CHANTILLY, VA, April 25, 2012 /CNW/ - Catch the Wind Ltd. (TSXV: CTW), providers of Vindicator® Optical Control Systems (OCS), reported its financial results for the three- and 12-month period ended December 31, 2011. All figures are in U.S. dollars, unless otherwise stated.
"2011 was a year of substantial change for CTW," said Jo Major, Interim President and CEO of Catch the Wind, Inc. "We have made many critical changes that have put the Company in a much better position, both operationally and financially, than at anytime in its history. Some of the important accomplishments we achieved this year include: becoming an engineering independent company, transitioning from an R&D focused company to a manufacturing focused company, improving the data collection and sharing this data with our customers, building and improving client relationships, and developing good economic agreements with our customers."
"We are very excited about our future," Major added. "We recently announced the Company's first follow-on order with a major wind farm operator and succesfully transitioned to third party manufacturing. Engineering efforts have dramatically improved the product performance and its manufacturability."
Selected 2011 Financial and Operational Highlights
- The Company has product mounted on seven different types of wind turbines.
- Shipped product to Invenergy Wind LLC, Boralex (TSX: BLX), Kruger Energy Port Alma, and the Illinois Institute of Technology, adding to its growing list of new customers.
- Susan Nickey was appointed to the Board and then became Audit Chair and Jo Major was appointed to the Board and then became Chairman.
- Expanded its business relationship with AXYS Technologies by signing an exclusive five-year worldwide licensing agreement to integrate the OCS into an AXYS system for land-based wind resource assessment applications.
- Built out its own independent engineering team and launched the second generation of the OCS in the fourth quarter.
- Completed a short form prospectus offering for gross proceeds of approximately CDN$15.1 million.
- Appointed Jo S. Major, PhD as interim President and Chief Executive Officer, John Green as Chief Financial Officer, and Frederick Belen to Vice President of Technology and Product Line Management.
- Withdrew its membership in Falcon Fifty LLC.
- After 45 days of testing, results of the first ever deployment of the OCS in AXYS Technologies Inc.'s WindSentinel™ offshore buoy were an unprecedented success; providing wind profile information from the Great Lakes to wind resource researchers and analysts at Grand Valley State University, University of Michigan, the Weather Service and Michigan State University. Similar data collection success was achieved off the US east coast and a second Great Lakes deployment has begun.
Highlights Subsequent to Year-end
- Signed the Company's first follow-on order by way of a multi-unit sales agreement with enXco, an EDF Energies Nouvelles Company, for the purchase of five additional OCS units to outfit wind turbines at multiple North American wind farms, installation scheduled to begin in April of 2012.
- Signed a sales agreement with Saturn Power to equip all wind turbines at its Gesner wind farm in Ontario, Canada with the OCS. The installation of the OCS will be in parallel with the construction of the new turbines, without modification of the warranty agreement.
- Completed the transfer of manufacturing to Sanmina-SCI, a tier 1 engineering and manufacturing solutions partner.
- Continued to expand its patent portfolio, currently has seven issued patents and 14 pending patent applications.
- Undertook a thorough review of the Company's existing technology and its obligations under its technology licensing agreement and concluded that its products and business are no longer subject to any royalty requirements.
Catch the Wind recognized record revenue of $988,000 for the 12-month period ended December 31, 2011, compared to recognized revenue of $507,500 for the 12-month period ended December 31, 2010.
Operating expenses for 2011 year were $25.0M, up from $16.3M for the corresponding period of last year. The operating expenses have substantial non-cash items; a) $5.0M from the elimination of Vindicator Beta intangible assets originally booked in June 2010; b) $2.3M from the impairment of property and equipment, a large majority associated with the Falcon Fifty aircraft and c) $0.7M due to the accounting treatment for the deconsolidation of Falcon Fifty LLC.
Catch the Wind recorded a net loss for 2011 of $24.0M or $0.24 per share, compared to a net loss $15.8M or $0.26 per share for 2010.
As of December 31, 2011, Catch the Wind had cash and cash equivalents of $6.0M, compared to $6.7M, respectively, for 2010.
