THIS DOCUMENT IS NOT INTENDED FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED
STATES.
Questor Technology Inc. ("Questor" or the "Company") (TSX VENTURE:QST) announced
today its financial and operating results for the first quarter of 2013. The
Company reported a profit of $417,084 ($0.017per basic share) for the three
months ended March 31, 2013 compared to a profit of $487,438 ($0.020 per basic
share) for the same three-month period of the prior year.
The decrease in profit was due primarily to lower revenues arising out of
differences in the volume and mix of incinerator sales and utilization of the
fleet of rental incinerators in each quarter, offset in part by the stronger
margins achieved in the current quarter. Net foreign exchange gains recorded in
the first quarter of 2013 compared to foreign exchanges losses in the
comparative period of 2012, lower research and development expenditures and
lower income tax expense also contributed in reducing the impact of the lower
revenues on operating results.
FINANCIAL HIGHLIGHTS SUMMARY
(Stated in Canadian dollars except per share amounts)
Increase
For the three months ended March 31 2013 2012 (decrease)
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Revenue 1,719,577 2,230,875 (511,298)
Gross profit(1) 890,441 1,053,700 (163,259)
EBITDA(1) 656,220 727,329 (71,109)
Profit and total comprehensive
income 417,084 487,438 (70,354)
Cost of sales as a percent of
revenue(1) 48.2% 52.8% (4.6%)
Cash generated from operations
before movements in non-cash
working capital(1) 662,405 774,985 (112,580)
March 31, December 31, Increase
As at 2013 2012 (decrease)
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Total assets 10,439,573 9,798,449 641,124
Non-current liabilities 280,034 250,065 29,969
Shares outstanding(2)
Basic 25,007,370 24,869,255 138,115
Diluted 25,225,542 25,144,794 80,748
Earnings per share - Basic 0.017 0.020 (0.003)
Earnings per share - Diluted 0.017 0.019 (0.002)
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(1) Non-IFRS financial measure. Please see discussion in the Non-IFRS
Financial Measures section of the Company's Management's Discussion and
Analysis for the three months ended March 31, 2013.
(2) Weighted average.
"Although our revenues are lower this quarter in comparison to the previous year
quarter, this is not a reflection of the expected performance for this year. We
have confirmed orders for incinerator sales of $4.0 million to date of which
only $1.2 million was recognized in first quarter 2013. We have taken
significant steps this first quarter of 2013, setting the stage for a very
active second quarter and balance of the year," said Audrey Mascarenhas,
President and Chief Executive Officer. "We completed the construction of units
that we had intended for our rental fleet, but are instead being sold to
customers to meet their timing requirements in Q2. We moved forward on several
joint venture arrangements for the construction of our units in Europe which
will prove to be a strategic location to also serve the Russian and Middle East
markets. Questor has appointed a Vice President Business Development which has
resulted in a series of productive meetings and discussions with both our US and
Canadian clients. We are supporting our clients in their quest for social
license to operate with our technology solution addressing community flaring
concerns that have attracted significant public attention."
"As the impact of the new emission standards in the United States becomes more
well understood, interest in our incineration technology has continued to grow.
In addition, regulation in Europe is becoming increasingly focused on emissions
and some countries have begun to disallow open flaring, thereby creating
opportunities for Questor.
As we move through 2013 we expect to see substantial growth in the sale and
rental of our units as the marketplace recognizes the operational, environmental
and economic benefits Questor's clean air solutions offer. Our focus will be on
increasing our operating capacity to meet this demand." concluded Ms.
Mascarenhas.
Shareholders are invited to attend the Company's Annual General Meeting to be
held on Tuesday, June 4, 2013 at 3:00 p.m. MDT in Questor's Boardroom at 1121
940 - 6th Avenue S.W., Calgary, Alberta. In addition to the formal business
items, management will be presenting an overview of Questor's results for the
financial year ended December 31, 2012 and first quarter ended March 31, 2013
and discussing the Company's strategic initiatives for 2013.
Questor's unaudited condensed financial statements and notes thereto and
management's discussion and analysis for the three months ended March 31, 2013
will be available shortly on the Company's website at www.questortech.com and
through SEDAR at www.sedar.com.
ABOUT QUESTOR TECHNOLOGY INC.
Questor is an international environmental oilfield service company founded in
late 1994 and headquartered in Calgary, Alberta, Canada with a field office
located in Grande Prairie, Alberta. The Company is focused on clean air
technologies with activities in Canada, the United States, Europe and Asia.
Questor designs and manufactures high efficiency waste gas incinerators for sale
or for use on a rental basis and also provides combustion-related oilfield
services. The Company's proprietary incinerator technology destroys noxious or
toxic hydrocarbon gases which ensures regulatory compliance, environmental
protection, public confidence and reduced operating costs for customers. Questor
is recognized for its particular expertise in the combustion of sour gas (H2S).
While the Company's current customer base operates primarily in the oil and gas
industry, this technology is applicable to other industries such as landfills,
water and sewage treatment, tire recycling and agriculture.
Questor trades on the TSX Venture Exchange under the symbol "QST".
Certain information in this news release constitutes forward-looking statements.
