TORONTO,
March 1, 2013 /CNW/ - Innovative
Composites International Inc. ("ICI" or the "Company"), (TSXV: IC)
(OTCQX: ICIZF, a producer of proprietary engineered composite
products, reported its financial results for the fiscal 2013 first
quarter ended December 31, 2012. All
figures are in U.S. dollars unless otherwise stated.
"Our priority at this time is to address the
demand payment notice that we received from the holder of our
convertible debenture. To that end, we are taking steps to
ensure that we will continue to conduct operations and business
development activities going forward, including actively seeking
new sources of funds to refinance the convertible debenture," said
Terry Ball, CEO of ICI. "With
respect to our financial results, the first quarter of fiscal 2013
was a period of transition. We were able to significantly
reduce our operating costs, increasing the gross margins on our
products, while at the same time strengthen our relationships with
existing clients. We are focused on developing new sources of
revenue while continuing to enhance our existing portfolio of
offerings."
Selected Financial and Operational
Highlights
- Revenue was approximately $587,000 for the quarter, compared with
$907,000 for the same period in
2012.
- Gross margin for the quarter, after adjustment for IFRS related
items, was approximately $187,000
compared to $121,000 for the same
period in 2012.
- Total expenses declined by approximately 20% in the quarter
compared to the first quarter of 2012.
- Continued to receive a steady flow of purchase orders for
specifically engineered enclosures for world leader in heating,
air-conditioning and refrigeration ("HVAC") equipment.
- New "load floor" design for automotive sector utilizing
proprietary RMor Skin certified by independent laboratory as
meeting or exceeding the specifications of Chrysler, Ford and
GM.
Financial Performance
ICI had revenue of $587,000 for the first quarter of fiscal 2013
compared to $907,000 for the first
quarter of fiscal 2012. The decline in revenue was substantially
due to the departure of one customer who made the decision to
manufacture in-house the product that the Company was
supplying. The revenue for the quarter was generated
primarily from the sale of specifically engineered enclosures as
from sales of Mattex and load floors to the automotive sector.
Cost of Sales for the first quarter of fiscal
2013 (after deducting the reallocation of amortization and
depreciation expenses that IFRS requires be included in Cost of
Sales) was $401,000, compared to
$786,000 for the first quarter of
fiscal 2012. The Gross Margin for the first quarter of fiscal 2013
(calculated using the adjusted Cost of Sales) was $187,000 or 32%, compared to $121,000 or 13% for the first quarter of fiscal
2012. The increase in gross margin reflects the Company's
efforts to reduce operating expenses and increase
efficiencies.
Total expenses for the quarter ended
December 31, 2012 were $1,776,000, compared to $2,226,000 for the same period last year. The
decrease in expenses reflects the Company's efforts to reduce its
operating burn rate.
ICI recorded a net loss for the first quarter of
fiscal 2013 of $1,819,000 or
$0.02 per share, compared to a net
loss of $1,752,000, or $0.03 per share, for the same period in fiscal
2012.
Cash flow used in operating activities for the
first quarter of fiscal 2013 were $1,231,000 compared to $1,716,000 for the same period in fiscal
2012.
As at December 31,
2012, ICI had cash and cash equivalents of $2,805,000, compared to $4,156,000 as at September
30, 2012.
ICI has filed its financial statements for the
first quarter of fiscal 2013 ended December
31, 2012 and related Management's Discussion and Analysis
(MD&A) with securities regulatory authorities. ICI's financial
statements, MD&A and related documents are available via
www.sedar.com as well as through the Company's website,
www.innovativecompositesinc.com.
About Innovative Composites International
Inc.
Headquartered in Toronto, Canada, Innovative Composites
International Inc. (TSXV: IC) (OTCQX: ICIZF) is a high-tech
engineering and manufacturing company whose goal is to utilize its
proprietary "green" composite materials and building systems to
provide innovative, engineered product solutions to markets that
include prefabricated modular housing, shelters and containers, and
industrial applications.
To find out more about ICI please visit our
website at: www.innovativecompositesinc.com.
Neither 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.
"Statements made in this press release
include forward-looking statements that involve a number of risks
and uncertainties. These statements relate to future events or
future performance and reflect management's current expectations
and assumptions. A number of factors could cause actual events,
performance or results to differ materially from the events,
performance and results discussed in the forward-looking
statements, such as the economy, generally, competition in its
target markets, the demand for ICI's products and the availability
of funding. These forward-looking statements are made as of the
date hereof and ICI does not assume any obligation to update or
revise them to reflect new events or circumstances. Actual events
or results could differ materially from ICI's expectations and
projections."
SOURCE Innovative Composites International Inc.
