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EDMONTON, Dec. 29 /CNW/ - Seair Inc. (SDS:TSX Venture Exchange) today released its audited financial statements for the year ending
August 31, 2010.
Revenue for the year ending August 31, 2010 was $3.5 million, or 8%
lower than fiscal 2009. The decline is attributable to low deployment
rates for the Company's fleet of portable wastewater treatment plants.
However, the portable wastewater treatment decline was largely offset
by the emergence of new commercialized revenue streams in oil sands
water treatment and municipal wastewater treatment plants. Revenue
from these new sources was $2.5 million, an increase of 224% over the
Fiscal 2010 gross profit was $2.3 million (66% of revenue) compared to
$1.8 million (49% of revenue) in the year ending August 31, 2009. This
$456 thousand increase in gross profit is due to strong margins on
applications unique to Seair, such as flow-through dewatering treatment
systems for the oil sands.
Seair's patented diffusion technology is uniquely able to deliver
industrial-scale flow-through treatment capabilities for various oil
field waters. As a result Seair is able to build strong gross margins
around the intellectual property underlying the treatment units. Seair
will continue to focus its commercialization efforts on applications
where its patented diffusion technology can achieve unique, and
therefore high margin, outcomes.
The Wolf Creek wastewater treatment plant is the first Seair-based
complete turnkey facility for a residential community. The plant uses
essentially the same technologies and processes as the Company's
portable units, although on a much larger scale and with full nutrient
removal with all treated water is used for golf course irrigation. The
Wolf Creek plant was completed in summer 2010 with commissioning taking
place in August and it is now Seair's reference site in pursuing
similar opportunities in other residential communities. The gross
profit percentage on the Wolf Creek sale was impacted by one-time costs
associated with bringing this first-of-a-kind project to completion.
These regulatory and engineering costs should not recur to this
magnitude on subsequent similar projects.
Total operating expenses decreased by $1.3 million to $3.8 million (25%
decrease) from fiscal 2009 to fiscal 2010. The main items contributing
to this decrease were reduced amortization of units for rental or
resale, stock-based compensation and salaries and wages.
Amortization of equipment held for rental or resale, or essentially the
portable wastewater treatment fleet, was changed from a declining
balance basis to a usage basis. Low fleet deployment rate results in
decreased amortization and, therefore, amortization expense decreased
by $626 thousand on a year-over-year basis. Stock-based compensation
was nil ($324 thousand in fiscal 2009) as no options vested during the
Salaries and benefits decreased by $197 thousand as a result of head
count reductions. Fewer support personnel were required as a result of
the low Septic fleet deployment rate and any additional work associated
with the growing oil sands and municipal wastewater sectors is being
handled by existing Seair staff.
Net loss for the year ending August 31, 2010 was $1.6 million, which is
an improvement of $2.9 million over fiscal 2009.
For the past several years the portable wastewater treatment business
has generated the vast majority of Seair's revenue and served as a
proving ground for the effectiveness and durability of the Company's
treatment technologies and systems. At the same time, research and
development work was focussed on applying Seair's diffusion technology
to larger and more complex situations where Seair's unique capabilities
can position the Company as the only viable solution provider.
In fiscal 2010 the first of these diffusion applications, flow-through
treatment of groundwater in mining operations such as the oil sands,
was commercialized. To date, Seair has sold 14 groundwater treatment
systems to a major oil sands producer who described their adoption of
the Seair solution at the April 2010 CONRAD (Canadian Oil Sands Network
for Research and Development) symposium. During fiscal 2010 Seair
began a partnership with North American Energy Partners Inc. on this
initiative and other oil sands water treatment applications. Seair is
seeking to advance its accelerated tailing settling solution (using
diffused CO2) and tailing pond toxin removal solution to the pilot plant stage,
which will further expand Seair's ability in processing oil sands
Work also continues on commercialization of Seair's diffusion-based
systems for treatment/reuse of frac and produced water as well as
treatment of brackish and blowback water for SAGD (steam-assisted
gravity discharge) oil sands companies. All of the oil field water
treatment projects are ultimately targeted at high volume throughput
installations. The efficiency and comparatively low power consumption
of Seair's micro-bubble diffusion system is critical to providing
economically viable treatment systems at commercial volumes.
