Enssolutions announces year-end results

TORONTO, April 30 /CNW/ - Enssolutions Group Inc. (TSXV:ENV) ("Enssolutions" or the "Company"), a manufacturer and distributor of environmentally responsible products and engineered solutions for a wide variety of industrial and commercial market demands, today reported its financial results for the three and twelve months ended December 31, 2009.

Commenting on the results, CEO David Howe said, "the year started off slowly with sales negatively affected by the recession, a working capital shortage and strikes at some of our customers. However we were very encouraged by the record sales achieved in the last quarter of 2009 and expect continued sales growth in 2010 with a goal of achieving positive cash flow in 2010 as we implement our sales and marketing plan."

Operating Highlights for 2009

    
    -  During the first 8 months of the year the Company's sales were
       negatively impacted by the recession, and a lack of sufficient working
       capital to execute on its sales and marketing plan.

    -  Subsequently the Company's financial health was positively impacted
       by:

           1.  The August closing of non brokered private placements of
               common shares with aggregate net proceeds of $ 2,263,938.

           2.  The effective conversion $120,000 and US$500,000 of its
               expensive 15% convertible debentures by repaying the debt
               coincident with closing a non brokered private placement of
               common shares with aggregate net proceeds of $678,696.

           3.  The arranging of a US$1 million revolving line of credit for
               use in Canada and the United States secured by inventory and
               accounts receivable.

    -  In the summer of 2009 the Company made its first road shoulder
       stabilization sales to the public sector in Arizona.

    -  The Company won a major "supply and apply" contract for the high
       profile and ecologically sensitive Tres Rios Restoration and Flood
       Control Project in Phoenix, Arizona led by the US Army Corps of
       Engineers. Work on this contract, valued at over US$1 million, was
       started in December 2009 and will be completed in the spring of 2010.

    -  Sales activity in the mining sector, both in Canada and the United
       States, picked up in the last quarter of 2009 as metal commodity
       prices recovered from 2008 lows.
    

Financial Results

Certain of the Company's financial results for the three and twelve month periods ending December 31, 2009 and 2008 are presented in the tables below.

    
    ------------------------------------------------------------------------
                                            Year ended            Year ended
    ------------------------------------------------------------------------
                                      December 31, 2009    December 31, 2008
                                                           (restated)
    ------------------------------------------------------------------------
                                                     $                     $
    ------------------------------------------------------------------------
    Revenues                                 3,380,460             3,343,047
    ------------------------------------------------------------------------
    Operating Loss                           1,301,650             1,998,900
    ------------------------------------------------------------------------
    Net Loss                                 2,112,037             2,404,414
    ------------------------------------------------------------------------
    Basic and Diluted Loss per Share              0.05                  0.12
    ------------------------------------------------------------------------
    Assets                                   3,514,233             3,216,315
    ------------------------------------------------------------------------
    Long Term Liabilities                      195,629               984,458
    ------------------------------------------------------------------------
    Shareholders' Equity                     1,922,396               475,875
    ------------------------------------------------------------------------
    

The 2008 financial results were restated resulting in a minor reduction of $5,871 to the 2008 Net Loss and Comprehensive Loss as well as some balance sheet adjustments as fully described in the Company's 2009 audited financial statements and MD&A. The Net Loss for 2009 included a non cash foreign exchange loss of ($479,993) arising on the translation of intercompany advances to the Company's US subsidiary, compared to a $12,828 gain in 2008. After adjusting for this non controllable foreign exchange item the 2009 Net Loss would be $1,632,104 and the 2008 Net Loss would be $2,391,586 for a $759,482 improvement on 2009.

    
    ------------------------------------------------------------------------
                                   Three Months ended     Three Months ended
    ------------------------------------------------------------------------
                                    December 31, 2009     December 31, 2008
                                                    $                     $
    ------------------------------------------------------------------------
    Revenues                                1,468,450               815,182
    ------------------------------------------------------------------------
    Operating Profit (Loss)                    46,445              (687,812)
    ------------------------------------------------------------------------
    Net Loss                                  347,557               928,925
    ------------------------------------------------------------------------
    Basic and Diluted Loss per Share             0.01                  0.03
    ------------------------------------------------------------------------
    

The 2009 fourth quarter revenues of $1,468,450 was a record quarter for the Company and an 80% increase over 2008 revenues.

The Company's consolidated financial statements and MD&A for the year ended December 31, 2009 are available at www.sedar.com.

About Enssolutions

Enssolutions manufactures, distributes and applies environmentally responsible products to meet a wide variety of industrial and commercial market demands. Enssolutions provides engineered environmental solutions for mine tailings control, process dust and erosion control, granular stabilization, road construction/maintenance and stockpile sealing. It has production facilities in Hamilton, Ontario and Phoenix, Arizona that service some of North America's largest mining, steel, cement, and road construction/maintenance companies as well as numerous public road authorities.

For more information on Enssolutions, please visit www.enssolutions.com.

Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

SOURCE ENSSOLUTIONS GROUP INC.

For further information: For further information: David J. Howe, President and Chief Executive Officer, Jim Griffiths, Chief Financial Officer, t: (905) 312-8422, e: davidhowe@enssolutions.com, jimgriffiths@enssolutions.com, www.enssolutions.com

Organization Profile

ENSSOLUTIONS GROUP INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890