Alternext: MNEMO: ALHEO
Revenues of $9.98 million, up by 41% from $7.1 million for the same
period in fiscal 2012.
Gross profit stable at 24.7%, compared to the same period in fiscal
Adjusted EBITDA1 at $726,693, compared to $332,808 for the same period in fiscal 2012.
Operating, selling and administrative expenses at 18.4% of revenues,
down compared to 25.8% for the same period in fiscal 2012.
Net earnings of $269,696, up compared to a net loss of ($88,216) for the
same period in fiscal 2012.
Operating activities generated $1,210,214 in net cash, compared to
$1,082,533 for the same period in fiscal 2012.
Order backlog still above the $20 million mark.
All amounts in Canadian dollars unless otherwise stated.
QUEBEC CITY, Nov. 13, 2012 /CNW Telbec/ - (TSXV: HEO) - H2O Innovation Inc. ("H2O Innovation" or the "Company") announces its results for the first
quarter of fiscal year 2013. During this quarter, the Company's
revenues increased by 41% to $9.98 M, up from $7.1 M in the comparable
quarter of the previous fiscal year. This sound level of revenues
enabled the Company to generate net earnings of $269,696 compared to a
net loss of ($88,216) for the same period in fiscal 2012. "In this
first quarter, the fundamental changes that we initiated over the last
months towards an enhanced culture of project execution and management
have impacted positively our gross profit. We are more than satisfied
with our performance, which is the result of a great team effort. I am
grateful to all our employees who have proactively embraced our new
culture", stated Frédéric Dugré, President and Chief Executive Officer of H2O Innovation.
The Company's revenues for the first quarter of fiscal 2013 totaled
$9.98 M, representing a $2.9 M or 41.2% increase, as compared with
revenues of $7.1 M for the same quarter of fiscal 2012. The increase is
largely attributable to revenues from water treatment projects which
reached $7.0 M compared to $4.3 M in the corresponding period of the
previous fiscal year, representing a 63.6% increase. More than half of
that $7.0 M revenues come from three projects in the oil & gas sector
in Western Canada. This is a direct consequence of the materialisation
of the Company's order backlog which remained above the $20 M mark as
at September 30, 2012.
The increase of the Company's revenues is also attributable to a lesser
extent to the recurring revenues from sales of specialty chemicals and
consumables which reached $2.9 M in this quarter compared with $2.8 M
in 2012, representing a 6.4% increase. Continued efforts are being
deployed to increase the Company's footprint through the addition of
new specialty chemical distributors. Moreover, management gave
particular attention to maintain service contracts on the Company's
installed base while continuing to build relationships with clients of
newly commissioned projects.
In this first quarter of fiscal 2013, the Company was able to generate a
24.7% gross profit, a level similar to the first quarter of fiscal year
2012. This is a significant improvement from the 19.4% gross profit
realized in the fourth quarter of fiscal year 2012.
Selected financial data
ended on September 30,
Net earnings (loss)
Basic and diluted earnings (loss) per share
The Company also brought in a solid $6.7 M in new bookings for water
treatment projects over the quarter. These new bookings kept the order
backlog above the $20 M mark as at September 30, 2012. This represents
a significant improvement from $0.9 M level of new bookings recorded in
the corresponding quarter of fiscal 2012. The level of new bookings
achieved in the first quarter of fiscal 2013 is in line with
management's expectations for the current fiscal year.
The Company's ratio of selling, operating and administrative expenses
("SG&A") as a whole over revenues amounted to 18.4% for this quarter,
down from 25.8% for the corresponding quarter of the previous fiscal
year. This decrease is partially attributable to the increase in volume
of business and reflects the Company's efforts to reach profitability
and maximize the use of its internal resources. Overall, the Company's
SG&A expenses remain in line with its fiscal year 2013 budget.
