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Eurocontrol Files First Quarter 2014 Financials
TORONTO, ONTARIO--(Marketwired - May 29, 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 first quarter 2014 Financial Statements and Management's Discussion and Analysis.
The first quarter results include an increase in fiscal year revenue to $1,419,480 compared to $1,346,279 for the corresponding 2013 period, a 5.44% increase. Following is a description of recent developments and outlook. During the first quarter 2014, the Company recognized EBITDA of $232,243 ($-68,773 in 2013) resulting in a net gain of $58,929 for the first quarter ($-423,696 in 2013). The Company adopted a more disciplined approach to capital allocation and operational expenditures in 2014 in response to difficult market conditions.
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 dilited loss per share
Bruce Rowlands, Chairman and Chief Executive Officer stated: "Our EBITDA in the quarter increased significantly compared to the same period in 2013 due to management's strategy on expense control and by a grant received from the Chief Scientist Office of Israel in the amount of $148,132. The increase in sales revenue was led by both the increased number of clients and by the number of EDXRF units sold in the quarter", and he added, "The significant reduction in net loss has gone according to plan and management will continue to accelerate our successful growth strategy."
Andres Tinajero, Chief Financial Officer stated: "The Company has maintained growth in revenue year over year, which is an indicator of the strength of our overall business. We are also pleased with the strong direct margin of 56% that was achieved with a net margin of 48% when non-cash items are included in the calculation."
2013 Financial and Operating Highlights
Achieved first quarter revenue of $1,419,480, an increase of 5.44% from 2013
Recognized record EBITDA of $232,243 compared to $-68,773 in 2013
Achieved a direct cost margin of 56%, and an overall gross margin of 48% despite a change in amortization of Technology Rights which impacted gross margins by $202,735 in comparison to similar period in 2013 without affecting cash flow
Achieved working capital of $1,270,816 compared to $1,015,751 in December 31, 2013
Recognized an operating gain of $58,929 compared to a loss of $423,696 for the first quarter 2013
Achieved substantial cost efficiencies in 2014, especially in terms of capital and cash operating expenditures
The Israeli Chief Scientist granted XwinSys, wholly owned subsidiary of Eurocontrol, a $148,132 grant for Investment in R&D towards developing EDXRF technology and automated 2D and 3D image processing technologies for the Semiconductor and related microelectronics industries
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 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 2014.
About Eurocontrol Technics Group Inc.
Eurocontrol through its three wholly owned subsidiaries, Global Fluids International S.A. ("GFI"), Xenemetrix Inc. ("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, PetromarkTM, 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.
NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES.
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, 2013 and the first quarter ended March 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.