TORONTO, July 26, 2013 /CNW/ - Cymat Technologies Ltd., a materials
technology company focused on the military, automotive and
architectural industries, announced its results for the quarter and the
year ending April 30, 2013.
Fourth Quarter and Fiscal 2013 - Key Financial Metrics
For fiscal 2013 there was a fourth quarter net income of $1.6 million
and a net income of $443,000 for the year. For fiscal 2012 there was a
fourth quarter net loss of $3.0 million and a net loss of $4.8 million
for the year.
Revenue totalled $132,000 for the fourth quarter (2012 - $484,000) and
$926,000 for fiscal 2013 (2012 - $2,795,000).
Plant operating costs totalled $259,000 for the fourth quarter (2012 -
$843,000) and $1.2 million for fiscal 2013 (2012 - $3.6 million).
SG&A expenses totalled $285,000 for the fourth quarter (2012 - $408,000)
and $1.1 million for fiscal 2013 (2012 - $2.2 million).
In the fourth quarter of 2013, the Company reached a settlement with
Industry Canada regarding its obligation under the Technology
Partnerships Canada ("TPC") Program resulting in a one-time gain in the
amount of $2.0 million.
Revenue for the final quarter of 2013 was $132,000, a decrease of
$352,000 from $484,000 for the same quarter of 2012. The quarterly
revenue for 2012 included $293,000 from the large Mallorca
Annual revenue for fiscal 2013 was approximately $926,000, a decrease of
$1,869,000 over revenue for the prior year of $2,795,000. The
year-over-year decline resulted from the decline in revenue from large
architectural projects (Mallorca and Tbilisi) by $2,078,000 in
aggregate. This decrease was partially offset an increase of $190,000
in small "transactional" AlusionTM sales and a modest increase in SmartMetalTM sales.
Plant operating expenses for the quarter ended April 30, 2013 were
approximately $259,000, a decrease of $584,000 from the same expenses
of $843,000 for the quarter ended April 30, 2012. Plant operating
expenses for fiscal 2013 were $1.2 million as compared to $3.6 million
for fiscal 2012. Decreased direct plant operating expenses were in
keeping with the decline in revenue. Plant operating expenses also
include depreciation and amortization expense which was $91,000 for
fiscal 2013 as compared to $1.5 million for 2012, with the reduction
primarily due to lack of technology rights amortization in 2013.
Selling, general and administration ("SG&A") expenses for the fourth
quarter of 2013 totalled $285,000, a decrease of $123,000 from SG&A of
$408,000 for the last quarter of 2012. This improvement was largely the
result of lower employee salary and benefit expenses, including
stock-based compensation expense, resulting from reduced head count.
SG&A expenses for fiscal 2013 totalled $1.1 million compared to $2.2 for
2012. This improvement was largely the result of lower employee salary
and benefits, including lower stock-based compensation expenses by
$752,000, resulting from reduced staff levels.
Gain on Settlement of Debt
A gain on settlement of debt in the amount of $2.0 million was recorded
by Cymat in the fourth quarter of fiscal 2013. The gain was the result
of a Debt Settlement Agreement reached with Industry Canada regarding
the repayable government contributions under the TPC agreement
originally signed in March 1997.
At the time of the signing of the Debt Settlement Agreement, an
aggregate of $6,366,350 - in the form of a 3.45% royalty on the sale of
aluminum foam - remained to be paid under the former TPC Agreement.
This obligation under the former TPC Agreement was reflected on the
Company's books as a $2.2 million liability. The carrying value of
this financial liability was determined by estimating the net present
value of the future royalty payments based on future revenues generated
from the sale of SAF.
Under the Settlement Agreement, Industry Canada agreed to accept
payments in the aggregate amount of $175,000 in settlement of Cymat's
Net Income (Loss)
The A net income of $1.6 million was recorded for the fourth quarter of
2013, compared to a net loss of $3.0 million for the fourth quarter of
2012. Excluding the gain on settlement of debt, last year's impairment
loss and non-cash interest amounts would produce a loss of $393,000 for
the fourth quarter of 2013 and a loss of $770,000 for the fourth
quarter of 2012.
