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.