Thermal Energy Reports Financial Results for the Fiscal Quarter ended November 30, 2010

OTTAWA, Jan. 28 /CNW/ - Thermal Energy International Inc. (TSX-V:TMG) (www.thermalenergy.com) (the "Company" or "Thermal Energy") today announced its financial results for the fiscal quarter and six months ended November 30, 2010.

Total sales for the second quarter ended November 30, 2010 were $2,938,131, an increase of $1,373,604 or 87.8% compared to the same period last year. For the six months ended November 30, 2010 sales were $5,923,798, up $3,054,335 or 106.4% compared to the same period last year.

Gross profit for the second quarter ended November 30, 2010 was $1,275,844 (43.4%) an increase of $420,855 or 49.2% compared with $854,989 (54.6%) in the second quarter ended November 30, 2009. For the six months ended November 30, 2010 gross profit was $2,479,504 (41.9%), an increase of $609,538 or 32.6% compared to $1,869,966 (65.2%) in the six months ended November 30, 2009. The drop in gross margin percentage on a comparative basis from the same period in 2009 was due to a higher proportion of revenue coming from sales of waste energy recovery products.

Total Selling, General and Administrative expenses, which include Administration, Selling, Marketing and Business Development, Professional Fees, Insurance, Patent and Trademark Maintenance and Research and Development, totalled $1,248,467 in the second quarter ended November 30, 2010, a decrease of $435,716 or 25.9% from the $1,684,183 incurred in the same period last year. For the six months ended November 30, 2010, Total Selling, General and Administrative expenses were $2,467,482, a decrease of $766,802 (23.7%) from the $3,234,289 incurred in the same period last year. The decrease is primarily due to $370,000 in one time provisions taken last year as well as expense reductions implemented in fiscal 2010.

Loss before income taxes and non-controlling interest for the second quarter ended November 30, 2010 was $6,032, an improvement of $883,390 from the $889,422 loss suffered in the same period last year.  For the six months ended November 30, 2010, Loss before income taxes and non-controlling interest was $26,763, an improvement of $1,430,743 compared to the loss of $1,457,506 in the same period in the previous year.

Liquidity and Solvency: Working capital as at November 30, 2010 was $1,610,650 an increase of $441,787 since May 31, 2011. The Company`s net cash position (cash and cash equivalents less bank loans) as at November 30, 2010 was $547,884, an increase of $125,484 since May 31, 2010, The increase in net cash is due primarily to $332,933 in positive cash flow from operations for the period which consists of net loss for the period, plus items not involving cash, plus $243,274 lease payments received.

"Thermal Energy continues to make solid progress in growing its revenue base, controlling expenses and generating positive cash flow. This marks the second straight quarter of positive cash generation by the company," commented William Crossland, President and CEO.

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 is an innovative clean technology company providing a variety of proprietary and proven energy and water efficiency, emission reduction, and bioenergy products and solutions to the industrial, commercial and institutional markets worldwide. Thermal Energy International Inc. is headquartered in Ottawa, Canada, with offices in the UK and China. Thermal Energy markets, sells, engineers, fabricates, constructs, installs and supports a number of complementary product lines including FLU-ACE® waste energy recovery solutions  and GEM® condensate return system solutions. Thermal Energy is also a fully accredited professional engineering firm, and offers advanced process and applications engineering services. FLU-ACE®, DRY-REX™, THERMALONOx™, THERMAL AUD™ and GEM® are trademarks of Thermal Energy International.

To find out more about Thermal Energy International Inc. (TSX-V: TMG), visit our website at http://www.thermalenergy.com.

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:

Contact:

William Crossland
President and CEO
613-723-6776

Profil de l'entreprise

Thermal Energy International Inc.

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