CALGARY, March 13 /CNW/ - Resin Systems Inc. ("RS") (RS - TSX / RSSYF -
OTCBB), a technology innovator that develops advanced composite products for
infrastructure markets, announced today that it has filed its audited
consolidated financial statements for the year ended December 31, 2007,
related management's discussion and analysis, and its annual information form
with Canadian securities regulatory authorities. The financial statements,
management's discussion and analysis, and RS's Form 40-F 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 www.grouprsi.com.
RS reports in Canadian dollars and all financial references in this news
release are in Canadian dollars unless otherwise noted.
- outsourced RStandard(TM) utility pole manufacturing to Global
Composite Manufacturing, Inc. ("GCM")
- outsourced RStandard utility pole distribution to HD Supply
Utilities, Ltd. ("HDs");
- received from an initial purchase order for RStandard(TM) utility
poles valued in excess of $50 million USD from HDs;
- RS and its strategic industry partner FMC Technologies, Inc. ("FMC")
completed development of FMC's line of Link-Belt(R) Composite Idler
Rolls made with RStandard(TM) roller tube;
- started initial market entry of Link-Belt(R) Composite Idler Rolls
made with RStandard roller tube into strategic pilot sites;
- RS's business refocusing in early 2007 resulted in significant
financial and operating improvements during the year:
- showed positive margins in the second half of 2007 once the
outsourcing of the utility pole manufacturing was completed; and
- lowered its use of cash in operation to approximately $1.1 million
per month in the third and fourth quarters of 2007 compared to
$3.1 million per month in the last half of 2006.
- net loss of $23.4 million (loss of $0.19 per share), an improvement
of 46 percent compared to a net loss in 2006 of $43.4 million (loss
of $0.48 per share);
- RS ended 2007 with positive working capital of $14.8 million up
$17.6 million from December 31, 2006; and
- RS has maintained spending levels in line with its forecasts and
expects its cash resources are sufficient to execute its business
RStandard Utility Poles
In January 2007, RS entered into a contract manufacturing relationship
with GCM and relocated the production of RStandard utility poles from Calgary,
AB to Tilbury, ON. The related agreements provided the framework for GCM to
move, upgrade and commission the existing RStandard utility pole manufacturing
equipment, as well as related additions for use in GCM's production of
RStandard utility poles under license from the RS.
GCM's original plans were to begin production in June 2007. Delays in the
readiness of the Tilbury plant deferred the installation and subsequent
start-up of manufacturing on the first production cell to August 2007.
Commercial shipments of utility poles started in September. RStandard utility
poles valued at $0.9 million were shipped from GCM's production facility in
2007, supplying utilities within Canada, the United States and Australia.
In 2008, GCM has shifted its attention to increasing production output on
the first production cell as well as upgrading, installing and commissioning
the second production cell. Optimal production rates for both cells are
expected in the third quarter of this year.
Also in the first quarter of 2008, RS began installing and commissioning
a high-tonnage pultruder in Calgary that will enable RS to develop and
commercialize pultruded utility poles up to 12 metres (40 feet) and pultruded
utility pole accessories for H-frame structures and distribution poles. The
product extensions will allow the Company to enhance its competitiveness in
the distribution pole and H-frame structure markets, both significant market
segments. It is anticipated that the new products will be introduced in fourth
quarter of 2008.
In January 2007, RS signed a distribution agreement with HDs designating
them the exclusive distributor of RStandard utility poles in Canada, the
United States, Mexico, Bermuda, the Bahamas and all the Caribbean Islands. HDs
provided RS with an initial purchase order for RStandard poles with a value
exceeding US$50 million. Initial deliveries under this purchase order have
commenced and will be completed over the next two years.
For the time being, distribution of RStandard utility poles to markets
outside of North America will be handled by RS directly. Outsourcing of
distribution in global markets is planned as demand grows in individual market
RStandard Roller Tube
RS and FMC completed the development of FMC's line of Link-Belt(R)
Composite Conveyor Idler Rolls made with RStandard composite tubes for above
ground-applications in the first half of 2007 and received certification for
use in underground applications from the U.S. Mining Safety and Health
Administration in the third quarter 2007, adding a significant addressable
market segment for the roller tube business line.
Over the second half of 2007, FMC undertook a variety of activities in
preparation for full-scale production of composite rollers and the full market
launch for Link-Belt(R) Composite Conveyor Idler Rolls, including identifying
and securing pilot installations for the product. Product for more than
50 percent of the identified pilots have been delivered to date. Repeat
regular orders from the initial pilots are expected to begin in the second
quarter of 2008.
The new higher tonnage pultruder currently being installed and
commissioned by RS will also benefit the RStandard roller tube business
allowing RS to produce larger diameter roller tubes and enhance RS's ability
to continue its research and development of new products. The combined
pultrusion capability is expected to be sufficient to supply the full range of
tubes product line during 2008.
Conference Call and Webcast
RS will hold its regular business update conference call and webcast on
March 13, 2008 at 11 a.m. (EDT) / 9 a.m. (MDT). The call will be hosted by
Paul Giannelia, president and chief executive officer of RS and Rob Schaefer,
chief financial officer and corporate secretary of RS, and will contain a
question and answer period.
To participate please dial 1-866-334-4934 (toll-free in North America) or
(416) 849-4293 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 796113. The replay will be
available until March 25, 2008.
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 technology innovator that develops advanced composite products
for infrastructure markets. This new generation of products is not only
structurally superior to products made with "old world" materials such as
wood, steel and concrete, it's also lighter, more durable and longer-lasting.
The company has entered the global market with its award winning utility poles
and conveyor roller tubes as its two flagship products, and identifies a
growing list of additional innovative products.
RS designs, engineers and markets its products worldwide, while
outsourcing its manufacturing and distribution.
For the latest on RS's developments, go to the company's website at
"RStandard" is a trademark of RS.
For further information:
For further information: Resin Systems Inc., Laurien Abel, Investor and
Public Relations Coordinator, Tel: (403) 219-8000, Fax: (403) 219-8001, Email: