Genesis Worldwide Inc. Announces Record Third Quarter Fiscal 2007 Results



    61% Growth in Revenue Over Third Quarter 2006 and 40% Growth in Revenue
    Over Second Quarter 2007

    MISSISSAUGA, ON, Nov. 7 /CNW/ - Genesis Worldwide Inc. ("Genesis" or the
"Company"), (TSX/AIM: GWI), a leading provider of 'green' structural building
technology using light steel, is pleased to announce its financial results for
the third quarter ended September 30, 2007. The Company reports its financial
statements in accordance with Canadian generally accepted accounting
principles ("GAAP") and reports in Canadian dollars.
    The Company's unaudited interim consolidated Financial Statements and
Management's Discussion and Analysis for the three and nine months ended
September 30, 2007, are filed with the Canadian securities regulatory
authorities, and can be accessed at www.sedar.com.

    
    Financial Highlights

    -   Total revenue increased 61% in the third quarter ended September 30,
        2007 to $7,037,823, compared to $4,365,710 for the third quarter of
        2006. This represents growth of 40% from the second quarter of 2007.

    -   Revenue for the licensing division recorded for the third quarter of
        2007 was the highest revenue recorded in the Company's history.
        Revenue from this division for the third quarter of 2007 was
        $3,239,065, reflecting an increase of 998%, compared to $294,866 for
        the same period a year ago. This represents growth of 21% from the
        second quarter of 2007.

    -   Revenue from the structural products division for the third quarter
        of 2007 was $3,798,758, compared to $4,070,844 for the third quarter
        of 2006. Compared to the second quarter of 2007, revenue from this
        division increased by 62%. The decrease of 7% in this quarter,
        compared to the third quarter of 2006, was due mainly to the training
        required for new employees after the Company relocated its
        manufacturing operations to its new facility in Vaughan, Ontario.

    -   Overall contribution margin for the third quarter of 2007 increased
        to $2,486,840, compared to $324,069 for the same period in 2006. This
        improvement of 668% is a direct result of increased licensing
        activities and an improvement in the contribution margin for
        structural products. Contribution margin for structural products for
        the third quarter of 2007 was 18.3%, compared to 3.3% for the same
        period last year. This improvement is a result of efficiencies made
        in the operations of the structural products division.

    -   Net loss for the third quarter ended September 30, 2007 was $872,748,
        or $0.03 per common share, compared to a loss of $2,147,700, or
        $0.10 per common share for the third quarter of 2006, and a loss of
        $1,727,168, or $0.08 per common share for the second quarter of 2007.


    (in thousands of dollars, except per share data)

                                                                     Q3:Q2-07
                                Q3 2007  Q3 2006   Change  Q2 2007    Change
    -------------------------------------------------------------------------

    Revenue
      Licensing                   3,239      295      998%   2,678       21%
      Structural Products         3,799    4,071     (7.0%)  2,340       62%
    -------------------------------------------------------------------------
    Total Revenue                 7,038    4,366       61%   5,018       40%
    Contribution Margin
      Licensing                   1,792      189      848%   1,123       60%
      Structural Products           695      135      415%     375       85%
    -------------------------------------------------------------------------
    Total Contribution Margin     2,487      324      668%   1,498       66%
    Expenses                      3,360    2,472       36%   3,225        4%
    Net Loss                        873    2,148       59%   1,727       49%
    Loss Per Share -
     basic and diluted            (0.03)   (0.10)      70%   (0.08)      63%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    NOTE: Contribution margin is a non-GAAP measure used by the Company to
    evaluate operating results.

    Strategic Update

    During the quarter, Genesis made significant progress on some of its core
strategies, including the following:

    Focus on licensing activities

    -   Completed shipment of C4 industrial equipment to Dubai and California
        licensees.
    -   Spain licensee has begun supplying its local market using the Genesis
        Solution.

    Commercializing structural products division

    -   Completed move into the new facilities in Vaughan, Ontario and are
        currently manufacturing at rates higher than at the old facility.
    -   Signed three new contracts with first-time customers in Q3 2007.

