PyroGenesis announces 2012 Q2 results and amendment of Q1 results
MONTREAL, Aug. 29, 2012 /CNW Telbec/ - PyroGenesis Canada Inc. ("PyroGenesis" or the "Company") (TSXV: PYR), today announced its financial and operational results for the second quarter ended June 30, 2012, and the amendment and restatement of its financial results for the first quarter ended March 31, 2012.
Second Quarter Highlights:
- PyroGenesis disclosed and implemented cost containment initiatives;
- The Company is seeking focused and targeted teaming arrangements to accelerate market acceptance of its plasma waste to energy technologies;
- PyroGenesis announced the receipt of the Association pour le développement de la recherche et de l'innovation du Québec's (ADRIQ) 2012 « Coup de Cœur » award for Partnership and Innovation, for PyroGenesis' innovative solutions with regards to an integrated waste management plan for Îles-de-la-Madeleine;
- Subsequent to quarter end, PyroGenesis announced (i) that it had been awarded a follow-on contract from a multinational mining and metallurgical mompany and (ii) that the gap period had successfully been managed.
As a result of the various cost containment initiatives to lower fixed and variable costs undertaken by the Company, as well as the development of new market niches which are now translating into orders for PyroGenesis' torches and engineering services, management believes that the Company is better positioned and has become more competitive. Furthermore, management is confident that these actions will have a long term positive impact on the company's profitability.
Financial Summary for 3 months and six months ended June 30, 2012
Revenues for the second quarter of fiscal year 2012 ("2012-Q2) were $777,197, compared to $167,054 in the second quarter of 2011, an increase of $610,143 or 365%. Revenues for the six months ending June 30, 2012 ("2012-YTD") period was $1,585,140 compared to $1,374,707 in the prior year YTD, for an increase of $210,433 or 15%. The increase revenues in 2012-Q2 and 2012-YTD, are due to an increase level of revenues recognized on mainly fixed price contracts as determined using percentage of competition method.
Cost of Sales
Cost of sales and services before government grants and R&D credits for 2012-Q2 was $1,065,143 compared to $1,801,652 in the prior year comparative period, for a decrease of $736,509 or 41%. Cost of sales and services before government grants and R&D credits for the 2012-YTD period was $2,641,464 compared to prior year YTD period of $3,166,286, for a decrease of 17%. Government grants and research and development credits have decreased by $816,922 on a YTD basis from 2011 to 2012, due to decreased participation in qualifying R&D projects and less favorable tax treatment as a public company starting in the second half of 2011. The Company embarked on several cost containment measures during Q2 that will reduce operating costs as it works through the gap period, as well as more permanent costs savings that will materialize from the upcoming relocation of its manufacturing facility.
Selling, General and Administrative Expenses
Selling, general and administrative (SG&A) costs for 2012-Q2 was $1,013,083 compared to $1,180,592 in the prior year comparative period, for a decrease of 14%. SCG&A for the 2012-YTD period was $2,052,217 compared to prior year YTD period of $2,055,416, for an decrease of 0.2%. 2012-YTD includes stock based compensation of $417,046 which is a non-cash item, with the majority of options vesting over a four year period, and expiring by July 2016. Before including the cost of stock based compensation, SG&A decreased by 22% on a YTD basis.
The Loss from Operations for 2012-Q2 was $1,358,294 compared to $2,643,105 for the prior year comparable period, for a reduction of 49%. Primary reason for the reduction in the loss in 2012-Q2 over the prior year, is an increase level of revenues, more aligned Cost of Sales and Services, cost containment measures implemented and lower financing costs. Loss from Operations for the 2012-YTD period was $3,236,350 compared to $3,347,272 for the comparable YTD period of the prior year, which represents a 3.3% reduction.
Total Comprehensive Loss
The Total Comprehensive loss for 2012-Q2 was $1,358,249 (EPS of $-0.02) compared to $2,643,105 (EPS of -0.05) for the prior year comparable period, a 49% decrease. Total Comprehensive Loss for the 2012-YTD period was $3,226,412 (EPS of -$0.05) compared to $3,345,048 (EPS of $-0.07) for the comparable YTD period of the prior year, which represents a 3.5% reduction in Total Comprehensive Loss. During 2012, PyroGenesis was operating as public company listed on the TSX Venture, while in the first two quarters of 2011 the company was still a private company.
At June 30, 2012, PyroGenesis had cash on hand with nil bank indebtedness, of $718,254 and a negative working capital of $211,260.
Amendment and Restatement of 2012-Q1 Results
PyroGenesis announces that it has filed on SEDAR amended and restated unaudited interim financial statements and Management Discussion and Analysis for the quarter ended March 31, 2012 ("2011-Q1").
The Company's Amended Statements have been revised to reflect a correction in the level of revenues recognized on one its fixed price contracts which occurred during the Company's conversion period to its new Enterprise Resource Planning (ERP) system.
The effects of the correction of the above error on the Amended Interim Statement of Comprehensive Loss are a decrease in the revenues, loss from operations, and total comprehensive loss by $737,000. This correction and reduction in level of revenues reported in 2012-Q1, has been adjusted before the close of 2012-Q2 and the above reported 2012-Q2 and 2012-YTD results incorporate the required corrections.
The effects of the correction on the Amended Interim Statement of Financial Position as at March 31, 2012 are: a reduction on Total Assets of $102,269, an increase in Liabilities of $634,731, and a reduction of Shareholders' Equity of $737,000.
Management has reviewed and identified the source of the error and appropriate actions and management review processes have been implemented to ensure a similar error does reoccur in the future.
About PyroGenesis Canada Inc.
PyroGenesis Canada is an environmental solutions company that designs, develops and manufactures plasma waste-to-energy systems and plasma torch products. PyroGenesis' proprietary plasma technologies utilize the intense energy of plasma to gasify and vitrify virtually any type of waste without producing hazardous by-products. PyroGenesis' patented gasification and vitrification technology is different from incineration because it produces a clean synthetic gas from waste, which can be used for power generation. PyroGenesis' technology can also turn waste into a glassy rock that can be utilized as construction material. PyroGenesis has marquee defense industry and civilian customers that are using its technology in marine and land-based applications. For more information, please visit www.PyroGenesis.com
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither the 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.
SOURCE: PyroGenesis Canada Inc.For further information:
PyroGenesis Canada Inc.
P. Peter Pascali
Chief Executive Officer