Xebec Announces 2011 Third Quarter Financial Results

Reports positive EBITDA on significantly improved GM

MONTREAL, Nov. 11, 2011 /CNW Telbec/ - Xebec Adsorption Inc. (TSX: XBC) ("Xebec"), a provider of biogas upgrading, natural gas and hydrogen purification solutions for the clean energy market, announced today its 2011 third quarter financial results.

  • Positive EBITDA of $0.3M for the third quarter compared to (2.6M$) for the same period in 2010.
  • Improved Gross margin of 42.6% for the third quarter 2011 compared to (1.6%) for the same period in 2010.
  • Revenue of $2.9 million in the third quarter compared to $4.0 million for the same period in 2010, a 26% reduction in the period. Revenue for the first nine months in 2011 at $11.5 million, compared to $10.1 million for the same period in 2010, a 14% increase.

"Our year-to-date revenues increased by 14% compared to the same nine month period last year, and notably our operational performance has sharply increased in the third quarter compared to the same period. We are rapidly reaping the benefits of our cost reduction measures initiated earlier this year and which we expect to conclude at the end of 2011. We are confident that we can keep up this momentum, as demand for our products in the natural gas, biogas and hydrogen segments is stronger than ever. Working capital constraints continue to impede our growth, however, we have a plan currently in place to resolve this issue. Our sales and profitability objectives for the upcoming quarters remains on target. " said Mr. Kurt Sorschak, Chief Executive Officer of Xebec.

Financial Highlights:                      
  Three months ended
September 30,
  % of
Change
  Nine months ended
September 30,
  % of
Change
  2011   2010       2011   2010    
(In dollars) (unaudited)   (unaudited)       (unaudited)   (unaudited)    
Revenues 2,945,291   3,955,714   -25.5%   11,504,851   10,088,981   14.0%
Gross margin 1,254,497   (65,013)   2029.6%   4,158,403   606,588   585.5%
Gross margin as a percentage of revenues 42.6%   -1.6%       36.1%   6.0%    
EBITDA* (loss) 290,736   (2,674,749)       (268,892)   (7,931,664)    
Net loss (208,167)   (3,136,932)       (1,466,542)   (9,310,433)    
Basic and diluted loss per share (0.01)   (0.11)       (0.04)   (0.32)    
Weighted average number of shares 39,363,867   39,363,867       39,363,867   39,363,867    
As at: September 30,
2011
  December 31,
2010
      September 30,
2011
  December 31,
2010
   
Total assets 16,367,935   15,218,787       16,367,935   15,218,787    
Long term debt 217,812   1,867,870       217,812   1,867,870    
Equity (470,328)   1,113,911       (470,328)   1,113,911    
As at: November 11,
2011
  November 10,
2010
      November 11,
2011
  November 10,
2010
   
Back log 7,085,556   10,829,718       7,085,556   10,829,718  

 * EBITDA is a non-IFRS financial measure and the Company defines it as earnings from operations excluding financial charges, taxes, foreign exchange loss (gain) and amortization.

Financial Results

Revenues

Xebec posted revenues of $2.9 million for the third quarter of 2011, a 25.5% decrease compared to $4.0 million in the third quarter of 2010. For the nine-month period ended September 30, 2011, the total revenues amounted to $11.5 million, a 14.0% increase compared to $10.1 million for the same period last year. This increase is the result of a stronger order backlog going into Q3/11 and revenue from the monetization of certain intellectual property.

Order Backlog

As of November 11, 2011, total order backlog stood at $7.1 million, compared to $10.8 million as at November 10, 2010.

Gross Margin

Xebec's gross margin for the third quarter of 2011 amounted to $1.2 million, compared to $(0.1) million for the same 2010 period. For the nine-month period ended September 30, 2011, the total gross margin amounted to $4.2 million, compared to $0.6 million for the same period last year, resulting mainly from an increase in margin from product sales, newly added engineering contracts and license revenues, combined with our cost control measures.

EBITDA and Net Loss

The EBITDA for the third quarter of 2011 amounted to $0.3 million compared to $(2.6) million in the third quarter of 2010. For the nine-month period ended September 30, 2011, the EBITDA amounted to $(0.3) million, compared to $(7.9) million for the same period last year. The improved EBITDA is the result of our continuous efforts to improve gross margin and control costs.

The net loss for the third quarter of 2011 totaled $0.2 million, or $0.01 per share, compared to a net loss of $3.1 million, or $0.11 per share for the same 2010 period. For the nine-month period ended September 30, 2011, net loss was $1.5 million or $0.04 per share, compared to $9.3 million or $0.32 per share for the same period last year, reflecting primarily a $1.3 million increase in gross margins and a $1.1 million decrease in selling and administrative costs and 0.6 million decrease in research and development.

Selling and administrative expenses were $1.2 million in the third quarter of 2011 compared to $2.3 million for the same period last year. For the nine-month period ended September 30, 2011, selling and administrative were $4.9 million, compared to $7.7 million for the same period last year. The decrease in expenses is the results of the company's restructuring and the implementation of cost control measures.

As at September 30, 2011, the Company's cash on hand before restricted cash totaled $(0.1) million, compared to $0.3 million as at September 30, 2010 and $2.3 million as at December 31, 2010. .

Xebec 2011 third quarter Financial Statements and Management's Discussion and Analysis include further information on the Company.

Cost Reductions

In addition to its ongoing efforts to reduce costs and reach profitability, Xebec is temporarily reducing its staff by 15 employees, representing approximately 16% of its global workforce. This will further reduce expenses, preserve liquidity and lower its break-even point.

2011 Third Quarter Financial Statements and Management's Discussion and Analysis

The complete financial statements, notes to financial statements and Management's Discussion and Analysis for the three-month and nine-month periods ended September 30, 2011, are available on the Company's Website at www.xebecinc.com or on the SEDAR Website at www.sedar.com.

About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of clean energy solutions to corporations and governments looking to reduce their carbon footprints. With more than 1,300 customers worldwide, Xebec designs, engineers and manufactures innovative products that transform raw gases into marketable sources of clean energy mainly used as transportation fuel. Xebec's strategy is focused on establishing leadership positions in markets where demand for biogas upgrading, natural gas dehydration, liquefaction and hydrogen purification is growing. Headquartered in Montreal (QC), Xebec is a global company with two manufacturing facilities in Montreal and Shanghai, an R&D facility in Vancouver (BC) as well as a sales and distribution network in North America and Asia. Xebec trades on the TSX under the symbol XBC. For additional information on the company and its products and services, please visit the Xebec web site at www.xebecinc.com.

Caution Concerning Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking" statements within the meaning of applicable securities laws. This forward looking information includes, but is not limited to, the expectations and/or claims of management of Xebec with respect to information regarding the business, operations and financial condition of Xebec. Forward-looking information contained in this press release involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xebec or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This list is not exhaustive of the factors that may affect forward-looking information contained in this press release. When used in this press release, such statements use such words as "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "will" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. 

 

 

 

SOURCE XEBEC ADSORPTION INC.

For further information:

Kurt Sorschak
President and CEO
450-979-8701
ksorschak@xebecinc.com
Eric Favreau
Chief  Financial Officer
450-979-8706
efavreau@xebecinc.com

Profil de l'entreprise

XEBEC ADSORPTION INC.

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