(Source: Business Wire)
Carmanah Technologies Corporation (TSX: CMH) today confirmed that the
company will change the reporting currency of its financial information
from Canadian dollars to US dollars, effective the third quarter of
2009. This action, previously communicated in the company's 2009 second
quarter report, reflects the profile of its revenue and net profit which
are now primarily generated in US dollars.
"The move to reporting in US dollars just makes sense," said Roland
Sartorius, CFO, Carmanah Technologies. "As our business has evolved in
recent years, so have the currencies in which we primarily transact our
business. Our pricing, manufacturing, and most of our expenses are in US
dollars, so we feel this change in reporting currency will better
reflect our business activities, mirror our transactional functional
currency and improve financial statement users' ability to compare our
financial results."
The change will be effective for the three months ending and nine months
ending September 30, 2009. These results will be reported on November
12, 2009 in US dollars. All comparative figures will be converted into
US dollars. Carmanah, which is registered and has its headquarters in
Canada, will maintain its listing on the Toronto Stock Exchange, with
its shares quoted in Canadian dollars.
Also starting the third quarter of 2009, the company has realigned its
reporting segments to better reflect how it views and manages its
business. The categories previously referred to as "Strategic" and
"Tactical," will now be segmented into:
"Signals & Illumination" (which includes solar-powered beacons for
marine, aviation & industrial applications and solar powered area
lighting),
"Systems & Other" (which includes mobile power systems, off grid and
grid tie solar power systems for industrial applications). For
comparative purposes, the Other category will reflect the businesses
which the company has recently exited such as home power, distribution
and edge-lit road signage).
The sale of the edge-lit interior signage business during the third
quarter of 2009, will be reported as "Discontinued operations" and will
be shown separately from continuing operations. According to Roland
Sartorius, "this realignment in our reporting essentially reflects the
end of our restructuring initiatives and will allow us to better present
the results from our growth focus."
For comparative purposes, key quarterly historical reported results,
dating back to the first quarter of 2008 and up to the second quarter of
2009, converted from Canadian dollars to US dollars and revised under
the new reporting segments, have been attached to this announcement.
Carmanah will release its third-quarter 2009 financial results on
Thursday, November 12, 2009 at 1:00 pm PT (4:00 pm ET). Conference call
scheduling and contact information will be announced closer to that
date. For more information, visit www.carmanah.com.
About Carmanah Technologies Corporation
As one of the most trusted names in solar technology, Carmanah has
earned a reputation for delivering strong and effective products for
industrial applications worldwide. Industry proven to perform reliably
in some of the world's harshest environments, Carmanah solar LED lights
and solar power systems provide a durable, dependable and cost effective
energy alternative.Carmanah is a publicly traded company, with common
shares listed on the Toronto Stock Exchange under the symbol "CMH". For
more information, visit carmanah.com.
Carmanah Technologies Corporation
"Roland Sartorius"
Roland Sartorius, Chief Financial Officer
This release may contain forward-looking statements. Often, but not
always, forward-looking statements can be identified by the use of words
such as "expects," "plans," "estimates," "intends," "believes," "could,"
"might," "will" or variations of such words and phrases. Forward-looking
statements involve known and unknown risks, uncertainties, and other
factors which may cause the actual results, performance, or achievements
of Carmanah to be materially different from any future results,
performance, or achievements expressed or implied by the forward-looking
statements. These statements are based on management's current
expectations and beliefs and are subject to a number of risks and
uncertainties which are described under the caption "Note Regarding
Forward-looking Statements" and "Key Information -- Risk Factors" and
elsewhere in Carmanah's Annual Report for the fiscal year ended December
31, 2008, as filed on SEDAR at www.sedar.com.
The risk factors identified in Carmanah's Annual Report are not intended
to represent a complete list of factors that could affect Carmanah.
Accordingly, readers should not place undue reliance on forward-looking
statements. Carmanah does not assume any obligation to update the
forward-looking information contained in this press release.