    Ongoing research and development

    -   Placed order for new material optimizing technology (MOT). This new
        technology is expected to be installed during Q1 2008.
    

    "The results for our third quarter reflect the continued execution of our
strategy," stated Vince Mifsud, Genesis' President and Chief Executive
Officer. "We delivered technology and industrial equipment to two new
licensees during the quarter. This brings us to a total of five licensees who
have received our technology and industrial equipment this year. Our Spain and
California licensees are currently producing 'green' light steel structures
and we expect two more licensees to be fully commissioned by the end of 2007.
Our structural products division is now manufacturing at expected levels
following the move to our new facility and the training of new staff. Our
focus now is to deploy our new industrial coil-to-panel (CTP) line in Vaughan
by the end of Q1 2008, which we expect will improve manufacturing productivity
significantly."

    Conference Call

    The Genesis management team will discuss its Q3 2007 results on a
conference call to be held on Thursday, November 8, 2007 at 8:30 a.m. Eastern
time (1:30 p.m. BST). A webcast link (audio only) will be made available from
the Investor Relations portal of Genesis' web site at
http://www.genesisworldwide.com/financial-reports.aspx. There will be a short
presentation followed by a question and answer period (Q & A for conference
call participants only) lasting for approximately one (1) hour.

    
    Conference Call Details
    -----------------------
        Date:                     Thursday, November 8, 2007
        Time:                     8:30 a.m. Eastern time (1:30 p.m. BST)
        Local dial-in:            416-641-6123
        North America toll-free:  866-300-7687
        Global toll-free:         800-6578-9898 (dial the international
                                  access code of the country you are calling
                                  from, i.e. a call from the United Kingdom
                                  would be dialed 00-800-6578-9898)
                                                  --

    A replay of the call will be made available through the Genesis' Investor
Relations web site portal at
http://www.genesisworldwide.com/financial-reports.aspx, or by dialing
416-695-5800 (local callers only), or toll-free at 1-800-408-3053 (passcode
3239174 followed by the number sign), from approximately 12:00 p.m. Eastern
time on the date of the call through to November 15, 2007.
    

    About Genesis Worldwide Inc.

    Genesis develops and licenses structural building technology aimed at the
residential, commercial and institutional building markets. Genesis offers
licensees a turn-key solution enabling them to custom design, manufacture and
install complete light steel building structures. The Genesis Solution
encompasses engineered processes and materials that are environmentally
sustainable or 'green'. Genesis is headquartered in Mississauga, Ontario,
Canada and currently has seven licensees worldwide. For additional information
about the Company, visit www.genesisworldwide.com.

    Forward-Looking Information

    Certain statements contained in this press release constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to the Company's future outlook and
anticipated events or results and, in some cases, can be identified by
terminology such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "intend", "estimate", "predict", "potential", "continue" or other
similar expressions concerning matters that are not historical facts. These
statements are based on certain factors and assumptions including expected
growth, results of operations, performance and business prospects and
opportunities. While the Company considers these assumptions to be reasonable
based on information currently available to us, they may prove to be
incorrect. Forward-looking information is also subject to certain factors,
including risks and uncertainties that could cause actual results to differ
materially from what we currently expect. These factors include changes in
market and competition, governmental or regulatory developments and general
economic conditions. Additional information identifying risks and
uncertainties relating to the Company, its business and prospects are
contained in Genesis' prospectus filed with the Canadian securities regulatory
authorities, available at www.sedar.com.

    
    Genesis Worldwide Inc.

