XEBEC ANNOUNCES ITS 2010 THIRD QUARTER FINANCIAL RESULTS
MONTREAL, Nov. 15 /CNW Telbec/ - Xebec Adsorption Inc. (TSX: XBC) ("Xebec"), a provider of biogas upgrading, natural gas and hydrogen purification solutions for the clean energy market, announced today its 2010 third quarter financial results.
Financial Highlights
For the three and nine-month periods ended September 30 (unaudited) (in dollars) |
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Q3 2010 | Q3 2009 | YTD Q3 2010 | YTD Q3 2009 | |
Revenues | 3,955,714 | 5,924,603 | 10,088,981 | 14,935,238 |
Net loss | (3,062,842) | (1,212,695) | (9,203,768) | (1,695,254) |
Basic and diluted loss per share | ($0.10 ) | ($0.06 ) | ($0.31 ) | ($0.13 ) |
Other Recent Highlights
- Xebec delivered its first two complete biogas upgrading systems in September, 2010 with commissioning started and completion expected by the end of the year;
- Xebec signed three new sales agreements in July, 2010 for the manufacturing and delivery of complete biogas and landfill gas upgrading plants in North-America and Asia;
- Subsequent to quarter end, Xebec announced the completion of a private placement of units for total gross proceeds of $3.8 million;
- Xebec announced the implementation of costs reduction measures to help reduce expenses and preserve liquidity.
Commenting on the quarterly results, Mr. Kurt Sorschak, President and Chief Executive Officer of Xebec said: "We are pleased to have delivered our first two complete biogas upgrading systems thus demonstrating the successful transition from a supplier of component to a provider of biogas upgrading solutions. Having just recently also completed a private placement and the implementation of cost reduction measures, we continue focussing on managing our liquidity and working capital requirements in order to remain well positioned to respond to the growing needs for clean energy solutions such as ours."
Financial Results
Xebec posted revenues of $4.0 million for the third quarter of 2010, a 33.2% decrease compared to $5.9 million in the third quarter of 2009. For the nine-month period ended September 30, 2010, total revenues were $10.1 million compared to $14.9 million for the same 2009 period. The decline can be attributed to the Company's decision to cease activities in specific Middle East markets and the transition to its new business model.
The net loss for the third quarter of 2010 totaled $3.1 million, or $0.10 per share, compared to a net loss of $1.2 million, or $0.06 per share for the same 2009 period, reflecting primarily a $1.5 million decline in gross profit and a $0.2 million increase in selling and administrative costs. The net loss for the nine-month period ended September 30, 2010, totaled $9.2 million, or $0.31 per share, compared to a net loss of $1.7 million or $0.13 per share for the same 2009 period, resulting mainly from a $4.3 million decline in gross profit and a $2.1 million increase in selling and administrative costs.
Xebec's gross profit for the third quarter of 2010 amounted to $0.2 million, down from $1.7 million for the same 2009 period, resulting mainly from the decrease of engineering services and natural gas dryers revenue and as a result of a temporary increase in labor, additional training and production delays and inefficiencies. Gross profit for the nine-month period ended September 30, 2010, amounted to $0.9 million compared to $5.2 million for the same 2009 period. The decrease mainly results from the withdrawal from specific Middle East markets, revenue recognition methodology and the decrease of natural gas dryers revenue.
Selling and administrative expenses were $2.3 million for the third quarter of 2010, compared to $2.1 million for the same 2009 period. For the nine-month period ended September 30, 2010, selling and administrative expenses were $7.4 million, compared to $5.3 million for the corresponding 2009 period. The year-over-year increase is mainly attributable to increases in staff and facilities as a result of the QuestAir acquisition, the addition of the UK facility and additional costs associated with being a public company.
As at September 30, 2010, the Company's cash on hand totaled $0.3 million, compared to $2.3 million as at June 30, 2010, $5.1 million as at March 31, 2010 and $5.4 million as at December 31, 2009.Xebec 2010 Third Quarter Financial Statements and Management's Discussion and Analysis include further information on the going concern of the Company.
Outlook
XEBEC immediate efforts are primarily focused on maintaining its technological leading position, addressing and managing its liquidity and working capital requirements and seeking additional financing opportunities. Xebec's believes its complete product and services offering, global presence and strong customer relationships in key markets have favorably positioned it to exploit market opportunities fully.
2010 Third 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 and nine-month periods ended September 30, 2010, 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 1300 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, an R&D facility in Vancouver (BC) as well as a sales and distribution network in North America and Asia. Xebec trades on the TSX under the symbol XBC. 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.
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For further information:
Kurt Sorschak President and CEO 450-979-8701 [email protected] |
Ginette Gagné Vice President, Finance and CFO 450-979-8721 [email protected] |
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