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Eurocontrol Files 2013 Financials
TORONTO, ONTARIO--(Marketwired - April 23, 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, today filed its 2013 year-end Financial Statements and Management's Discussion and Analysis.
The year end results include an increase in fiscal year revenue to $6,448,834 compared to $5,008,040 for the year ended December 31, 2012, a 29% increase. Following is a description of recent developments and outlook. During the 2013 fiscal year, the Company recognized an EBITDA of $844,533 ($74,309 in 2012) resulting in a net loss of $442,221 for the year ($1,367,732 in 2012), The Company adopted a more disciplined approach to capital allocation and operational expenditures in 2013 in response to difficult market conditions.
Three Months Ended December 31, Year Ended December 31, 2013 2012 2013 2012 $ $ $ $ Revenue1,755,631 1,625,040 6,448,834 5,008,040 Cost of sales(1,022,546)(965,871)(3,694,337)(2,870,843)Gross profit733,085 659,169 2,754,497 2,137,197 Expenses617,447 625,039 3,223,950 3,206,259 Other expense (income)(50,144)405,974 (48,086)274,033 Income tax expense6,931 7,736 20,854 24,637 Net income (loss)158,851 (379,580)(442,221)(1,367,732) Basic and fully dilited loss per share0.00 (0.00)(0.00)(0.02) EBITDA464,689 (7,160)844,533 74,309 EBIT190,202 (348,618)(323,996)(1,246,303)
Bruce Rowlands, Chairman and Chief Executive Officer stated: "Over the past year, we have taken a number of critical steps toward optimizing our business and integrating operations between GFI and Xenemetrix resulting in a significantly more efficient operation. We have also initiated a detailed review of our operations in order to ensure we are well-positioned to take advantage of recent improvements in our cost structure."
2013 Financial and Operating Highlights *
Achieved record annual revenue of $6,448,834, an increase of 29% from 2012
Achieved record gross margin of 43%
Recognized record EBITDA of $844,533 compared to $74,309 in 2012
Investment in R&D increased by 50% to $724,752 towards developing EDXRF technology and 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 $896,624 compared to $206,591 in 2012
Recognized an operating loss of $442,221 compared to $1,367,732 for the 2012 fiscal year
The Company achieved substantial cost efficiencies in 2013, especially in terms of capital and cash operating expenditures
Fourth Quarter Financial and Operating Highlights *
Achieved record annual revenue of $1,755,631, an increase of 8% compared to the 2012 fourth quarter
Achieved record margin of 42%
Recognized record EBITDA of $464,689 compared to a loss of -$7,160 for the 2012 fourth quarter
Recognized an operating gain of $158,851 compared to a net loss of $379,580 for the 2012 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 $7,500,000 for fiscal 2014, which would represent a 16% increase from 2013 results. This estimate is based on existing fuel marking projects with GFI contributing approximately 70% of overall revenue and does not take into account possible new fuel marking contract wins that may occur in 2014.
In the first quarter of 2014, we expect year-over-year revenue and earnings growth. We expect our gross margin to decrease slightly from fourth quarter of 2013 due to a shift in product mix and we 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 business, products and technologies to expand, 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 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, 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 year ended December 31, 2013 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.