Thermal Energy Reports Financial Results for the Fiscal Quarter ended August
31, 2010
OTTAWA, Oct. 29 /CNW/ - Thermal Energy International Inc. (TSX-V:TMG) (www.thermalenergy.com) (the "Company" or "Thermal Energy") today announced its financial results for the fiscal quarter ended August 31, 2010.
Total sales for the first quarter ended August 31, 2010 were $2,985,667, an increase of $1,680,731 or 129% compared to the same period last year.
Gross profit for the first quarter ended August 31, 2010 was $1,203,660 (40.3%) compared with $1,014,977 (77.78%) in the first quarter ended August 31, 2009. The drop in gross margin percentage on a comparative basis from the same period in 2009 was due to a higher proportion of revenue coming from sales of waste energy recovery products. Waste energy recovery products typically have lower gross margins than the GEM related thus reducing the rate of gross margin.
Administration and Selling, Marketing and Business Development expenses in the first quarter ended August 31, 2010 totalled $1,080,840, a decrease of $189,947 or 14.9% from the $1,270,787 incurred in the first quarter ended August 31, 2009. This is due mainly to expense reductions implemented in fiscal 2010.
Loss before income taxes and non-controlling interest for the first quarter ended August 31, 2010 was $20,731, an improvement of $479,192 from the $499,923 loss suffered in the same period last year.
Liquidity and Solvency: The Corporation's cash position as at August 31, 2010 was $827,750, an increase of $394,257 in the quarter due primarily from $55,683 in positive cash flow from net loss plus items not involving cash, $93,526 lease payments received and $264,953 from changes in non-cash working capital.
"With the sales growth and expense reduction we have achieved over the last 12 months I am very pleased to see the Company generating almost $150,000 positive cash flow during the quarter, excluding changes in non-cash working capital" commented William Crossland, President and CEO.
All figures are in Canadian dollars. Full financial results including Management's Discussion and Analysis and accompanying notes to the financial results, are available on www.SEDAR.com and www.thermalenergy.com.
About Thermal Energy
Thermal Energy International Inc. is an innovative technology company providing custom energy and emission reduction, and bioenergy solutions. Headquartered in Ottawa, Canada, TEI is a designer, design build developer, fabricator, owner, operator and supplier of proprietary and patented energy conservation, renewable energy and environmental technology solutions. Thermal Energy is a fully accredited professional engineering firm, and offers advanced process and applications engineering services. The Company is a proud member of the Chicago Climate Exchange (CCX). FLU-ACE™, DRY-REX™, THERMALONOx™, THERMAL AUD™ and GEM® are trademarks of Thermal Energy International.
To find out more about Thermal Energy International Inc. (TSX-V: TMG), visit our website at http://www.thermalenergy.com.
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.
For further information:
William Crossland
President and CEO
613-723-6776
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