CALGARY, Nov. 14 /CNW/ - Resin Systems Inc. (RS - TSX/RSSYF - OTCBB), a
developer of innovative advanced material products ("RS"), today announced its
financial and operating results for the quarter ended September 30, 2007. RS
reports in Canadian dollars and all financial references in this news release
are in Canadian dollars unless otherwise noted.
Third Quarter 2007 Highlights
- Net loss of $3.1 million or $0.02 per share, down 74 percent from
fourth quarter 2006 of $11.9 million or $0.13 per share and down
76 percent from third quarter 2006 of $12.8 million or $0.14 per
- year to date net loss of $17.5 million or $0.15 per share, down
44 percent from 2006 year to date net loss of $31.5 million or
$0.36 per share;
- use of cash in operations of $3.3 million, down 67 percent compared
to $9.9 million in the fourth quarter 2006 and down 66 percent
compared to $9.7 million in the third quarter 2006;
- commercial production of RStandard(TM) utility poles from the Global
Composite Manufacturing, Inc. facility started and commercial
shipments resumed during this period;
- the first shipments and revenue from RStandard roller tube sales were
recorded during this period; and
- RS received certification for use of RStandard roller tubes in
underground applications from the U.S. Mining Safety and Health
Administration (MSHA) opening a new market segment for the roller
tube business line.
"Our third quarter accomplishments mark the start of our growth phase,"
said Paul Giannelia, president and chief executive officer. "The start of pole
production and shipments, and roller tube sales, along with our significantly
lower use of cash are important milestones in our goal of reaching
profitability in 2008."
RStandard Utility Poles
Commercial production of RStandard utility poles by Global Composite
Manufacturing, Inc. started during the third quarter 2007 with the first
production cell currently operating with two shifts with a third shift
operating by year end. Commercial shipments of RStandard poles also resumed
during the third quarter. Although initial production from Global Composite
Manufacturing, Inc. will be modest, increases in production are planned
through the balance of the year, allowing RS to begin regular shipments to HD
Supply Utilities, Ltd. and satisfy international demand.
The decision to outsource RStandard pole manufacturing and its successful
start-up gives RS a solid production base for the RStandard pole business and
has been the largest contributor to the company's cost reduction efforts. To
implement the outsourcing, it was necessary to shut down RStandard utility
pole manufacturing for most of the year to date. As a result, RStandard pole
revenues are modest, reflecting mostly sales from existing inventory.
Global Composite Manufacturing, Inc. is currently working towards
installing and commissioning the second production cell. Upgrades to the
second cell are expected to be completed during the first part of the first
quarter 2008 with commissioning and production anticipated in the first half
RStandard Roller Tubes
During the quarter, RS delivered its first shipment of roller tubes to
FMC Technologies, Inc. and recorded the first revenue from this business line.
In addition, to assist FMC Technologies, Inc. in their marketing efforts, RS
completed the initial training for FMC Technologies, Inc.'s direct sales
RS continued to work with FMC Technologies, Inc. on identifying
customer-paid pilot sites and Link-Belt(R) composite conveyor idler rolls made
with RStandard roller tubes are expected to be delivered on schedule.
Completing the identified pilot installations of Link-Belt idler rolls using
RStandard roller tube will position RS and FMC Technologies, Inc. to meet
their goal of achieving rapid market penetration in 2008.
"We have remained determined to get our pole production and shipments
started and to introduce our roller tube to the market in aggressive time
frames," said Mr. Giannelia. "Though significant revenue from these business
lines is not expected until 2008, the planned increases in production and
shipments for both products will allow us to accelerate our growth in 2008 and
deliver value to shareholders."
RS has filed its unaudited consolidated financial statements for the
quarter ended September 30, 2007 and related management's discussion and
analysis with Canadian securities regulatory authorities. The financial
statements and management's discussion and analysis have also been filed with
the United States Securities and Exchange Commission. Copies of the respective
documents are available at www.sedar.com, www.sec.gov and RS's website at
RS will host a conference call on Thursday, November 15, 2007 starting at
11 a.m. EST (9 a.m. MST) to discuss RS's 2007 third quarter results.
To participate please dial 1-866-334-3876 (toll-free in North America) or
(416) 849-4292 approximately 10 minutes prior to the call. A live audio
webcast of the conference call will also be available via RS's website,
www.grouprsi.com, on the home page and the investor relations page. The
webcast will be archived for approximately 90 days. In addition, to access a
replay of the teleconference, please dial 1-866-245-6755 (toll-free in North
America) or (416) 915-1035 and enter passcode 660406 followed by the number
Certain information set forth in this news release, including
management's assessment of RS's future plans and operations, contains
forward-looking statements which are based on RS's current internal
expectations, estimates, projections, assumptions and beliefs, which may prove
to be incorrect. Some of the forward-looking statements may be identified by
words such as anticipate", "believe", "plan", "estimate", "expect", "predict",
"intend", "will", "may", "could", "would", "should" and similar expressions
intended to identify forward-looking statements. These statements are not
guarantees of future performance and reliance should not be placed on them.
Such forward-looking statements necessarily involve known and unknown risks
and uncertainties, which may cause RS's actual performance and financial
results in future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, among other things, RS's
lack of revenues and unpredictability of future revenues; the uncertainty of
the profitability of existing and contemplated products of RS; RS's future
capital requirements; RS's future labour requirements; competition from
established competitors with greater resources; the uncertainty of developing
a market for RS's products or for third party products incorporating its
products; RS's reliance on third parties to manufacture and sell its RStandard
products and to manufacture and sell a line of rollers based on its RStandard
composite tubes; RS's reliance on third party licensees in international
markets; the risks associated with rapidly changing technology; RS's reliance
on third parties to supply raw materials to it so it may make its Version
resin and RStandard composite tubes; intellectual property risks, risks
associated with international operations, foreign exchange rate fluctuations
and changes in general economic, market and business conditions. Many of these
risks and uncertainties are described in RS's 2006 Annual Information Form and
other documents RS files with the Canadian securities authorities and the
United States Securities and Exchange Commission. The forward-looking
statements are made as of the date hereof and RS assumes no obligation to
update or revise such statements to reflect new events or circumstances unless
otherwise required to by applicable securities laws. Any forward-looking
information contained herein is expressly qualified by this cautionary
The term "use of cash in operations" is not a recognized measure under
Canadian generally accepted accounting principles. Management believes that in
addition to net loss, "use of cash in operations" is a useful supplemental
measure, providing an indication of RS's ability to fund future operations.
Investors are cautioned that "use of cash in operations" should not be
construed as an alternative to net loss determined in accordance with
generally accepted accounting principles as an indicator of the financial
performance of the Company. The Company's method of calculating "use of cash
in operations" may differ from other issuers and may not be comparable to
similar measures presented by other issuers.
RS is a developer of innovative advanced material products for
large-scale industrial markets. These products replace products which
traditionally have been made using conventional building blocks of wood,
concrete and steel. The foundation of RS is continuous innovation and product
development utilizing its proprietary Version(TM) polyurethane resin system.
RS has successfully developed the RStandard(TM) composite roller tube and
the award winning RStandard(TM) modular composite utility pole. For the latest
on RS's developments, click on "Latest News" on www.grouprsi.com.
"Version", "RStandard" and "VRoll" are trademarks of RS.
"Link-Belt(R) Composite Conveyor Idler Rollers" is a registered trademark
of FMC Technologies, Inc.
For further information:
For further information: Resin Systems Inc., Rob Schaefer, Chief
Financial Officer and Corporate Secretary, Tel: (403) 219-8000, Fax: (403)
219-8001, Email: firstname.lastname@example.org