall sales for Plaintree were up 21% during fiscal 2011 from fiscal 2010 a good indication that the Company is regaining ground after the world wide recession" said David Watson, CEO. "Actual income from operations was $641,195 before reflecting any loss on disposal of assets. One of the key areas of growth for us is the stockpile covers we design and manufacture for the mining industry. If mineral prices stay high, it will bode well for us in fiscal 2012."
For more information on these results, please refer to Plaintree's annual 2011 financial statements together with the related Management's Discussion and Analysis report, copies of which can be obtained from the Company's website at www.plaintree.com and/or under Plaintree's name at www.sedar.com.
Declaration of Dividends on Class A Preferred Shares
The board of directors of Plaintree on July 13, 2011 declared a cash dividend of $10.91405 per Class A Preferred Share ($200,000 in the aggregate) payable on July 22, 2011 to the holders of record at the close of business on July 18, 2011. The Class A Preferred Shares are entitled to annual cumulative dividends of 8% on the $1,000 redemption amount of the Class A Preferred Shares ($1,466,000 per annum in the aggregate based on 18,325 Class A Preferred Shares currently being outstanding). As at the end of Fiscal 2011, an aggregate of $3,598,000 of dividends have accrued on the Class A Preferred Shares since their issuance on April 1, 2008 after taking into effect the current dividend declared above and past dividends declared and paid previously (see press releases dated February 26, 2009, July 24, 2009 and July 12, 2010). The Class A Preferred Shares were issued as part of the consideration paid to acquire Hypernetics and the Triodetic Group of Companies and are held by related parties (see press release dated April 2, 2008). The Class A Shares are not listed on any stock exchange. The payment of the dividends will be credited against the amount accrued to date on the Class A Preferred Shares.... Read more