Synex International Inc first quarter of fiscal 2012
November 05 2011 - 3:57PM
PR Newswire (Canada)
TSX : SXI VANCOUVER, Nov. 8, 2011 /CNW/ - For the three months
ended September 30, 2011 ("Q1 2012"), revenue from energy sales and
consulting increased to $828,377 as compared to $424,526 in the
corresponding period in fiscal 2011 ("Q1 2011"). This
increase in revenue is due to increases in electricity sales from
each of the Mears Plant, the Cypress Plant and the Kyuquot Utility
and an increase in consulting revenue. The net loss for Q1 2012 was
$89,790 as compared to a net loss of $73,866 in Q1 2011. A
net loss in the first quarter is expected as the generation from
hydro plants in the first quarter normally represents less than 10%
of annual forecast generation. In Q1 2011, the Company had
income of $300,000 from the proceeds of an option to a third party
for the purchase of some water licences and related rights of the
Engineering Division of the Company (the "Option
Payment"). Excluding the Option Payment, Q1 2012 is improved
from Q1 2011 by about $283,882 with the higher revenues from
operations being only partly offset by higher interest on long term
debt and higher salaries, general and administrative
expenses. The loss per share in Q1 2012 was $0.00 as compared
to a loss per share of $0.00 in Q1 2011. On August 19, 2010, the
Company announced that the Engineering Division had entered into an
Option Agreement dated July 23, 2010 with an unrelated third
party. The Option Agreement provides the third party with the
right to purchase a number of applications for water licences and
land tenures held by the Engineering Division as well as other
related rights. The Option Agreement has a latest exercise
date of December 2011. In a partly related transaction to the
Option Agreement, during the spring of Fiscal 2010, the Company
participated as a bidder in the purchase of the assets from the
Receiver for Hawkeye Energy Corporation ("HEC"). During the
Court process to approve the sale of the HEC assets to the Company,
Hawkeye Power Corporation ("HPC") opposed the sale on the basis of
an unregistered prior right to the assets. During Q2012, the
Company and HPC completed the trial procedure and a decision of the
Court is now pending. During Q1 2012, the Barr Creek Limited
Partnership ("BCLP") and its general partner Barr Creek Hydro Ltd.
("BCHL") continued to advance the Barr Creek Hydro Project (the
"Barr Project"). The Company holds an 80% interest in BCLP
and BCHL with the Ehattesaht Tribe holding the remaining 20% of
BCLP and BCHL. As of September 30, 2011, construction of the
Barr Project was about 70% complete. The current schedule is
for substantial completion of the Barr Project before the end of
calendar 2011. In late December 2004, the Company invested $500,000
for a 12.5% share of the Upnit Power Limited Partnership, which
included a 12.5% share of the General Partner of the Limited
Partnership ("Upnit"). During July 2011, Upnit executed an
amendment to its loan agreement which included for the term of the
loan to be extended for five years beyond July 15, 2011. At
September 30, 2011, the Company had a cash balance of
$359,225. Loans payable at September 30, 2011 included a
current portion of $9,198,979 and a non-current portion of
$6,456,699. The Company is continuing to utilize much of its
free cash flow to support development of the Barr Project. The
Company has commenced reporting financial results under IFRS as of
the first quarter of 2012. The financial results under IFRS
are not significantly different than the financial results would
have been under GAAP, although there has been a reduction in assets
due primarily to differences in amortization treatment
between IFRS and GAAP. The Company has applications for water
licences and land tenure on over 70 potential hydroelectric sites
and is currently advancing the development of two proposed new
hydroelectric plants on Vancouver Island. Synex International Inc.
is a public company, trading on the TSX since 1987, with business
interests that cover the development, ownership and operation of
electrical generation facilities and the provision of consulting
engineering services in water resources, particularly hydroelectric
facilities. "signed" ______________________________________ Greg
Sunell, President This press release contains forward-looking
statements that involve risks and uncertainties. These statements
reflect our current expectations and are subject to change. They
are subject to a number of risks and uncertainties including, but
not limited to, changes in economic conditions, risks associated
with the construction and operation of hydroelectric facilities and
changes in government policies. Synex International Inc. CONTACT:
400 - 1444 Alberni Street, Vancouver BC V6G 2Z4Phone (604) 688 8271
Ext. 309 Fax (604) 688 1286E-mail: gsunell@synex.com Web Site:
www.synex.com/
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