Catch the Wind has filed its financial statements for the three months and year ended December 31, 2011, and related Management's Discussion and Analysis (MD&A) with securities regulatory authorities. Catch the Wind's financial statements, MD&A and related documents are available via SEDAR as well as through the Company's website, www.catchthewindinc.com.
Catch the Wind will host a conference call to discuss its 2011 year-end financial results on Thursday, April 26, 2012 at 10:00 a.m. ET.
To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. A question and answer session for analysts and institutional investors will follow management's presentation.
A live audio webcast of the conference call will be available at www.catchthewindinc.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above web site for 30 days.
A taped rebroadcast will be available to listeners until 12 a.m. ET on Thursday, May 3, 2012. To access the rebroadcast, please dial 416-849-0833 or 1-855-859-2056 and enter passcode 69598551, followed by the number sign.
About Catch the Wind Ltd.
Catch the Wind Ltd. is a high-growth technology company headquartered in Chantilly, Virginia. The company was founded in 2008 to develop and manufacture the OCS.
The OCS is a "next generation" wind turbine control system for utility-scale wind turbines. From its position on top of the nacelle, the OCS simultaneously measures wind speed and direction in the free stream inflow ahead of the turbine and uses this information to optimize wind turbine performance, increasing energy output and reducing damaging stress loads.
Catch the Wind is focused upon the optical wind sensor systems, and using the data produced by these sensors to enable highly efficient control systems. The Company is focused on becoming a major contributor in making clean, renewable wind energy more affordable and profitable. For more information, please visit www.catchthewindinc.com or follow us on Twitter at www.twitter.com/CatchTheWindInc.
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of Catch the Wind. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Catch the Wind believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. Catch the Wind disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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.
Catch the Wind Ltd.
Consolidated Balance Sheets
|December 31,||December 31,||January 1,|
|(Note 5)||(Note 5)|
|(Expressed in United States dollars)||Note||$||$||$|
|Cash and cash equivalents||6,018,559||6,746,467||10,616,065|
|Prepaid expenses and other assets||352,002||228,262||107,719|
|Property and equipment||7||418,896||5,794,514||6,466,248|
|Liabilities and Equity|
|Accounts payable and other liabilities||1,391,799||2,043,448||1,339,905|
|Obligations under finance leases||11||62,707||188,064||166,206|
|Due to related party||15||18,516||74,388||355,685|
|Deferred revenue and customer deposits||552,800||333,500||360,000|
|Obligations under finance leases||11||7,620||41,467||212,934|
|Provision for indemnification agreement||12||2,000,000||-||-|
|Commitments and Contingencies (Notes 13 and 14)|
|Equity attributable to owners of the Company:|
|Total liabilities and equity||8,872,728||21,648,137||24,977,806|
Catch the Wind Ltd.
Consolidated Statements of Loss, Comprehensive Loss and Deficit
For the years ended December 31,
|(Expressed in United States dollars)||Note||$||$|
|Cost of sales||6, 11, 12, 15||2,485,530||1,133,127|
|Salaries and benefits||10||2,088,719||3,505,566|
|General and administrative||11, 15||2,543,936||2,479,542|
|Amortization of intangible assets||8||1,018,870||740,360|
|Depreciation of property and equipment||7||588,134||701,474|
|Sales and marketing||346,621||417,401|
|Professional engineering fees||15||439,103||2,273,902|
|Research and development||15||3,921,520||2,084,076|
|Other income, net||16||(53,647)||(18,550)|
|Gain on fair value of warrant liability||18||(620,168)||(1,535,594)|
|Impairment of property and equipment||7||2,486,798||149,000|
|Impairment of intangible assets||8||4,968,369||-|
|Loss on deconsolidation of Falcon Fifty LLC||12, 16||656,326||-|
|Foreign exchange loss (gain)||82,777||(82,611)|
|Net loss and total comprehensive loss||(24,040,900)||(15,781,339)|
|Net loss and total comprehensive loss attributable to:|
|Owners of the Company||(23,106,456)||(15,449,844)|
|Net loss per share - basic and diluted||(0.24)||(0.26)|
|Weighted average number of common shares|
For further information:
Catch the Wind Ltd.
Vice President and General Counsel