CALGARY, ALBERTA--(Marketwire - Nov. 27, 2012) -
THIS DOCUMENT IS NOT INTENDED FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES.
Questor Technology Inc. ("Questor" or the "Company") (TSX VENTURE:QST) announced today its financial and operating results for the three and nine month periods ended September 30, 2012. The Company reported a profit of $155,386 ($0.006 per basic share) for the three months ended September 30, 2012 compared to a profit of $304,596 ($0.012 per basic share) for the same three month period last year. Profit for the nine months ended September 30, 2012 was $742,264 ($0.030 per basic share) compared to a profit of $394,057 ($0.016 per basic share) for the nine months ended September 30, 2011.
FINANCIAL HIGHLIGHTS SUMMARY | |||||||||||||
(Stated in Canadian dollars except per share amounts) | |||||||||||||
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | ||||||||||||
2012 | 2011 | Increase (decrease |
) | 2012 | 2011 | Increase (decrease |
) | ||||||
Revenue | 1,112,976 | 1,580,395 | (467,419 | ) | 4,531,855 | 3,684,470 | 847,385 | ||||||
Gross profit(1) | 590,994 | 802,243 | (211,249 | ) | 2,093,292 | 1,558,410 | 534,882 | ||||||
EBITDA(1) | 299,225 | 605,795 | (306,570 | ) | 1,226,329 | 808,730 | 417,599 | ||||||
Profit and total comprehensive income | 155,386 | 304,596 | (149,210 | ) | 742,264 | 394,057 | 348,207 | ||||||
Cost of sales as a percent of revenue(1) | 46.9 | % | 49.2 | % | (2.3 | )% | 53.8 | % | 57.7 | % | (3.9 | )% | |
Cash generated from operations before movements in non-cash working capital(1) | 374,491 | 558,832 | (184,341 | ) | 1,327,966 | 707,341 | 620,625 | ||||||
Total assets | 9,194,824 | 7,818,476 | 1,376,348 | 9,194,824 | 7,818,476 | 1,376,348 | |||||||
Non-current liabilities | 234,829 | 226,539 | 8,290 | 234,829 | 226,539 | 8,290 | |||||||
Shares outstanding(2) | |||||||||||||
Basic | 24,857,370 | 24,712,261 | 145,109 | 24,857,370 | 24,709,018 | 148,352 | |||||||
Diluted | 25,452,830 | 24,812,335 | 640,495 | 25,189,409 | 24,753,921 | 435,488 | |||||||
Earnings per share - Basic | 0.006 | 0.012 | (0.006 | ) | 0.030 | 0.016 | 0.014 | ||||||
Earnings per share - Diluted | 0.006 | 0.012 | (0.006 | ) | 0.029 | 0.016 | 0.013 |
(1) | Non-IFRS financial measure. Please see discussion in the Non-IFRS Financial Measures section of the Company's Management's Discussion and Analysis for the three and nine month periods ended September 30, 2012. |
(2) | Weighted average. |
The Company's profit and total comprehensive income decreased by $149,210 in third quarter 2012 compared to the corresponding period in 2011 primarily due to lower revenues arising from differences in the volume and mix of incinerator sales in each period and to the net foreign exchange losses recorded in the current period compared to the net foreign exchange gains recorded in the same period of 2011. Partially offsetting these impacts to profit and total comprehensive income was the comparatively higher revenues arising from improved utilization and rate differences in the incinerator rental and services mix and lower income tax and administration expenses incurred during third quarter 2012.
The substantial increase to profitability in the nine month period ended September 30, 2012 is attributable to higher revenues arising from differences in the volume and mix of incinerator sales in each period and to the stronger margins achieved in 2012. Higher utilization of the rental incinerator fleet and lower administration expenses in 2012 also contributed to the positive profit variance for the first nine months of 2012. The level of profitability achieved in the first nine months of 2012 is particularly noteworthy on a comparative basis because second quarter 2011 results reflected a $0.3 million non-recurring revenue amount.
"Our revenue in the first nine months of 2012 is 23 percent higher than the corresponding period last year. Our profit is 88 percent higher on a comparative basis, resulting in earnings per basic share of $0.030 compared to $0.016 per basic share for the same period in 2011," said Audrey Mascarenhas, President and Chief Executive Officer. "Our third quarter 2012 results are strong and combined with incinerator sales revenue generated in the first two quarters of the year and confirmed incinerator sales orders we anticipate delivering during fourth quarter 2012, we expect to achieve a $1.3 million increase to incinerator sales revenue year over year.
Recently enacted hazardous air pollutant regulations in the United States have opened opportunities for Questor's clean air solutions. Similarly, increasing shale exploration activities in Europe has lead to public concerns and new regulations, creating demand for our portable rental incinerator units. We are pursuing expansion of the Company's presence in both markets," concluded Ms. Mascarenhas.
