Q3 Revenues Up 25% with Improved Operational
Efficiency
MONTREAL,
Nov. 12, 2012 /CNW Telbec/ - Xebec
Adsorption Inc. (TSX: XBC) ("Xebec"), a provider of biogas
upgrading, natural gas, field gas and hydrogen purification
solutions for the clean energy and crude-derived fuels displacement
markets, announced today its 2012 third quarter operating
results.
Third Quarter Highlights Include:
- Delivery of the Company's third biogas plant completed for
Canada's Fortis BC
- Orders for two high pressure natural gas dehydration and
purification units
- Revenue of $3.7 million in the
third quarter compared to $2.9
million for the same period in 2011, a 25% increase in the
period.
- Revenue for the first nine months in 2012 at $9.4 million, compared to $11.5 million for the same period in 2011, an 18%
decrease.
- Total order backlog stood at $11.8
million, compared to $7.1
million as of November 11,
2011.
"We are pleased to report to shareholders a 25%
increase in our revenues during our third fiscal quarter of 2012
and an overall increase in our operational performance," stated Mr.
Kurt Sorschak, Chief Executive
Officer of Xebec. "While there was a decrease in total revenue over
the first nine months of 2012, much of the shortfall can be
attributed to the working capital deficiency we faced in the first
part of the year. During this third quarter we remained
diligent in our effort to optimize overall efficiency in our
operations. As a result, new levels of cost reduction have been
achieved. These cost control measures are proving to be
very positive and as a result, we anticipate a return to
operational profitability within the next few quarters. As an
example, the competitive landscape within our industry is changing
and thus, we have begun to leverage our supply chain out of
China in order to increase long
term margins and profitability for various lines of products.
At the same time, we remain focused on growth and are preparing the
expansion of our Associated Gas Treatment (AGX) line of products
where we believe a tremendous opportunity is slowly
materializing. Our technology is highly competitive and can
help Customers in the oil and gas industry clean associated
gases. Our AGX products can eliminate the need to flare or
burn associated gases that cause harmful greenhouse gases and
emissions. As a result, customers can now turn waste gas into
a valuable clean energy resource as a replacement for diesel,
propane or heating oil. We are now assessing potential
synergies with a handful of possible strategic partners. While
these initiatives are still in the preliminary stages, we do see
opportunities materializing within the next few months."
Financial Highlights:
|
|
| |
Three months ended
September 30, |
% of
Change |
Nine months ended
September 30, |
% of
Change |
| |
2012 |
2011 |
|
2012 |
2011 |
|
| (In dollars) |
(unaudited) |
(unaudited) |
|
(unaudited) |
(unaudited) |
|
| Revenues |
3,690,855 |
2,945,291 |
25.3% |
9,425,901 |
11,504,851 |
-18.1% |
| Gross margin |
1,120,336 |
1,199,790 |
-6.6% |
1,967,849 |
4,103,696 |
-52.0% |
| Gross margin as a percentage of revenues |
30.4% |
40.7% |
|
20.9% |
35.7% |
|
| EBITDA* |
(525,207) |
2,296,942 |
|
3,257,538 |
1,736,911 |
|
| Net income (loss) |
(620,868) |
1,797,636 |
|
2,031,052 |
539,261 |
|
| Net income (loss) per share - basic
($/share) |
(0.02) |
0.04 |
|
0.05 |
0.01 |
|
| Net income (loss) per share - diluted
($/share) |
(0.02) |
0.04 |
|
0.04 |
0.01 |
|
| Weighted average number
of shares |
39,363,867 |
39,363,867 |
|
39,363,867 |
39,363,867 |
|
| As
at: |
|
|
|
September
30,
2012 |
December
31,
2011 |
|
| Total assets |
|
|
|
9,949,180 |
10,283,088 |
|
| Total Long term Liabilities |
|
|
|
1,336,337 |
1,346,660 |
|
| Equity |
|
|
|
1,876,572 |
(307,121) |
|
| As
at: |
|
|
|
November 5,
2012 |
November
11,
2011 |
|
| Back log |
|
|
|
11,841,636 |
7,085,556 |
|
* EBITDA is a non-IFRS financial
measure and the Company defines it as earnings from operations
excluding financial charges, taxes, foreign exchange loss (gain)
and amortization.
|
Financial Results
Revenues
Xebec posted revenues of $3.7 million for the third quarter of 2012, a
25.3% increase compared to $2.9
million in the third quarter of 2011. For the nine-month
period ended September 30, 2012, the
total revenues amounted to $9.4
million, an 18.1% decrease compared to $11.5 million for the same period last year. This
decrease is attributed to non-recurring license revenue of
$1.5 million in 2011 and working
capital deficiencies that impacted the Company for the first three
months of 2012.
