Eurocontrol Files 2013 Financials
April 23 2014 - 6:36PM
Marketwired Canada
NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES.
Eurocontrol Technics Group Inc. (TSX VENTURE:EUO) ("Eurocontrol" or the
"Company"), a Canadian public company specializing in the acquisition,
development and commercialization of innovative energy security, authentication,
verification and certification technologies, today filed its 2013 year-end
Financial Statements and Management's Discussion and Analysis.
The year end results include an increase in fiscal year revenue to $6,448,834
compared to $5,008,040 for the year ended December 31, 2012, a 29% increase.
Following is a description of recent developments and outlook. During the 2013
fiscal year, the Company recognized an EBITDA of $844,533 ($74,309 in 2012)
resulting in a net loss of $442,221 for the year ($1,367,732 in 2012), The
Company adopted a more disciplined approach to capital allocation and
operational expenditures in 2013 in response to difficult market conditions.
Three Months Ended
December 31, Year Ended December 31,
2013 2012 2013 2012
$ $ $ $
Revenue 1,755,631 1,625,040 6,448,834 5,008,040
Cost of sales (1,022,546) (965,871) (3,694,337) (2,870,843)
------------------------------------------------
------------------------------------------------
Gross profit 733,085 659,169 2,754,497 2,137,197
------------------------------------------------
Expenses 617,447 625,039 3,223,950 3,206,259
Other expense (income) (50,144) 405,974 (48,086) 274,033
Income tax expense 6,931 7,736 20,854 24,637
------------------------------------------------
Net income (loss) 158,851 (379,580) (442,221) (1,367,732)
------------------------------------------------
------------------------------------------------
Basic and fully dilited loss
per share 0.00 (0.00) (0.00) (0.02)
------------------------------------------------
EBITDA 464,689 (7,160) 844,533 74,309
------------------------------------------------
------------------------------------------------
EBIT 190,202 (348,618) (323,996) (1,246,303)
------------------------------------------------
Bruce Rowlands, Chairman and Chief Executive Officer stated: "Over the past
year, we have taken a number of critical steps toward optimizing our business
and integrating operations between GFI and Xenemetrix resulting in a
significantly more efficient operation. We have also initiated a detailed review
of our operations in order to ensure we are well-positioned to take advantage of
recent improvements in our cost structure."
2013 Financial and Operating Highlights (i)
-- Achieved record annual revenue of $6,448,834, an increase of 29% from
2012
-- Achieved record gross margin of 43%
-- Recognized record EBITDA of $844,533 compared to $74,309 in 2012
-- Investment in R&D increased by 50% to $724,752 towards developing EDXRF
technology and automated 2D and 3D image processing technologies for the
Semiconductor and related microelectronics industries.
-- Generated cash flow from operating activities before changes in non-cash
working capital of $896,624 compared to $206,591 in 2012
-- Recognized an operating loss of $442,221 compared to $1,367,732 for the
2012 fiscal year
-- The Company achieved substantial cost efficiencies in 2013, especially
in terms of capital and cash operating expenditures
Fourth Quarter Financial and Operating Highlights (i)
-- Achieved record annual revenue of $1,755,631, an increase of 8% compared
to the 2012 fourth quarter
-- Achieved record margin of 42%
-- Recognized record EBITDA of $464,689 compared to a loss of -$7,160 for
the 2012 fourth quarter
-- Recognized an operating gain of $158,851 compared to a net loss of
$379,580 for the 2012 fourth quarter
(i) Certain comparative figures have been reclassified to conform to the current
year's presentation. These reclassifications did not affect prior years' net
losses.
Outlook
The Company is projecting base revenue of $7,500,000 for fiscal 2014, which
would represent a 16% increase from 2013 results. This estimate is based on
existing fuel marking projects with GFI contributing approximately 70% of
overall revenue and does not take into account possible new fuel marking
contract wins that may occur in 2014.
In the first quarter of 2014, we expect year-over-year revenue and earnings
growth. We expect our gross margin to decrease slightly from fourth quarter of
2013 due to a shift in product mix and we expect operating expenses to increase
as a result of investment in sales and marketing capabilities. We believe that
the market for our Petromark(TM) technology has strong long term growth
prospects.
The growth of Eurocontrol through acquisitions and integration of complementary
businesses is an important component of our business strategy. Eurocontrol
continues to seek opportunities to acquire or invest in business, products and
technologies to expand, complement or otherwise relate to our business.
About Eurocontrol Technics Group Inc.
Eurocontrol through its three wholly owned subsidiaries, Global Fluids
International S.A. ("GFI"), Xenemetrix Inc. ("Xenemetrix") and XwinSys Ltd.
("XwinSys"), is a leading provider and innovator of detection and marking
systems worldwide. GFI and Xenemetrix are global pioneers in developing and
implementing innovative molecular marking systems for the oil industry and
XwinSys is currently a development stage company. GFI's unique and proprietary
liquid authentication system, Petromark(TM), is the world's leading solution for
fully integrated oil marking, mixing and detection. Xenemetrix is a leading
designer, manufacturer and marketer of energy-dispersive x-ray fluorescence
("EDXRF") systems, a technology that is the most accurate and economic method
for determining the chemical composition of many types of materials, including
the analysis of petroleum oils and fuel. XwinSys is developing technology and
intellectual property that will combine 2D and 3D image processing technology
from Brossh
Inspection Systems Ltd. of Israel with Xenemetrix's EDXRF technology for
application in the semi-conductor manufacturing process.
For further information on Eurocontrol, please visit the Company's website at
www.eurocontrol.ca.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward-Looking Statements:
This press release contains forward-looking statements. More particularly, this
press release contains statements. Forward-looking statements are frequently
characterized by words such as "plan", "expect", "project", "intend", "believe",
anticipate", "estimate", "may", "will", "would", "potential", "proposed" and
other similar words, or statements that certain events or conditions "may" or
"will" occur. The forward-looking statements are based on certain key
expectations and assumptions made by Eurocontrol. Although Eurocontrol believes
that the expectations and assumptions on which the forward-looking statements
are based are reasonable, undue reliance should not be placed on the
forward-looking statements because Eurocontrol can give no assurance that they
will prove to be correct. Since forward-looking statements address future events
and conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. In addition to other risks
that may affect the forward-looking statements in this press release are those
set out in Eurocontrol's management discussion and analysis of the financial
condition and results of operations for the year ended December 31, 2013 which
is available at www.sedar.com. The forward-looking statements contained in this
press release are made as of the date hereof and Eurocontrol undertakes no
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Eurocontrol Technics Group Inc.
Bruce Rowlands
Chairman and CEO
(416) 361-2809
browlands@eurocontrol.ca
www.eurocontrol.ca