- Breakthrough year driven by sales growth and initial commercialization
TORONTO, Jan. 18, 2012 /CNW/ - Innovative Composites International Inc.
(TSXV: IC) (OTCQX: ICIZF), ("ICI" or the "Company"), a producer of
patented protected composite products targeting the multi-billion
dollar housing and transportation markets, reported today its financial
results for the three and 12-month periods ended September 30, 2011.
All figures are in U.S. dollars unless otherwise stated.
"Fiscal 2011 was a watershed year for the Company as we achieved a
number of significant milestones and established tremendous momentum to
capitalize on numerous commercial opportunities before us," said Terry
Ball, CEO of ICI. "Most notably, due to our sales efforts we signed a
number of agreements during the fiscal year, validating our products
and technology and began the process of adding a second, much larger
manufacturing facility in South Carolina."
Selected 2011 Financial and Operational Highlights
Revenue of approximately $490,000 for fiscal 2011, the largest in
company history as fiscal 2011 marked the start of transition from a
development stage company to commercialization
Signed a six year lease agreement for a 126,000 square foot
manufacturing facility located in Orangeburg, South Carolina, 60 miles
from the Charleston ocean port
Signed an agreement, through its partner Barclays Gedi Group, to supply
EcoScapeTM housing for large scale projects in Haiti and Ghana
Invited to and participated in an expo as the finalist of the "Building
Back Better Communities" Initiative housing competition in Haiti
Secured a purchase order for an 880 square foot EcoScapeTM modular home to be constructed on the island of Antigua to serve as a
show home for a large scale affordable housing program
Received purchase orders for the supply of StructureLiteTM panels to a leading North American automotive aftermarket company. The
program is expected to represent approximately US$5 million in annual
revenue over an estimated five to six year lifespan
Secured orders for its composite mobile storage containers from Canadian
customers and a US-based moving and storage company to be placed in its
fleet for testing in real life conditions
Completed a project to supply a maternity ward building for a hospital
in Milot, Haiti utilizing the EcoScopeTM building system
Raised approximately CDN$5 million from the early exercise of the
outstanding share purchase warrants expiring over the next three years
Completed a short form prospectus offering for gross proceeds of CDN$4.8
Strengthened its Board of Directors by adding the Hon. John Reynolds,
Robert Pulte and Christopher Kruba as directors
Named as one of the top 50 companies on the TSX Venture Exchange for
Highlights Subsequent to Year-end
Signed an agreement with Millenium Brasil Limitada and Green
Intelligence Corporation to supply EcoScapeTM modular homes for large housing projects in Brazil. Agreement is
anticipated to represent approximately US$160 million in revenue over
the next three years
Completed the acquisition of Eleison Composites LLC, a manufacturer of
fiber reinforced thermoplastic skin material utilized in ICI's products
Received first order from Subway® restaurant owner/operator Liberty
Eagle Holdings, based in Tanzania, for a custom designed structure to
be used as a Subway® restaurant in Dar-es-Salaam using the EcoScapeTM building system
Signed an agreement with Fence-Crete Holdings to make use of ICI's
StructureLiteTM panels in highway fencing applications in Canada on an exclusive
basis. Agreement is anticipated to represent approximately CDN$10
million in annual revenue
Completed a bought deal public offering for gross proceeds of CDN$10.1
Began trading on the OTCQX under the symbol ICIZF for the purposes of
providing additional liquidity and increased access for US based
ICI had approximate revenue of $487,000, an increase of 246.8% or
approximately $346,000, for the 12-month period ended September 30,
2011 compared to approximately $140,000 for the fiscal year 2010. The
record revenue for the period was a result of the beginning of market
acceptance for its products and the beginning transition from a
development stage company to a commercially active company during the
fiscal year. The Company expects fluctuations in its revenue initially
as more products are introduced to the market place and the Company
begins to ramp up its South Carolina facility.
