Thermal Energy Reports Third Quarter Financial Results



    OTTAWA, April 30 /CNW Telbec/ - Thermal Energy International Inc.
(TSX-V: TMG) (www.thermalenergy.com) today announced its financial results for
the third quarter of Fiscal Year 2007 for the period ending February 28, 2007.
    Thermal Energy recorded revenues of $108,199 for Q3 with a net loss of
$520,155 ($0.01/share). This compared to revenue of $655,010 and a net loss of
$643,593 ($0.01/share) for the same period a year earlier. Complete financial
results are available on SEDAR (www.sedar.com) and on our web site.
    "Ongoing delays in closings, largely due to the decision making process
for capital expenditures by prospective customers continue to impact this
year's revenues which will lag behind last year's record levels despite our
anticipation of a strong closing quarter," said Thermal Energy President and
CEO Tim Angus, "However, we are also very pleased by major breakthroughs in
the third quarter with the signing of two contracts in the United States, both
at sites of Fortune 500 companies."
    "These contracts give us our largest backlog ever, in excess of
$4 million, which positions us for a strong fourth quarter and virtually
assures us of a record year for fiscal 2008," said Mr. Angus.

    
                                 Highlights

    - $1.4 million-plus heat recovery/energy saving contract signed
      Dec. 1, 2006, with a U.S. Fortune 500 food and beverage company;

    - $2.5 million-plus energy efficiency contract signed January 31, 2007
      with a Global 500 company's industrial manufacturing facility in the
      U.S;

    - Pipeline of qualified sales prospects grew to $50 million-plus in the
      quarter in addition to contracts converted from the pipeline;

    - Closed a non-brokered private placement during the quarter for
      $778,639.

    In order to assist our customers in the decision making process for
capital expenditures and provide alternatives to difficult capital
allocations, Thermal Energy has developed the Thermal Alternate Utility
Delivery (AUD) Program which provides customers with innovative financing
options based on the energy savings from proposed projects.
    "We believe Thermal AUD will help expedite contract closings for a number
of proposed projects, which would otherwise be competing for once-a-year
capital allocations," said Mr. Angus. "A number of these proposals involve
combinations of our FLU-ACE(R) waste heat recovery technology and our recently
acquired DRY-REX(TM) low temperature biomass drying system in our traditional
markets such as pulp and paper and the rapidly growing biomass energy market
which we see as a major driver of business for years to come."

    NOTE: This press release may contain forward-looking statements relating
to, and among 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.

    For complete audited financial statements with notes and management
discussion and analysis, please go to www.sedar.com or our website at
www.thermalenergy.com under "investors."

    About Thermal Energy

    Thermal Energy International Inc. is an innovative technology company
providing custom energy and emission reduction solutions. Headquartered in
Ottawa, Canada, TEI is a designer, design build developer, fabricator, 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. FLU-ACE(R), THERMALONOx(TM), THERMALOZOMAx(TM) and
Dry-Rex(TM) are trademarks of Thermal Energy International. GEM(R) is a
trademark used under exclusive license from Gardner Energy Management Ltd.
    For more about Thermal Energy International Inc. (TSX-V: TMG), visit our
website at www.thermalenergy.com.


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

                         CONSOLIDATED BALANCE SHEETS

                                                     (Unaudited)
    As at                                                Feb 28       May 31
                                                           2007         2006
                                                              $            $
    -------------------------------------------------------------------------

    ASSETS
    Current assets
    Cash                                                 16,041       59,119
    Accounts receivable (note 5)                        539,956      626,495
    Contracts in progress                                     -       89,000
    Prepaids and other assets                            29,116       41,777
    -------------------------------------------------------------------------
                                                        585,113      816,391
    Loans receivable (note 7)                            17,000       55,500
    Property, plant and equipment (note 8)               73,486       59,539
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                        675,599      931,430
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    LIABILITIES, CAPITAL STOCK, CONTRIBUTED
     SURPLUS AND DEFICIT
    Current liabilities
    Accounts payable                                    618,386      947,063
    Accrued liabilities                                 132,920      166,728
    Deferred revenue                                    866,373       99,000
    Due to past President (note 6)                       17,937       17,937
    -------------------------------------------------------------------------
                                                      1,635,616    1,230,728
    -------------------------------------------------------------------------

    Capital stock, contributed surplus and deficit
    Capital stock (note 9)                           15,284,018   14,462,279
    Contributed surplus (note 9)                      1,748,090    1,509,232
    Deficit                                         -17,992,125  -16,270,809
    -------------------------------------------------------------------------
                                                       -960,017     -299,298
    -------------------------------------------------------------------------

                                                        675,599      931,430
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

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


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


    THERMAL ENERGY INTERNATIONAL INC.