Adjusted EBITDA for the quarter was recorded at $726,693, compared with
$332,808 for the same period ended September 30, 2011. The higher
revenues recorded during the quarter compared with the corresponding
quarter of the previous fiscal year and the somewhat stable SG&A
expenses also contributed to generating solid positive adjusted EBITDA.
The Company quickly and strongly returned to positive adjusted EBITDA
this quarter after one quarter of negative adjusted EBITDA for the
fourth quarter ended June 30, 2012.
The Company's net earnings (loss) was $269,696 or $0.004 per share for
the first quarter of fiscal 2013 compared with ($88,216) or ($0.001 per
share) for the first quarter of fiscal 2012. This improvement is
primarily due to higher revenues which generated a solid gross profit
of 24.7% and to a tighter control of the Company's fixed costs.
"We have applied a tight control on project execution notably for
procurement and on hours spent on projects. Moreover, we keep
challenging SG&A and we are looking for additional savings on recurring
expenses", added Frédéric Dugré.
Operating activities generated $1,210,214 in cash for the period ended
September 30, 2012, compared with $1,082,533 of cash generated during
the corresponding period ended September 30, 2011. The rise is mainly
attributable to the improvement in net earnings in the first quarter of
fiscal year 2013 as compared with the corresponding period ended
September 30, 2011 and to the change in working capital items.
Annual General Meeting of Shareholders
H2O Innovation will hold its Annual General Meeting of Shareholders
tomorrow Wednesday, November 14, 2012 at 4 p.m. (Eastern Time) at its
headquarters located at 330 St-Vallier Street East, Suite 340, Quebec
City (Quebec), Canada.
Philippe Gervais, Chairman of the Board, and Frédéric Dugré, President
and Chief Executive Officer, are pleased to invite shareholders and all
other interested parties to attend the meeting, during which they will
review the results of fiscal 2012 and comment the results of the first
quarter of fiscal 2013.
The first quarter financial report is available on www.h2oinnovation.com and on NYSE Euronext Alternext's site. Additional information on the
Company is also available on SEDAR (www.sedar.com).
Certain statements set forth in this press release regarding the
operations and the activities of H2O Innovation as well as other communications by the Company to the
public that describe more generally management objectives, projections,
estimates, expectations or forecasts may constitute forward-looking
statements within the meaning of securities legislation.
Forward-looking statements concern analysis and other information based
on forecast future results and the estimate of amounts that cannot yet
be determined. Forward-looking statements include the use of words such
as "anticipate", "if", "believe", "continue", "could", "estimate",
"expect", "intend", "may", "plan", "potential", "predict", "project",
"should" or "will", and other similar expressions, as well as those
usually used in the future and the conditional, notably regarding
certain assumptions as to the success of a venture. Those
forward-looking statements involve a number of risks and uncertainties,
which may result in actual and future results of the Company to be
materially different than those indicated. Information about the risk
factors to which the Company is exposed is provided in the Annual
Information Form dated September 25, 2012 available on SEDAR (www.sedar.com). Unless required to do so pursuant to applicable securities
legislation, H2O Innovation assumes no obligation to update or revise forward-looking
statements contained in this press release or in other communications
as a result of new information, future events and other changes.
About H2O Innovation
H2O Innovation designs and provides state-of-the-art, custom-built, and
integrated water treatment solutions based on membrane filtration
technology to municipal, energy & natural resources end-users. H2O Innovation also provides a complete line of specialty chemicals and
consumables for membrane filtration and reverse osmosis systems. For
more, visit www.h2oinnovation.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) nor
the Alternext Exchange accepts responsibility for the adequacy or
accuracy of this release.
1 The definition of adjusted earnings before interest, tax depreciation
and amortization (adjusted EBITDA) does not take into account the
Company's changes in fair value of contingent considerations,
impairment of intangible assets, impairment of goodwill and share of
(earnings) loss in a joint venture and stock-based compensation costs.
The definition of adjusted EBITDA used by the Company may differ from
those used by other companies.
SOURCE: H2O INNOVATION INC.