Apart from oil field water treatment, Seair's major new initiative is
permanent end-to-end wastewater treatment plants for residential
communities not connected to municipal systems. The first such plant,
sold to the Village at Wolf Creek in central Alberta, completed
commissioning in August 2010. These ozone-based plants are unique.
They are small, efficient, odourless and produce effluent that can be
tailored for reuse in whatever manner suits the purchaser. At Wolf
Creek, treated residential wastewater will be used to irrigate the 36
hole golf course. Bringing the Seair permanent plant design from paper
to reality took several years, but with the first plant up and running
the Company now has a tangible showcase for advantages inherent to the
Seair system. Intensive marketing of Seair plants to residential
communities in need of stand-alone wastewater treatment has commenced
with the Wolf Creek plant serving as a reference site for engineers,
property developers, planners and other stakeholders and influencers.
Western Canadian oil patch activity levels are on the increase and this
is expected to spark a rebound in Seair's portable wastewater treatment
plant business. The Company has hired Sonny Vallieres, a Calgary-based
sales professional with extensive oil field experience, to lead efforts
to improve Seair's fleet deployment.
Seair is no longer engaging Uptick Communications Inc. for investor
relations services. Alternatives are presently under review and, in
the meantime, all investor inquiries should go directly to Seair.
Seair develops proprietary equipment that diffuses gases into liquids.
The introduction of oxygen, ozone or carbon dioxide results in a
supersaturated solution, that meets environmental standards and
customer needs. Seair's patented technologies can produce extremely
small bubbles which are more efficient than other diffusion
technologies. Our technologies are used in a variety of applications in
the oil and gas industry. We also service customers in such diverse
fields as wastewater treatment, pulp and paper, food processing,
aquaculture, agriculture/horticulture, sterilization, golf course
irrigation and pond treatment and animal enhancement.
Seair is a leading developer of patent-protected diffusion and
sterilization technologies, which allow for the efficient diffusion of
gases into liquids, thereby facilitating numerous applications in a
wide variety of industries, including wastewater treatment, pulp and
paper production, food processing, aquaculture,
agriculture/horticulture, sterilization, golf course irrigation and
pond treatment, animal enhancement and oil and gas. Seair's primary
focus is developing and selling equipment that diffuses gases, such as
oxygen, ozone or carbon dioxide, into a liquid, resulting in a
supersaturated solution. The major difference between Seair's and
others' diffusion technologies is Seair's ability to achieve extremely
small bubble size, which in turn allows for the mass transfer of gas to
fluid. The result is a stable condition, where gases remain in
solution for extended periods of time, leading to increased
productivity and lower operating costs. Seair provides
diffusion-enhanced portable wastewater treatment plants through its
subsidiary, Seair Septic.
Parties interested in obtaining further information or receiving news
releases and corporate documents from Seair may email such requests to email@example.com or visit the Seair website at www.seair.ca.
This news release contains forward-looking statements relating to the
future operations of the Seair Inc. and other statements that are not historical facts. Forward-looking
statements are often identified by terms such as "may", "should",
"anticipate", "expects" and similar expressions. Any statements that
are contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements. Such
forward-looking statements are subject to important risks,
uncertainties and assumptions. The reader is cautioned that assumptions
used in the preparation of any forward-looking information may prove to
be incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous known
and unknown risks, uncertainties, and other factors, many of which are
beyond the control of Seair Inc. As a result, we cannot guarantee that
any forward-looking statement will materialize and the reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect and
actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly
qualified by this cautionary statement.
The forward-looking statements contained in this news release are made
as of the date of this news release, and Seair Inc. does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by Canadian
Neither the 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.
SOURCE Seair Inc.
For further information: For further information:
T: 780 477 7188
F: 780 477 6622