                     INTERIM CONSOLIDATED BALANCE SHEETS
                                 (unaudited)
                                                        As at          As at
                                                 September 30,   December 31,
                                                         2007           2006
                                                            $              $
    -------------------------------------------------------------------------

    ASSETS
    Current
    Cash and cash equivalents                       7,343,918      1,011,386
    Accounts receivable, net                        9,733,188      5,626,735
    Inventories                                       847,817        769,441
    Deposits                                          432,766        271,637
    Prepaid expenses                                  393,917        198,715
    -------------------------------------------------------------------------
    Total current assets                           18,751,606      7,877,914
    -------------------------------------------------------------------------

    Long-term accounts receivable                     431,250              -
    Property, plant and equipment                   4,415,395      2,870,557
    Intangible assets                               2,186,564      2,320,199
    -------------------------------------------------------------------------
                                                   25,784,815     13,068,670
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
    Accounts payable and accrued liabilities        6,945,706      4,744,193
    Warrants liability                                      -        600,000
    Deferred revenue - current portion              5,311,250      2,141,733
    Minimum royalty payment obligations                96,516         23,140
    -------------------------------------------------------------------------
    Total current liabilities                      12,353,472      7,509,066
    -------------------------------------------------------------------------
    Long-term
    Deferred revenue                                  431,250              -
    Debentures due to related parties                       -      3,190,585
    Minimum royalty payment obligations             1,459,062      1,549,162
    -------------------------------------------------------------------------
    Total long-term liabilities                     1,890,312      4,739,747
    -------------------------------------------------------------------------
    Shareholders' equity
    Capital stock                                  56,752,858     42,174,920
    Contributed surplus                             1,020,674         65,293
    Deficit                                       (46,232,501)   (41,420,356)
    -------------------------------------------------------------------------
    Total shareholders' equity                     11,541,031        819,857
    -------------------------------------------------------------------------
                                                   25,784,815     13,068,670
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Genesis Worldwide Inc.

                   INTERIM CONSOLIDATED STATEMENTS OF LOSS,
                       COMPREHENSIVE LOSS AND DEFICIT
                                 (unaudited)

                                      Three months               Nine months
                                ended September 30        ended September 30
                          ------------------------  ------------------------
                                 2007         2006         2007         2006
                                    $            $            $            $
    -------------------------------------------------------------------------

    Revenues
    Licensing               3,239,065      294,866    6,875,689      477,508
    Structural products     3,798,758    4,070,844    9,169,696   11,987,342
    -------------------------------------------------------------------------
    Total revenues          7,037,823    4,365,710   16,045,385   12,464,850
    -------------------------------------------------------------------------

    Direct cost of
     revenues
    Licensing               1,446,692      105,506    3,526,635      179,347
    Structural products     3,104,291    3,936,135    7,159,767   11,591,241
    -------------------------------------------------------------------------
    Total direct cost of
     revenues               4,550,983    4,041,641   10,686,402   11,770,588
    -------------------------------------------------------------------------
                            2,486,840      324,069    5,358,983      694,262
    -------------------------------------------------------------------------
    Expenses
    Research and
     development              264,249      265,327      375,377      772,194
    Selling and
     marketing                501,862      368,502    1,327,786      903,147
    Engineering and
     project management       455,701      325,669    1,313,499    1,045,012
    General and
     administration         1,422,218      910,372    3,249,935    2,546,813
    Occupancy                 442,538      285,672    1,070,078      890,112
    Plant commissioning
     and restructuring
     costs                     27,121            -      776,418            -
    -------------------------------------------------------------------------
                            3,113,689    2,155,542    8,113,093    6,157,278
    -------------------------------------------------------------------------
    Loss before other
     expenses                (626,849)  (1,831,473)  (2,754,110)  (5,463,016)
    -------------------------------------------------------------------------
    Amortization of
     property, plant and
     equipment                133,030      165,278      509,091      443,822
    Amortization of
     intangible assets         67,413       67,413      202,238      202,239
    Foreign exchange
     (gain) loss               36,289      (25,600)     (13,331)     (43,110)
    Interest (income)
     expense                  (99,954)      35,900      (99,954)      53,187
    Minimum royalty
     accretion                 74,804       73,236      223,276      219,708
    Debenture and loan
     interest expense          34,317            -    1,123,265            -
    -------------------------------------------------------------------------
                              245,899      316,227    1,944,585      875,846
    -------------------------------------------------------------------------
    Net loss and
     comprehensive
     loss for the
     period                  (872,748)  (2,147,700)  (4,698,695)  (6,338,862)
    Deficit, beginning
     of period            (45,359,753) (38,151,906) (41,533,806) (33,960,744)
    -------------------------------------------------------------------------
    Deficit, end of
     period               (46,232,501) (40,299,606) (46,232,501) (40,299,606)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net loss per share
    Basic and diluted           (0.03)       (0.10)       (0.19)       (0.30)
    Weighted average
     number of common
     shares outstanding
     - basic and
     diluted               30,765,467   20,982,858   24,279,561   20,982,858
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Genesis Worldwide Inc.

