MONTREAL, May 1, 2013 /CNW Telbec/ - PyroGenesis Canada Inc. ("PyroGenesis" or the "Company") (TSXV: PYR), an environmental
solutions company that designs, develops and manufactures plasma
waste-to-energy systems and plasma torch products, today announced its
financial and operational results for the fourth quarter and the fiscal
year ended December 31, 2012.
2012 was a year during which PyroGenesis:
Received a $5.5 million reorder for one of its plasma waste destruction
Signed a $2.2 million plasma torch contract;
Repaid all third party debt;
Obtained a Patent for its Ultra Compact Waste Treatment System ideal for
small ships and isolated communities;
Was awarded a follow-on contract from a multinational mining and
Closed a second public offering for aggregate gross proceeds of
$3,539,644 on March 29, 2012;
Shipped its plasma-based Ozone Depleting Substance Destruction System to
Recyclage ÉcoSolutions Inc.'s facility.
The development by PyroGenesis of new market niches is translating into
orders for its torches and engineering services, as evidenced by the
level of new business activity, which validates management's belief
that PyroGenesis is now more cost competitive, given the efforts
undertaken in 2012 and that it is well positioned for future growth.
At December 31, 2012, PyroGenesis had cash on hand of $2,195,571 and
negative working capital of $1,436,384 (negative $1,374,877 at December
In January 2012, PyroGenesis repaid in full its investment tax credit
demand facility and in March 2012, PyroGenesis paid off its Venture
Capital loan ($1,000,000 convertible debenture from Fier Croissance
Revenues for fiscal 2012 totaled $3,323,236 ($4,610,358: 2011), this
decrease in revenues reflects the "gap period" PyroGenesis has been
faced with, due to delays in securing a first reorder of one of its
plasma waste treatment system from its established client base.
Furthermore, in 2012, the Company completed its contract with the US
Air Force and signed several other contracts. In late November 2012,
PyroGenesis announced that it had been awarded a $5.5 million reorder
from Newport News Shipbuilding for a plasma waste destruction system to
be installed on the CVN-79, the next US Navy Ford-class aircraft
carrier. To date, PyroGenesis has received a first payment of $2.1
million on this contract.
Revenues for the fourth quarter of fiscal 2012 (hereafter "2012-Q4")
were $1,221,501 ($1,326,420: 2011-Q4). It is anticipated that revenues
will increase in the coming quarters reflecting increased project
progress, particularly on the reorder from Newport News Shipbuilding.
Cost of Sales
Cost of Sales before government grants and R&D tax credits for fiscal
2012, was $5,232,070, ($6,721,108: 2011). This decrease is mainly due
to cost containment measures put in place and announced by the Company
in May 2012, which were meant to lower its breakeven point and increase
its competitiveness. These measures included bringing salary and
sub-contracting costs in line with the volume of work on hand.
During 2012-Q4, Cost of Sales and Services before government grants and
R&D tax credits were $1,436,401 ($1,483,358: 2011-Q4). Manufacturing
overhead increased in 2012-Q4 over 2011-Q4 due to increased losses on
foreign exchange on project costs, as well as increased repairs and
Selling, General and Administrative Expenses
Selling, general and administrative expenses (before Stock based
compensation expense) for fiscal 2012 were $2,880,032 ($3,799,774:
2011). The single largest reduction in costs was in professional fees,
which had been abnormally high due to the Company's going public
The costs associated with stock based compensation (a non-cash item on
which options vest over a four year period) commenced in 2011-Q3
pursuant to the grant of stock options in accordance with the Company's
stock option plan. In 2012, the Stock based compensation of $952,055
represents the expense for a full year, whereas the cost reported in
2011 reflects the cost for two quarters.
Selling, general and administrative expenses (before Stock based
compensation) for 2012-Q4 were $654,840 ($721,804: 2011-Q4). Increases
in salary costs, office and general and advertising costs, were offset
by recovery on professional fees as well as lower travel, insurance and
amortization of machinery and equipment.
Total comprehensive loss for fiscal 2012 was $5,809,135 ($7,028,816:
2011 which included a one-time initial public listing cost of
2012 has been defined by the management as a gap period between the
announcements in 2011 of the acceptance of its first orders by the US
Navy and the US Air Force, and a reorder of one of the Company's plasma
waste destruction systems. Despite, the longer than anticipated "gap
period" and decreased revenues over 2011, the Company has restructured
and strengthened its key management group, decreased its fixed
operating costs, improved gross margin on execution of projects, and
improved its operational and financial reporting ability. Furthermore,
this restructuring was done with the intent of rationalizing labor and
reducing expenses thereby reducing its break-even point.
Loss from operations for fiscal 2012 was $5,819,275 ($6,385,903: 2011).
Loss from operations for 2012 before non-cash items (stock based
compensation: $952,055; amortization of licenses and machinery and
equipment: $1,656,024) was $3,201,056. Loss from operations for
2012-Q4, was $840,167 ($873,569: 2011). Before including the non-cash
items, loss from operations for 2012-Q4 is $337,247.
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