Innovative Composites Reports FY2011 Financial Results
January 17 2012 - 12:33PM
PR Newswire (Canada)
- Breakthrough year driven by sales growth and initial
commercialization - TORONTO, Jan. 18, 2012 /CNW/ - Innovative
Composites International Inc. (OTCQX: ICIZF), ("ICI" or the
"Company"), a producer of patented protected composite products
targeting the multi-billion dollar housing and transportation
markets, reported today its financial results for the three and
12-month periods ended September 30, 2011. All figures are in
U.S. dollars unless otherwise stated. "Fiscal 2011 was a watershed
year for the Company as we achieved a number of significant
milestones and established tremendous momentum to capitalize on
numerous commercial opportunities before us," said Terry Ball, CEO
of ICI. "Most notably, due to our sales efforts we signed a
number of agreements during the fiscal year, validating our
products and technology and began the process of adding a second,
much larger manufacturing facility in South Carolina." Selected
2011 Financial and Operational Highlights -- Revenue of
approximately $490,000 for fiscal 2011, the largest in company
history as fiscal 2011 marked the start of transition from a
development stage company to commercialization -- Signed a six year
lease agreement for a 126,000 square foot manufacturing facility
located in Orangeburg, South Carolina, 60 miles from the Charleston
ocean port -- Signed an agreement, through its partner Barclays
Gedi Group, to supply EcoScapeTM housing for large scale projects
in Haiti and Ghana -- Invited to and participated in an expo as the
finalist of the "Building Back Better Communities" Initiative
housing competition in Haiti -- Secured a purchase order for an 880
square foot EcoScapeTM modular home to be constructed on the island
of Antigua to serve as a show home for a large scale affordable
housing program -- Received purchase orders for the supply of
StructureLiteTM panels to a leading North American automotive
aftermarket company. The program is expected to represent
approximately US$5 million in annual revenue over an estimated five
to six year lifespan -- Secured orders for its composite mobile
storage containers from Canadian customers and a US-based moving
and storage company to be placed in its fleet for testing in real
life conditions -- Completed a project to supply a maternity ward
building for a hospital in Milot, Haiti utilizing the EcoScopeTM
building system -- Raised approximately CDN$5 million from the
early exercise of the outstanding share purchase warrants expiring
over the next three years -- Completed a short form prospectus
offering for gross proceeds of CDN$4.8 million -- Strengthened its
Board of Directors by adding the Hon. John Reynolds, Robert Pulte
and Christopher Kruba as directors -- Named as one of the top 50
companies on the TSX Venture Exchange for 2011 Highlights
Subsequent to Year-end -- Signed an agreement with Millenium Brasil
Limitada and Green Intelligence Corporation to supply EcoScapeTM
modular homes for large housing projects in Brazil. Agreement is
anticipated to represent approximately US$160 million in revenue
over the next three years -- Completed the acquisition of Eleison
Composites LLC, a manufacturer of fiber reinforced thermoplastic
skin material utilized in ICI's products -- Received first order
from Subway® restaurant owner/operator Liberty Eagle Holdings,
based in Tanzania, for a custom designed structure to be used as a
Subway® restaurant in Dar-es-Salaam using the EcoScapeTM building
system -- Signed an agreement with Fence-Crete Holdings to make use
of ICI's StructureLiteTM panels in highway fencing applications in
Canada on an exclusive basis. Agreement is anticipated to represent
approximately CDN$10 million in annual revenue -- Completed a
bought deal public offering for gross proceeds of CDN$10.1 million
-- Began trading on the OTCQX under the symbol ICIZF for the
purposes of providing additional liquidity and increased access for
US based investors Financial Performance ICI had approximate
revenue of $487,000, an increase of 246.8% or approximately
$346,000, for the 12-month period ended September 30, 2011 compared
to approximately $140,000 for the fiscal year 2010. The record
revenue for the period was a result of the beginning of market
acceptance for its products and the beginning transition from a
development stage company to a commercially active company during
the fiscal year. The Company expects fluctuations in its
revenue initially as more products are introduced to the market
place and the Company begins to ramp up its South Carolina
facility. Cost of sales for fiscal 2011 was approximately $399,000,
up 227.6% or approximately $278,000 compared to fiscal 2010.
