MONTREAL, May 29, 2014 /CNW Telbec/ - Xebec Adsorption Inc. (TSXV: XBC-V) ("Xebec"), a provider of biogas upgrading, natural gas, field gas and hydrogen purification and filtration solutions for the clean energy and crude-derived fuels displacement markets, announced today its 2014 first quarter operating results.
- Revenues of $2.6 million for the first quarter of 2014 compared to $3.8 million for the same quarter in 2013, a 31.3% decrease compared to the same period in 2013
- Net loss of $0.9 million or $0.02/share for the three month period in 2014 compared to a net loss of $1.1 million for the same period in 2013.
Financial Highlights:
| Three months ended March 31, |
% of Change |
||
| 2014 | 2013 | ||
| (In dollars) | (unaudited) | (unaudited) | |
| Revenues | 2,627,228 | 3,824,939 | -31.3% |
| Gross margin | 649,463 | 379,811 | 71.0% |
| Gross margin as a percentage of revenues | 24.7% | 9.9% | |
| EBITDA* | (784,587) | (982,445) | |
| Net income (loss) | (875,230) | (1,081,238) | |
| Net income (loss) per share - basic ($/share) | (0.02) | (0.03) | |
| Net income (loss) per share - diluted ($/share) | (0.02) | (0.03) | |
| Weighted average number of shares | 39,363,867 | 39,363,867 | |
| As at: | March 31, 2014 |
December 31, 2013 |
|
| Total assets | 9,098,474 | 9,749,397 | |
| Total Long term Liabilities | 910,435 | 1,026,078 | |
| Equity | 1,055,875 | 1,958,988 | |
| As at: | May 29, 2014 |
May 9, 2013 |
|
| Back log | 6,870,054 | 6,518,868 | |
| * EBITDA is a non-IFRS financial measure and the Company defines it as income before income taxes, interest, depreciation and amortization. | |||
Financial Results
Revenues
Xebec posted revenues of $2.6 million for the first quarter of 2014, a 31.3% decrease compared to $3.8 million in the first quarter of 2013. This decrease is due mainly to the $1.4 million or 85.2% decrease in sales of the gas purification segment. The Company recognized revenues on two major projects in the previous year's period for this segment compared to only one during the current period.
Order Backlog
As of May 29, 2014, total order backlog stood at $6.9 million, compared to $6.5 million as at May 9, 2013.
Gross Margin
Xebec's gross margin for the first quarter of 2014 amounted to $0.6 million compared to $0.4 million for the same period in 2013. The margins were affected negatively in 2013 by a $250,000 provision taken for cost overruns on two biogas projects in Asia.
EBITDA and Net loss
The EBITDA for the first quarter of 2014 amounted to $(0.8) million compared to $(1.0) million in the first quarter of 2013. The increased is mainly explained by the non-recurring provision of $250,000 on two biogas projects during the first quarter 2013.
The net loss for the first quarter of 2014 totaled $0.9 million, or $0.02 per share, compared to a net loss of $1.1 million, or $0.03 per share for the same 2013 period for the same mentioned above reasons.
Selling and administrative expenses remained stable in the first quarter of 2014 compared to the same 2013 period at $1.4 million.
As of March 31, 2014, the Company had $3.3 million of cash on hand and $0.9 million of long-term debt outstanding, of which $0.3 million is due within one year.
2014 First Quarter Financial Statements and Management's Discussion and Analysis
The complete financial statements, notes to financial statements and Management's Discussion and Analysis for the three-month period ended March 31, 2014, are available on the Company's Website at www.xebecinc.com or on the SEDAR Website at www.sedar.com.
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of clean energy solutions to corporations and governments looking to reduce their carbon footprints. With more than 1,300 customers worldwide, Xebec designs, engineers and manufactures innovative products that transform raw gases into marketable sources of clean energy mainly used as transportation fuel. Xebec's strategy is focused on establishing leadership positions in markets where demand for biogas upgrading, natural gas dehydration, liquefaction and hydrogen purification is growing. Headquartered in Montreal (QC), Xebec is a global company with two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America and Asia. Xebec trades on the TSXV under the symbol XBC-V. Since February 25th 2014, Xebec has opened a sales office in Houston, Texas (USA), in order to cover sales opportunities in the United States. For additional information on the company and its products and services, please visit the Xebec web site at www.xebecinc.com.
Caution Concerning Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking" statements within the meaning of applicable securities laws. This forward looking information includes, but is not limited to, the expectations and/or claims of management of Xebec with respect to information regarding the business, operations and financial condition of Xebec. Forward-looking information contained in this press release involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xebec or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This list is not exhaustive of the factors that may affect forward-looking information contained in this press release. When used in this press release, such statements use such words as "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "will" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements.
SOURCE: Xebec Adsorption Inc.
Kurt Sorschak
President and CEO
450-979-8701
[email protected]
Eric Favreau
Chief Financial Officer
450-979-8706
[email protected]
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