MONTREAL, March 7, 2013 /CNW Telbec/ - Sofame Technologies Inc. (TSXV:
SDW) (OTC: SFMGF) has reported net sales of $414,915 for Q1 of the 2013
fiscal year ended December 31st, and a net profit of $ 3,928 (0.7%) for
Q1 2013 Net Sales of $ 414,915 compared to $ 529,200 in Q1 2012, and $
321,904 in Q4 2012
Q1 2013 Gross Profit of $ 110,808 (20.9%) compared to $ 225,587 (42.6%)
in Q1 2012
Q1 2013 Net Earnings were $ 3,928 (0.7%) compared to $ 71,523 (13.5%) in
Q1 2013 EBITDA was $ 103,357 (24.9%) versus $ 167,938 (31.7%) in Q1 2012
Note: These are the financial highlights only. Management`s Discussion
and Analysis, the consolidated financial statements, cash flows, and
notes thereto of Sofame Technologies Inc. are available at www.sedar.com.
Comments on the First Quarter Ended December 31, 2012
Closing seven orders valued at $2.4 million was a significant
achievement in 2012. Sofame's order book reflected a marked
improvement in demand for the Company's custom engineered industrial
energy efficiency products. Over the last three years, Sofame undertook
extensive cost reductions, and began a program of outsourcing in 2011.
The new business model allowed the company to cut overhead and incur
costs only when contracts are in production. Installation and start-up
of these energy recovery systems was achieved despite tight working
capital conditions, and an absence of bank financing in the normal
course of business. In the latter half of 2012, well head gas prices
recovered to about $3.25/DT, and two-year payback on energy efficiency
investments (50% ROI) has become the norm for Sofame's industrial water
heating solutions. These results are better than expected compared to
the past several years of history.
Marketing in the United States is accelerating since systems are now
installed in New York, New Jersey, Illinois, Michigan, Delaware,
Colorado, North Carolina and Maine. Several major cogeneration
projects have been quoted recently as interest in clean burning natural
gas-fired turbines to make electricity efficiently is becoming
widespread in the United States. With low overhead costs, contracts in
hand, and seasoned leaders experienced in the HVAC industry at the helm
of the company, the 2013 fiscal year is off to a strong start.
With the support of investors in New York, Montreal and Toronto, the
Board is using the public company to pursue acquisitions of
complementary profitable companies in the HVAC industry. Revenues from
Sofame's core business are expected to grow in 2013, however, the
Board's goal is to aggressively expand annual revenues, net profits and
cash flow. Management believes that an acquisition strategy makes
sense in the current environment.
According to John Gocek, Sofame's President & CEO, "Sofame expects to
close the balance of its $250,000 private placement at $0.02 cents by
March 15th. Efforts to complete a $1 million asset-based loan have
intensified in recent months. The short-term goal is to reduce
borrowing costs, and repay the $250,000 bridge loan, now that the
Sofame is cash flow positive."
SOURCE: SOFAME TECHNOLOGIES INC.
For further information:
President & CEO
(514) 523-6545 x200
Stone Communication Services
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