                     CONSOLIDATED OPERATIONS AND DEFICIT
                                 (Unaudited)

                                Three months ended         Nine months ended
                                       February 28               February 28
                                 2007         2006         2007         2006
                                    $            $            $            $
    ----------------------------------------------- -------------------------
    REVENUE
    Sales                     108,199      655,010      338,845    1,844,554
    Cost of sales             168,697      643,593      485,160    2,099,444
    ----------------------------------------------- -------------------------
    Gross profit (loss)       -60,498       11,417     -146,315     -254,890
    ----------------------------------------------- -------------------------

    Expenses
    Administration            196,921      179,475      635,359      607,894
    Selling, marketing and
     business development     378,352      155,497      880,480      662,551
    Legal fees                 12,962       40,656       15,029       97,700
    Audit fees                 15,000       11,250       45,000       42,647
    Insurance                  19,919       19,907       58,574       62,260
    Amortization of
     property, plant
     and equipment              6,206        5,703       18,954       13,134
    Patent and trademark
     maintenance                  688        2,384        8,823        9,320
    Research and development   24,361       21,344       71,725       53,855
    Interest and bank charges   4,005        1,382        6,934        6,090
    Foreign exchange gain      -3,609      -11,667       -1,226       -7,101
    ----------------------------------------------- -------------------------
                              654,805      425,931    1,739,652    1,548,350
    ----------------------------------------------- -------------------------
                             -715,303     -414,514   -1,885,967   -1,803,240

    Other Revenue (note 12)         -       36,548        5,240      290,214
    Interest revenue              148        1,008          412       10,572
    Other Costs (note 13)           -      -25,206      -36,001     -288,990
    ----------------------------------------------- -------------------------
    Loss before income
     taxes                   -715,155     -402,164   -1,916,316   -1,791,444
    Future income tax
     recovery (note 9)       -195,000            -     -195,000            -
    -------------------------------------------------------------------------
    Net loss                 -520,155     -402,164   -1,721,316   -1,791,444
    Deficit, beginning
     of period            -17,471,970  -15,443,356  -16,270,809  -14,054,076
    ----------------------------------------------- -------------------------
    Deficit, end of
     period               -17,992,125  -15,845,520  -17,992,125  -15,845,520
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------

    Net loss per share
     - basic and diluted        -0.01        -0.01        -0.02        -0.03
    Weighted average
     number of common
     shares                79,287,780   67,660,770   76,808,458   66,077,972
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------

    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
                                       February 28               February 28
                                 2007         2006         2007         2006
                                    $            $            $            $
    ----------------------------------------------- -------------------------

    OPERATING ACTIVITIES
    Net loss for the period  -520,155     -402,164   -1,721,316   -1,791,444
    Add items not involving
     cash:
      Non-monetary
       compensation charge    228,110       16,451      404,351      365,853
      Amortization of
       property, plant and
       equipment                6,206        5,703       18,954       13,134
      Future income taxes
       (note 9)              -195,000            -     -195,000           -
      Past President loan
       to acquire shares
       expensed                     -            -      151,500            -
    Changes in non-cash
     operating working
     capital
      Accounts receivable    -498,589     -279,067       86,539     -411,612
      Contracts in progress         -       12,000       89,000        2,000
      Prepaids and other
       assets                     948       -6,352       12,661      -34,046
      Accounts payable       -149,397     -115,337     -328,677      513,016
      Accrued liabilities     -39,256      -39,894      -33,808     -195,933
      Deferred revenue        822,373      117,000      767,373      205,000
    Changes in due to the
     past President (note 6)        -      -36,548            -     -283,035
    ----------------------------------------------- -------------------------
    Net cash used in
     operating activities    -344,760     -728,208     -748,423   -1,617,067
    ----------------------------------------------- -------------------------

    INVESTING ACTIVITIES
    Reduction in short
     term investments               -      506,199            -      800,263
    Additions to property,
     plant and equipment            -       -8,423      -32,901      -40,631
    ----------------------------------------------- -------------------------
    Net cash used in
     investing activities           -      497,776      -32,901      759,632
    ----------------------------------------------- -------------------------

    FINANCING ACTIVITIES
    Common shares issued
     (note 9)                 316,746      325,100      699,746      873,767
    (Increase) decrease in
     loans receivable          20,000            -       38,500      -36,500
    ----------------------------------------------- -------------------------
    Net cash provided by
     financing activities     336,746      325,100      738,246      837,267
    ----------------------------------------------- -------------------------


    Decrease in cash for
     the period                -8,014       94,668      -43,078      -20,168
    Cash beginning of period   24,055       59,382       59,119      174,218
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------
    Cash end of period         16,041      154,050       16,041      154,050
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------

    ----------------------------------------------- -------------------------
    Interest paid                 994          594        2,560        1,569
    ----------------------------------------------- -------------------------

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


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




For further information:

For further information: Stuart McCarthy, Thermal Energy International
Inc., Investor Relations and Communications, (613) 723-6776 x 220,
stuart.mccarthy@thermalenergy.com

Organization Profile

Thermal Energy International Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890