Unique Broadband Systems, Inc. Reports Third Quarter 2013 Results

Fri Jul 26, 2013 5:00pm EDT

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Unique Broadband Systems, Inc. Reports Third Quarter 2013 Results

TORONTO, ONTARIO--(Marketwired - July 26, 2013) - Unique Broadband Systems, Inc. ("UBS") (TSX VENTURE:UBS) today reported its operating and financial results for the third quarter of fiscal 2013, ended May 31, 2013.

Recent operating and financial highlights (in thousands, except per share amounts) include:

  • UBS continues to operate under the court approved Company Creditors Arrangement Act ("CCAA");
  • On May 21, 2013, Madam Justice Mesbur of the Ontario Superior Court of Justice released reasons for decision pursuant to the trial between UBS, and Mr. McGoey and Jolian Investments Ltd. ("Jolian"), together referred to as the "Jolian Parties", which was completed on March 1, 2013. Based on these findings, Her Honour:
    • set aside the bonus and SAR cancellation awards granted to the Jolian Parties, which resulted in a reversal of $1,999 to restructuring charges;
    • concluded the Jolian Parties were not entitled to indemnification, which resulted in a reversal of legal accruals totaling $551;
    • made a disgorgement order of $200 payable by Jolian to UBS; and
    • found that Jolian was entitled to an "enhanced severance" claim and asked that Jolian file a revised proof of claim in respect of this. The Company's initial estimate of this amount, having regard to her Honour's decision, is approximately $2,853. Jolian's revised proof of claim is in excess of $4,000. The Company is seeking leave to appeal this finding, and the outcome of the appeal process will determine the validity and quantum of the claim.
  • UBS recorded a loss of $787, or $0.008 for the three months ended May 31, 2013, compared to a loss of $774 or $0.007 for the three months ended May 31, 2012. The variance resulted from, among other things, the adjustments to restructuring charges recorded in the quarter ended May 31, 2013, and the expiration of the Management Services Agreement with ONEnergy (formerly Look) on May 19, 2012.
  • As at May 31, 2013, UBS held cash ($160) and short-term investments ($2,799) totaling $2,969. Management continues to preserve cash while advancing the CCAA claims process as expeditiously as possible.

For further information on UBS' financial results, please review UBS' unaudited condensed consolidated interim financial statements and management's discussion and analysis of financial condition and results of operations for the three and nine months ended May 31, 2013 and 2012.

About Unique Broadband Systems, Inc.

UBS' shares are listed on the TSX Venture Exchange under the symbols "UBS". More information on UBS can be found at www.sedar.com.

The corporate information contained in this release includes forward-looking statements regarding future events and the future performance of UBS that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by UBS at the time of preparation, may prove to be incorrect. The actual results achieved may vary from the information provided herein and the variations may be material. Consequently, there is no representation by UBS that actual results achieved will be the same in whole or in part as those forecast.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Unique Broadband Systems, Inc.
Grant McCutcheon
Chief Executive Officer
(416) 613-2243

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