EDMONTON, April 27 /CNW/ - Seair Inc. (TSXV: SDS) today released its unaudited financial statements for the quarter and
six months ending February 28, 2011.
Revenue for the quarter ending February 28, 2011 was $1,133,308, or 82%
higher than the second quarter of fiscal 2010. The increase was
attributable to a rebound in Seair's portable wastewater treatment
business, with sector revenue in the quarter of $941,424 compared to
approximately $400,000 in the second quarter of fiscal 2010 (a 135%
increase). The turnaround in the portable wastewater treatment business
came as a result of overall oil and gas service sector improvement in
conjunction with Seair establishing a full-time sales presence in
Calgary in December 2010. The business turnaround was sudden and
Seair's deployment rate was limited to about 50% as that was considered
capacity for Seair's existing team of qualified service personnel.
Since the sector improvement is expected to continue after spring
break-up, Seair will be increasing its service personnel team to allow
for greater fleet deployment next winter.
Fiscal 2011 second quarter revenue also includes approximately $65,000
of equipment rental and consulting fees in connection with the produced
water recycling pilot plant tested during the quarter by R360
Environmental Solutions in New Mexico. Subsequent to quarter end R360
agreed to an exclusive licensing agreement, with one provision being
R360 purchase the pilot plant used in New Mexico. Revenue from this
pilot plant sale will be recorded in Seair's third quarter.
Seair sold one additional dewatering unit to Syncrude in the quarter,
bringing the total sold to-date to 16.
Gross profit for the quarter ending February 28, 2011 was $787,063 (69%
of revenue) compared to $489,446 (78% of revenue) in the quarter ending
February 28, 2010. This $297,617 increase in gross profit is due to
higher revenue, particularly from portable wastewater treatment plant
Total operating expenses increased by $81,929 to $1,091,880 (8%
increase) from fiscal 2010 to fiscal 2011 compared to the 82% and 61%
increases to revenue and gross margin, respectively. Portable
wastewater fleet equipment expenses (amortization, repairs and
maintenance) increased with fleet deployment, offset somewhat by
reduced salaries and wages.
Net loss for the quarter ending February 28, 2011 of $300,866 was 44%
smaller than the corresponding quarter in fiscal 2010.
The complete financial statements are available at www.sedar.com.
Seair's portable wastewater treatment rental business began recovering
in December 2010. Fleet rental revenue in the second quarter was
approximately 135% higher than the prior year. Improved results are
expected to continue in fiscal 2011 and into next year.
The collaboration with R360 Environmental Solutions announced on April
20, 2011 will give Seair an immediate and growing presence in the
United States oil field water treatment and recycling industry. Water
use has increased dramatically in recent years on an equivalent barrel
produced basis and there are increasing environmental concerns about
oil field water potentially contaminating the environment. Full water
recycling removes contaminants and allows for reuse of water, thereby
reducing demand from groundwater sources. R360 will lead the US
initiative with support and equipment provided by Seair. Seair will
receive equipment sales and consulting service revenue as well as an
ongoing throughput royalty for every barrel of water treated by the
Research and development work continues on a number of oil industry
related water treatment solutions in Canada, including oil sands
tailing pond treatment (accelerated settling using diffused CO2 and toxin removal using diffused ozone) and SAGD (steam-assisted
gravity discharge) water treatment.
With snow melting and golf courses opening, particular emphasis will be
placed on promoting Seair's permanent rural community wastewater
treatment solutions through touring of the facility at the Village at
Wolf Creek Golf Resort.
Seair develops proprietary equipment that diffuses gases into liquids.
The introduction of oxygen, ozone or carbon dioxide results in a
supersaturated solution, that meets environmental standards and
customer needs. Seair's patented technologies can produce extremely
small bubbles which are more efficient than other diffusion
technologies. Our technologies are used in a variety of applications in
the oil and gas industry. We also service customers in such diverse
fields as wastewater treatment, pulp and paper, food processing,
aquaculture, agriculture/horticulture, sterilization, golf course
irrigation and pond treatment and animal enhancement.
Seair is a leading developer of patent-protected diffusion and
sterilization technologies, which allow for the efficient diffusion of
gases into liquids, thereby facilitating numerous applications in a
wide variety of industries, including wastewater treatment, pulp and
paper production, food processing, aquaculture,
agriculture/horticulture, sterilization, golf course irrigation and
pond treatment, animal enhancement and oil and gas. Seair's primary
focus is developing and selling equipment that diffuses gases, such as
oxygen, ozone or carbon dioxide, into a liquid, resulting in a
supersaturated solution. The major difference between Seair's and
others' diffusion technologies is Seair's ability to achieve extremely
small bubble size, which in turn allows for the mass transfer of gas to
fluid. The result is a stable condition, where gases remain in solution
for extended periods of time, leading to increased productivity and
lower operating costs. Seair provides diffusion-enhanced portable
wastewater treatment plants through its subsidiary, Seair Septic.
Parties interested in obtaining further information or receiving news
releases and corporate documents from Seair may email such requests to email@example.com or visit the Seair website at www.seair.ca.
This news release contains forward-looking statements relating to the
future operations of the Seair Inc. and other statements that are not historical facts. Forward-looking
statements are often identified by terms such as "may", "should",
"anticipate", "expects" and similar expressions. Any statements that
are contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements. Such
forward-looking statements are subject to important risks,
uncertainties and assumptions. The reader is cautioned that assumptions
used in the preparation of any forward-looking information may prove to
be incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous known
and unknown risks, uncertainties, and other factors, many of which are
beyond the control of Seair Inc. As a result, we cannot guarantee that
any forward-looking statement will materialize and the reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect and
actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly
qualified by this cautionary statement.
The forward-looking statements contained in this news release are made
as of the date of this news release, and Seair Inc. does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by Canadian
This press release is not for distribution to United States Newswire
Services or for dissemination in the United States.
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 SEAIR Inc.
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