Sofame Reports Q2 2014 Earnings Results
MONTREAL, June 5, 2014 /CNW Telbec/ - Sofame Technologies Inc. (TSXV: SDW) (OTC: SFMGF) has reported net sales of $333,386 for the second quarter of fiscal 2014 ended March 31, 2014, and a net loss of ($45,767). EBITDA was $39,792 for the quarter.
- Q2 2014 Net Sales of $ 333,386 compared to $ 251,236 in Q2 2013, an increase of 32.6%
- Q2 2014 Gross Profit of $ 120,052 (36.0%) compared to $ 48,308 (19.2%) in Q2 2013
- Receivables of $850,000 on contracts worth $ 2.7 million with $480,000 remaining in sales funnel
- Q2 2014 Operating Profit of $ 14,139 (4.2%) versus Loss of ($ 34,923) (-13.9%) in Q2 2013
- Net Loss in Q2 2014 of ($ 45,767) (-13.7%) compared to Net Loss of ($ 69,809) (-27.8%) in Q2 2013
- EBITDA in Q2 2014 was $ 39,792 (11.9%) versus $ 36,946 (14.7%) in Q2 2013
These are the financial highlights only. Management`s Discussion and
Analysis, the consolidated statements of financial position, cash
flows, and notes thereto of Sofame Technologies Inc. are available at www.sedar.com.
Key Developments During the Second Quarter Ended March 31, 2014
Negotiations for a Significant Order of PercofracTM Equipment
Sofame began selling the 100% efficient PercofracTM 10 MMBTU and 30 MMBTU mobile water heaters in the summer of 2013. Witness testing of the units in the gas fields after they were mounted on trailers equipped with pumps, generators and propane vaporizers went very well. There is discussion of orders for multiple units to serve the burgeoning fracking business. Developments will be promptly reported.
Negotiations to Acquire a Company in the Same Industry
Sofame began negotiations in 2012 to acquire a company operating in the same industry. These negotiations have progressed further, and an acquisition will occur if the required debt financing can be negotiated. Discussions are under way with several potential lenders. Any concrete developments will be reported promptly.
Financing and Cash Flow
As negotiations on the building sale and leaseback continued into 2014, the secured bridge loan maturity was extended twice, by consent of the investors, to May 30, 2014. The bridge loan investors will have to consent to any further extension of the maturity date. As part of the refinancing negotiations, the Company is attempting to repay both secured lenders with a new financing tied to its acquisition strategy, and also by securing contracts for significant orders of the new Percofrac frac water heating system. Continuing operation of the Company depends on its ability to consistently generate revenues and profits, and successful negotiation of sufficient supplementary financing as may be required to meet cash flow requirements. The Company may seek financing by various means including the issue of common shares and/or by debt.
Neither 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 Sofame Technologies Inc.For further information:
For further information:
President & CEO
(514) 523-6545 x200
Stone Communication Services