PyroGenesis announces 2012 Q3 results
MONTREAL, Nov. 29, 2012 /CNW Telbec/ - PyroGenesis Canada Inc. ("PyroGenesis" or the "Company") (TSXV: PYR), today announced its financial and operational results for the third quarter ended September 30, 2012.
Third Quarter Highlights:
- Pyrogenesis has signed a $2.2 million Plasma Torch Contract;
- The Company was awarded a follow-on contract from a multinational mining and metallurgical company;
- PyroGenesis announced that it has successfully managed its previously disclosed gap period;
- Subsequent to quarter end, PyroGenesis announced (i) that it had obtained a Patent for its Ultra Compact Waste Treatment System Ideal for Small Ships and Isolated Communities; (ii) that it had received a $5.5 million reorder; (iii) that management expects the Company to have its first steady state cash flow break-even quarter in early 2013; and (iv) that Pyrogenesis will now target municipal BOO market.
As a result of the recently announced reorder, the various cost containment initiatives undertaken by the Company to lower fixed and variable costs, as well as the development of new market niches which are translating into orders for PyroGenesis' torches and engineering services, management believes that Pyrogenesis is now more cost competitive and well positioned for future growth. Furthermore, management is confident that these actions will have a long term positive impact on the company's profitability.
Financial Summary for three months and nine months ended September 30, 2012
Revenues for the third quarter of fiscal year 2012 ("2012-Q3) were $516,595, compared to $1,909,231 in the third quarter of 2011, a decrease of $1,392,636 or 73%. Revenues for the nine months ending September 30, 2012 ("2012-YTD") period was $2,101,735 compared to $3,283,938 in the prior year YTD period, for a decrease of $1,182,203 or 36%. The decrease in revenues in 2012-Q3 and 2012-YTD, are in line with management's projections as the Company has been working through a gap period (the period between the announcement in 2011 of the acceptance of its first orders by the US Navy and the US Air Force and a reorder), as well as in light of the current state of the economy. Revenues are projected to increase in the following quarters due to the increased workload and backlog as a result of recent new contracts signed for a value in excess of $7,500,000.
Cost of Sales
Cost of sales and services before government grants and R&D tax credits for 2012-Q3 was $1,154,205 compared to $2,071,464 the third quarter of 2011, for a decrease of $917,259 or 44%. Cost of sales and services before government grants and R&D tax credits for the 2012-YTD period was $3,795,669 compared to prior year YTD period of $5,237,750, for a decrease of 27%. Government grants and R&D tax credits have decreased by $892,927 on a YTD basis from 2011 to 2012, due to decreased participation in qualifying R&D projects as the company's main product lines are now commercial and as a public company the existing R&D efforts are subject to a less favorable tax treatment as of the second half of 2011. The Company has Implemented several cost containment measures during Q2 and Q3 that have reduced current and longer term operating costs which will make the company more cost competitive and efficient going forward.
Selling, General and Administrative Expenses
Selling, general and administrative (SG&A) costs for 2012-Q3 was $1,041,685 compared to $1,932,554 in the prior year comparative period, for a decrease of 46%. SCG&A for the 2012-YTD period was $3,093,902 compared to prior year YTD period of $3,987,970, for a decrease of 22%. 2012-YTD includes stock based compensation of $868,710 which is a non-cash item, with the majority of options vesting over a four year period, and expiring by July 2017. Before including the cost of stock based compensation, SG&A decreased by 28% on a YTD basis.
The Loss from Operations for 2012-Q3 was $1,742,758 compared to $2,165,062 for the prior year comparable period, for a reduction of 20%. Primary reason for the reduction in the loss in 2012-Q3 over the prior year, are more aligned Cost of Sales and Services and significant reductions in SG&A costs due to cost containment measures implemented as of Q2-2012 and lower financing costs. Loss from Operations for the 2012-YTD period was $4,979,108 compared to $5,512,334 for the comparable YTD period of the prior year, which represents a 10% reduction.
Total Comprehensive Loss
The Total Comprehensive loss for 2012-Q3 was $1,742,581 (EPS of $-0.027) compared to $2,815,300 (EPS of -0.049) for the prior year comparable period, a 38% decrease. Total Comprehensive Loss for the 2012-YTD period was $4,968,993 (EPS of -$0.080) compared to $6,160,348 (EPS of $-0.112) for the comparable YTD period of the prior year, which represents a 19% 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 September 30, 2012, PyroGenesis had cash on hand of $1,124,249 with nil bank indebtedness, and a negative working capital of $1,308,669.
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