TORONTO, March 1, 2013 /CNW/ - Innovative Composites International Inc. ("ICI" or the "Company"), (TSXV: IC) (OTCQX: ICIZF, a producer of proprietary engineered composite products, reported its financial results for the fiscal 2013 first quarter ended
December 31, 2012. All figures are in U.S. dollars unless otherwise
"Our priority at this time is to address the demand payment notice that
we received from the holder of our convertible debenture. To that end,
we are taking steps to ensure that we will continue to conduct
operations and business development activities going forward, including
actively seeking new sources of funds to refinance the convertible
debenture," said Terry Ball, CEO of ICI. "With respect to our
financial results, the first quarter of fiscal 2013 was a period of
transition. We were able to significantly reduce our operating costs,
increasing the gross margins on our products, while at the same time
strengthen our relationships with existing clients. We are focused on
developing new sources of revenue while continuing to enhance our
existing portfolio of offerings."
Selected Financial and Operational Highlights
Revenue was approximately $587,000 for the quarter, compared with
$907,000 for the same period in 2012.
Gross margin for the quarter, after adjustment for IFRS related items,
was approximately $187,000 compared to $121,000 for the same period in
Total expenses declined by approximately 20% in the quarter compared to
the first quarter of 2012.
Continued to receive a steady flow of purchase orders for specifically
engineered enclosures for world leader in heating, air-conditioning and
refrigeration ("HVAC") equipment.
New "load floor" design for automotive sector utilizing proprietary RMor
Skin certified by independent laboratory as meeting or exceeding the
specifications of Chrysler, Ford and GM.
ICI had revenue of $587,000 for the first quarter of fiscal 2013
compared to $907,000 for the first quarter of fiscal 2012. The decline
in revenue was substantially due to the departure of one customer who
made the decision to manufacture in-house the product that the Company
was supplying. The revenue for the quarter was generated primarily
from the sale of specifically engineered enclosures as from sales of
Mattex and load floors to the automotive sector.
Cost of Sales for the first quarter of fiscal 2013 (after deducting the
reallocation of amortization and depreciation expenses that IFRS
requires be included in Cost of Sales) was $401,000, compared to
$786,000 for the first quarter of fiscal 2012. The Gross Margin for the
first quarter of fiscal 2013 (calculated using the adjusted Cost of
Sales) was $187,000 or 32%, compared to $121,000 or 13% for the first
quarter of fiscal 2012. The increase in gross margin reflects the
Company's efforts to reduce operating expenses and increase
Total expenses for the quarter ended December 31, 2012 were $1,776,000,
compared to $2,226,000 for the same period last year. The decrease in
expenses reflects the Company's efforts to reduce its operating burn
ICI recorded a net loss for the first quarter of fiscal 2013 of
$1,819,000 or $0.02 per share, compared to a net loss of $1,752,000, or
$0.03 per share, for the same period in fiscal 2012.
Cash flow used in operating activities for the first quarter of fiscal
2013 were $1,231,000 compared to $1,716,000 for the same period in
As at December 31, 2012, ICI had cash and cash equivalents of
$2,805,000, compared to $4,156,000 as at September 30, 2012.
ICI has filed its financial statements for the first quarter of fiscal
2013 ended December 31, 2012 and related Management's Discussion and
Analysis (MD&A) with securities regulatory authorities. ICI's financial
statements, MD&A and related documents are available via www.sedar.com as well as through the Company's website, www.innovativecompositesinc.com.
About Innovative Composites International Inc.
Headquartered in Toronto, Canada, Innovative Composites International Inc. (TSXV: IC) (OTCQX: ICIZF) is a high-tech engineering and manufacturing company whose goal is to
utilize its proprietary "green" composite materials and building
systems to provide innovative, engineered product solutions to markets
that include prefabricated modular housing, shelters and containers, and industrial applications.
To find out more about ICI please visit our website at: www.innovativecompositesinc.com.
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.
"Statements made in this press release include forward-looking
statements that involve a number of risks and uncertainties. These
statements relate to future events or future performance and reflect
management's current expectations and assumptions. A number of factors
could cause actual events, performance or results to differ materially
from the events, performance and results discussed in the
forward-looking statements, such as the economy, generally, competition
in its target markets, the demand for ICI's products and the
availability of funding. These forward-looking statements are made as
of the date hereof and ICI does not assume any obligation to update or
revise them to reflect new events or circumstances. Actual events or
results could differ materially from ICI's expectations and
SOURCE: Innovative Composites International Inc.
For further information:
Chief Financial Officer
(416) 646 0754