MONTREAL, May 31, 2012 /CNW Telbec/ - PyroGenesis Canada Inc. ("PyroGenesis" or the "Company") (TSXV: PYR), an environmental solutions company that designs, develops and manufactures plasma waste-to-energy systems and plasma torch products, announced its financial and operational results for its first quarter ended March 31, 2012.
First Quarter Highlights
- Announced the shipment of its plasma-based Ozone Depleting Substance Destruction System to Recyclage ÉcoSolutions Inc.'s facility;
- Announced the closing on March 29, 2012 of a second public offering for aggregate gross proceeds of $3,539,644;
- Subsequent to quarter end, disclosed certain cost containment initiatives to mitigate the risks related to the, gap period the Company has entered into following the completion of its two main projects, as well as the current unstable global economic conditions;
- Subsequent to quarter end, announced the receipt of the Association pour le développement de la recherche et de l'innovation du Québec's (ADRIQ) 2012 « Coup de Cœur » award for Partnership and Innovation, for Pyrogenesis' innovative solutions with regards to an integrated waste management plan for Îles-de-la-Madeleine.
"2012 will continue to see management take strategic steps to change its focus from the successful completion of its two main plasma waste treatment procurement contracts and the going public process, to aggressively growing the future revenue stream by, amongst other things, defining new market niches for its other two business lines, Torch Manufacturing and Engineering Services," said P. Peter Pascali, President and Chief Executive Officer of PyroGenesis. "In addition, the Company has been, and will continue to seek out, focused and targeted teaming arrangements to accelerate market acceptance of its plasma waste to energy technologies."
Financial Summary
Revenues
Revenues for the first quarter of 2012("2012-Q1"), were $1,544,943, an increase of 28% over the revenue of $1,207,653, reported during the same period in 2011. The increase in revenues is a reflection of increased volume of services provided in the quarter as determined by percentage of completion on mainly fixed price contracts.
Cost of Sales and Services
Cost of Sales and service before government grants and research and development tax credits for 2012-Q1 was $1,576,321, an increase of 16% over the costs of $1,364,634 reported during the same period in the prior fiscal year. This percentage increase is favorable in comparison to the 28% increase in revenues in the period.
Cost of Sales and services net of government grants and research and development tax credits, as a percent of revenues increased to 98% for 2012-Q1, versus 69% for 2011-Q1. However cost of sales and services before non cash items (amortization of licenses) as a percent of revenues is 75% for 2012-Q1 versus 64% for 2011-Q1.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the first quarter of 2012, were $1,039,134, an increase of 19% over the $874,824, reported during the same period in fiscal year 2011. 2012-Q1 includes stock based compensation of $208,523. Before including the cost of stock based compensation, Selling, general and administrative, decreased by 5% in 2012-Q1 over the same time period in the prior year.
Net Profit/Loss
Loss from operations for the first quarter of 2012, was $1,141,056 as compared to a loss of $704,167 for the same period in 2011, an increase of 62%. The results of 2012-Q1 reflect increased costs associated directly or indirectly with PyroGenesis being a public company, including increased professional fees and stock based compensation costs and reduced reliance on research and development tax credits.
Liquidity
At March 31, 2012, PyroGenesis had cash on hand of $1,673,969 and positive working capital of $1,253,086.
About PyroGenesis Canada Inc.
PyroGenesis Canada is an environmental solutions company that designs, develops and manufactures plasma waste-to-energy systems and plasma torch products. PyroGenesis' proprietary plasma technologies utilize the intense energy of plasma to gasify and vitrify virtually any type of waste without producing hazardous by-products. PyroGenesis' patented gasification and vitrification technology is different from incineration because it produces a clean synthetic gas from waste, which can be used for power generation. PyroGenesis' technology can also turn waste into a glassy rock that can be utilized as construction material. PyroGenesis has marquee defense industry and civilian customers that are using its technology in marine and land-based applications. For more information, please visit www.pyrogenesis.com
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
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.
Pyrogenesis Canada Inc.
P. Peter Pascali
Chief Executive Officer
Phone: 514.937.0002
E-mail: [email protected]
Share this article