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Pioneering Exceeds its 2010 Business Objectives
MISSISSAUGA, ON, Feb. 1 /CNW/ - Pioneering Technology Corp.
("Pioneering" or the "Corporation") (TSX Venture: PTE), an energy smart
product innovation and consumer goods company, today reported positive
net income for the fiscal year ended September 30, 2010. Revenue during
the period increased 110% to approximately $2,880,000 as compared to
revenues of approximately $1,371,000 for the same period last year
representing an increase of approximately $1,509,000.
The Corporation delivered on meeting or exceeding its 2010 business
objectives by turning a profit in 2010 for the year since
commercializing its first real product in FY 2007; doubling its revenue
in 2010 versus 2009 and successfully introducing an innovative new
product to help supplement the Corporation's growth in 2011 and beyond.
Net income for the year was $78,457, an increase of $677,671 over 2009's
net loss of $599,214 representing a basic and fully diluted income per
share gain of $0.004 versus a loss of $0.05 in 2009. The net loss in
2008 was $1,273,000 and a loss per share of $0.15. At present revenue
growth is being driven by demand for Pioneering's proprietary, flagship
technology, the Safe-T-element cooking system (STE) which was
engineered to help prevent stove top cooking fires, the number one
cause of household fire in North America.
The Corporation believes that EBITDA is a useful measure for external
investors to evaluate "normalized earnings" for the purpose of
measuring the Corporation's progress. As a result, the Corporation will
begin to report EBITDA, as defined below, in an attempt to provide
investors with more useful information. EBITDA for 2010 fiscal year was
$280,300, as compared to a negative EBITDA of ($355,723) in FY 2009,
which is an increase of $636,023. The Corporation defines EBITDA as
earnings excluding "non-recurring" items, "non-cash" items, taxes,
interest and financing fees and amortization.
Gross profit during the year declined only slightly, from 57% to 54%, as
the Corporation managed to maintain its pricing structure and control
over its key product cost inputs. The slight margin reduction from 2010
to 2009 was due to volume incentive pricing being offered to
distributors as the Corporation signed new appliance dealer
relationships in Canada and the US and in some instances traded price
for volume growth. Price discounting for competitive reasons has not
been a major concern as there is currently no known direct competition
for the STE product.
Operating expenses increased only marginally by $136,012, or 12%, from
$1,135,272 in 2009 to $1,271,284 in 2010. This increase is reasonable
when weighed against revenue growth of 110% and management believes
there is the opportunity for further increased economies of scale.
The Company's audited financial statements for the year ended September
30, 2010, together with its Management's Discussion and Analysis of
these results, are available for review under the Company's profile at www.sedar.com.
Pioneering Technology Corp's CEO Kevin Callahan commented, "We
established ambitious goals for 2010 and achieved them across the
board. We believe in our technologies and the marketplace is now
rewarding us by believing and demanding these solutions. We have a
great team and it's extremely rewarding to see our efforts yield these
initial successes. I'm confident that we are now positioned for more
top and bottom line growth in fiscal 2011. Stay tuned."
In recognition of the significant efforts of certain members of senior
management over the past 12 months and the Corporation's achievements
during that period, the Board of Directors awarded discretionary
bonuses in the aggregate amount of $125,000 to senior management,
$50,000 of which will be satisfied by the issuance of 178,571 common
shares at a deemed price of $0.28 per share. The issuance of these
shares is subject to approval of the TSX Venture Exchange.
About Pioneering Technology Corporation:
Pioneering is an "Energy Smart" product innovation company based in Mississauga, Ontario, that
engineers and brings to market energy smart solutions for consumer
products making them safer, smarter and/or more efficient. The patented
Safe-T-element® cooking system is engineered to help prevent stove top
cooking fires, the number one cause of fire in North America, and to
reduce the amount of electricity required to cook. The patent pending
Safe-T-sensor is designed to detect burning conditions in microwave
ovens shutting it off before it causes a fire or triggers a fire alarm.
Pioneering trademarks include Safe-T-element®, Safe-T-Sensor™,
Powergrill™, Battery Eliminator®, Powerpak™ and the Hydro-free Furnace
Fan™. For more information visit: www.pioneeringtech.com.
Forward Looking Statements
The statements made in this press release include forward-looking
statements that involve a number of risks and uncertainties. These
statements relate to future events or future performance and reflect
management's current expectations and assumptions. A number of factors
could cause actual events, performance or results to differ materially
from the events, performance and results discussed in the
forward-looking statements, such as the economy, generally, competition
in the Corporation's target markets, the demand for the Corporation's
products, the availability of funding, the efficacy of the
Corporation's technology and governmental regulation. These
forward-looking statements are made as of the date hereof an, except as
required by applicable law, the Corporation does not assume any
obligation to update or revise them to reflect new events or
circumstances. Actual events or results could differ materially from
the Corporation's expectations and projections.
"EBITDA" is not a measure recognized under Canadian generally accepted
accounting principles ("GAAP"). However, management of Pioneering
believes that most shareholders, creditors, other stakeholders and
investment analysts prefer to have these measures included as reported
measures of operating performance, a proxy for cash flow, and to
facilitate valuation analysis. EBITDA does not have any standard
meanings prescribed by GAAP and therefore may not be comparable to
similar measures presented by other issuers. Readers are cautioned that
EBITDA is not an alternative to measures determined in accordance with
GAAP and should not, on its own, be construed as indicators of
performance, cash flow or profitability. References to the
Corporation's EBITDA should be read in conjunction with the financial
statements and management's discussion and analysis of the Corporation
posted on SEDAR (www.sedar.com).
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this
SOURCE Pioneering Technology Corp.
For further information:
Kevin Callahan, President & CEO at (905) 712-2061 ext. 222