H2O Innovation Announces its 2008-2009 First Quarter Results - Sales and Gross Margin Growth
November 14 2008 - 8:00AM
Marketwired
H2O Innovation (2000) Inc. ("H2O Innovation" or the "Company")(TSX
VENTURE: HEO)(ALTERNEXT:MNEMO:ALHEO) announces the first quarter
results for fiscal year 2008-2009. During this period, H2O
Innovation recorded 126% sales growth-mainly in the United States
market-and a gross margin topping 20% for a fifth consecutive
quarter.
CONSOLIDATED RESULTS
------------------------------------------------------------
Three-month period
ending September 30
------------------------------------------------------------
(Unaudited) 2008 2007
------------------------------------------------------------
$CAD $CAD
------------------------------------------------------------
Sales 5,549,457 2,456,220
------------------------------------------------------------
Gross margin 1,352,926 497,013
------------------------------------------------------------
Gross margin 24% 20%
------------------------------------------------------------
EBITDA 29,927 (864,006)
------------------------------------------------------------
Net loss for the period
and comprehensive results (409,271) (977,808)
------------------------------------------------------------
Basic and diluted net
loss per share (0,009) (0,028)
------------------------------------------------------------
For the three-month period ending September 30, 2008, sales
increased by 126%, for a total of $5,549,457 compared to $2,456,220
for the same period ended September 30, 2007. Forty-two percent
(42%) of this growth is organic; the remainder (58%) is related to
the acquisitions of Sigma Environmental Solutions Inc., Wastewater
Technologies, Inc. and Itasca Sytems, Inc. completed by the Company
during the last year.
Gross margin amounted to $1,352,926 for the period, compared to
$497,013 for the comparable period of 2007. Gross margin amounted
to 24%, a 20% increase over the same period of the previous
financial year. This is the fifth consecutive quarter in which H2O
Innovation had a gross margin over 20%. EBITDA (Earnings Before
Interest, Taxes, Depreciation and Amortization) for the quarter was
$29,927, compared to ($864,006) for the same period ended September
30, 2007. The net loss has dropped significantly, from $977,808
($0.028 per share) for the three-month period ended September 30,
2007, to $409,271 ($0.009 per share) for the same period ended
September 30, 2008.
Before the change in operating working capital, operating
activities generated $49,243 in cash for the period ended September
30, 2008 compared to a $780,600 use of cash for the comparable
period ended September 30, 2007, marking a major increase in 2008
given the 126% jump in sales over 2007.
RECENT HIGHLIGHTS
Acquisition in the United States
The first quarter of fiscal 2008-2009 was also marked by an
important acquisition. In line with the objectives outlined in its
strategic plan, the Company achieved higher market diversification
through its acquisition of Itasca Systems Inc. a company located in
Minneapolis (Minnesota, United States) that specializes in treating
industrial wastewater using membrane filtration technology, in
particular for the energy sector. This acquisition diversifies the
services that the Company offers by enabling it to better serve the
industrial sector, reduce its relative dependence on the municipal
market, and maximize its business development potential.
Subsequent event
During the second quarter of fiscal 2008-2009, the Company
announced has been awarded a contract by Petro-Canada Oil Sands
Inc. on behalf of Fort Hills Energy L.P. to build six water
treatment units for the Fort Hills mine (Alberta, Canada), which is
under construction. This $9,400,000 contract is the biggest in H2O
Innovation's history.
"This quarter was pivotal for H2O Innovation and much progress
was made. The achievements reflect management's energy and ongoing
efforts to meet Company development objectives. Over this period,
management has taken actions that have already led to Company
growth and that are an indication of its undertakings to generate
positive cash flows and improve the Company's results" stated
Frederic Dugre, President and CEO.
The first quarter financial report is available on the Company's
Website (www.h2oinnovation.com) and on Alternext's site
(www.alternext.fr). Additional information on the Company is also
available on SEDAR (www.sedar.com).
About H2O Innovation
H2O Innovation's mission is to design, develop, produce and
integrate state-of-the-art, environmental friendly products
dedicated to the production of drinking water, the treatment of
wastewater and industrial processed water, and the reclamation of
water.
Prospective disclosures
This press release may contain prospective disclosures
representing current expectations of H2O Innovation and are subject
to certain risks and uncertainties. For details of these risks and
uncertainties please refer to the Company's Annual Information Form
dated September 26, 2008 available on SEDAR (www.sedar.com). H2O
Innovation rejects any obligation to revise or update the
prospective disclosures contained in this press release.
The TSX Venture Exchange and the Alternext Exchange assume no
responsibility for the relevance or accuracy of this press
release.
Contacts: Source: H2O Innovation (2000) Inc.
www.h2oinnovation.com H2O Innovation (2000) Inc. Guillaume Ducharme
Director of Communications 418-688-0170
gducharme@h2oinnovation.com
H2O Innovation (TSXV:HEO)
Historical Stock Chart
From Jun 2024 to Jul 2024
H2O Innovation (TSXV:HEO)
Historical Stock Chart
From Jul 2023 to Jul 2024