Thermal Energy Reports Q3 Revenues for FY 2009



    $4.275M cash position

    OTTAWA, April 29 /CNW Telbec/ - Thermal Energy International Inc. (TSX-V:
TMG) (www.thermalenergy.com) is pleased to announce its third quarter revenues
for Fiscal Year 2009 for the period, ended February 28, 2009.
    Thermal Energy recorded revenues of $682,341 for Q3 and gross profit of
$295,673, compared to revenues of $509,074 and a gross profit of $16,419 for
the same period in the previous year.
    The company recorded a net loss of $1,183,548 ($0.007/share) compared to
a net loss of $569,794 ($0.006/share) for the same period in the previous
year, largely due to reduced revenues from the company's heat recovery
business excluding revenues from GEM Ltd. and increased selling, general and
administration (SG&A) expenses which recognizes costs associated with
expanding the sales team in North America as well as the inclusion of total
SG&A expense from GEM Ltd. The revenues from the company's heat recovery
business were reduced from $509,074 in Q3 FY2008 to $44,531 excluding revenues
from GEM Ltd. for the period ended February 28, 2009 due to a decrease in
sales activity caused by deteriorating economic conditions. Full financial
results are posted to SEDAR and are available on the Company's web site. All
amounts are in Canadian dollars.
    "Thermal Energy remains in a good position to ride out the current global
financial conditions. We are aggressively managing our cash position and
making every attempt to keep total SG&A costs to a minimum while we focus on
booking new sales across all product lines", said President and CEO Tim Angus.

    NOTE: This press release may contain forward-looking statements relating
    to, and amongst other things, based on management's expectations,
    estimates and projections. Such statements including those about the
    Company's strategy for growth, product development, market position,
    expected expenditures and financial results are forward looking
    statements. These statements are not guarantees of future performance and
    involve a number of risks, uncertainties and assumptions. Many factors
    could cause results to differ materially from those stated. The Company
    disclaims any obligation to publicly update or revise any such
    statements.

    About ForEverGreen

    ForEverGreen Energy Inc. ("ForEverGreen") is a wholly-owned subsidiary of
Thermal Energy International Inc. (TSX-V: TMG). ForEverGreen owns and operates
Thermal Energy assets to be used under the Thermal AUD(TM) (Alternate Utility
Delivery) green power program, which will let Thermal Energy's customers
benefit from energy savings without capital investments. ForEverGreen
administers the Thermal AUD(TM) program.

    About Thermal Energy

    Thermal Energy International Inc. is an innovative technology company
providing custom energy and emission reduction, and bioenergy solutions.
Headquartered in Ottawa, Canada, TEI is a designer, design build developer,
fabricator, owner, operator and supplier of proprietary and patented energy
conservation, renewable energy and environmental technology solutions. Thermal
Energy is a fully accredited professional engineering firm, and offers
advanced process and applications engineering services. The Company is a proud
member of the Chicago Climate Exchange (CCX). FLU-ACE(TM), Dry-Rex(TM),
THERMALONOx(TM) and THERMALOZOMAx(TM), THERMAL AUD(TM) are trademarks of
Thermal Energy International. GEM(R) is a trademark used under exclusive
license from Gardner Energy Management Ltd.
    To find out more about Thermal Energy International Inc. (TSX-V: TMG),
visit our website at http://www.thermalenergy.com.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    
    THERMAL ENERGY INTERNATIONAL INC.
    Incorporated under the Ontario Business Corporations Act

                         CONSOLIDATED BALANCE SHEETS

                                 (Unaudited)

    As at                                               Feb 28        May 31
                                                          2009          2008
                                                             $             $

    ASSETS
    Current assets
    Cash                                               137,959        84,717
    Short term investments (note 5)                  4,137,530       552,773
    Accounts receivable (note 6)                     1,118,648       627,571
    Contracts in progress                               12,300       156,000
    Inventories                                        513,918             -
    Net investment in lease (note 8)                   261,015       227,034
    Prepaids and other assets                          109,268        31,934
                                                     6,290,638     1,680,029
    Property, plant and equipment (note 7)             109,026        65,066
    Net investment in lease (note 8)                 1,758,664     1,948,906
    Goodwill (note 4)                                5,049,610             -
                                                    13,207,938     3,694,001


