TORONTO, April 24, 2018 (GLOBE NEWSWIRE) -- Eurocontrol Technics Group Inc. (TSX Venture: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 growing precision agriculture and semiconductor sectors, announces that it has filed its audited financial statements and Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2017.
The year end results reflect a 62% increase in fiscal year revenue to $2,701,010 compared to $1,664,737 for the year ended December 31, 2016 from continuing operations. The Company recognized EBITDA of ($5,999,106) ($13,188,544 in 2016) resulting in a net loss of $5,423,582 for the year compared to income of $11,533,824 for the year ended December 31, 2016 which included the proceeds from the sale of the Company’s former wholly-owned subsidiary, Global Fluids International (GFI) S.A. (“GFI”). Included in this press release is a summary table outlining earnings for the fiscal year and for the three month period compared to the corresponding 2016 period.
Included in the financial statements are discontinued operations relating to the Company’s sale of 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 long term supply, maintenance and support agreement 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 year ended December 31, 2017.
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, measurement and authentication technologies for industry with applications in 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. 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. 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.
| Three Months Ended December 31, | Year Ended December 31, | |||||||
| 2017 | 2016 | 2017 | 2016 | |||||
| $ | $ | $ | $ | |||||
| Revenue | 940,005 | 717,253 | 2,701,010 | 1,664,737 | ||||
| Cost of sales | ||||||||
| Cost of sales - direct production costs | (516,873 | ) | (390,173 | ) | (1,285,247 | ) | (842,041 | ) |
| Cost of sales - amortization and other non cash items | (44,347 | ) | (44,348 | ) | (177,392 | ) | (177,393 | ) |
| (561,220 | ) | (434,521 | ) | (1,462,639 | ) | (1,019,434 | ) | |
| Gross profit | 378,785 | 282,732 | 1,238,371 | 645,303 | ||||
| Expenses | (2,205,397 | ) | (1,487,348 | ) | (7,463,443 | ) | (6,854,628 | ) |
| Other (expense) income | 149,256 | 196,381 | 706,490 | 950,977 | ||||
| Income tax recovery | - | - | 95,000 | 308,000 | ||||
| Gain on sale of subsidiary - discontinued operations | - | - | - | 16,484,172 | ||||
| Net loss - continuing operations | (1,677,356 | ) | (1,008,235 | ) | (5,423,582 | ) | (4,950,348 | ) |
| Net income - discontinued operations | - | - | - | 16,484,172 | ||||
| Net income (loss) | (1,677,356 | ) | (1,008,235 | ) | (5,423,582 | ) | 11,533,824 | |
| Basic loss per share | ||||||||
| - from continuing operations | (0.03 | ) | (0.01 | ) | (0.06 | ) | (0.05 | ) |
| - from discontinued operations | 0.00 | 0.00 | 0.00 | 0.18 | ||||
| - net income (loss) | (0.03 | ) | (0.01 | ) | (0.06 | ) | 0.13 | |
| Diluted loss per share | ||||||||
| - from continuing operations | (0.03 | ) | (0.01 | ) | (0.06 | ) | (0.05 | ) |
| - from discontinued operations | - | 0.01 | 0.00 | 0.18 | ||||
| - net income (loss) | (0.03 | ) | (0.01 | ) | (0.06 | ) | 0.12 | |
| EBITDA | (1,750,199 | ) | (1,146,971 | ) | (5,999,106 | ) | 13,188,544 | |
| EBIT | (1,823,495 | ) | (1,205,722 | ) | (6,263,177 | ) | 12,957,819 | |
For further information on Eurocontrol, please visit the Company's website at www.eurocontrol.ca or contact Paul Wood at (416) 361-2808 or pwood@eurocontrol.ca.
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.