Thermal Energy Reports Financial Results for the Fiscal Quarter ending on
February 28, 2010
OTTAWA, April 29 /CNW Telbec/ - Thermal Energy International Inc. (TSX-V:TMG) (www.thermalenergy.com) (the "Company" or "Thermal Energy") today announced its financial results for the fiscal quarter ending on February 28, 2010.
Total sales for the third quarter ended February 28, 2010 were $1,306,548, an increase of 91% compared to $682,341 from the same period in 2009. For the nine months ended February 28, 2010 sales were $4,176,011, up 45% compared to $2,881,222 from the same period in 2009. Sales to Kruger Products Limited pursuant to the contract with Kruger Products Limited announced December 23, 2009, were $155,024 for the third quarter ended February 28, 2010.
Gross profit for the third quarter ended February 28, 2010 was $812,322 (62%), up 175% or $516,649 compared with $295,673 (43%) from the same period in 2009. For the nine months ended February 28, 2010 gross profit was $2,682,288 (64%), up 62% or $1,035,649 compared to $1,646,639 (57%) from the same period in 2009.
Administration and Selling, Marketing and Business Development expenses ("SG&A expenses") in the third quarter ended February 28, 2010 totalled $1,196,123, a decrease of $254,261 or 18% from the $1,450,384 incurred in 2009. However during the third quarter ended February 28, 2010, the Company incurred non-recurring SG&A expenses of approximately $187,000 representing expenses that have been eliminated going forward as a result of cost cutting measures implemented this year. Excluding these non-recurring costs, SG&A expenses in the quarter were $1,009,123, a decrease of $441,261 or 30% compared to the same period last year.
For the nine months ended February 28, 2010 SG&A expenses totalled $4,007,924, an increase of $33,490 from the same period last year. However, SG&A expenses for the nine months ended February 28, 2010 included approximately $1,016,000 of non-recurring costs consisting of $370,000 of non-cash provisions taken in the second quarter of this fiscal year and $646,000 of expenses that have been eliminated going forward as a result of cost cutting measures implemented this year. Excluding these non-recurring costs, SG&A expenses for the nine months ended February 28, 2010 were $2,991,924, a decrease of $982,510, or 25% from the same period last year.
Legal fees in the third quarter ended February 28, 2010 were $77,911, compared with $15,034 in 2009. However $67,605 of legal fees incurred were non-recurring expenses related to the TSX Venture Exchange review, the claim and counter claim from a former President of the company, and the settlement of a claim from a former officer of the company.
Legal fees for the nine months ended February 28, 2010 were $200,823, compared with $84,416 in 2009. However $175,768 of legal fees incurred in the nine months ended February 28, 2010 non-recurring expenses related to the TSX Venture Exchange review, the claim and counter claim from a former President of the company, and the settlement of a claim from a former officer of the company.
Loss before income taxes and non-controlling interest for the third quarter ended February 28, 2010 was $627,724, an improvement of $548,769 from the same period last year. However excluding the non-recurring SG&A expenses, and the non-recurring legal fees discussed above, Loss before income taxes and non-controlling interest for the third quarter ended February 28, 2010 was $373,119, an improvement of $803,374 from the same period last year.
For the nine months ended February 28, 2010 the loss before income taxes and non-controlling interest was $2,085,230, an improvement of $538,262 from the same period last year. However excluding the non-recurring SG&A expenses and the non-recurring legal fees discussed above, the Loss before income taxes and non-controlling interest for the nine months ended February 28, 2010 was $893,462, an improvement of $1,730,030 from the same period last year.
Liquidity and Solvency: At February 28, 2010, the Company had working capital of $1,475,398 and the Company's net cash (Cash and cash equivalents less Bank loans) position was $569,321, a decrease of $401,560 during the quarter.
The Company's financial results, as adjusted for non-recurring expenses, can be summarized as follows:
Three months ended February 28 Change 2010 2009 $ $ $ % ---------- ---------- ---------- ---------- Sales 1,306,548 682,341 624,207 91% Gross profit 812,322 295,673 516,649 175% SG&A expenses less non-recurring amounts 1,009,123 1,450,384 (441,261) -30% Legal fees less non-recurring amounts 10,306 15,034 (4,728) -31% Loss before income taxes, non-controlling interest, non-recurring expenses and items not involving cash. (310,187) (1,153,045) 842,858 -73% Nine months ended February 28 Change 2010 2009 $ $ $ % ---------- ---------- ---------- ---------- Sales 4,176,011 2,881,222 1,294,789 45% Gross profit 2,682,288 1,646,639 1,035,649 63% SG&A expenses less non-recurring amounts 2,991,924 3,974,434 (982,510) -25% Legal fees less non-recurring amounts 25,055 84,416 (59,361) -70% Loss before income taxes, non-controlling interest, non-recurring expenses and items not involving cash. (714,492) (2,378,146) 1,663,654 -70%
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(TM), DRY-REX(TM), THERMALONOx(TM), THERMAL AUD(TM) and GEM(R) 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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