In relation to the Company's market awareness and brand recognition initiatives, Ms. Mascarenhas has made presentations at each of the following events:
- the 5th International Petroleum and Petrochemical Leadership and Innovation Summit held in Dongying, Shandong Province, China from September 17 - 19, 2012;
- the Canadian Society for Unconventional Resources 14th Annual Unconventional Resources Conference held October 3 - 4, 2012 in Calgary, Alberta, Canada; and
- the 19th International Petroleum Environmental Conference held October 30, 31, and November 1, 2012 in Denver, Colorado, USA.
Ms. Mascarenhas will also make a presentation at the Unconventional Gas Aberdeen 2012 Conference in Aberdeen, Scotland on November 28, 2012.
A copy of each presentation is or will be made available on the Company's website.
Questor's unaudited condensed financial statements and notes thereto and management's discussion and analysis for the three and nine month periods ended September 30, 2012 will be available shortly on the Company's website at www.questortech.com and through SEDAR at www.sedar.com.
ABOUT QUESTOR TECHNOLOGY INC.
Questor is an international environmental oilfield service company founded in late 1994 and headquartered in Calgary, Alberta, Canada with a field office located in Grande Prairie, Alberta, Canada. The Company is focused on clean air technologies with activities in Canada, the United States, Europe and Asia. Questor designs and manufactures high efficiency waste gas incinerators for sale or for use on a rental basis and also provides combustion-related oilfield services. The Company's proprietary incinerator technology destroys noxious or toxic hydrocarbon gases which ensures regulatory compliance, environmental protection, public confidence and reduced operating costs for customers. Questor is recognized for its particular expertise in the combustion of the sulfur compounds (primarily H2S) in sour gas. While the Company's current customer base is primarily in the oil and gas industry, this technology is applicable to other industries such as landfills, water and sewage treatment, tire recycling and agriculture.
Questor trades on the TSX Venture Exchange under the symbol "QST".
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
QUESTOR TECHNOLOGY INC. | |||||
CONDENSED STATEMENTS OF FINANCIAL POSITION | |||||
Stated in Canadian dollars | |||||
Unaudited | |||||
As at | September 30 2012 |
December 31 2011 |
|||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 4,760,902 | $ | 2,166,301 | |
Short-term investment | - | 1,007,896 | |||
Trade and other receivables | 1,377,533 | 2,852,578 | |||
Inventories | 577,066 | 766,028 | |||
Prepaid expenses and deposits | 105,156 | 96,296 | |||
Current tax assets | 25,885 | 73,341 | |||
Total current assets | 6,846,542 | 6,962,440 | |||
Non-current assets | |||||
Property and equipment | 2,339,655 | 2,053,972 | |||
Intangible assets | 8,627 | 9,541 | |||
Total non-current assets | 2,348,282 | 2,063,513 | |||
Total assets | $ | 9,194,824 | $ | 9,025,953 | |
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Trade payables, accrued liabilities and provisions | $ | 779,933 | $ | 1,070,989 | |
Deferred revenue and deposits | - | 280,042 | |||
Current tax liabilities | 59,238 | 196,572 | |||
Total current liabilities | 839,171 | 1,547,603 | |||
Non-current liabilities | |||||
Deferred tax liabilities | 104,995 | 94,935 | |||
Lease inducement | 129,834 | 61,099 | |||
Total non-current liabilities | 234,829 | 156,034 | |||
Total liabilities | 1,074,000 | 1,703,637 | |||
Capital and reserves | |||||
Issued capital | 5,458,215 | 5,458,215 | |||
Reserves | 678,470 | 622,226 | |||
Retained earnings | 1,984,139 | 1,241,875 | |||
Total equity | 8,120,824 | 7,322,316 | |||
Total liabilities and equity | $ | 9,194,824 | $ | 9,025,953 | |
QUESTOR TECHNOLOGY INC. | |||||||||||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||
Stated in Canadian dollars except per share data | |||||||||||||
Unaudited | |||||||||||||
For the three months ended September 30 | For the nine months ended September 30 | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Revenue | $ | 1,112,976 | $ | 1,580,395 | $ | 4,531,855 | $ | 3,684,470 | |||||
Cost of sales | (521,982 | ) | (778,152 | ) | (2,438,563 | ) | (2,126,060 | ) | |||||
Gross profit | 590,994 | 802,243 | 2,093,292 | 1,558,410 | |||||||||
