WaterFurnace Renewable Energy, Inc. 4th Quarter Results: Net Income Up 18.2%
(U.S.$)

FORT WAYNE, IN, March 10 /CNW/ - WaterFurnace Renewable Energy, Inc. (WFI:TSX) today released the Company's fourth quarter 2009 results. While sales for the fourth quarter lagged last year's record performance by 7.7%, the Company was able to grow net income by 18.2% versus the same quarter last year. For the full year, the Company recorded a record net income of $15,476,000 which was 0.7% ahead of last year's net income while sales for the year were 6.3% below 2008.

The geothermal industry's growth continues to outpace the traditional HVAC industry. Geothermal heat pump systems provide lower life cycle costs that are enhanced in many cases by local electric power rebates and tax incentives at the federal and state levels. The economic return on investment for geothermal systems remains very favorable even though natural gas prices have been lower than normal throughout 2009.

The continuation of a weak economy, tight credit markets, high unemployment and exceptionally low housing starts stifled sales growth for most of 2009. The Company's cost containment initiatives provided the opportunity to enhance margins while making strategic investments in IT infrastructure, expansion of its sales force and launching new products.

Tom Huntington, President and CEO said, "While fighting strong economic headwinds for the majority of 2009, the Company did a stellar job of cost management, market development and positioning itself for the future." Tim Shields, Chairman of the Board stated, "The Board is pleased with the performance of the Company, especially in such economically challenging times. Mr. Huntington and his staff have their sights clearly set to ensure WaterFurnace continues its excellent record of growth and returning value to its shareholders."

Management will conduct a webcast covering the results of the quarter at 4:00 pm Eastern Daylight Time on Thursday, March 11th. Interested parties can listen live or to the recorded version at www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2976820 or at the Company's website: www.waterfurnace.com.

    
    -------------------------------------------------------------------------

                     WaterFurnace Renewable Energy, Inc.
                      Consolidated Statements of Income
       Prepared using Canadian Generally Accepted Accounting Principles
                 (Thousands of U.S.$ except per share data)

                                   Unaudited                 Audited

                              Three months ended            Year ended
                                  December 31,              December 31,
                            -----------------------   -----------------------

                               2009         2008         2009         2008
                            ----------   ----------   ----------   ----------
    Sales                   $  39,410    $  42,708    $ 129,065    $ 137,815
      Cost of sales            24,007       27,455       82,423       89,999
                            ----------   ----------   ----------   ----------
    Gross profit               15,403       15,253       46,642       47,816
      Operating expenses        5,023        6,178       20,138       21,427
      Research and
       development expenses       573          563        2,295        1,997
                            ----------   ----------   ----------   ----------
    Income before interest
     and income taxes           9,807        8,512       24,209       24,392
    Interest income                21           14           58          142
    Interest expense               (2)          (7)         (17)         (37)
                            ----------   ----------   ----------   ----------
    Income before income
     taxes                      9,826        8,519       24,250       24,497
    Income taxes                3,775        3,400        8,774        9,123
                            ----------   ----------   ----------   ----------
    Net income              $   6,051    $   5,119    $  15,476    $  15,374
                            ----------   ----------   ----------   ----------
                            ----------   ----------   ----------   ----------
    Basic and diluted
     earnings per share
     U.S.$                  $    0.50    $    0.42    $    1.28    $    1.27
                            ----------   ----------   ----------   ----------

    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                     WaterFurnace Renewable Energy, Inc.
                         Consolidated Balance Sheets
       Prepared using Canadian Generally Accepted Accounting Principles
                        (Audited--Thousands of U.S.$)

                                                  December 31,   December 31,
    Assets                                            2009           2008
                                                  ------------   ------------
    Current assets
      Cash and cash equivalents                     $  4,785       $  6,029
      Short-term investments                          13,368          5,316
      Receivables                                     16,794         18,797
      Inventory                                        5,653          8,714
      Other current assets                             2,859          2,433
                                                  ------------   ------------
    Total current assets                              43,459         41,289

    Capital assets                                     5,345          4,643
    Other assets                                       3,015          2,080
                                                  ------------   ------------

    Total Assets                                    $ 51,819       $ 48,012
                                                  ------------   ------------
                                                  ------------   ------------
    Liabilities

    Current liabilities
      Payables and accruals                         $  7,404       $ 10,542
      Income taxes payable                               880          2,027
      Provision for warranty claims - current
       portion                                         2,215          1,824
                                                  ------------   ------------
    Total current liabilities                         10,499         14,393

    Capital leases                                       140              -
    Deferred compensation                                264          1,085
    Provision for warranty claims                      8,280          5,827
                                                  ------------   ------------

    Total Liabilities                                 19,183         21,305
                                                  ------------   ------------
                                                  ------------   ------------

    Shareholders' Equity

      Share capital                                   14,865         14,865
      Retained earnings                               17,771         11,842
                                                  ------------   ------------
    Total Shareholders' Equity                        32,636         26,707
                                                  ------------   ------------
                                                  ------------   ------------

    Total Liabilities & Shareholders' Equity        $ 51,819       $ 48,012
                                                  ------------   ------------
                                                  ------------   ------------

    -------------------------------------------------------------------------
    

WaterFurnace Renewable Energy, Inc. is traded in both Canadian dollars and U.S. dollars on the Toronto Stock Exchange under the symbol WFI for Canadian dollars and WFI.U for U.S. dollars.

Risk and Uncertainties: This news release contains certain forward-looking statements that may or may not be realized. Investors should not rely solely on this information to make investment decisions. The Company's sales are related to the cost and stability of electricity, fuel oil, propane and natural gas. Federal, state and provincial building codes and energy incentives can also impact sales. The Company is subject to standard risks associated with most companies, such as normal competitive pressures.

SOURCE WaterFurnace Renewable Energy, Inc.

For further information: For further information: Additional information is available on the Company's website: www.waterfurnace.com

Organization Profile

WaterFurnace Renewable Energy, 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