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Eurocontrol Files 2014 Financials
TORONTO, ONTARIO--(Marketwired - April 29, 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 today filed its audited financial statements and management's discussion and analysis for the year ended December 31, 2014.
The year end results reflect a decrease in fiscal year revenue to $5,956,733 compared to $6,448,834 for the year ended December 31, 2013, representing an 8% decrease. During the 2014 fiscal year, the Company recognized an EBITDA of $415,983 ($844,533 in 2013) resulting in a net loss of $246,365 for the year ($442,221 in 2013), Below is a summary table outlining earnings for the three month period and the fiscal year compared to the corresponding 2013 period which is followed by a description of recent developments and outlook.
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: "Over the past year, we have taken a number of steps toward optimizing our business and integrating operations between GFI and Xenemetrix which has resulted in a more efficient operation, while at the same time pursuing numerous potential new contracts. We also initiated a review of our operations to ensure we are well-positioned to take advantage of new Petromark™ fuel marking opportunities we are anticipating in the future. Further, these results support the case for our business model which is based on strong and significant reoccurring revenue."
2014 Financial and Operating Highlights *
Achieved record annual gross profit of $2,875,985, an increase of 4.4% from 2013
Achieved record gross margin of 48%
Recognized EBITDA of $415,983 compared to $844,533 in 2013
Investment in R&D increased by 15% to $830,068 towards developing the integration of our EDXRF technology with automated 2D and 3D image processing technologies for the Semiconductor and related microelectronics industries
Generated cash flow from operating activities before changes in non-cash working capital of $86,582 compared to $896,624 in 2013
Recognized an operating loss of $246,365 compared to $442,221 for the 2013 fiscal year
The Company achieved substantial cost efficiencies in 2014, especially in terms of working capital and cash operating expenditures
Fourth Quarter Financial and Operating Highlights *
Achieved quarterly revenue of $1,454,225, a decrease of 17% compared to the 2013 fourth quarter
Recognized EBITDA of $13,055 compared to $464,689 for the 2013 fourth quarter
* Certain comparative figures have been reclassified to conform to the current year's presentation. These reclassifications did not affect prior years' net losses.
The Company is projecting base revenue of $6,500,000 for fiscal 2015, which would represent a 9% increase from 2014 results. This revenue estimate is based on existing fuel marking projects with GFI contributing approximately 75% of overall revenue and it does not take into account possible new fuel marking contract wins that may occur in 2015.
In the first quarter of 2015, we expect year-over-year revenue and earnings growth. We expect our gross margin to decrease slightly from fourth quarter of 2014 due to a shift in product mix and we also expect operating expenses to increase as a result of investment in sales and marketing capabilities. We believe that the market for our Petromark™ technology has strong long term growth prospects.
The growth of Eurocontrol through acquisitions and integration of complementary businesses is an important component of our business strategy. Eurocontrol continues to seek opportunities to acquire or invest in businesses, products and technologies to expand, that complement or otherwise relate to our business.
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 ("ED-XRF") 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 ED-XRF technology for application in the semi-conductor manufacturing process.
For further information on Eurocontrol, please visit the Company's website at www.eurocontrol.ca.
NEITHER THE 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.
This press release contains forward-looking statements. More particularly, this press release contains statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. The forward-looking statements are based on certain key expectations and assumptions made by Eurocontrol. Although Eurocontrol believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Eurocontrol can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release are those set out in Eurocontrol's management discussion and analysis of the financial condition and results of operations for the year ended December 31, 2014 which are available on the Corporation's profile at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and Eurocontrol undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.