TORONTO, Aug. 29, 2017 (GLOBE NEWSWIRE) -- Eurocontrol Technics Group Inc. (TSX-V:EUO) (OTCQB:EUCTF) (“Eurocontrol” or the “Company”), a Canadian public company specializing in the acquisition, development and commercialization of innovative test and measurement technologies for industry with application systems focused on the energy security, semiconductor and precision agriculture sectors, announces that it has filed its financial statements and Management’s Discussion and Analysis (“MD&A”) for the quarter ended June 30, 2017.
The second quarter results reflect an 82% increase in fiscal year revenue, excluding discontinued operations, to $1,268,811 compared to $696,853 for the six month period ended June 30, 2016. EBITDA for the six month period decreased by $18,573,866 to $(2,774,406) compared to $15,799,460 as at June 30, 2016 which amount reflected the gain on the sale of the Company’s former subsidiary. The Company had a gross profit of $594,108 for the current period compared to $208,003 for the six months ended June 30, 2016, representing an increase of 186%. Included below is a summary table outlining earnings for the second quarter of 2017 compared to the corresponding 2016 period. Subsequent to the end of the second quarter, the Company received the third of the guaranteed earn-out payments of $750,000 from SICPA SA, bringing the total payments to date to $2,250,000.
Included in the financial statements are discontinued operations relating to the Company’s sale of its former wholly owned subsidiary, Global Fluids International (GFI) S.A. (GFI), to SICPA S.A. (“SICPA”), a private Swiss company that is a global leader in the provision of secured identification, traceability and authentication solutions and services, on January 4, 2016 in exchange for $16 million in cash (less transaction payments) and post closing earn-out payments equal to 5% of the net revenues earned by SICPA GFI from contracts entered into (between January 4, 2016 ending January 4, 2022), with a minimum guaranteed of $1.5 million per year for the six year earn-out period (total payment of at least $9,000,000). The Company, through its wholly owned subsidiary, Xenemetrix, entered into a strategic exclusive long term supply, maintenance and support agreement, pursuant to which Xenemetrix will continue to supply to SICPA GFI, Xenemetrix products and services for the oil and gas marking and monitoring field. Further details relating to this sale transaction can be obtained from the Company’s continuous disclosure documents including the MD&A for the quarter ended June 30, 2017.
Bruce Rowlands, Chairman and Chief Executive Officer stated: “This is the third reporting period that our revenue numbers have improved quarter over quarter. The increase in revenues from Xenemetrix for the first half of the year clearly reflects that our investments in updating and marketing the Xenemetrix product line is continuing to increase sales. The strong interest in the Xenemetrix product line and the solid advancements we’ve made in marketing XwinSys’s ONYX metrology system to the semiconductor industry and commercialization and continued advancements at Croptimal, bodes well for a strong second half.”
Financial and Operating Highlights *
- Achieved second quarter revenue of $1,268,811 from continuing operations, an 82% increase from June 30, 2016 revenue of $696,853.
- Recognized $594,108 in gross profit, an increase of 186% from June 31, 2016.
- Recognized second quarter net loss excluding discontinued operations of $2,350,277 compared to a net loss of $2,752,753 in 2016.
- 2017 investment in R&D of ~$1.6 million.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||
| $ | $ | $ | $ | |||||||
| Revenue | 708,563 | 394,180 | 1,268,811 | 696,853 | ||||||
| Cost of sales | ||||||||||
| Cost of sales - direct production costs | (213,248 | ) | (227,616 | ) | (586,006 | ) | (400,153 | ) | ||
| Cost of sales - amortization and other non cash items | (44,348 | ) | (44,348 | ) | (88,697 | ) | (88,697 | ) | ||
| (257,596 | ) | (271,964 | ) | (674,703 | ) | (488,850 | ) | |||
| Gross profit | 450,967 | 122,216 | 594,108 | 208,003 | ||||||
| Expenses | (1,704,124 | ) | (1,746,322 | ) | (3,470,054 | ) | (3,701,353 | ) | ||
| Other (expense) income | 244,679 | 164,599 | 430,669 | 532,597 | ||||||
| Income tax recovery | 37,000 | 208,000 | 95,000 | 208,000 | ||||||
| Gain on sale of subsidiary - discontinued operations | - | - | - | 16,484,172 | ||||||
| Net loss - continuing operations | (971,478 | ) | (1,251,507 | ) | (2,350,277 | ) | (2,752,753 | ) | ||
| Net income - discontinued operations | - | - | - | 16,484,172 | ||||||
| Net income (loss) | (971,478 | ) | (1,251,507 | ) | (2,350,277 | ) | 13,731,419 | |||
| Basic loss per share | ||||||||||
| - from continuing operations | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.03 | ) | ||
| - from discontinued operations | 0.00 | - | - | 0.18 | ||||||
| - net income (loss) | (0.01 | ) | (0.01 | ) | (0.03 | ) | 0.15 | |||
| Diluted loss per share | ||||||||||
| - from continuing operations | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.03 | ) | ||
| - from discontinued operations | - | - | - | 0.17 | ||||||
| - net income (loss) | (0.01 | ) | (0.01 | ) | (0.03 | ) | 0.14 | |||
| EBITDA | (1,208,687 | ) | (1,589,489 | ) | (2,774,406 | ) | 15,799,460 | |||
| EBIT | (1,273,472 | ) | (1,646,376 | ) | (2,900,211 | ) | 15,686,304 | |||
* Certain comparative figures have been reclassified to conform to the current year’s presentation. These reclassifications did not affect prior years’ net losses.
About Eurocontrol Technics Group Inc.
Eurocontrol is a TSX Venture and OTCQB traded company that specializes in the acquisition, development and commercialization of innovative test and measurement technologies for industry with application technologies focused on the energy security, semiconductor and precision farming sectors based on Xenemetrix’s core technological platform of ED-XRF. Eurocontrol has three wholly owned subsidiaries, Xenemetrix Ltd., XwinSys Technology Development Ltd. and Croptimal Ltd. and an agreement with SICPA S.A. for semi-annual earn-out payments of 5% (minimum $9 million over six years) on revenues generated from the oil and gas marking and monitoring field relating to the sale of its former subsidiary Global Fluids International (GFI) S.A. Xenemetrix is a leading designer, manufacturer and marketer of ED-XRF systems, a technology that is the most accurate and economic method for determining the chemical composition of many types of materials, including the analysis of petroleum oils and fuel. Xenemetrix has a long-term supply, maintenance and support agreement with SICPA/GFI to supply SICPA/GFI with Xenemetrix products and services related to the oil and gas marking and monitoring field. XwinSys has developed a patented, fully automated metrology system for the semiconductor industry that combines 2D and 3D image processing technology with Xenemetrix’s ED-XRF technology. Croptimal, is introducing a new mobile ED-XRF spectroscopic material analysis laboratory for the precision agriculture industry that could dramatically change agricultural testing methodology and increase crop yields.
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Forward-Looking Statements: This press release contains forward-looking statements. More particularly, this press release contains statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. The forward-looking statements are based on certain key expectations and assumptions made by Eurocontrol. Although Eurocontrol believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Eurocontrol can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release are those set out in Eurocontrol’s management discussion and analysis of the financial condition and results of operations for the year ended December 31, 2016 which is available on the Corporation’s profile at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and Eurocontrol undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.