IC International Corona Capital Corp

TORONTO, Aug. 28, 2012 /CNW/ - Innovative Composites International Inc. ("ICI" or the "Company"), (OTCQX: ICIZF, a producer of proprietary composite products reported today its financial results for the three- and nine-month periods ended June 30, 2012.  All figures are in U.S. dollars unless otherwise stated. Q3 FY2012 Financial and Operational Highlights -- Revenue of $0.6 million in the Q3 fiscal 2012 period. -- Net loss for Q3 fiscal 2012 was $2.5 million or $0.03 per share. -- Cash and cash equivalents of $5.9 million as of June 30, 2012. -- Graduated to Tier 1 from Tier 2 on the TSX Venture Exchange. -- Commenced operations at its flagship facility Orangeburg, South Carolina. -- Introduced new Rapid Tactical Emergency Relief Module called the RapTER™ to target the emergency response, military agency and temporary shelter markets. Highlights Subsequent to Quarter-end -- Signed Memorandums of Understanding with two developers in North Dakota, an attractive market due to growth fueled by oil and gas exploration, and a model home, temporary shelter, and container have been erected in that region to facilitate the sales of those products going forward. -- Engaged the Lynch Group, one of the leading firms in the Automotive sector, to represent ICI in that market. -- Executed a renewable three year Supply Agreement to provide specifically engineered Enclosures to a global market leader in its sector for whom two pre-production models have been built working towards obtaining production orders. -- In the process of partnering with a supplier to emergency response organizations such as FEMA with the objective of supplying the RapTER module to those organizations. "During the third quarter we increased our focus on products and markets with a shorter sales cycle with the objective being to generate multiple recurring revenue streams through a three-pronged approach: (i) aggressively pursue the North American housing market; (ii) develop sales channels into the shelter and container markets; and (iii) go after multiple sales opportunities in the industrial applications sector," said Terry Ball, President and CEO of ICI.  "In addition, we have also made substantial efforts to reduce our cash operating costs and we expect those efforts to be partially reflected in our fourth quarter financial results and fully reflected in the fiscal 2013 first quarter financial results.   We are actively managing our operating cash burn rate and we are committed to ensuring that we have sufficient funds to execute our business development strategy and sustain operations going forward." Review of Q3 2012 Financial Performance ICI recognized revenue of $635,888 for the third quarter of fiscal 2012.  On a quarter-over-quarter basis, revenue declined from $1,042,704 in the second fiscal quarter of 2012. The decrease was partially due to the seasonality of demand from clients. Cost of sales for the third quarter of fiscal 2012 was $616,609.  Cost of sales was adversely impacted by the transition to IFRS due to the IFRS requirement to allocate expenses such as amortization and depreciation to cost of sales that were not previously required under Canadian GAAP.  Without the impact of IFRS related accounting changes, gross margin for the quarter-ended June 30, 2012 was 26.5%. 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. Operating expenses for the three-months ended June 30, 2012 were $2.8 million.  Expenses for the quarter decreased on a quarter-over-quarter basis from $3.1 million in the second fiscal quarter of 2012 substantially as the result of a decline in Administration and Management Wages expenses. Cash flow used in operating activities for Q3 fiscal 2012 were $2.1 million. At March 31, 2012, ICI had working capital of $6.6 million, including cash and cash equivalents of $5.9 million. ICI has filed its financial statements for the three and nine months ended June 30, 2012 and related Management's Discussion and Analysis (MD&A) with securities regulatory authorities.  ICI's financial statements, MD&A and related documents are available via SEDAR as well as through the Company's website, www.innovativecompositesinc.com. Conference Call ICI will host a conference call to discuss its third quarter 2012 financial results on Wednesday, August 29, 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. Tuesday, September 5, 2012.  To access the rebroadcast, please dial 416-849-0833 or 1-855-859-2056 and enter passcode 79139753, followed by the number sign. About Innovative Composites International Inc. Headquartered in Toronto, Canada, Innovative Composites International Inc. (OTCQX: ICIZF) is a high-tech engineering and manufacturing company whose goal is to utilize its proprietary "green" composite materials and building systems to provide innovative, engineered product solutions to markets that include prefabricated modular housing, shelters and containers, and industrial applications. Led by a management team with extensive commercialization experience, ICI has adopted a two-tier business model:  It designs and manufactures products and partners with established companies in its target markets to utilize their sales channels for faster product roll-out. The superior characteristics of its products provides ICI with opportunities to establish and grow significant, sustainable, and diversified sources of revenue in its target markets. 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: Contact Information:Sam GreissChief Financial Officer(416) 646 0754sgreiss@innovativecompositesinc.com

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