Dynetek reports 2007 fourth quarter and year end results



    CALGARY, March 28 /CNW/ - Dynetek Industries Ltd. (TSX:DNK), a leader in
the design, manufacturing and marketing of proprietary fuel storage cylinders
and systems for compressed natural gas (CNG) and hydrogen, today reported
results for the three months and the year ended December 31, 2007. The full
financial statements and MD&A have been filed on SEDAR at www.sedar.com and on
Dynetek's website at www.dynetek.com.

    
    Financial Highlights

    (tabular amounts in thousands of Canadian dollars, except share numbers
    and per share data)
    (unaudited)

                                        Three months                    Year
                                               ended                   ended
                                         December 31             December 31
                                    2007        2006        2007        2006
                             ------------------------------------------------

    Total Revenue                  6,549      12,119      35,030      38,425
    Loss before taxes             (2,153)     (1,057)     (2,352)     (1,301)
    Loss before taxes per
     common share (basic and
     fully diluted)                (0.10)      (0.05)      (0.11)      (0.06)
    Net loss                      (2,153)     (1,207)     (4,707)     (1,451)
    Net loss per common share
     (basic and fully diluted)     (0.10)      (0.06)      (0.22)      (0.07)
    EBITDA(1)                       (652)        154       1,417       1,857
    Cash flow from operations      2,447       1,754       3,428         968
    Capital expenditures             121         861         938       2,804
    Cash and cash equivalents      1,756       2,030       1,756       2,030
    Non-cash working capital(1)   10,082      10,075      10,082      10,075
    Total Assets                  39,892      48,366      39,892      48,366
    Operating bank line                -       2,650           -       2,650
    Long-term debt and capital
     leases                        2,120       1,293       2,120       1,293
    Common shares outstanding 20,936,500  20,940,576  20,936,500  20,940,576
    Weighted average number
     of common shares
     outstanding              20,940,464  20,940,295  20,940,464  20,940,295

    (1) EBITDA and non-cash working capital are non-GAAP financial measures.
    Dynetek defines EBITDA as earnings before interest, taxes, stock based
    compensation, non-cash foreign exchange, depreciation, and amortization.
    Dynetek defines non-cash working capital as current assets after cash
    less current liabilities. Dynetek believes that these non-GAAP financial
    measures provide investors and analysts with useful information so that
    they can better understand the financial results and perform a better
    analysis of Dynetek's growth and profitability potential.
    

    Revenues for the year ended December 31, 2007 were $35.0 million. Fourth
quarter cylinder and system sales were 52% lower than in Q4 2006 and research
and development revenue was 50% higher than in Q4 2006, resulting in an
overall revenue decrease for the three months ended December 31, 2007 of 46%.
In the fourth quarter the Company had cash flow from operations of
$2.4 million, 33% higher than Q4 2006.
    The net loss of ($4.7 million) for the year ended December 31, 2007
relates primarily to the impairment of the future tax asset previously
reported for Q2 2007, which was a one-time reduction of the future tax asset
and a non-cash item. The net loss for the three months ended December 31, 2007
is $2.2 million, an increase of $1 million from the $1.2 million loss in
Q4 2006.

    
    Year in Review

    -   Dynetek received an order for approximately $7.0 million (CAD) in
        compressed hydrogen system sales with Magna Steyr, an operating unit
        of Magna International Inc. The order involves the development,
        certification and supply of 700bar compressed hydrogen fuel storage
        systems, including related engineering, to Magna Steyr in connection
        with Daimler's automotive fuel cell program. The Company has
        completed approximately 50% of this project by December 31, 2007.

    -   Dynetek delivered the Bulk Transport Systems "BT450" Tube Trailer
        System to the Integrated Waste Hydrogen Utilization Project
        ('IWHUP'). The BT450 utilize removable modules - also called
        Powercubes - to transport hydrogen to various usage points along
        B.C.'s Hydrogen Highway. The BT450 is a further demonstration of how
        Dynetek's "Instant Infrastructure(TM)" products can enable customers
        to refuel hydrogen powered vehicles easily and cost effectively.

    -   Dynetek delivered its first Natural Gas Bulk Transport (BT) modules
        to the United States using Dynetek's U.S. Department of Transport
        (DOT) certified cylinders to Compressed Energy Systems LLC of
        Eldorado, Illinois. Dynetek's BT modules will be used by Compressed
        Energy Systems LLC to transport natural gas from stranded gas
        reservoirs.

    -   In 2007 Dynetek received an increase in the number of enquiries with
        respect to hydrogen systems for hydrogen-powered vehicles. In the
        past the lack of infrastructure and high operating costs for vehicles
        powered by hydrogen cast some doubt on market acceptance. Projects
        such as IWHUP in Canada and HyCologne in Germany have signalled that
        hydrogen is becoming available in commercial quantities at low
        prices.

    -   During 2007, Dynetek developed a fully customizable CNG storage
        system that will satisfy the unique requirements of a variety of
        industry needs in a single design. The modular system, mounted on
        heavy-duty vehicles, behind the cab, will accommodate several sizes
        and models of cylinders, dependent on the customers' individual
        demands.
    

    In March 2008, Dynetek obtained long term financing from Business
Development Bank of Canada totaling $5.0 million. The growth capital will be
used to support working capital requirements, research and development
activities and will provide sufficient financial flexibility to realize the
benefits associated with an improving business and operating environment.

    Additional information relating to Dynetek

    Additional information concerning Dynetek is available on SEDAR at
www.sedar.com.

    Dynetek Industries Ltd. is a leading international company engaged in the
design, manufacturing and marketing of fueling systems and high-pressure
components including valves and regulators. The key component of the storage
system is the DyneCell(R) cylinder, capable of storing high pressure gases
including compressed natural gas (CNG), hydrogen, and various industrial
gases. Dynetek's cylinder and fuel storage systems applications include but
are not limited to: the transportation industry, including passenger
automobiles, light and heavy-duty trucks, transit and school buses; the bulk
hauling of compressed gases; and stationary storage or ground storage
refueling applications.

    Forward looking statements

    In addition to historical information, this news release contains
forward-looking statements and should be read in conjunction with the
financial statements and related notes for the year ended December 31, 2007.
Forward-looking statements are based upon current assumptions, expectations
and estimates that involve a number of risks and uncertainties and actual
results could differ materially from those discussed in the forward-looking
statements. Readers are encouraged to review the section in the Management's
Discussion and Analysis titled 'Principal Risks and Uncertainties' for a
discussion of factors that could affect Dynetek's future operations and
financial results. Forward-looking statements are based upon management's
assumptions, expectations and estimates at the time the statements are made.
Dynetek does not update forward-looking statements should circumstances or
management's assumptions, expectations or estimates change, except where
required by securities laws.





For further information:

For further information: Christian Rasche, President and Chief Executive
Officer, or Karen Minton, CFO and Vice President Finance, Dynetek Industries
Ltd., 4410-46 Avenue S.E. Calgary, Alberta, T2B 3N7, Tel: (403) 720-0262,
Toll-free: 1-888-396-3835, Fax: (403) 720-0263, Web: www.dynetek.com

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Dynetek Industries Ltd.

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