    LIABILITIES, CAPITAL STOCK, CONTRIBUTED SURPLUS AND DEFICIT
    Current liabilities
    Bank loan (note 9)                                 730,539       908,667
    Accounts payable                                   610,436     2,001,801
    Accrued liabilities                                681,522       459,777
    Deferred revenue                                    70,000       384,908
    Due to past President (note 10)                     17,937        17,937
                                                     2,110,434     3,773,090

    Non-controlling interest (note 4)                   (4,911)            -

    Capital stock, contributed surplus and deficit
    Capital stock (note 11)                         32,606,553    19,479,079
    Contributed surplus (note 11)                    2,284,713     1,528,414
    Deficit                                        (23,718,734)  (21,086,582)
    Accumulated other comprehensive loss               (70,117)            -
                                                    11,102,415       (79,089)

                                                    13,207,938     3,694,001

    Contingency (note 12)

    The accompanying notes are an integral part of these consolidated
    financial statements

    On behalf of the Board    (signed)                (signed)
                              Tim Angus               Oliver Toffoli
                              President and C.E.O.    Chief Financial Officer


    THERMAL ENERGY INTERNATIONAL INC.

           CONSOLIDATED OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT

                                 (Unaudited)

                             Three months ended           Nine months ended
                            Feb 28        Feb 29        Feb 28        Feb 29
                              2009          2008          2009          2008
                                 $             $             $             $
    ---------------------------------------------  --------------------------
    REVENUE
    Sales                  682,341       509,074     2,881,222     2,175,721
    Cost of sales          386,668       492,655     1,234,583     1,915,974
    ---------------------------------------------  --------------------------
    Gross profit           295,673        16,419     1,646,639       259,747
    ---------------------------------------------  --------------------------

    Expenses
    Administration         581,964       309,258     1,754,095       844,425
    Selling,
     marketing and
     business
     development           868,420       316,738     2,220,339     1,098,055
    Legal fees              15,034        58,683        84,416        69,092
    Audit fees              21,661        15,000        86,129        45,744
    Insurance               33,415        57,853       101,818       129,592
    Amortization
     of property,
     plant and
     equipment              11,857         7,948        38,747        23,559
    Patent and
     trademark
     maintenance               630         6,521        18,170        12,816
    Research and
     development            30,019         9,373       185,069        62,527
    Interest and
     bank charges           17,844         1,100        83,606         5,250
    Foreign
     exchange
     loss (gain)           (33,244)        9,174       (11,980)       49,117
    ---------------------------------------------  --------------------------
                         1,547,600       791,648     4,560,409     2,340,177
    ---------------------------------------------  --------------------------
                        (1,251,927)     (775,229)   (2,913,770)   (2,080,430)

    Interest revenue        11,569         5,435        76,896        29,310
    Finance revenue         63,865             -       213,382             -
    ---------------------------------------------  --------------------------
    Loss before
     income taxes       (1,176,493)     (769,794)   (2,623,492)   (2,051,120)
    Future income
     tax recovery
     (note 11)                          (200,000)                   (200,000)
    ---------------------------------------------  --------------------------
    Loss before
     non-controlling
     interest           (1,176,493)     (569,794)   (2,623,492)   (1,851,120)
    Non-controlling
     interest               (5,242)            -        (8,660)            -
    ---------------------------------------------  --------------------------
    Net loss            (1,181,735)     (569,794)   (2,632,152)   (1,851,120)
    Exchange
     translation
     adjustment
     of net
     investment
     in self-
     sustaining
     foreign
     operation              (1,813)            -       (70,117)            -
    ---------------------------------------------  --------------------------
    Net loss
     and Other
     comprehensive
     loss               (1,183,548)     (569,794)   (2,702,269)   (1,851,120)
    Deficit,
     beginning of
     period            (22,605,303)  (19,995,400)  (21,086,582)  (18,714,074)
    ---------------------------------------------  --------------------------
    Deficit, end
     of period         (23,788,851)  (20,565,194)  (23,788,851)  (20,565,194)
    ---------------------------------------------  --------------------------
    ---------------------------------------------  --------------------------

    Net loss per
     share - basic
     and diluted            (0.007)       (0.006)       (0.016)       (0.020)
    Weighted average
     number of
     common shares     167,733,922    95,782,476   161,912,331    93,001,532
    ---------------------------------------------  --------------------------
    ---------------------------------------------  --------------------------

    The accompanying notes are an integral part of these consolidated
    financial statements


    THERMAL ENERGY INTERNATIONAL INC.