The increase was due to the increase in sales activity throughout
the fiscal year. On a percentage basis, cost of sales was
82.1% of sales during the 12-months ended September 30, 2011 versus
86.8% for the 12-months ended September 30, 2010. ICI expects
continued improvements in its gross profit margin through continued
strengthened relationships with suppliers, vertical integration,
and achieving certain economies of scale through increased sales
and capacity utilization. Total expenses for the 12-months ended
September 30, 2011 were $3.5 million, an increase of 23.0% or
approximately $652,000 compared to $2.9 million for the same period
last year. The increase in expenses were the result of the
overall growth and expansion of the Company, specifically relating
to an increase in sales initiatives, expansion of the manufacturing
facility in Michigan, ramping up several commercialization programs
and costs incurred in new product and process development. ICI
recorded a net loss for fiscal 2011 of $5.6 million or $0.10 per
share. These compare to a net loss of $4.5 million, or $0.12
per share, for fiscal 2010. Cash flow used in operating activities
for fiscal 2011 were $4.1 million, an increase of approximately
$400,000 compared to $3.7 million for fiscal 2010. The
increase is primarily due to increasing inventory and prepaid
expenses as well as an increase in operating expenses as discussed
previously. At September 30, 2011, ICI had working capital of $7.2
million, including cash and cash equivalents of $6.6 million,
compared to $1.4 million and $1.4 million, respectively, for 2010.
Innovative Composites has filed its financial statements for the
three-months and year-ended September 30, 2011 and related
Management's Discussion and Analysis (MD&A) with securities
regulatory authorities. Innovative Composites' financial
statements, MD&A and related documents are available via SEDAR
as well as through the Company's website,
www.innovativecompositesinc.com. Outlook "As evidenced by our
strong start to fiscal 2012, the momentum that was established in
fiscal 2011 has continued," said Terry Ball. "Since the
beginning of the fiscal year we have announced our largest and most
significant housing initiative to date, acquired a key raw material
supplier, and continued to ramp up our second production facility
on budget and on schedule. As revenue and shipments continue
to increase, fiscal 2012 is well positioned to become another
breakthrough year for ICI." Conference Call ICI will host a
conference call to discuss its 2011 year-end financial results on
Thursday, January 19, 2012 at 10:00 a.m. ET. To access the
conference call by telephone, dial 647-427-7450 or
1-888-231-8191. Please connect approximately 15 minutes prior
to the beginning of the call to ensure participation. A
question and answer session for analysts and institutional
investors will follow management's presentation. A taped replay of
the conference call will also be available to listeners until 12:00
a.m. Thursday, January 26, 2012. To access the rebroadcast,
please dial 416-849-0833 or 1-855-859-2056 and enter passcode
42912816, followed by the number sign. About Innovative Composites
International Inc. Headquartered in Toronto, Canada,
Innovative Composite International Inc. is a high-tech engineering
and manufacturing company that is successfully commercializing a
patent protected line of state-of-the-art composite products
targeted at the multi-billion dollar transportation and affordable
housing markets. Led by a team of commercialization experts ICI has
adopted a tier two business model: It designs and
manufactures game-changing products and partners with established
companies in its target markets to utilize their sales channels for
faster product roll-out. This strategy and the superior
characteristics of the products have resulted in rapidly growing
sales in both markets and opened up opportunities that could lead
to large scale contracts on an ongoing basis. To find out more
about ICI please visit our website at:
www.innovativecompositesinc.com. Follow us on www.waggle.ca Neither
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. "Statements made in this press release include
forward-looking statements that involve a number of risks and
uncertainties. These statements relate to future events or future
performance and reflect management's current expectations and
assumptions. A number of factors could cause actual events,
performance or results to differ materially from the events,
performance and results discussed in the forward-looking
statements, such as the economy, generally, competition in its
target markets, the demand for ICI's products and the availability
of funding. These forward-looking statements are made as of the
date hereof and ICI does not assume any obligation to update or
revise them to reflect new events or circumstances. Actual events
or results could differ materially from ICI's expectations and
projections." Innovative Composites International Inc.
CONTACT: Ilja Troitschanski or PhilipDaleChief Financial Officer
TMXEquicom(416) 646 0754 (416)815 0700 ext
253ilja@innovativecompositesinc.com pdale@equicomgroup.com
Copyright
International Corona Cap... (TSXV:IC)
Historical Stock Chart
From Jun 2024 to Jul 2024
International Corona Cap... (TSXV:IC)
Historical Stock Chart
From Jul 2023 to Jul 2024