Synex International Inc - First quarter of fiscal 2014
TSX : SXI
VANCOUVER, Nov. 5, 2013 /CNW/ - For the three months ended September 30, 2013 ("Q1 2014"), revenue was $898,845 as compared to $825,956 in the corresponding period in 2012 ("Q1 2013"). The increase in revenue is due to increases in electricity sales from the Mears Creek and Barr Creek hydroelectric plants and the Kyuquot Utility as well as an increase in services revenue from the Engineering Division, which together is partly offset by a decrease in electricity sales from the Cypress Creek plant. Cumulative generation of the Mears, Cypress and Barr plants increased to 2,793 MWh for Q1 2014 as compared to 2,135 MWh for Q1 2013.
The net loss for Q1 2014 decreased to $414,203 as compared to $436,869 in Q1 2013. The decrease in net loss is primarily due to higher electricity sales in Q1 2014 as compared to Q1, 2013. A net loss in the first quarter is expected as the generation from hydroelectric plants in the first quarter normally represents less than 10% of annual forecast generation. The loss per share in Q1 2014 was $0.01 as compared to a net loss per share of $0.02 in Q1 2013.
The capital expenditures in Q1 2013 in respect of the development of run-of-river hydro projects in British Columbia totaled $112,534. The Power Division was most active on the proposed 5MW McKelvie Creek Project (the "McKelvie Project"), the 4MW Newcastle Creek Project (the "Newcastle Project") and the Victoria Lake Project (the "Victoria Project"). The Victoria Project has an electricity purchase agreement dated August 2006 whereas the two other projects are expected to qualify for electricity purchase agreements under the current BC Hydro Standing Offer Program.
At September 30, 2013, the Company had a cash balance of $1,019,753 as compared to $1,145,655 at June 30, 2013. The total loan principal outstanding to the Canadian Western Bank was $18,630,288 at September 30, 2013 as compared to $18,461,818 at June 30, 2013. During Q1 2014, the Company increased the loan principal of the Kyuquot Loan by about $321,000 to $700,000 and converted the loan from a floating rate to a 3 year fixed rate. In addition, the Company received gross proceeds of $153,500 from issuance of 340,000 common shares from the exercise of options by directors and officers.
The Company is a successful hydroelectric developer and consultant in British Columbia. The Company wholly owns or has beneficial 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 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 with a maximum size of 15 MW.
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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