When used in this news release, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "seek", "propose", "estimate",
"expect", and similar expressions, as they relate to the Company, are intended
to identify forward-looking statements. In particular, this news release
contains forward-looking statements with respect to, among other things,
business objectives, expected growth, results of operations, performance,
business projects and opportunities and financial results. These statements
involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated in such
forward-looking statements. Such statements reflect the Company's current views
with respect to future events based on certain material factors and assumptions
and are subject to certain risks and uncertainties, including without
limitation, changes in market, competition, governmental or regulatory
developments, general economic conditions and other factors set out in the
Company's public disclosure documents. Many factors could cause the Company's
actual results, performance or achievements to vary from those described in this
news release, including without limitation those listed above. These factors
should not be construed as exhaustive. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying forward-looking
statements prove incorrect, actual results may vary materially from those
described in this news release and such forward-looking statements included in,
or incorporated by reference in this news release, should not be unduly relied
upon. Such statements speak only as of the date of this news release. The
Company does not intend, and does not assume any obligation, to update these
forward-looking statements. The forward-looking statements contained in this
news release are expressly qualified by this cautionary statement.
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QUESTOR TECHNOLOGY INC.
CONDENSED STATEMENTS OF FINANCIAL POSITION
Stated in Canadian dollars
Unaudited
March 31 December 31
As at 2013 2012
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ASSETS
Current assets
Cash and cash equivalents $ 4,827,269 $ 4,405,624
Trade and other receivables 2,318,471 2,304,478
Inventories 1,136,229 670,959
Prepaid expenses and deposits 66,212 88,378
Current tax assets 48,182 25,158
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Total current assets 8,396,363 7,494,597
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Non-current assets
Property and equipment 2,035,192 2,295,529
Intangible assets 8,018 8,323
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Total non-current assets 2,043,210 2,303,852
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Total assets $ 10,439,573 $ 9,798,449
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LIABILITIES AND EQUITY
Current liabilities
Trade payables, accrued liabilities and
provisions $ 919,535 $ 894,206
Deferred revenue and deposits 50,905 2,205
Current tax liabilities 273,153 171,907
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Total current liabilities 1,243,593 1,068,318
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Non-current liabilities
Deferred tax liabilities 104,375 97,319
Lease inducement 175,659 152,746
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Total non-current liabilities 280,034 250,065
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Total liabilities 1,523,627 1,318,383
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Capital and reserves
Issued capital 5,521,001 5,521,001
Reserves 695,630 676,834
Retained earnings 2,699,315 2,282,231
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Total equity 8,915,946 8,480,066
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Total liabilities and equity $ 10,439,573 $ 9,798,449
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See accompanying notes to the unaudited condensed financial statements.
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QUESTOR TECHNOLOGY INC.
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Stated in Canadian dollars except per share data
Unaudited
For the three months ended March 31 2013 2012
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Revenue $ 1,719,577 $ 2,230,875
Cost of sales (829,136) (1,177,175)
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Gross profit 890,441 1,053,700
Administration expenses (353,550) (353,444)
Net foreign exchange gains (losses) 44,997 (34,413)
Depreciation of property and equipment (10,740) (10,322)
Amortization of intangible assets (305) (305)
Write-off of property and equipment - (2,768)
Other income 4,675 4,705
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Profit before tax 575,518 657,153
Income tax expense (158,434) (169,715)
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Profit and total comprehensive income $ 417,084 $ 487,438
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Earnings per share
Basic $ 0.017 $ 0.020
Diluted $ 0.017 $ 0.019
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QUESTOR TECHNOLOGY INC.
CONDENSED STATEMENTS OF CHANGES IN EQUITY
Stated in Canadian dollars
Unaudited
Issued Retained
capital Reserves earnings Total equity
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Balance at January 1,
2013 $ 5,521,001 $ 676,834 $ 2,282,231 $ 8,480,066
Profit and total
comprehensive income - - 417,084 417,084
Recognition of share-
based payments - 18,796 - 18,796
Issue of ordinary
shares under
employee share
option plan - - - -
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Balance at March 31,
2013 $ 5,521,001 $ 695,630 $ 2,699,315 $ 8,915,946
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Balance at January 1,
2012 $ 5,458,215 $ 622,226 $ 1,241,875 $ 7,322,316
Profit and total
comprehensive income - - 487,438 487,438
Recognition of share-
based payments - 9,281 - 9,281
Issue of ordinary
shares under
employee share
option plan - - - -
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Balance at March 31,
2012 $ 5,458,215 $ 631,507 $ 1,729,313 $ 7,819,035
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QUESTOR TECHNOLOGY INC.
CONDENSED STATEMENTS OF CASH FLOWS
Stated in Canadian dollars
Unaudited
For the three months ended March 31 2013 2012
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Cash flows from operating activities
Profit and total comprehensive income $ 417,084 $ 487,438
Adjustments for:
Income tax expense 158,434 169,715
Write-off of property and equipment - 2,768
Depreciation of property and equipment 80,397 69,871
Amortization of intangible assets 305 305
Net unrealized foreign exchange (gains) losses (12,611) 35,607
Expense recognized in respect of equity-settled
share-based payments 18,796 9,281
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662,405 774,985
Movements in non-cash working capital (156,651) 1,414,553
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Cash generated from operations 505,754 2,189,538
Income taxes paid - (280,061)
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Net cash generated from operating activities 505,754 1,909,477
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Cash flows used in investing activities
Payments for property and equipment (90,355) (152,502)
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Net cash used in investing activities (90,355) (152,502)
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Cash flows from financing activities - -
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Net increase in cash 415,399 1,756,975
Cash at beginning of the period 4,405,624 2,166,301
Effects of exchange rate changes on the balance of
cash held in foreign currencies 6,246 (31,522)
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Cash at end of the period $ 4,827,269 $ 3,891,754
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FOR FURTHER INFORMATION PLEASE CONTACT:
Questor Technology Inc.
Audrey Mascarenhas
President and Chief Executive Officer
(403) 571-1530
(403) 571-1539 (FAX)
amascarenhas@questortech.com
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