OTTAWA, Nov. 28, 2011 /CNW/ - Thermal Energy International Inc.
(TSXV:TMG) (www.thermalenergy.com) (the "Company" or "Thermal Energy") today announced its financial
results for the fiscal quarter ended August 31, 2011.
Sales for the first quarter ended August 31, 2011 were $1,431,686, compared
with $2,985,667 in the same quarter last year. Sales of GEM® condensate return systems increased 16% while sales of waste energy
recovery systems decreased by $1,682,739. The decrease in sales of
waste energy recovery systems is explained by the completion of the
$4.0 million Kruger Products contract announced December 23, 2009
before any significant revenue is earned on either the $5.8 million
Fibrek contract announced June 16, 2011 or the more than $2.7 million
of additional projects discussed below. First quarter last year
included $1,827,267 in revenue from the Kruger contract while first
quarter this year included only $105,357 in revenue from the Fibrek
contract. The Fibrek contract and the additional projects discussed
below are now underway and are expected to be substantially completed
by the end of this Fiscal year.
Gross profit for the first quarter ended August 31, 2011 was $803,012 compared to
$1,203,660 for the same period last year. Gross profit expressed as a
percentage of sales was 56% this year vs. 40% last year. The increase
in gross profit as a percentage of sales is a result of a higher
proportion of revenues coming from GEM® condensate return systems.
Administration and Selling, Marketing and Business Development expenses in the quarter ended August 31, 2011 totalled $1,150,153, a
decrease of $123,240 or 10% from the $1,273,393 incurred in 2010. This
decrease was primarily due to lower professional fees, staff costs and
amortization of intangible assets.
Net loss for the period was $315,529 compared to a loss of $29,091 in the same quarter of the
previous year. The main reason behind the greater loss for the current
quarter was the lack of revenue in the waste energy recovery segment
due to the timing of the Kruger, Fibrek and other heat recovery
Liquidity and Solvency: The Company's working capital was $1,666,232 at August 31, 2011 compared
to $1,870.934 as at May 31, 2011 and its net cash position (Cash and
cash equivalents less Bank loans) was $824,965 compared to $972,163.
Cash flow from operations (defined as net loss, plus items not
involving cash, plus lease payments received) for the quarter ended
August 31, 2011 was ($158,988). In addition to its net cash balance the
Company also had an estimated $130,000 of unused borrowing capacity
under its bank loans resulting in total cash balances and unused
borrowing capacity of approximately $954,965.
On December 23, 2010 and February 18, 2011 the Company announced it had
received purchase orders totalling approximately $1.3 million from a
major food manufacturer based in the UK, to provide GEM® condensate
return systems for use at twelve of its manufacturing sites. Sales for
the year ending May 31, 2011 included approximately $0.9 million
related to these orders with a further $0.25 million earned in the
first quarter of fiscal 2012.
On April 11, 2011 the Company announced it had received a purchase order
for approximately £246 thousand (approximately CDN $386 thousand) from
Salisbury District Hospital Trust, a major hospital in South West
England, to install a heat recovery system for use on its heating and
hot water system. This system was largely completed in the first
quarter of fiscal 2012.
On May 6, 2011 the Company received a purchase order for approximately
£208 thousand (approximately $334 thousand) from Frimley Park Hospital
NHS Trust in the UK to provide to provide GEM® condensate return
products and a heat recovery solution for use on its heating and hot
water system. This project is now underway and is expected to be
substantially completed over the next two quarters.
On June 16, 2011 the Company announced it had signed a contract valued
at approximately $5.8 million with Fibrek to provide a heat recovery
solution for its pulp mill located in Saint-Félicien, Québec. This
project is now underway and is expected to be substantially completed
this fiscal year.
On July 21, 2011 the Company received a purchase order for approximately
$340 thousand from a major multi-national bakery company to provide a
heat recovery solution for one of its United States based manufacturing
facilities. This project is now underway and is expected to be
substantially completed over the next two quarters.
On August 5, 2011 the Company announced it had received a purchase order
for approximately £1.29 million (approximately CDN $2.06 million) from
St Georges Healthcare NHS Trust, a major hospital in London, UK to
provide a heat recovery solution for use on its heating and hot water
system. This project is now underway and is expected to be
substantially completed this fiscal year.
Subsequent to the quarter ended August 31, 2011, the Company amended and
extended its distributor, licensing and patent purchase agreement with
Mabarex Inc. related to the Dry- Rex™ technology. In exchange for
minimum annual royalty payments of approximately $5,000, the agreement
provides the Company with a sole and exclusive worldwide licence to the
Dry-Rex™ technology for the next 10 years. The agreement also provides
the Company the option to purchase the Dry-Rex™ technology at any time
during the term of the agreement.
The Company's order backlog, meaning purchase orders received but not
yet fulfilled, as at August 31, 2011 was approximately $8.6 million
compared to $2.7 million at the same time last year. As at November 25,
2011 the Company had $9.2 million in purchase orders that had not yet
been reflected as revenue in the Company's published quarterly
"While the first quarter of fiscal 2011 was impacted by the timing of
the Kruger, Fibrek, and other heat recovery contracts, Thermal Energy
is currently mobilized on an unprecedented number of significant
projects all of which are expected to be substantially completed during
the current fiscal year" commented William Crossland, President and
CEO, adding "I am encouraged by the strength of our order backlog and
by the fact that revenue earned to the end of the first quarter plus
unfulfilled purchase orders received already total approximately $10.6
All figures are in Canadian dollars. Full financial results including
Management's Discussion and Analysis and accompanying notes to the
financial results, are available on www.SEDAR.com and www.thermalenergy.com.
About Thermal Energy
Thermal Energy International Inc. is an innovative cleantech company
providing a variety of proprietary and proven energy efficiency,
emission reduction, water efficiency, and bioenergy products and
solutions to the industrial, commercial and institutional markets
worldwide. Thermal Energy is also a fully accredited professional
engineering firm, and can offer advanced process and applications
engineering services. By providing a unique mix of proprietary products
together with process, energy, environmental, and financial expertise
Thermal Energy is able to deliver significant financial and
environmental benefits to our customers.
Thermal Energy's products include; GEM® - Steam traps and condensate return systems, FLU- ACE® - Direct contact condensing heat recovery, and Dry RexTM - Low temperature biomass drying systems. These award winning products
are effective in a wide variety of industries and application and have
an excellent track record of longevity, proven reliability and
performance providing significant energy savings, reduced GHG
emissions, improved water efficiency, lower maintenance costs, improved
product quality and increased production efficiency.
Thermal Energy International Inc. has offices in Ottawa, Canada as well
as Bristol, UK, and China. To find out more about Thermal Energy
International Inc. (TSX-V: TMG), visit our website at http://www.thermalenergy.com.
NOTE: This press release contains forward-looking statements relating
to, and amongst other things, based on management's expectations,
estimates and projections with respect to, timing of installation and
implementation, and the revenues to be received by the Company from the
projects and purchase orders described. These statements are not
guarantees of future performance but, rather, reflect the Company's
current expectations regarding future events. These forward looking
statements are subject to a number of risks, uncertainties and
assumptions. Many factors, some of which are outside of the Company's
control, could cause events and results to differ materially from those
stated. The Company disclaims any obligation to publicly update or
revise any such statements except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Thermal Energy International Inc.
For further information:
President and CEO