Synex International Inc Annual Report for Fiscal 2012
TSX : SXI
VANCOUVER, Sept. 17, 2012 /CNW/ - Revenue from energy sales and consulting for the fiscal year ended June 30, 2012 increased by 41% to $5,281,228 from $3,728,474 for fiscal 2011. The revenue increase is primarily due to an increase in consulting services, the start of commercial operations at the Barr Creek Plant on February 2, 2012 and increases in electricity sales from each of the Mears Plant, Cypress Plant and the Kyuquot Utility.
Net income to shareholders of the Company for fiscal 2012 was $430,034 as compared to net income of $48,904 for fiscal 2011. Income per share for fiscal 2012 was $0.02 as compared to income per share of $0.00 in fiscal 2011.
The Company made a dividend payment in late June 2012 to shareholders of record on June 15, 2012. The dividend payment was in the amount of $0.01 per share. A regular dividend is expected to be paid annually in June of each year. The introduction of the dividend demonstrates confidence in the ability of the existing operating assets to consistently generate positive cash flow.
On February 2, 2012, the 4.4 MW Barr Creek Hydro Plant ("Barr Creek Plant") commenced commercial operation under the 40 year electricity purchase agreement with BC Hydro. During the period from February 2, 2012 to June 30, 2012, the average generation of the Barr Creek Plant was about 2.1MW which was equivalent to the forecast generation. The Barr Creek Plant is owned by the Barr Creek Limited Partnership ("BCLP") and its general partner, Barr Creek Hydro Ltd. ("BCHL"). BCLP and BCHL are each owned 80% by the Company and 20% by the Ehattesaht First Nation. The asset value of the Barr Creek Plant at June 30, 2012 was $12.5 million and the principal amount of debt at June 30, 2012 was $9.1 million.
In March 2012, the Company received a payment of $625,871 from the Ka:'yu:'k't'h'/Che:k:tles7et'h' First Nation as the final contribution in aid of construction with respect to the Kyuquot powerline. The Company applied the proceeds to fully repay the revolving $500,000 credit line of the Power Division as well as for general corporate purposes. At June 30, 2012, the Company had loan agreements with Canadian Western Bank with total indebtedness of $19.1 million as compared to $11.5 million at June 30, 2011. During Fiscal 2012, the Canadian Western Bank advanced $8.4 million for construction of the Barr Creek Plant.
The Company is a successful hydroelectric developer and consultant in British Columbia. The Company wholly owns or has proportionate interests in a total of 12 MW of operating facilities. In addition, the Company has applications for water licences and land tenure on over 55 potential hydroelectric sites which are either in various stages of development or intended for disposition. Mostly, the water licence applications are for projects with individual capacities of less than 10 MW. BC Hydro under the current Standing Offer Program accepts applications for electricity purchase agreements for up to forty years for projects with a maximum size of 15 MW and for which BC Hydro has a stated goal of acquiring 500 GWh per year.
Greg Sunell, President
This press release contains forward-looking statements that involve risks and uncertainties. These statements reflect our current expectations and are subject to change. They are subject to a number of risks and uncertainties including, but not limited to, changes in economic conditions, risks associated with the construction and operation of hydroelectric facilities and changes in government policies.
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