The net income for the fourth quarter of fiscal 2013 includes the
non-cash items of depreciation and amortization of $30,000 (2012 -
$394,000) and a share-based compensation expense of $21,000 (2012 -
A net income of $443,000 was recorded for fiscal 2013, compared to a net
loss of $4.8 million for fiscal 2012. Excluding the gain on settlement
of debt, the impairment loss and non-cash interest amounts would
produce a loss of $1,382,000 for 2013 and a loss of $3,072,000 for
The net income for fiscal 2013 includes the non-cash items of
depreciation and amortization of $119,000 (2012 - $1,570,000) and a
recovery of share-based compensation expense of $199,000 (2012 -
expense of $553,000).
Further to the Cymat press release dated March 27, 2013, the Company has
been advised that the Toronto Stock Exchange (the "TSX') has decided to
delist Cymat's Common Shares (Symbol: CYM) effective at the close of
markets on August 26, 2013. The Company has initiated the listing
process with the TSX Venture Exchange. The TSX has indicated that they
will offer flexibility in the timing of their delisting to accommodate
the requirements for establishing a listing with the TSX Venture
Exchange. Accordingly, the transition to the TSX Venture Exchange is
anticipated to be seamless in terms of providing an uninterrupted
market for the trading of Cymat's Common Shares.
The Company has continuing expectations for the inclusion of AlusionTM in significant architectural projects. As reported previously, there
has been some slippage in the expected timing of material delivery for
such projects in Europe, owing to uncertainties and austerity measures
impacting the European economy. However, the Company expects
architectural sales to continue to provide the bulk of Cymat revenue,
assisted by the building of its distributorship with the Latin American
Division of Hunter Douglas and sales from its US-based distributor.
SmartMetal™ continues to be evaluated by several OEMs and their
suppliers in various military vehicle platforms for next generation and
retrofit vehicles. Management expects to complete the final stage of
pre-production testing regarding a vehicle protection kit to be
employed by and international OEM in the first half of fiscal 2014.
Also, despite uncertainties regarding the US military budget, there
continues to be interest in SmartMetalTM displayed by certain OEMs based in the United States. Sales in this
market generally have long timelines, require deep relationships and
require the ability to engineer customized solutions. The Company is
continuing its efforts in the engagement of external agents to assist
in the development of international military markets for SmartMetalTM.
On the automotive front, dialogue continues in the investigation of the
efficacy of SmartMetal™ applications for automotive design,
particularly the possibility of incorporating SmartMetalTM, as produced from Cymat's flat panel line, into the design for
automotive crash-boxes. Management believes that SmartMetalTM has the potential to resolve the conflicting requirements within
automotive design for increased vehicle crashworthiness while at the
same time reducing vehicle weight.
Installation of AlusionTM panels have recommenced at the 9/11 Memorial site in New York City and
management expects that the delivery of the final batch of panels will
occur in the first part of fiscal 2014, providing the Company with a
significant source of cash flow.
Cymat develops innovative materials for industry. The company has
worldwide rights, through patents and licenses, for producing
Stabilized Aluminum Foam. The ultra-light metallic foam is manufactured
by bubbling gas through molten alloyed aluminum containing a dispersion
of fine ceramic particles and can be produced as either Near-net Shapes
or Flat Panels. The result is a revolutionary material with a wide
array of features including very low density, mechanical energy
absorption, thermal and acoustic insulation, is recyclable, time and
temperature insensitive and has a relatively low cost of production.
Cymat is collaborating with a number of partners spanning the
automotive, architectural and blast mitigation industries. For further
information, visit the Web site www.cymat.com.
The foregoing press release contains forward-looking statements relating
to the development of markets, development programs, future revenues
and improvements in technology, which are subject to important risks
and uncertainties. The results or events predicted in these statements
may differ materially from actual results or events. Factors which
could cause results or events to differ from current expectations
include the availability of funding, existing and future relationships
with suppliers and manufacturers, the results of research and
development activities, risks of technological breakthroughs that make
Cymat stabilized aluminum foam less attractive, risks relating to the
breadth, scope and enforceability of intellectual property rights,
general industry and market conditions, availability of qualified
personnel, and reliance on co-development partners. For additional
information with respect to these and other factors, see the reports
filed by Cymat Technologies Ltd. with the Ontario Securities
Commission. Cymat Technologies Ltd. disclaims any intention or
obligation to update or revise any forward-looking statements.
SOURCE: Cymat Technologies Ltd.
For further information:
Investors and Media:
Cymat Technologies Ltd.
Tel: (416) 682-4214