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Eurocontrol Reports First Quarter 2017 Results
85% Increase in First Quarter Revenue from Continuing Operations
TORONTO, ONTARIO--(Marketwired - May 25, 2017) - Eurocontrol Technics Group Inc. (TSX VENTURE:EUO)(OTCQB:EUCTF) ("Eurocontrol" or the "Company"), a Canadian public company specializing in the acquisition, development and commercialization of innovative test and measurement technologies for industry with application systems focused on the energy security, semiconductor and precision agriculture sectors, announces that it has filed its financial statements and Management's Discussion and Analysis ("MD&A") for the quarter ended March 31, 2017.
The quarter results reflect an 85% increase in quarter revenue to $560,248 compared to $302,673 for the quarter ended March 31, 2016 from continuing operations. The Company recorded a net loss of $1,378,799 for the three month period ended March 31, 2017 compared to net income of $14,982,926 for the comparative three month period ended March 31, 2016 which included the income from the sale of the Company's former subsidiary as detailed in the following paragraph. Included below are highlights of the quarter and a summary table for reference.
Included in the financial statements are discontinued operations relating to the Company's sale of its former wholly owned subsidiary, Global Fluids International (GFI) S.A. (GFI), to SICPA S.A. ("SICPA"), a private Swiss company that is a global leader in the provision of secured identification, traceability and authentication solutions and services, on January 4, 2016 in exchange for $16 million in cash (less transaction payments) and post closing earn-out payments equal to 5% of the net revenues earned by SICPA GFI from contracts entered into (between January 4, 2016 ending January 4, 2022), with a minimum guaranteed of $1.5 million per year for the six year earn-out period (total payment of at least $9,000,000). The Company, through its wholly owned subsidiary, Xenemetrix, entered into a strategic exclusive long term supply, maintenance and support agreement, pursuant to which Xenemetrix will continue to supply to SICPA GFI, Xenemetrix products and services for the oil and gas marking and monitoring field. Further details relating to this sale transaction can be obtained from the Company's continuous disclosure documents including the MD&A for the quarter ended March 31, 2017.
Bruce Rowlands, Chairman and Chief Executive Officer stated: "We are pleased that our investment to update the Xenemetrix product line and increased marketing efforts are starting to show results. In particular, our introduction of P-Metrix earlier this year has resulted in increased interest. P-Metrix is a portable ED-XRF battery operated laboratory system that weighs 32 lbs and is the newest product that continues our innovative approach of taking the lab to the field. We are looking forward to further advancements for Xenemetrix and also for XwinSys and Croptimal as these two subsidiaries continue to make solid progress towards first revenue."
Financial and Operating Highlights *
Achieved first quarter revenue of $560,248 from continuing operations, an 85% increase from March 31, 2016 revenue of $302,673.
Recognized $143,141 in gross profit, an increase of 67% from March 31, 2016.
Recognized first quarter net loss excluding discontinued operations of $1,378,799 compared to a net loss of $1,501,246 in 2016.
2017 investment in R&D of $827,009.
Three Months Ended March 31,
Cost of sales
Cost of sales - direct production costs
Cost of sales - amortization and other non cash items
Other (expense) income
Income tax recovery
Gain on sale of subsidiary - discontinued operations
Net loss - continuing operations
Net income - discontinued operations
Net income (loss)
Basic loss per share
- from continuing operations
- from discontinued operations
- net income (loss)
Diluted loss per share
- from continuing operations
- from discontinued operations
- net income (loss)
* Certain comparative figures have been reclassified to conform to the current year's presentation. These reclassifications did not affect prior years' net losses.
About Eurocontrol Technics Group Inc.
Eurocontrol is a TSX Venture and OTCQB traded company that specializes in the acquisition, development and commercialization of innovative test and measurement technologies for industry with application technologies focused on the energy security, semiconductor and precision farming sectors based on Xenemetrix's core technological platform of ED-XRF. Eurocontrol has three wholly owned subsidiaries, Xenemetrix Ltd., XwinSys Technology Development Ltd. and Croptimal Ltd. and an agreement with SICPA S.A. for semi-annual earn-out payments of 5% (minimum $9 million over six years) on revenues generated from the oil and gas marking and monitoring field relating to the sale of its former subsidiary Global Fluids International (GFI) S.A. Xenemetrix is a leading designer, manufacturer and marketer of 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. Xenemetrix has an exclusive long-term supply, maintenance and support agreement with SICPA/GFI to supply SICPA/GFI with Xenemetrix products and services related to the oil and gas marking and monitoring field. XwinSys has developed a patented, fully automated metrology system for the semiconductor industry that combines 2D and 3D image processing technology with Xenemetrix's ED-XRF technology. Croptimal, is introducing a new mobile ED-XRF spectroscopic material analysis laboratory for the precision agriculture industry that could dramatically change agricultural testing methodology and increase crop yields.
For further information on Eurocontrol, please visit the Company's website at www.eurocontrol.ca.
Neither 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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Forward-Looking Statements: 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, 2016 which is 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.