TSX : SXI
VANCOUVER, Sept. 13, 2011 /CNW/ - Net income for the fiscal year ended
June 30, 2011 was $108,221 as compared to a net loss of $764,967 for
the fiscal year ended June 30, 2010. The increase in net income is
primarily due to the proceeds in fiscal 2011 of $300,000 for an option
by a third party for the purchase of some water licence applications of
the Company as compared to the write off of an account receivable from
Hawkeye Energy Corporation in fiscal 2010 in the amount of $477,585.
Income per share for fiscal 2011 was $0.00 as compared to a loss per
share of $0.03 in fiscal 2010.
Electricity sales and consulting revenue increased to $3,507,445 in
fiscal 2011 as compared to $2,924,901 in fiscal 2010. The increase in
revenue in fiscal 2011 is mainly a result of higher engineering
consulting revenue and increased generation at the operating plants.
The Shareholders Equity at June 30, 2011 was $14,261,063.
The Barr Creek Limited Partnership ("BCLP") and its general partner,
Barr Creek Hydro Ltd. ("BCHL") continue to advance the 4.4 MW Barr
Creek Hydro Project (the "Barr Project"). BCLP and BCHL are each owned
80% by the Company and 20% by the Ehattesaht First Nation. The total
subscribed units of BCLP were $4.4 million, all of which were
subscribed in fiscal 2011. In May 2011, the Company announced the
execution of a Credit Agreement with the Canadian Western Bank in the
maximum amount of $9.1 million for the Project with the first draw
occurring in mid-June 2011.
The Barr Project is under construction and was about 35% complete as of
June 30, 2011. The target date for substantial completion is late
On August 19, 2010, the Company announced that the Engineering Division
had entered into an Option Agreement dated July 23, 2010 with an
unrelated third party. The Option Agreement provides the third party
with the right to purchase a number of applications for water licences
and land tenures held by the Engineering Division as well as other
related rights. The Option Agreement has a latest exercise date of
December 31, 2011. The Option Payment was $300,000 and has been
included as other income in the financial statements of the Company.
At June 30, 2011, the Company had loan agreements with Canadian Western
Bank with total indebtedness of $11,548,093 as compared to total
indebtedness of $10,731,448 at June 30, 2010. The increase in
indebtedness is a result of advances of $700,000 under the Credit
Agreement for the Barr Project and advances of $500,000 under a
Revolving Credit Line with the Canadian Western Bank, offset by
principal payments of $383,355 during fiscal 2011.
The Company owns and operates two hydroelectric plants totaling 6.6 MW,
has a minority interest in two operating hydroelectric plants totaling
10.0 MW, has under construction a 4.4 MW hydroelectric plant and owns
an electrical distribution utility. All of the facilities are located
on Vancouver Island, British Columbia except for the minority interest
in a 3.3 MW hydroelectric plant located in east-central British
The provincial government in British Columbia has endorsed the
development by private industry of environmentally sound hydroelectric
plants and in July 2010, BC Hydro announced new terms and pricing under
the Standing Offer Program. The McKelvie Creek Project is being
advanced by the Company towards a submission under the Standing Offer
Program. The Company has over 70 water licence applications in early
stages of development, including those under the Option Agreement dated
July 23, 2010. The Company is also pursuing other opportunities in
respect of power developments.
Greg Sunell, President
This press release contains forward-looking statements that involve risks and
uncertainties. These statements reflect our current expectations and are subject to change. They are subject to a
number of risks and uncertainties including, but not limited to, changes in economic conditions, risks associated with the
construction and operation of hydroelectric facilities and changes in government policies.
SOURCE Synex International Inc.
For further information:
400 - 1444 Alberni Street, Vancouver B C V6G 2Z4
Phone (604) 688 8271 Ext. 309 Fax (604) 688 1286
E-mail: email@example.com Web Site: www.synex.com/