Record Backlog, Improved Gross Margins and Significant Reductions
in Losses MONTREAL, Aug. 2, 2012 /CNW Telbec/ - Xebec Adsorption
Inc. ("Xebec"), a provider of biogas upgrading, natural gas and
hydrogen purification solutions for the clean energy market,
announced today its 2012 second quarter financial results. Key
Highlights from Q2 -- Net income of $2.7 million or $0.07/share for
the six-month period in 2012 compared to a loss of $1.2 million or
0.03/share for the same period in 2011. -- Net loss reduced by 50%
to $(0.5) million or $0.01/share for the three-month period in 2012
compared to a loss of $(1.0) million or $0.03/share for the same
period last year. -- EBITDA is now at $3.8 million for the
six-month period ended June 30, 2012 compared to $(0.6) million for
the same period in 2011. -- Current Contracted Backlog now at
$13.1M compared to $11.4M for the same period in 2011. "We are
pleased to report that our second quarter performance was in line
with management expectations and we continue to move our business
forward towards achieving long term sustainable growth and
profitability," said Kurt Sorschak, President and CEO of Xebec. "We
were able to record over $4.2 million in revenues this quarter
having achieved reasonable working capital levels from our Air
Products transaction earlier this year. While still behind last
year's pace, revenues were higher compared to our first quarter
results when working capital was still a major issue. Although we
began the quarter operating at less than full capacity, by the end
of the quarter we were able to ramp up our engineering &
production teams, and as of June have been operating at full
capacity. As we move into the second half of 2012, we see
both our pipeline of opportunity for business from new and existing
customers continue to increase across all of our product
segments. In addition, we are seeing opportunities for our
leading technologies in yet untapped markets and industries.
Particularly, we identified the associated gas area of particular
interest since we already have certain product offerings for this
segment. While we continued to focus on revenue growth during the
quarter, we remained diligent in our effort to bring better overall
efficiency into our operations. As a result, new levels of cost
reduction were achieved in both manufacturing and SG&A which
allowed us to increase margins across all product lines. As
our business continues to transition from a turnaround into a
growth company, we will remain diligent in maintaining responsible
cost levels that will aid us in reaching our long term goal of
profitable growth," concluded Mr. Sorschak. Financial Highlights:
Three months ended % of Six months ended % of June 30, Change June
30, Change 2012 2011 2012 2011 (In (unaudited) (unaudited)
(unaudited) (unaudited) dollars) Revenues 4,205,388 4,508,029 -6.7%
5,735,046 8,559,560 -33.0% Gross margin 1,126,979 889,848 26.6%
847,513 2,903,906 -70.8% Gross margin as a percentage of revenues
26.8% 19.7% 14.8% 33.9% EBITDA* (384,215) (693,894) 3,782,745
(560,031) Net income (loss) (514,198) (1,031,835) 2,651,920
(1,258,375) Basic and diluted earnings per share (0.01) (0.03) 0.07
(0.03) Weighted average number of shares 39,363,867 39,363,867
39,363,867 39,363,867 June 30, December 2012 31, As at: 2011 Total
assets 10,003,835 10,283,088 Total Long term Liabilities 1,365,173
1,346,660 Equity 2,424,972 (307,121) August 2, August 11, As at:
2012 2011 Back log 13,108,787 11,433,342 * EBITDA is a non-IFRS
financial measure and the Company defines it as earnings from
operations excluding financial charges, taxes, foreign exchange
loss (gain) and amortization. Other Recent Highlights --
Xebec received its second purchase order for a BGX kinetic landfill
gas separation system from China's Golden Green Environmental
Engineering & Technical Co. Ltd. (Golden Green). The system
will be installed in early 2013 at a landfill in Anshan City. The
upgraded landfill gas will be compressed and used as renewable fuel
in the transportation sector. -- Xebec announced it has signed a
co-operative marketing & teaming agreement with Primoris
Services Corporation ("Primoris") to jointly promote and sell a
novel proprietary process solution for the associated gas, shale
gas and upstream off-gases markets. This process incorporates
intellectual property from both Organizations and will be marketed
to customers that are involved in exploration and production
(E&P), which operate stranded wells or gas processing
operations. -- Xebec received a purchase order valued at CAD $2.05M
for a H-3200 fast-cycle Pressure Swing Adsorption (PSA) hydrogen
purification unit from Deok-Yang Company Ltd., the leading hydrogen
supplier in South Korea -- Xebec announced its ability to increase
its N2, O2 removal capability, and has validated the performance of
high nitrogen and oxygen removal of up to 15% nitrogen in the feed
biogas. A significant enhancement over incumbent technologies. --
Xebec received its first order for a BGX advanced kinetic landfill
gas separation system, which will be installed in early 2013 at a
landfill in northern China's Liaoning province. The Company has
entered into an exclusive agreement with Golden Green for the
potential delivery of 14 additional upgrading systems over the next
48 months. The value of these medium sized upgrading systems will
be in the range of $1.7 million to $5.5 million each, depending on
the landfill gas flow rates and gas composition, which should
result in revenues of approximately $45 million over the next four
years. Financial Results Revenues Xebec posted revenues of $4.2
million for the second quarter of 2012, a 6.7% decrease compared to
$4.5 million in the second quarter of 2011. Revenues for the
six-month period were $5.7 million a decreased of 33% compared to
$8.6 million in 2011 for the same period. This decrease is mainly
due to the licensing agreement reached with Nuvera in 2011 ($1.5
million) and the working capital deficiency that lasted until the
end of the first quarter and hindered deliveries. Order Backlog As
of August 2, 2012, total order backlog stood at $13.1 million,
compared to $11.4 million as at August 11, 2011, a 14.9% increase.