Order Backlog
As of November 12,
2012, total order backlog stood at $11.8 million, compared to $7.1 million as of November 11, 2011.
Gross Margin
Xebec's gross margin for the third quarter of
2012 amounted to $1.1 million,
compared to $1.2 million for the same
2011 period. For the nine-month period ended September 30, 2012, the total gross margin
amounted to $2.0 million, compared to
$4.1 million for the same period last
year. Despite increasing margins from product sales, the non
recurring engineering contracts and license revenues prior to the
IP transaction of March 22, 2012
inflated the margins positively.
EBITDA and Net Loss
The EBITDA for the third quarter of 2012
amounted to $(0.5) million compared
to $2.3 million in the third quarter
of 2011. For the nine-month period ended September 30, 2012, the EBITDA amounted to
$3.3 million, compared to
$1.7 million for the same period last
year. The improved EBITDA is the result of our continuous efforts
to improve gross margin and control costs and the gain resulting
from the IP transaction of March 22,
2012.
The net loss for the third quarter of 2012
totaled $(0.6) million, or
$0.02 per share, compared to a net
income of $1.7 million, or
$0.04 per share for the same 2011
period. For the nine-month period ended September 30, 2012, net income was $2.0 million or $0.05 per share, compared to $0.5 million or $0.01 per share for the same period last year,
reflecting primarily a $3.1 million
increase in gain on disposition of assets and a $0.05 million decrease in selling and
administrative costs and $0.4 million
decrease in research and development.
Selling and administrative expenses were
$1.6 million in the third quarter of
2012 compared to $1.2 million for the
same period last year. For the nine-month period ended September 30, 2012, selling and administrative
were $4.4 million, compared to
$4.9 million for the same period last
year. The decrease in expenses is the results of the company's
restructuring and the implementation of cost control measures.
As of September 30,
2012, the Company's cash on hand before restricted cash
totaled $1.5 million, compared to
$(0.1) million as at September 30, 2011 and $0.4 million as at December 31, 2011.
Xebec 2012 third quarter Financial Statements
and Management's Discussion and Analysis include further
information on the Company.
2012 Third Quarter Financial Statements and Management's
Discussion and Analysis
The complete financial statements, notes to
financial statements and Management's Discussion and Analysis for
the three-month and nine-month periods ended September 30, 2012, are available on the
Company's Website at www.xebecinc.com or on the SEDAR Website at
www.sedar.com.
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of
clean energy solutions to corporations and governments looking to
reduce their carbon footprints. With more than 1,300 customers
worldwide, Xebec designs, engineers and manufactures innovative
products that transform raw gases into marketable sources of clean
energy mainly used as transportation fuel. Xebec's strategy is
focused on establishing leadership positions in markets where
demand for biogas upgrading, natural gas dehydration, liquefaction
and hydrogen purification is growing. Headquartered in Montreal (QC), Xebec is a global company with
two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution
network in North America and
Asia. Xebec trades on the TSX
under the symbol XBC. For additional information on the company and
its products and services, please visit the Xebec web site at
www.xebecinc.com.
Caution Concerning Forward-Looking
Statements
Certain statements in this press release may
constitute "forward-looking" statements within the meaning of
applicable securities laws. This forward looking information
includes, but is not limited to, the expectations and/or claims of
management of Xebec with respect to information regarding the
business, operations and financial condition of Xebec.
Forward-looking information contained in this press release involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Xebec or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. This list is not exhaustive of the
factors that may affect forward-looking information contained in
this press release. When used in this press release, such
statements use such words as "anticipate", "believe", "plan",
"estimate", "expect", "intend", "may", "will" and other similar
terminology. These statements reflect current expectations
regarding future events and operating performance and speak only as
of the date of this presentation. Forward-looking statements
involve significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
statements.
SOURCE XEBEC ADSORPTION INC.