MONTREAL, Aug. 28, 2014 /CNW Telbec/ - Xebec Adsorption
Inc. (TSXV: XBC-V) ("Xebec"), a provider of biogas upgrading,
natural gas, field gas and hydrogen purification and filtration
solutions for the clean energy and crude-derived fuels displacement
markets, announced today its 2014 second quarter operating
results.
- Revenues of $3.5 million for the
second quarter of 2014 compared to $2.7
million for the same quarter in 2013, a 28.3% increase
compared to the same period in 2013.
- Net loss of $0.7 million or
$0.02/share for the three month
period in 2014 compared to a net loss of $0.4 million for the same period in 2013.
Financial Highlights:
|
|
|
|
|
|
Three months
ended
June 30,
|
% of
Change
|
Six months
ended
June 30,
|
% of
Change
|
|
2014
|
2013
|
|
2014
|
2013
|
|
(In
dollars)
|
(unaudited)
|
(unaudited)
|
|
(unaudited)
|
(unaudited)
|
|
Revenues
|
3,521,039
|
2,744,601
|
28.3%
|
6,148,267
|
6,569,540
|
-6.4%
|
Gross
margin
|
990,939
|
447,905
|
121.2%
|
1,631,587
|
827,716
|
97.1%
|
Gross margin as a
percentage of revenues
|
28.1%
|
16.3%
|
|
26.5%
|
12.6%
|
|
EBITDA*
|
(627,968)
|
(218,448)
|
|
(1,412,554)
|
(1,200,893)
|
|
Net income
(loss)
|
(738,006)
|
(381,585)
|
|
(1,613,236)
|
(1,462,823)
|
|
Net income (loss) per
share - basic ($/share)
|
(0.02)
|
(0.01)
|
|
-
|
(0.04)
|
|
Net income (loss) per
share - diluted ($/share)
|
(0.02)
|
(0.01)
|
|
-
|
(0.04)
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
39,363,867
|
39,363,867
|
|
39,363,867
|
39,363,867
|
|
As at:
|
|
|
|
June 30,
2014
|
December
31, 2013
|
|
Total
assets
|
|
|
|
7,309,019
|
9,749,397
|
|
Total Long term
Liabilities
|
|
|
|
654,173
|
1,026,078
|
|
Equity
|
|
|
|
497,515
|
1,958,988
|
|
As at:
|
|
|
|
August
28,
2014
|
August
14,
2013
|
|
Back log
|
|
|
|
6,718,705
|
5,608,316
|
|
* 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 $3.5
million for the second quarter of 2014, a 28.3% increase
compared to $2.8 million in the
second quarter of 2013. The increase is mainly explained by the
revenues in the associated gas segment since the Company had no
contract in 2013 for the corresponding period.
Revenues were $6.1 million for the
six-month period ended June 30, 2014
compared to $6.6 million for the
corresponding period. This decrease is due mainly to the
$1.1 million decrease in sales
of custom biogas plants and Hydrogen PSAs, partly offset with a
$0.5 million increase in the
associated gas segment as explained above.
Order Backlog
As of August 28, 2014, total order
backlog stood at $6.7 million,
compared to $5.6 million as at
August 14, 2013. Part of the increase
in the backlog is explained by the increased orders for our NGX
products.
Gross Margin
Xebec's gross margin for the second quarter of 2014 amounted to
$1.0 million compared to $0.4 million for the same period in 2013. The
increase versus the same period last year is mostly explained by
the negative margin incurred on a biogas project completed during
the previous corresponding quarter and better margins realized on
the associated gas segment.
For the six-month period ended June 30,
2014, the total gross margin amounted to $1.6 million, compared to $0.8 million for the same period in 2013. Margins
were affected negatively in 2013 by a $200,000 provision for an ongoing biogas project
in Asia and by the completion of a
biogas project with a negative margin.
EBITDA and Net loss
The EBITDA for the second quarter of 2014 amounted to
$(0.6) million compared to
$(0.2) million in the second quarter
of 2013. The reduction is mainly explained by the additional
non-recurring $0.5 million gross
proceeds received in the previous corresponding quarter for the
remaining milestone related to the sale of the IP portfolio to Air
Products.
For the six-month period ended June 30,
2014, the EBITDA amounted to $(1.4)
million compared to $(1.2)
million for the same period in 2013. The EBITDA decline
reflects primarily the $0.5 million non-recurring gain on the
additional proceeds in Q2-2013 as mentioned above. Furthermore, the
six-month period ended June 30, 2014
shows better margins realized on slightly fewer sales to those of
the comparative period in 2013.
The net loss for the second quarter of 2014 totaled $0.7 million, or $0.02 per share, compared to a net loss of
$0.4 million, or $0.01 per share for the same 2013 period. The
slight increase in net loss is explained by with an increase in
research and development expenses of $0.04 million, the increase in selling and
administrative expense of $0.1 million related to professional fees
incurred to create Xebec Adsorption USA Inc. ("Xebec USA"). It is also explained by a non-recurring
gain of $0.5 million in Q2-2013
due to the additional proceeds pursuant to the agreement with Air
Product and an increase in net financial expenses for the
additional royalty of $0.06 million related to agreement mentioned
above.
Net loss for the six-month period ended June 30, 2014 was $1.6
million, or $0.04 per share,
compared to $1.5 million, or
$0.04 per share, for the same period
in 2013. Compared to the same period in 2013, the gross margin
increased by $0.8 million, while
research and development expenses and selling and administrative
expenses, each increased by $0.1 million. The increase of the net loss
for the six-month period ended June 30,
2014 is also explained by the aforementioned non-recurring
gain of $0.5 million in
Q2-2013.
Selling and administrative expenses were $1.6 million in the second quarter of 2014,
compared to $1.5 million for the same
period last year. The increased is mainly due to higher
professional fees incurred for the creation of Xebec USA.
For the six-month period ended June 30,
2014, the selling and administrative expenses were
$3.0 million, compared to
$2.9 million for the same period last
year. The increase is explained by the aforementioned professional
fees.
As of June 30, 2014, the Company
had $1.3 million of cash on
hand, $0.1 million of bank loan
and $0.8 million of long-term
debt outstanding, of which $0.3 million is due within one year
2014 Second 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 six and
three-month periods ended June 30,
2014, 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 TSXV
under the symbol XBC-V. Since February
25th 2014, Xebec has opened a sales office in Houston, Texas (USA), in order to cover sales
opportunities in the United
States. 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.