                 INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW
                                 (unaudited)

                                      Three months               Nine months
                                ended September 30        ended September 30
                             ---------------------    ----------------------
                                 2007         2006         2007         2006
                                    $            $            $            $
    -------------------------------------------------------------------------

    OPERATING ACTIVITIES
    Net loss for the
     period                  (872,748)  (2,147,700)  (4,698,695)  (6,338,862)
    Adjustments for
     non-cash items
      Amortization of
       property, plant
       and equipment          133,030      165,278      509,091      443,822
      Amortization of
       intangible assets       67,413       67,413      202,238      202,239
      Stock compensation
       expense                 41,718        8,562      101,781       25,686
      Debenture interest
       expense accretion       34,317            -      815,965            -
      Minimum royalty
       accretion               74,804       73,236      223,276      219,708
    -------------------------------------------------------------------------
                             (521,466)  (1,833,211)  (2,846,344)  (5,447,407)
    Changes in non-cash
     working capital
     balances related
     to operations
      Accounts receivable  (4,435,344)     525,325   (4,106,453)    (353,156)
      Inventories              10,483       (5,475)     (78,376)    (545,609)
      Deposits                163,870            -     (161,129)           -
      Prepaid expenses        (89,625)      88,396     (195,202)      12,382
      Accounts payable
       and accrued
       liabilities          1,097,062       12,385      689,876     (640,827)
      Deferred revenue      2,533,655     (842,050)   3,169,517      516,718
    -------------------------------------------------------------------------
    Cash used in operating
     activities            (1,241,365)  (2,054,630)  (3,528,111)  (6,457,899)
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
    Increase (decrease) in
     bank indebtedness              -      889,359            -     (637,323)
    Debenture proceeds              -            -    2,000,000            -
    Debenture repayment    (6,120,000)           -   (6,120,000)           -
    Share issue proceeds
     (net of transaction
     costs paid)           16,343,175            -   16,343,175            -
    -------------------------------------------------------------------------
    Cash provided by
     (used in) financing
     activities            10,223,175      889,359   12,223,175     (637,323)
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
    Additions to property,
     plant and equipment   (1,505,450)    (676,370)  (2,053,929)    (871,691)
    Additions to intangible
     assets                   (68,603)           -      (68,603)           -
    Minimum royalties paid    (80,000)     (40,000)    (240,000)    (120,000)
    -------------------------------------------------------------------------
    Cash used in investing
     activities            (1,654,053)    (716,370)  (2,362,532)    (991,691)
    -------------------------------------------------------------------------
    Net increase (decrease)
     in cash and cash
     equivalents during
     the period             7,327,757   (1,881,641)   6,332,532   (8,086,913)
    Cash and cash
     equivalents, beginning
     of period                 16,161    1,629,615    1,011,386    7,834,887
    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of period          7,343,918     (252,026)   7,343,918     (252,026)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplemental cash flow
     information
    Interest paid              10,479       35,900      323,321       53,187
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    2007
    Non-cash investing activities

    The Company recorded a long-term receivable in the amount of $575,000 for
    a contract with a customer with an offsetting increase in deferred
    revenue of which $143,750 is current and $431,250 is long term.
    -------------------------------------------------------------------------
    





For further information:

For further information: Genesis Worldwide Inc., Catherine Smyth,
Manager, Investor Relations, Tel: (905) 285-9909, ext. 302 or Canaccord Adams,
Robert Finlay, Erin Needra, Tel: +44 020 7050 6500

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GENESIS WORLDWIDE INC.

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