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Eurocontrol Files Third Quarter 2014 Financials
TORONTO, ONTARIO--(Marketwired - Nov. 27, 2014) -
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 second quarter 2014 Financial Statements and Management's Discussion and Analysis. The third quarter results reflect the fourth continuous quarter of positive cash flow and net losses continue to decline despite revenues being slightly down. The Company's balance sheet remains strong with a cash balance in excess of $2.6 million at the end of the quarter. Management anticipates a strong fourth quarter of 2014 consistent with the seasonality of past years. Following are summarized financial results and a description of recent developments and outlook.
SUMMARIZED FINANCIAL RESULTS
Three Months Ended
Nine 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: "We are pleased to report continued quarter over quarter improvement in working capital and EBIT driven primarily by our approach to capital allocation, which continued to show steady improvement across all key product groups through the nine months of 2014."
2014 Financial and Operating Highlights
Achieved third quarter revenue of $1,612,337
Achieved gross margin of 51%
Recognized record EBIT of $7,031 compared to $-514,765 in 2013
Working capital increased to $1,706,647 compared to $1,015,751 in December 31, 2013
Recognized a net loss $84,019 compared to a loss of $601,072 for the same period in 2013
The Company is projecting revenue of $6,500,000 for fiscal 2014. This estimate is based on existing fuel marking projects with GFI contributing approximately 74% of overall revenue and this revenue estimate does not take into account possible new fuel marking contract wins that may occur during the remainder of 2014.
Eurocontrol achieved substantial cost efficiencies in the first nine months of 2014, especially in terms of working capital and cash operating expenditures.
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 business, products and technologies to expand, complement or otherwise relate to our business.
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 used herein 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 see the Company's Management's Discussion and Analysis for the period ended September 30, 2014 filed on SEDAR.
About Eurocontrol Technics Group Inc.
Eurocontrol through its three wholly owned subsidiaries, Global Fluids International S.A. ("GFI"), Xenemetrix Ltd. ("Xenemetrix") and XwinSys 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.
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 third quarter ended September 30, 2014 which is available 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.