Xebec Announces Net Income of $0.4 Million for Q4-2014 and a Net Loss of $0.8 Million for Fiscal 2014

Xebec Fiscal 2014 Fourth Quarter and Year-end Financial Results

MONTREAL, April 29, 2015 /CNW Telbec/ - Xebec Adsorption Inc. (TSXV: XBC) ("Xebec"), a provider of gas purification and filtration solutions for the natural gas, field gas, biogas, helium, and hydrogen markets, announced today its 2014 fourth quarter operating results.

  • Revenues of $3.9 million in the fourth quarter 2014 compared to $2.8 million for the same period in 2013, a 38.5% increase in the period.
  • Positive EBITDA of $0.6 million in the fourth quarter compared to $1.5 million for the same period in 2013 which included a non-recurring gain on disposal of assets for $2.7 million.
  • Revenues of $14.4 million in fiscal 2014 compared to $11.3 million for the same period in 2013, a 27.0% increase in the year.
  • Net loss of $0.8 million or ($0.02)/share in fiscal 2014 compared to a Net income of $0.4 million or $0.01/share for the same period in 2013 which included a non-recurring gain on disposal of assets for $4.5 million.

 

Financial Highlights:







Three months ended
December 31,

% of
Change

Twelve months ended
December 31,

% of
Change


2014

2013


2014

2013


(In millions of dollars)

(unaudited)

(unaudited)


(audited)

(audited)


Revenues

3.9

2.8

38.5%

14.4

11.3

27.0%

Gross margin

1.6

0.3

462.1%

4.9

1.6

200.2%

Gross margin as a percentage of revenues

41.5%

10.2%


34.0%

14.4%


EBITDA* 

0.6

1.5


(0.4)

0.8


Net income (loss)

0.4

1.4


(0.8)

0.4


Net income (loss) per share - basic  ($/share) 

0.01

0.04


(0.02)

0.01


Net income (loss) per share - diluted ($/share) 

0.01

0.04


(0.02)

0.01


Weighted average number of shares

39,363,867

39,363,867


39,363,867

39,363,867


As at:




December 31,
2014

December 31,
2013 


Total assets




7.4

9.8


Total Long term Liabilities




0.3

1.0


Equity




0.9

2.0


As at:




 April 29,
2015 

 April 25,
2014 


Back log




6.1

9.4


* EBITDA is a non-IFRS financial measure and the Company defines it as earnings from operations excluding financial charges, taxes, foreign exchange loss (gain) and amortization.

 

Financial Results

Revenues

Xebec posted revenues of $3.9 million for the fourth quarter of 2014, a 38.5% increase compared to $2.8 million in the fourth quarter of 2013. The increase is explained by significant growth in the Natural Gas Dryer (NGX) segment. 

For the twelve-month period ended December 31, 2014, total revenues amounted to $14.4 million compared to $11.3 million for the corresponding period. This increase of $3.1 million is partly due to the $0.8 million increase in sales in the Associated Gas (AGX) segment due to the completion of a project during 2014. Furthermore, the NGX product line showed a significant increase (+$2.2 million) in revenue for the twelve-month period ended December 31, 2014 compared to the corresponding period last year.

Order Backlog

As of April 29, 2015, total order backlog stood at $6.1 million, compared to $9.4 million as at April 25, 2014.

Gross profit margin

The gross profit margin for the fourth quarter of 2014 stood at 41.5%, almost four times growth compared to 10.2% for the fourth quarter of 2013. The improvement versus the same period last year is mostly explained by the improvement in gross margins in revenues associated with the gas purification product line and the reversal of a provision of $0.3 million created in 2013.

For the twelve-month period ended December 31, 2014 the operating profit margin stood at 34.0%, slightly more than two times higher compared to the fourth quarter of 2013. Natural gas dryer margins were improved due to a higher volume of sales which reduced the burden per unit. Improved margins also reflect the effect of the cost reduction plan introduced during 2013 for this segment. Margins for the gas purification segment were affected positively with the reversal of the $0.3 million provision mentioned above, combined with profitability of new on-going orders. The revenue increase also contributed to improved gross margin since fixed costs are absorbed by a higher volume of sales.