Administration expenses | (328,410 | ) | (351,443 | ) | (1,046,071 | ) | (1,172,258 | ) | |||||
Net foreign exchange gains (losses) | (21,568 | ) | 102,755 | (4,232 | ) | 23,723 | |||||||
Depreciation of property and equipment | (10,340 | ) | (10,922 | ) | (31,125 | ) | (21,958 | ) | |||||
Amortization of intangible assets | (305 | ) | (305 | ) | (914 | ) | (914 | ) | |||||
Write-off of property and equipment | (18,871 | ) | (13,340 | ) | (27,865 | ) | (31,798 | ) | |||||
Other income | 9,377 | 16,516 | 21,290 | 294,877 | |||||||||
Profit before tax | 220,877 | 545,504 | 1,004,375 | 650,082 | |||||||||
Income tax expense | |||||||||||||
Current | (47,705 | ) | (169,101 | ) | (252,051 | ) | (173,247 | ) | |||||
Deferred | (17,786 | ) | (71,807 | ) | (10,060 | ) | (82,778 | ) | |||||
Profit and comprehensive income | $ | 155,386 | $ | 304,596 | $ | 742,264 | $ | 394,057 | |||||
Earnings per share | |||||||||||||
Basic | $ | 0.006 | $ | 0.012 | $ | 0.030 | $ | 0.016 | |||||
Diluted | $ | 0.006 | $ | 0.012 | $ | 0.029 | $ | 0.016 |
QUESTOR TECHNOLOGY INC. | ||||||||||
CONDENSED STATEMENTS OF CHANGES IN EQUITY | ||||||||||
Stated in Canadian dollars | ||||||||||
Unaudited | ||||||||||
Issued capital | Reserves | Retained earnings | Total equity |
|||||||
Balance at January 1, 2012 | $ | 5,458,215 | $ | 622,226 | $ | 1,241,875 | $ | 7,322,316 | ||
Profit and total comprehensive income | - | - | 742,264 | 742,264 | ||||||
Recognition of share-based payments | - | 56,244 | - | 56,244 | ||||||
Issue of ordinary shares under employee share option plan | - | - | - | - | ||||||
Balance at September 30, 2012 | $ | 5,458,215 | $ | 678,470 | $ | 1,984,139 | $ | 8,120,824 | ||
Balance at January 1, 2011 | $ | 5,404,966 | $ | 593,944 | $ | 51,471 | $ | 6,050,381 | ||
Profit and total comprehensive income | - | - | 394,057 | 394,057 | ||||||
Recognition of share-based payments | - | 45,102 | - | 45,102 | ||||||
Issue of ordinary shares under employee share option plan | 53,249 | (26,249 | ) | - | 27,000 | |||||
Balance at September 30, 2011 | $ | 5,458,215 | $ | 612,797 | $ | 445,528 | $ | 6,516,540 | ||
QUESTOR TECHNOLOGY INC. | ||||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||||
Stated in Canadian dollars | ||||||||
Unaudited | ||||||||
For the nine months ended September 30 | 2012 | 2011 | ||||||
Cash flows from (used in) operating activities | ||||||||
Profit and total comprehensive income | $ | 742,264 | $ | 394,057 | ||||
Adjustments for: | ||||||||
Income tax expense | 262,111 | 256,025 | ||||||
Write-off of property and equipment | 27,865 | 31,798 | ||||||
Depreciation of property and equipment | 221,040 | 157,734 | ||||||
Amortization of intangible assets | 914 | 914 | ||||||
Net unrealized foreign exchange losses (gains) | 16,307 | (181,119 | ) | |||||
Expense recognized in respect of equity-settled share-based payments | 56,244 | 45,102 | ||||||
Write-downs of inventories to net realizable value | 1,221 | 2,830 | ||||||
1,327,966 | 707,341 | |||||||
Movements in non-cash working capital | 2,411,569 | (1,247,223 | ) | |||||
Cash generated from (used in) operations | 3,739,535 | (539,882 | ) | |||||
Income taxes paid | (383,793 | ) | (242,523 | ) | ||||
Net cash generated from (used in) operating activities | 3,355,742 | (782,405 | ) | |||||
Cash flows (used in) from investing activities | ||||||||
Payments for property and equipment | (750,510 | ) | (1,220,600 | ) | ||||
Proceeds from disposal of property and equipment | - | 3,200 | ||||||
Net cash used in investing activities | (750,510 | ) | (1,217,400 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from issue of ordinary shares under employee share option plan | - | 27,000 | ||||||
Net cash from financing activities | - | 27,000 | ||||||
Net increase (decrease) in cash | 2,605,232 | (1,972,805 | ) | |||||
Cash and cash equivalents at beginning of the period | 2,166,301 | 3,995,669 | ||||||
Effects of exchange rate changes on the balance of cash held in foreign currencies | (10,631 | ) | 129,348 | |||||
Cash and cash equivalents at end of the period | $ | 4,760,902 | $ | 2,152,212 |
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.
Contact Information:
Audrey Mascarenhas
President and Chief Executive Officer
(403) 571-1530
(403) 571-1539 (FAX)
amascarenhas@questortech.com
www.questortech.com