Synex International Inc. First Quarter of Fiscal 2013
TSX : SXI
VANCOUVER, Nov. 6, 2012 /CNW/ - For the three months ended September 30, 2012 ("Q1 2013"), revenue decreased to $825,956 as compared to $894,114 in the corresponding period in fiscal 2012 ("Q1 2012"). Revenue decreased from each of the Mears Plant, Cypress Plant and Kyuquot Utility in Q1 2013 over Q1 2012 and consulting revenue increased slightly in Q1 2013 over Q1 2012. The Barr Plant was not in operation in Q1 2012.
The net loss for Q1 2013 was $436,869 as compared to a net loss of $89,790 in Q1 2013. A net loss in the first quarter is expected as the generation from hydro plants in the first quarter normally represents less than 10% of annual forecast generation. The increase in net loss reflects the addition of Barr Creek operations as well as reduced generation from the Mears and Cypress Plants due to near record dry conditions in August 2012 and September 2012. Total generation in Q1 2013 at the Mears and Cypress Plants was 1,595MWh, which is 42% of the generation at the plants in Q1 2012. The loss per share in Q1 2013 was $0.02 as compared to a loss per share of $0.00 in Q1 2012.
During Fiscal 2010, Hawkeye Energy Corporation ("HEC"), a creditor of the Company, entered into receivership and its assets were conditionally sold by the Receiver on behalf of the creditors to the Engineering Division under a bidding process. Prior to closing the sale to the Engineering Division, Hawkeye Power Corporation ("HPC") advanced a claim of an unregistered prior right to the HEC assets. On November 21, 2011, a court dismissed the HPC claim. Subsequently, on December 20, 2011, HPC filed for Notice of Appeal of the court decision. Subsequent to the end of Q1 2012, on October 18, 2012, the BC Court of Appeal upheld the appeal of HPC and ordered that a new trial be held. The date of for the new trial is expected to be in early 2014. HPC has advised that they may pursue further legal action after the new trial.
During Q1 2012, the Power Division had capital expenditures of $74,224 in respect of the development of three separate hydroelectric projects, namely the 5MW McKelvie Creek Project, the 8MW (in total) Newcastle and Montague Creek Projects and the 9.9MW Victoria Lake Project. The Victoria Lake Project has an electricity purchase agreement dated August 2006 whereas the two other projects are expected to make application for electricity purchase agreements under the BC Hydro Standing Offer Program.
At September 30, 2012, the Company had a cash balance of $938,086 which includes $249,806 of cash held within Barr Creek Limited Partnership and Barr Creek Hydro Ltd. The Company is continuing to utilize much of its free cash flow to advance the development of hydroelectric opportunities on Vancouver Island in British Columbia.
Synex International Inc. is a public company, trading on the TSX since 1987, with business interests that cover the development, ownership and operation of electrical generation facilities and the provision of consulting engineering services in water resources, particularly hydroelectric facilities.
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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