Table 1: Consolidated Balance Sheets
(Expressed in thousands of US Dollars)
2008 2009
Q1 Q2 Q3 Q4 Q1 Q2
Assets
Current assets
Cash and cash equivalents $ 3,760 $ 5,192 $ 4,072 $ 5,831 $ 6,842 $ 8,355
Accounts receivable, net 12,013 9,901 11,709 11,882 9,398 7,815
Inventories 9,397 9,284 8,782 6,274 5,353 4,124
Prepaid expenses and deposits 508 295 211 439 391 442
Income taxes receivable - - 140 - - -
Assets related to discontinued operations 1,785 3,295 2,791 1,606 1,349 1,258
27,463 27,967 27,705 26,032 23,333 21,994
Equipment and leasehold improvements, net 2,640 2,595 1,908 1,322 1,236 1,242
Intangible assets, net 746 699 674 156 445 1,496
Goodwill 10,101 10,168 9,558 - - -
Investment tax credits 826 826 902 1,321 1,446 1,712
Future income taxes 2,923 3,018 2,886 2,093 2,123 2,525
Assets related to discontinued operations 263 251 527 418 424 514
$ 44,962 $ 45,524 $ 44,160 $ 31,342 $ 29,007 $ 29,483
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 7,652 $ 7,044 $ 6,719 $ 7,444 $ 6,188 $ 5,471
Derivative liabilities 52 - - 144 157 81
Bank loan/Debt 2 1 - - - -
Deferred revenue 299 370 511 180 54 142
Income taxes payable 70 67 - - - -
Liabilities related to discontinued operations 1,104 2,148 1,546 747 675 728
9,179 9,630 8,776 8,515 7,074 6,422
Shareholders' Equity
Share capital 34,043 34,138 34,138 34,284 34,513 34,568
Contributed surplus 2,483 2,610 2,836 2,829 2,724 2,795
Accumulated other comprehensive income 7,590 7,828 6,346 1,672 904 2,642
Deficit, ending (8,333 ) (8,682 ) (7,936 ) (15,958 ) (16,208 ) (16,944 )
35,783 35,894 35,384 22,827 21,933 23,061
Total Liabilities and Shareholders' Equity $ 44,962 $ 45,524 $ 44,160 $ 31,342 $ 29,007 $ 29,483
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Table 2: Consolidated Income
Statements (Expressed in US Dollars)
2008 2009
Q1 Q2 Q3 Q4 Q1 Q2
Sales
Signals & Illumination $ 7,066 $ 5,510 $ 6,931 $ 8,344 $ 5,579 $ 5,930
Systems & Other 7,241 7,713 5,239 3,861 2,241 1,559
14,307 13,223 12,170 12,205 7,820 7,489
Cost of Sales
Signals & Illumination 3,683 2,997 3,439 4,632 3,325 3,354
Systems & Other 5,779 6,016 4,102 3,123 1,672 1,274
9,462 9,013 7,541 7,755 4,997 4,628
4,845 4,210 4,629 4,450 2,823 2,861
Operating Expenses
Sales and marketing 1,655 1,678 1,218 1,110 1,467 1,339
Product management & development 605 708 669 152 411 501
General and administration 2,079 1,958 1,713 2,062 1,449 1,193
Amortization 233 212 459 254 146 159
Restructuring - 541 466 426 426 26
4,572 5,097 4,525 4,004 3,899 3,218
Operating income/(loss) 273 (887 ) 104 446 (1,076 ) (357 )
Other income/(expense)
Gain/Loss on disposal of assets (4 ) - - (4 ) 7 -
Goodwill impairment - - - (8,192 ) - -
Intangible impairment - - - (452 ) - -
Gain on sale of Roadway assets - - - - 659 -
Interest and other income 29 26 13 7 11 43
Foreign exchange (gain)/loss 323 27 202 865 190 (525 )
348 53 215 (7,776 ) 867 (482 )
Income/(loss) before income tax 621 (834 ) 319 (7,330 ) (209 ) (839 )
Income tax (expense)/recovery
Current (150 ) (42 ) 182 - (2 ) (1 )
Future (169 ) (47 ) (222 ) (533 ) 98 245
(319 ) (89 ) (40 ) (533 ) 96 244
Income/(loss) from continuing operations 302 (923 ) 279 (7,863 ) (113 ) (595 )
Income/(loss) from discontinued operations (214 ) 574 467 (159 ) (137 ) (141 )
Net income/(loss) for the period 88 (349 ) 746 (8,022 ) (250 ) (736 )
Deficit, beginning of period (8,421 ) (8,333 ) (8,682 ) (7,936 ) (15,958 ) (16,208 )
Deficit, end of period $ (8,333 ) $ (8,682 ) $ (7,936 ) $ (15,958 ) $ (16,208 ) $ (16,944 )
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