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Eurocontrol Files First Quarter 2015 Financials
TORONTO, ONTARIO--(Marketwired - May 21, 2015) -
NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES.
Eurocontrol Technics Group Inc.
(TSX VENTURE:EUO) ("Eurocontrol" or the "Company"), a Canadian public company specializing in the acquisition, development and commercialization of innovative energy security, authentication, verification and certification technologies, has filed its first quarter 2015 Financial Statements and Management's Discussion and Analysis.
The first quarter results include an increase in fiscal year revenue of 36% to $1,931,299 compared to $1,419,480 for the corresponding 2014 period. During the first quarter 2015, the Company recognized EBITDA of $707,615 ($232,243 in 2014) resulting in a net gain of $546,267 for the first quarter ($58,929 in 2014). The Company has continued its disciplined approach to capital allocation and operational expenditures in 2015.
SUMMARIZED FINANCIAL RESULTS
Three Months Ended
Cost of sales:
Cost of sales - direct production costs
Cost of sales - amortization and other non cash items
Other expense (income)
Income tax expense
Net income (loss)
Basic and fully diluted loss per share
Bruce Rowlands, Chairman and Chief Executive Officer stated: "Our revenue stability remained strong going into 2015 as a result of the large reoccurring component of our overall revenue, and our EBITDA in the quarter increased significantly compared to the same period in 2014 as a result of management's control on expenses and a contributing grant received from the Chief Scientist Office of Israel in the amount of US$200,000", and he added, "The significant reduction in net loss and our positive earnings per share of $0.01 has gone according to plan and management will continue to accelerate our successful growth strategy."
Andres Tinajero, Chief Financial Officer commented: "We are also pleased with the strong direct margin of 67% that was achieved with a net margin of 61% when non-cash items are included in the calculation. Our strong cash position of $2,613,476 ($2,268,199 in 2014) enhances our working capital for the current year providing us with the ability to further expand our business."
2015 Financial and Operating Highlights
Achieved first quarter revenue of $1,931,299, an increase of 36% from 2014
Recognized record EBITDA of $707,615 compared to $232,243 in 2014
Strong cash position of $2,613,476 compared to $2,268,199 for the first quarter 2014
Recognized operating net income of $546,267 compared to $58,929 for the first quarter 2014, an 827% increase
Achieved an overall gross margin of 61%, compared to 48% in 2014
Achieved working capital of $2,388,184 compared to 2014 year end working capital of $1,640,429
Continued cost efficiencies in 2015
Earnings before interest, tax, depreciation and amortization ("EBITDA"), as presented in this press release, is not a recognized measure under International Financial Reporting Standards ("IFRS"), however management believes that EBITDA is a useful supplementary measure to net earnings, as it provides investors with an indication of cash earnings prior to debt service, capital expenditure, income tax and non-cash items. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of the Corporation's performance or to cash flows from operating, investing and financing activities as a measure of liquidity or cash flows. The Corporation's method of calculating EBITDA may differ from the methods by which other companies calculate EBITDA and, accordingly, the EBITDA disclosed in this press release may not be comparable to measures used by other companies. For further information relating to how the Corporation calculates EBITDA, including a reconciliation of EBITDA to net earnings, please refer to the Corporation's Management's Discussion and Analysis for the first quarter 2015.
About Eurocontrol Technics Group Inc.
Eurocontrol through its three wholly owned subsidiaries, Global Fluids International S.A. ("GFI"), Xenemetrix Ltd. ("Xenemetrix") and XwinSys Technology Development Ltd. ("XwinSys"), is a leading provider and innovator of detection and marking systems worldwide. GFI and Xenemetrix are global pioneers in developing and implementing innovative molecular marking systems for the oil industry and XwinSys is currently a development stage company. GFI's unique and proprietary liquid authentication system, Petromark™, is the world's leading solution for fully integrated oil marking, mixing and detection. Xenemetrix is a leading designer, manufacturer and marketer of energy-dispersive x-ray fluorescence ("EDXRF") systems, a technology that is the most accurate and economic method for determining the chemical composition of many types of materials, including the analysis of petroleum oils and fuel. XwinSys is developing technology and intellectual property that will combine 2D and 3D image processing technology from Brossh Inspection Systems Ltd. of Israel with Xenemetrix's EDXRF technology for application in the semi-conductor manufacturing process.
For further information on Eurocontrol, please visit the Company's website at www.eurocontrol.ca.
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