Cost of sales for fiscal 2011 was approximately $399,000, up 227.6% or
approximately $278,000 compared to fiscal 2010. The increase was due
to the increase in sales activity throughout the fiscal year. On a
percentage basis, cost of sales was 82.1% of sales during the 12-months
ended September 30, 2011 versus 86.8% for the 12-months ended September
30, 2010. ICI expects continued improvements in its gross profit margin
through continued strengthened relationships with suppliers, vertical
integration, and achieving certain economies of scale through increased
sales and capacity utilization.
Total expenses for the 12-months ended September 30, 2011 were $3.5
million, an increase of 23.0% or approximately $652,000 compared to
$2.9 million for the same period last year. The increase in expenses
were the result of the overall growth and expansion of the Company,
specifically relating to an increase in sales initiatives, expansion of
the manufacturing facility in Michigan, ramping up several
commercialization programs and costs incurred in new product and
ICI recorded a net loss for fiscal 2011 of $5.6 million or $0.10 per
share. These compare to a net loss of $4.5 million, or $0.12 per
share, for fiscal 2010.
Cash flow used in operating activities for fiscal 2011 were $4.1
million, an increase of approximately $400,000 compared to $3.7 million
for fiscal 2010. The increase is primarily due to increasing inventory
and prepaid expenses as well as an increase in operating expenses as
At September 30, 2011, ICI had working capital of $7.2 million,
including cash and cash equivalents of $6.6 million, compared to $1.4
million and $1.4 million, respectively, for 2010.
Innovative Composites has filed its financial statements for the
three-months and year-ended September 30, 2011 and related Management's
Discussion and Analysis (MD&A) with securities regulatory authorities.
Innovative Composites' financial statements, MD&A and related documents
are available via SEDAR as well as through the Company's website, www.innovativecompositesinc.com.
"As evidenced by our strong start to fiscal 2012, the momentum that was
established in fiscal 2011 has continued," said Terry Ball. "Since the
beginning of the fiscal year we have announced our largest and most
significant housing initiative to date, acquired a key raw material
supplier, and continued to ramp up our second production facility on
budget and on schedule. As revenue and shipments continue to increase,
fiscal 2012 is well positioned to become another breakthrough year for
ICI will host a conference call to discuss its 2011 year-end financial
results on Thursday, January 19, 2012 at 10:00 a.m. ET.
To access the conference call by telephone, dial 647-427-7450 or
1-888-231-8191. Please connect approximately 15 minutes prior to the
beginning of the call to ensure participation. A question and answer
session for analysts and institutional investors will follow
A taped replay of the conference call will also be available to
listeners until 12:00 a.m. Thursday, January 26, 2012. To access the
rebroadcast, please dial 416-849-0833 or 1-855-859-2056 and enter
passcode 42912816, followed by the number sign.
About Innovative Composites International Inc.
Headquartered in Toronto, Canada, Innovative Composite International
Inc. (TSX-V: IC; OTCQX: ICIZF) is a high-tech engineering and
manufacturing company that is successfully commercializing a patent
protected line of state-of-the-art composite products targeted at the
multi-billion dollar transportation and affordable housing markets.
Led by a team of commercialization experts ICI has adopted a tier two
business model: It designs and manufactures game-changing products and partners with
established companies in its target markets to utilize their sales
channels for faster product roll-out.
This strategy and the superior characteristics of the products have
resulted in rapidly growing sales in both markets and opened up
opportunities that could lead to large scale contracts on an ongoing
To find out more about ICI please visit our website at: www.innovativecompositesinc.com.
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Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
"Statements made in this press release include forward-looking
statements that involve a number of risks and uncertainties. These
statements relate to future events or future performance and reflect
management's current expectations and assumptions. A number of factors
could cause actual events, performance or results to differ materially
from the events, performance and results discussed in the
forward-looking statements, such as the economy, generally, competition
in its target markets, the demand for ICI's products and the
availability of funding. These forward-looking statements are made as
of the date hereof and ICI does not assume any obligation to update or
revise them to reflect new events or circumstances. Actual events or
results could differ materially from ICI's expectations and
SOURCE Innovative Composites International Inc.
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