H2O Innovation Inc. (TSX VENTURE: HEO)(ALTERNEXT: MNEMO:ALHEO)
- Sales of $8,797,872, up from $2,807,212 in 2008.
- Gross margin up to 26.4%, from 22.3% in 2008.
- EBITDA increases to $1,180,650 compared to ($315,101) in
2008.
- Net income of $684,423, compared to a net loss of $454,959 in
2008.
- Operating activities generated $654,773 in cash for the period
compared to a $189,072 use of cash in 2008.
H2O Innovation Inc. ("H2O Innovation" or the "Company")
announces its third quarter results for fiscal year 2009. H2O
Innovation's sales continued their growth during this period, and
both a gross margin topping 25% and a net income were recorded for
a second consecutive quarter.
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CONSOLIDATED RESULTS Three-month period Nine-month period
(Unaudited) ending March 31 ending March 31
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2009 2008 2009 2008
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$CAD $CAD $CAD $CAD
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Sales 8,797,872 2,807,212 23,893,338 7,139,589
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Gross margin 2,321,069 625,131 6,115,663 1,548,804
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Gross margin 26.4% 22.3% 25.6% 21.7%
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EBITDA 1,180,650 (315,101) 2,417,343 (1,797,567)
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Net income (loss) for
the period and
comprehensive results 684,423 (454,959) 1,002,300 (2,181,634)
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Basic and diluted net
income (loss) per share 0.014 (0.012) 0.021 (0.060)
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Cash generated from
operating activities 654,773 (189,072) 1,435,584 (1,484,748)
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For the three-month period ended March 31, 2009, sales increased
significantly to reach $8,797,872 compared to $2,807,212 for the
same three-month period ended March 31, 2008. 57.4% of this
increase comes from organic growth; the remaining 42.6% is related
to acquisitions. Gross margin amounted to 26.4%, compared to a
gross margin of 22.3% for the corresponding quarter of the previous
fiscal year, which represents an 18.4% increase. EBITDA (Earnings
Before Interest, Taxes, Depreciation and Amortization) for the
quarter was $1,180,650, compared to ($315,101) for the same period
ended March 31, 2008. During the quarter, H2O Innovation recorded a
net income of $684,423 ($0.014 per share), compared to a net loss
of $454,959 ($0.012 per share) for the corresponding quarter of
2008. This is the second consecutive quarter in which H2O
Innovation records net income. The sales backlog stood at $22.9 M
as at March 31, 2009.
Before the change in operating working capital, operating
activities generated $654,773 in cash for the period ended March
31, 2009 compared to a $189,072 use of cash for the comparable
period ended March 31, 2008.
"We are very satisfied with H2O Innovation's financial results
for the third quarter of fiscal 2009. These results continued the
trend begun at the start of fiscal 2009 and build on the
performance of the first and second quarters. Sales continued at
healthy levels, and our appreciable sales backlog-despite the
current economic situation-is the result of the healthy
diversification of markets, applications, and regions in which the
Company is active. Additional gains in operational efficiency in
the project execution process helped us maintain a gross margin of
over 25% for the second consecutive quarter." stated Frederic
Dugre, President and CEO.
For the nine-month period ended March 31, 2009, sales reached
$23,893,338 compared to $7,139,589 for the comparable nine-month
period ended March 31, 2008. Gross margin has also noticeably
increased to 25.6% for the first nine months of 2009, up from 21.7%
for the corresponding nine months of 2008, representing an 18.0%
increase. EBITDA for the nine-month period ended March 31, 2008 was
$2,417,343, compared to a $1,797,567 loss before interest, taxes,
depreciation and amortization for the same period ended March 31,
2008. The Company recorded a net income of $1,002,300 ($0.021 per
share) for the first nine months of 2009, compared to a net loss of
$2,181,634 ($0.060 per share) for the same nine-month period of
2008.
Before the change in operating working capital, operating
activities generated $1,435,584 in cash for the nine-month period
ended March 31, 2009 compared to a $1,484,748 use of cash for the
comparable period ended March 31, 2008.
RECENT HIGHLIGHTS
Sales of services and consumable products remain strong
During the quarter, sales of services and consumable products
(replacement parts, membranes, cartridges, conditioners, cleaning
products and services) continued at a sustained level, making a
positive contribution to quarterly results. Sales of services and
consumable products, which totaled $1,639,774 in the third quarter,
helped lift overall sales of services and consumable products to
over $4 M in the first nine months of 2009. The company-wide
efforts made in the first three quarters of the fiscal year will be
sustained to better ensure that sales of services and consumable
products represent a growing share of the Company's overall
sales.
New contracts signed in municipal and industrial markets
On March 17, 2009, H2O Innovation announced it has been awarded
four new drinking water treatment and wastewater treatment systems
contracts in the United States and Canada totalling $5.1 M.
Subsequently to the end of the quarter, the Company has also
announced-on April 27, 2009-that it had signed several contracts
totaling $5 M to design, manufacture and deliver reverse osmosis
industrial process water treatment systems to companies in the
energy, power generation and consumer staples sectors in the United
States and in Egypt.
"H2O Innovation once again demonstrated its position as a key
player in the water treatment industry with its membrane and
membrane bioreactor filtration systems-processes with promising
growth potential according to a number of independent studies
published recently. H2O Innovation is well placed to continue
increasing its sales in municipal and industrial markets in Canada,
the United States, and elsewhere in order to meet its growth and
profitability targets for fiscal 2009 and set the stage for
promising future opportunities" concluded Frederic Dugre.
The third 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).
Conference call and webcast
H2O Innovation will hold a conference call today Wednesday May
13, 2009 at 10:30 A.M. EDT to review the financial results for the
third quarter. The call will begin by a presentation by Management
which will be followed by a question-and-answer period.
Shareholders, analysts and institutional investors are invited to
participate. The numbers to dial for access are 514-392-9193 in the
Montreal area or the toll-free number 1-866-226-1792 in North
America. Overseas callers dial 001-514-392-9193 for access. Media
representatives and other interested parties may participate in
listen only mode or may listen to the live webcast of the call
accessible through H2O Innovation's website at
www.h2oinnovation.com. The webcast will remain available for replay
on the Company's website for 90 days in the Investors section.
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.
About H2O Innovation
Exclusively dedicated to water treatment, H2O Innovation is
establishing itself as a key player in sustainable development and
the field of clean technologies. H2O Innovation designs, develops,
produces and integrates state-of-the-art water treatment systems
for the production of drinking water, the treatment of wastewater
and industrial processed water in the municipal, commercial,
pharmaceutical, industrial, mining, and energy markets. H2O
Innovation has approximately 100 employees and eight offices
including two manufacturing and assembly plants in Canada and the
United States. Shares of H2O Innovation are listed on the TSX
Venture Exchange (HEO) as well as on the Alternext Exchange (MNEMO:
ALHEO).
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) nor the Alternext Exchange accepts responsibility
for the adequacy or accuracy of this release.
Contacts: Source: H2O Innovation Inc. www.h2oinnovation.com
Contact: H2O Innovation Inc. Guillaume Ducharme 418-688-0170 ext.
329 guillaume.ducharme@h2oinnovation.com
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