MONTREAL,
Nov. 11, 2013 /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 2013 third quarter operating
results.
- Revenues of $1.9 million for the
third quarter of 2013 compared to $3.7
million for the same quarter in 2012, a 47.7% decrease
compared to the same period in 2012
- Net income of $0.5 million or
$0.01/share for the third quarter in
2013 compared to a net loss of $0.6
million or $0.02/share for the
same period in 2012.
Financial
Highlights: |
|
Three months ended
September 30, |
% of
Change |
Nine months ended
September 30, |
% of
Change |
|
2013 |
2012 |
|
2013 |
2012 |
|
(In dollars) |
(unaudited) |
(unaudited) |
|
(unaudited) |
(unaudited) |
|
Revenues |
1,929,497 |
3,690,855 |
-47.7% |
8,499,037 |
9,425,901 |
-9.8% |
Gross margin |
509,536 |
1,120,336 |
-54.5% |
1,337,252 |
1,967,849 |
-32.0% |
Gross margin as a percentage of
revenues |
26.4% |
30.4% |
|
15.7% |
20.9% |
|
EBITDA* |
558,473 |
(525,207) |
|
(571,459) |
3,257,538 |
|
Net income (loss) |
491,173 |
(620,868) |
|
(971,650) |
2,031,052 |
|
Net income (loss) per share -
basic ($/share) |
0.01 |
(0.02) |
|
(0.03) |
0.05 |
|
Net income (loss) per share -
diluted ($/share) |
0.01 |
(0.02) |
|
(0.03) |
0.04 |
|
Weighted average number of
shares |
39,363,867 |
39,363,867 |
|
39,363,867 |
39,363,867 |
|
As at: |
|
|
|
September
30,
2013 |
December
31,
2012 |
|
Total assets |
|
|
|
9,772,351 |
9,734,306 |
|
Total Long term Liabilities |
|
|
|
929,217 |
1,213,873 |
|
Equity |
|
|
|
707,939 |
1,737,339 |
|
As at: |
|
|
|
November
11,
2013 |
November
12,
2012 |
|
Back log |
|
|
|
5,939,255 |
11,841,636 |
|
* 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 $1.9 million for the third quarter of 2013, a
47.7% decrease compared to $3.7
million in the third quarter of 2012. The decrease is mainly
explained by the reduced number of contracts in the gas
purification product line.
Revenues were $8.5
million for the nine-month period ended September 30, 2013, compared to $9.4 million for the corresponding period. This
decrease of $0.9 million is due
mainly to the $2.7 million reduction
in sales of the gas purification segment, which was partly offset
by the increases in sales of natural gas dryers units and in the
compressed gas filtration segment respectively of $1.0 million and $1.1
million. Natural gas dryers and compressed gas filtration
product lines showed a significant increase in revenues this year
compared to the last fiscal year as a result of strengthen the
sales teams in these activity sectors.
Order Backlog
As of November 11,
2013, total order backlog stood at $5.9 million, compared to $11.8 million as at November 12, 2012. Part of the decrease in the
backlog is explained by a quicker turnaround of the projects and a
lower number of gas purification projects in the backlog.
Gross Margin
Xebec's gross margin for the third quarter of
2013 amounted to $0.5 million
compared to $1.1 million for the
same period in 2012. The decline in revenues versus the same period
last year is mostly explained by the decrease in the gas
purification product line.
For the nine-month period ended September 30, 2013, the total gross margin
amounted to $1.3 million,
compared to $1.9 million for the
same period in 2012. Margins were affected negatively by a
$200,000 provision for an ongoing
biogas project in Asia and the
completion of a biogas project with a negative margin during the
year. The sales increase in the gas compression and natural gas
dryer product lines mitigated the margin decrease caused by the
compressed gas purification product line.
EBITDA and Net Income (loss)
The EBITDA for the third quarter of 2013
amounted to $0.5 million
compared to $(0.5) million in
the third quarter of 2012. The improvement is mainly explained by
the additional $1.3 million
gross proceeds received for the remaining milestone related to the
sale of the IP portfolio to Air Products. The reduction of
$0.4 million in selling and
administrative expenses, mainly for salaries and commissions,
combined with the decrease of $0.6 million in gross margin also explained
the variation for EBITDA for the third quarter of 2013.
For the nine-month period ended September 30, 2013, the EBITDA amounted to
$(0.6) million compared to
$3.3 million for the same period
in 2012. The decline of $3.9 million in EBITDA, compared to the same
period last year, reflects primarily the $5.4 million gain on the sales of our IP
portfolio to Air Products in 2012, compared to additional proceeds
of $1.8 million in 2013 related
to this transaction.
The net income for the third quarter of 2013
totaled $0.5 million, or $0.01 per share, compared to a net loss of
$0.6 million, or $0.02 per share for the same period in 2012. This
increase of $1.1 million in net
income is explained by a gain of $1.3
million in Q3-2013 due to the additional proceeds pursuant
to the agreement with Air Product, combined with a decrease in
selling and administrative expenses by $0.4
million, mainly for salaries and commissions, and partly
offset by a decrease in gross margin by $0.6
million.
Net loss for the nine-month period ended
September 30, 2013 was $1.0 million, or $0.03 per share, compared to a net income of
$2.0 million or $0.05 per share, for the same period in 2012,
reflecting a one-time gain on the disposition of the IP portfolio
to Air Products of $5.4 million in
the second quarter of 2012, compared to a gain of $1.8 million on additional proceeds in 2013
and a decrease in net financial expenses of $0.7 million compared to the same period
last year.
Selling and administrative expenses were
$1.2 million in the third
quarter of 2013, compared to $1.6 million for the same period last year.
The decreased is mainly due to a reduction in salaries and
commissions, traveling expenses, recruiting fees, rent and
professional fees.
For the nine-month period ended September 30, 2013, the selling and
administrative expenses were $4.1 million, compared to $4.4 million for the same period last year.
The decrease is mainly explained by a reduction of professional
fees, amortization and travelling expenses.
As of September 30,
2013, the Company had $0.6 million of cash on hand and
$1.2 million of long-term debt
outstanding, of which $0.7 million is due within one year.
Resignation of Mr Patrick Palerme
On November 11,
2013, Patrick Palerme
resigned as a Director of the Company. His resignation was
effective as of the end of today's Board.
2013 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 period ended September 30, 2013, 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.