                     CONSOLIDATED STATEMENT OF CASH FLOWS

                                 (Unaudited)

                             Three months ended           Nine months ended
                            Feb 28        Feb 29        Feb 28        Feb 29
                              2009          2008          2009          2008
                                 $             $             $             $
    ---------------------------------------------  --------------------------

    OPERATING
     ACTIVITIES
    Net loss for
     the period         (1,181,735)     (569,794)   (2,632,152)   (1,851,120)
    Add items not
     involving cash:
      Stock-based
       compensation         11,591       105,211       189,099       391,045
      Amortization
       of property,
       plant and
       equipment            11,857         7,948        38,747        23,559
      Non-monetary
       compensation
       charge                    -        61,249        17,500       152,170
    Future income
     taxes (note 11)             -      (200,000)            -      (200,000)
    Changes in
     non-cash
     operating
     working capital
      Accounts
       receivable          314,153         9,808       403,580      (166,929)
      Contracts
       in progress         (12,300)       38,300       143,700      (183,000)
      Inventories           31,348                      31,348
      Prepaids and
       other assets        (19,707)       (8,861)      (25,492)       14,615
      Accounts
       payable            (245,880)       80,177    (1,752,281)      531,287
      Accrued
       liabilities         203,989      (583,511)      (14,353)        5,287
      Deferred
       revenue                   -       (44,611)     (314,908)     (436,611)
    ---------------------------------------------  --------------------------
    Net cash used
     in operating
     activities           (886,684)   (1,104,084)   (3,915,212)   (1,719,697)
    ---------------------------------------------  --------------------------

    INVESTING
     ACTIVITIES
    (Acquisition)
     reduction in
     short term
     investments         1,240,668       146,652    (3,582,451)      698,291
    Additions to
     construction
     in progress                 -      (389,441)            -      (723,417)
    Acquisition
     of subsidiary        (245,397)            -    (5,656,791)            -
    Additions to
     property, plant
     and equipment               -        (2,519)      (37,535)      (28,767)
                       --------------------------  --------------------------
    Net cash (used)
     provided in
     investing
     activities            995,547      (245,308)   (9,276,777)      (53,893)
                       --------------------------  --------------------------

    FINANCING
     ACTIVITIES
    Increase
     (decrease)
     in bank loan         (189,514)      300,000      (595,020)      300,000
    Net investment
     in lease
     (note 8)               48,016             -       156,261             -
    Common shares
     issued (note 11)            -       974,000    14,900,400     1,150,500
    Financing fees               -             -    (1,223,226)            -
    ---------------------------------------------  --------------------------
    Net cash (used)
     provided by
     financing
     activities           (141,498)    1,274,000    13,238,415     1,450,500
    ---------------------------------------------  --------------------------

    Effect of
     exchange rate
     fluctuations
     on cash and
     cash
     equivalents             4,828             -         6,816             -

    Increase
     (decrease)
     in cash for
     the period            (28,083)      (75,392)       53,242      (323,090)
    Cash beginning
     of period             166,042       301,498        84,717       549,196
    ---------------------------------------------  --------------------------
    ---------------------------------------------  --------------------------
    Cash end of
     period                137,959       226,106       137,959       226,106
    ---------------------------------------------  --------------------------
    ---------------------------------------------  --------------------------

    ---------------------------------------------  --------------------------
    Interest paid            8,943           696        67,736         3,783
    ---------------------------------------------  --------------------------
    Tax impact of
     renounced
     expenditures                -       200,000             -       200,000
    ---------------------------------------------  --------------------------
    Shareholder
     loans to
     acquire shares              -       380,300       212,600       380,300
    ---------------------------------------------  --------------------------
    Fair value
     of options
     exercised
     transferred
     to capital
     stock                       -       524,301        69,000       657,359
    ---------------------------------------------  --------------------------
    Fair value
     of warrants
     issued for
     financing
     fees                        -             -       636,200             -
    ---------------------------------------------  --------------------------

    The accompanying notes are an integral part of these consolidated
    financial statements
    




For further information:

For further information: Tim Angus, President & CEO, (613) 723-6776 x
207, tim.angus@thermalenergy.com

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