Gross Margin Xebec's gross margin for the second quarter of 2012 as
a percentage of gross revenue increased by 7.1 points over the same
period last year. The gross margin amounted to $1.1 million
compared to $0.9 million for the same period in 2011. For the
six-month period ended June 30, 2012, the total gross margin
amounted to $0.8 million, compared to $2.9 million for the same
period last year. The decrease in gross margin is mainly explained
by the decrease of sale by 33.0% that included non-recurring
licensing revenue of $1,5M at 100% gross margin. EBITDA and Net
income The EBITDA for the second quarter of 2012 amounted to $(0.4)
million compared to $(0.7) million in the second quarter of 2011.
The improved EBITDA is explained by improved margins and continuous
cost reductions. The net loss for the second quarter of 2012
totaled $(0.5) million, or $(0.01) per share, compared to a net
loss of $(1.0) million, or $(0.03) per share for the same 2011
period, reflecting primarily an increase in gross margin of $0.2
million combined with a decrease in selling and administrative of
$0.2 million due to cost reduction measures. Net income for the
six-month period ended June 30, 2012 was $2.7 million, or $0.07 per
share, compared to net loss of $1.3 million, or $(0.03) per share,
for the same period in 2011, reflecting primarily a $5.4 million
gain on the sale of the IP portfolio to Air Products and costs
reduction of $0.9 million for selling and administrative expense
related to lower professional fees and payroll. However, it was
reduced by $2.0 million less in gross margins and an increase in
financial expenses of $0.6 million explained by the loss on the
revaluation of the Technology Partnerships Canada program. Selling
and administrative expenses were $1.6 million in the second quarter
of 2012, compared to $1.8 million for the same period last year.
For the six-month period ended June 30, 2012, the selling and
administrative expenses were $2.8 million, compared to $3.7 million
for the same period last year resulting in our continuous efforts
to reduce our overhead costs. As of June 30, 2012, the Company had
$2.0 million of cash on hand and $1.2 million of long-term debt
outstanding, of which $0.3 million is due within one year. 2012
Second Quarter Financial Statements and Management's Discussion and
Analysis The complete financial statements, notes to financial
statements and Management's Discussion and Analysis for the three
and six month periods ended June 30, 2012, are available on the
Company's Website at www.xebecinc.com or on the SEDAR Website at
www.sedar.com. About Xebec Adsorption Inc. Xebec Adsorption Inc. is
a global provider of clean energy solutions to corporations and
governments looking to reduce their carbon footprints. With more
than 1,300 customers worldwide, Xebec designs, engineers and
manufactures innovative products that transform raw gases into
marketable sources of clean energy mainly used as transportation
fuel. Xebec's strategy is focused on establishing leadership
positions in markets where demand for biogas upgrading, natural gas
dehydration, liquefaction and hydrogen purification is growing.
Headquartered in Montreal (QC), Xebec is a global company with two
manufacturing facilities in Montreal and Shanghai, as well as a
sales and distribution network in North America and Asia. Xebec
trades on the TSX under the symbol XBC. For additional information
on the company and its products and services, please visit the
Xebec web site at www.xebecinc.com. Caution Concerning
Forward-Looking Statements Certain statements in this press release
may constitute "forward-looking" statements within the meaning of
applicable securities laws. This forward looking information
includes, but is not limited to, the expectations and/or claims of
management of Xebec with respect to information regarding the
business, operations and financial condition of Xebec.
Forward-looking information contained in this press release involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of Xebec or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. This list is not exhaustive of the
factors that may affect forward-looking information contained in
this press release. When used in this press release, such
statements use such words as "anticipate", "believe", "plan",
"estimate", "expect", "intend", "may", "will" and other similar
terminology. These statements reflect current expectations
regarding future events and operating performance and speak only as
of the date of this presentation. Forward-looking statements
involve significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
statements. XEBEC ADSORPTION INC. CONTACT: Kurt SorschakPresident
and CEO450-979-8701ksorschak@xebecinc.comEric FavreauChief
Financial Officer450-979-8706efavreau@xebecinc.com
Copyright
Xebec Adsorption (TSX:XBC)
Historical Stock Chart
From Apr 2024 to May 2024
Xebec Adsorption (TSX:XBC)
Historical Stock Chart
From May 2023 to May 2024