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Smartcool Releases Third Quarter Results

Tuesday, November 27, 2012 10:20 AM

VANCOUVER, Nov. 27, 2012 /CNW/ - Smartcool Systems Inc. (TSX-V: SSC) has filed its Financial Statements and Management Discussion and Analysis for the third quarter and first nine months of 2012.

Smartcool has narrowed its focus to target primarily direct sales to major accounts in Europe, and development of ECO3™ distribution partners in the USA. This renewed focus is delivering positive results, with a reduction in operating expenses and an increase in the success rate of developing accounts with both new and existing customers.

Smartcool was able to deliver a positive EBITA of $287,650 and came close to overall profitability for the quarter. Revenue for the quarter increased to $1,645,225 from $785,689 for the third quarter of 2011, an increase of 109%.  Operating expenses decreased to $1,010,912 from $1,259,019 for the third quarter of 2011, a decrease of 20%. Net loss for the quarter was $46,203 ($0.00 per share), compared to $1,103,803 ($0.02 per share) for the third quarter of 2011, a decrease of 96%.

The highlight of Smartcool's third quarter was the strengthening of its relationship with Sainsbury's as a Primary Contractor for the UK supermarket group's refrigeration energy efficiency project, Reset 6. This contract is in its second full year, and the food retailer continues to devote more capital directly to Smartcool as a Primary Contractor and indirectly through other contractors who have purchased Smartcool's products for installation in their own allotment of Reset 6 supermarkets.

In addition to Smartcool's work for Sainsbury's supermarkets, Smartcool began a roll-out of its ECO3™ to the smaller refrigeration systems in Sainsbury's Petrol Filling Stations (PFS).  This work began in the third quarter and will accelerate through 2013.

The roll-out of the ECO3™ to Sainsbury's PFS is significant not only for the expected revenue but also since it introduces the product to the UK market which has previously focused almost exclusively on the ESM™.

Likewise, Smartcool has not previously pursued distribution partners for the UK, but has recently begun a recruitment drive for a small group of highly qualified ECO3™ distributors across the country.  This is building on the model developed successfully in the USA.  Building a distribution network in the UK gives Smartcool the opportunity to deliver the ECO3™ to a market that is already familiar with the Smartcool brand and the benefits of its ESM™ product.

Smartcool continues to develop major new accounts in the UK and Europe, primarily with food retailers where the company's expertise continues to deliver unparalleled energy efficiency results.  This market vertical also has budget dedicated to energy efficiency projects, particularly for refrigeration, as this is a major operating expense that can easily be reduced with Smartcool's technology.

The distribution network in the USA continues to expand, as Smartcool builds upon its success with ECO3™ distributors in Florida.  The company is now working with a number of successful distributors in the Northeast, Arizona and into Mexico and Central America.  The launch of Smartcool's dedicated ECO3™ website at www.smartcooleco3.com and a new telemarketing campaign, has increased the visibility of the product to this market where momentum continues to build.

The full Statements and MD&A are available on Sedar and on Smartcool's website: http://www.smartcool.net/investors/financial-statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

About Smartcool
Smartcool Systems Inc. (TSX-V: SSC) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world.  The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems, with no risk to existing equipment performance.  www.smartcool.net and www.smartcooleco3.com

SOURCE: SmartCool Systems Inc.

EMAIL info@smartcool.net

USA Office
TEL +1 866 571 6554  

UK Office
TEL +44 1420 544868    

Canada Office
TEL +1 604 669 1388

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(Source: CNW )
(Source: Quotemedia)


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