EBITDA and Net Income

The EBITDA for the fourth quarter of 2014 amounted to $0.6 million compared to $1.5 million in the fourth quarter of 2013. By excluding the $2.7 million non-recurring gain on disposal of assets from the EBITDA for Q4-2013, the improvement for the comparative period is $1.8 million.

For the twelve-month period ended December 31, 2014, EBITDA amounted to $(0.4) million compared to $0.8 million for the same period in 2013. The lower EBITDA number in 2014 is explained by the fact that in 2013 a $4.5 million non-recurring gain on disposal of assets was recorded. After excluding this non-recurring gain, the EBITDA has increased by $3.3 million for the comparative period.

Net income for the fourth quarter of 2014 totaled $0.4 million, or $0.01 per share, compared to a net income of $1.4 million, or $0.04 per share for the same period in 2013. Despite the fact that the margins improved by $1.3 million on increased revenue for the fourth quarter of 2014, net income is lower due to the fact that the fourth quarter of 2013 included a $2.7 million non-recurring gain on disposal of assets.

Net loss for the twelve-month period ended December 31, 2014 amounted to $0.8 million, or ($0.02) per share, compared to a net income of $0.4 million or $0.01 per share, for the same period in 2013. The increase in net loss compared to 2013 is explained by the fact that, for the corresponding period in 2013, a $4.5 million non-recurring gain on disposal of assets was included.

Selling and administrative expenses for the fourth quarter of 2014 decreased by $0.7 million or 37.1% to $1.1 million. The decrease is mainly explained by reversal of $0.2 million of bad debt provision in China and capitalization of development costs related to the new filter line of $0.3 million.

For the twelve-month period ended December 31, 2014 the selling and administrative expenses decreased by $0.3 million or 5.5% to $5.6 million. The decrease is mainly explained by reversal of $0.2 million of bad debt provision mentioned above, and the capitalization of development costs for the new filter line for $0.3 million. This was partly offset by the new USA subsidiary expenses.

As of December 31, 2014, the Company had $1.0 million of cash on hand, $0.1 million of bank loan and $0.8 million of debt outstanding, which is due within one year.

Xebec 2014 year-end Financial Statements and Management's Discussion and Analysis include further information on the Company.

2014 Fourth Quarter Financial Statements and Management's Discussion and Analysis

The complete audited financial statements, notes to financial statements and the Management's Discussion and Analysis for the fiscal year ended December 31, 2014, are available on the Company's Website at www.xebecinc.com and on the SEDAR Website at www.sedar.com.

About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of clean energy solutions to corporations and governments looking to reduce their carbon footprints. With more than 1,500 customers worldwide, Xebec designs, engineers and manufactures innovative products that transform raw gases into marketable sources of clean energy mainly used as transportation fuel. Xebec's strategy is focused on establishing leadership positions in markets where demand for biogas upgrading, natural gas dehydration, liquefaction and hydrogen purification is growing. Headquartered in Montreal (QC), Xebec is a global company with two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America and Asia. Xebec trades on the TSXV under the symbol XBC. Since February 25th 2014, Xebec has opened a sales office in Houston, Texas (USA), in order to cover sales opportunities in the United States. For additional information on the company and its products and services, please visit the Xebec web site at www.xebecinc.com.

Caution Concerning Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking" statements within the meaning of applicable securities laws. This forward looking information includes, but is not limited to, the expectations and/or claims of management of Xebec with respect to information regarding the business, operations and financial condition of Xebec. Forward-looking information contained in this press release involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xebec or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This list is not exhaustive of the factors that may affect forward-looking information contained in this press release. When used in this press release, such statements use such words as "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "will" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. 

 

SOURCE Xebec Adsorption Inc.

For further information: Kurt Sorschak, President and CEO, 450-979-8701, ksorschak@xebecinc.com; Alnoor Mandjee, Chief Financial Officer, 450-979-8700, amandjee@xebecinc.com

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