FSI Announces 2013 Fourth Quarter and Year-End Financial Results
April 30 2014 - 9:03PM
Marketwired
FSI Announces 2013 Fourth Quarter and Year-End Financial Results
CALGARY, ALBERTA--(Marketwired - Apr 30, 2014) - Richard Ball,
Chief Executive Officer of FSI Energy Group Inc. ("FSI" or the
"Company") (TSX-VENTURE:FSI), is pleased to announce financial
results for the three and twelve months ended December 31,
2013.
Financial Highlights: |
Twelve months ended December 31: |
|
Three months ended December 31: |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
Cash
flow provided by (used in) operations |
(5,329,847 |
) |
5,810,506 |
|
(233,444 |
) |
2,682,051 |
|
Cash
flow provided by (used in) operations - per share |
(0.17 |
) |
0.18 |
|
(0.01 |
) |
0.08 |
|
Revenue |
12,146,549 |
|
3,014,979 |
|
364,349 |
|
184,112 |
|
Comprehensive income (loss) |
771,819 |
|
(733,143 |
) |
(429,521 |
) |
45,821 |
|
EBITDA1 |
1,240,460 |
|
(1,223,543 |
) |
(523,231 |
) |
(626,723 |
) |
With the delivery
and completion of most the installation of two major brine plants
completed by the third quarter of 2013, FSI focused on contract
negotiation for a major brine plant. As a result, no revenue was
generated from the foreign segment during this period of
pre-contract activity and revenue from the quarter of $364,349 was
derived solely from the domestic segment, which was up 98% over the
same quarter last year.
The limited revenue
generating activity resulted in an operating loss of $557,582 for
the quarter or 15% lower than the same quarter last year on the
higher domestic revenue. Despite this, the comprehensive loss for
the quarter was $429,521 compared to comprehensive income of
$45,821 the same quarter last year which resulted from the Company
recording a deferred tax recovery of $700,000 on tax assets
previously unrecognized.
Although the low
activity generated a loss for the quarter, revenue for the year of
$12,146,549 mostly from two major brine plants drove operating
profit and comprehensive income for the year to $1,031,232 and
$771,819, respectively, up from last year's operating loss and
comprehensive loss of $1,365,448 and $733,143, respectively.
The Company's
liquidity remains firm as:
- Current assets of $1.3 million, is more than sufficient to
service the Company's short term monetary liabilities of $0.9
million (excluding loan from bank which is payable only upon
demand).
- The Company is in compliance with its financial covenants and
has $0.6 million of unused loan facilities to fund future
operations
Although cash used
in operations was $5.3 million for year, this primarily reflects
that most of the revenue recognized on the brine plants in 2013 was
collected the prior year through customer deposits. In addition, it
also reflects significant payments to trade payable vendors in
respect of brine construction activity the last quarter of
2013.
Further detail may
be found in the Company's Management Discussion and Analysis, which
is available on SEDAR.
About FSI
Through its wholly
owned subsidiary FSI International Services Ltd., FSI Energy Group
Inc. is a Calgary-based manufacturing and service company
specializing in customized filtration, filtration-related
technologies and Brine Plants for the energy, chemical, and water
treatment industries.
Non-GAAP Financial
Measures
EBITDA does not have
a standard definition prescribed by GAAP and therefore may not be
comparable to similar measures disclosed by other companies. The
Company utilizes these measures in making operating decisions and
assessing the Company's financial performance and as an indicator
of its ability to service its liabilities. This non-GAAP measure
has not been presented as an alternative to net income (loss) or
any other measure of performance or liquidity prescribed by GAAP.
EBITDA is calculated as follows:
Financial Highlights: |
Twelve months ended December 31: |
|
Three months ended December 31: |
|
|
2013 |
2012 |
|
2013 |
|
2012 |
|
Comprehensive income (loss) |
711,819 |
(733,143 |
) |
(429,521 |
) |
45,821 |
|
Addback (subtract): |
|
|
|
|
|
|
|
Deferred income tax expense (recovery) |
275,000 |
(700,000 |
) |
(143,000 |
) |
700,000 |
|
Finance costs |
48,715 |
94,778 |
|
12,114 |
|
22,869 |
|
Depreciation included in cost of sales |
122,973 |
91,184 |
|
30,600 |
|
2,468 |
|
Depreciation |
21,953 |
23,638 |
|
6,576 |
|
7,055 |
|
EBITDA1 |
1,240,460 |
(1,223,543 |
) |
(523,231 |
) |
(626,723 |
) |
Forward-looking
Information Cautionary Statement
Certain information
contained in this press release, including information and
statements which may contain words such as "could", "plans",
"should", "anticipates", "expect", "believe", "will", and similar
expressions and statements relating to matters that are not
historical facts are forward-looking information. In particular,
this press release contains forward-looking information about the
completion of the Brine Plant export contracts and the revenues
associated therewith. Forward-looking statements are based on the
opinions and estimates of management relying on their experience at
the date the statements are made, and are subject to a variety of
risks, uncertainties and other factors that could cause actual
events or results to differ materially from those anticipated in
the forward-looking statements including, but not limited to, the
risk factors discussed in FSI's MD&A and other continuous
disclosure documents. All of the forward- looking information
contained in this press release is qualified by this cautionary
statement. There can be no assurance that the actual results or
developments anticipated by FSI, as expressed or implied by the
forward-looking information, will be realized or, even if
substantially realized, that they will have the expected
consequences to or effects on FSI or its business operations. FSI
disclaims any intention or obligation to update or revise any
forward-looking information as a result of new information or
future events. Readers should not place undue reliance on
forward-looking information.
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.
FSI Energy Group Inc.Richard BallPresident and CEO(403)
571-4230(403) 230-3106www.fsigroup.ca