- Revenue ramp up exceeding management expectations -
TORONTO, Feb. 1, 2012 /CNW/ - Innovative Composites International Inc. (TSXV: IC) (OTCQX: ICIZF), ("ICI" or the "Company"), a producer of patented protected composite products targeting the multi-billion dollar prefabricated modular housing and transportation markets, reported today that the revenue growth in its non-housing side of the business is progressing faster than originally anticipated.
"The speed in which our non-housing programs are ramping up and generating significant revenues is indicative of the demand for our products in the marketplace," said Terry Ball, President and CEO of ICI. "Most of these products require little of our engineering resources which allow us to focus on the housing market and the South Carolina facility, while making a positive contribution to our bottom line."
In June 2011, ICI announced its first purchase orders for the supply of composite panels to a leading North American automotive aftermarket company. The program was expected to achieve approximately $5 million in revenue annually within nine months.
As of today, sales of composite panels to this customer have already reached $4.2 million on an annualized basis and continue to grow each month. Once at full capacity, the Company expects the program to have a five to six year life span. ICI panels replace a conventional material previously used by the customer and offer superior strength to weight ratio, are impervious to weathering, rot and corrosion and are completely recyclable.
Tractor Trailer Market
Through the acquisition of Eleison, LLC, ICI now has the equipment and patents to produce fiber reinforced thermoplastic skin material at one of the lowest cost points in the industry. The purchase of Eleison also created relationships with several new customers in the transportation industry located in the USA and in Europe. The product is being used to reinforce interior headliner and load floor applications. ICI has completed shipments to all of the new customers and is currently in the quoting process on several additional programs for the same material. ICI believes there is significant potential to grow revenue for this product from the $2 million annually, previously recorded by Eleison.
Management believes the product with the highest volume potential is likely a program to supply ICI's composite panels to a manufacturer of exterior aerodynamic package for trucks, known in the industry as "trailer tails". According to ICI's customer, the product provides fuel savings of up to six percent compared to tractor trailers without an aerodynamic package. The product is approved by the US Department of Transportation and is quickly gaining acceptance in the marketplace. High fuel prices and new legislation in the US and Europe are significant drivers of demand for transportation efficiency offerings and ICI believes its products are well suited for this market because of the superior strength to weight ratios.
About Innovative Composites International Inc.
Headquartered in Toronto, Canada, Innovative Composite International Inc. (TSXV: IC) (OTCQX: ICIZF) is a high-tech engineering and manufacturing company that is successfully commercializing a patent protected line of state-of-the-art composite products targeted at the multi-billion dollar transportation and prefabricated modular housing markets.
Led by a team of commercialization experts ICI has adopted a tier two business model: It designs and manufactures game-changing products and partners with established companies in its target markets to utilize their sales channels for faster product roll-out.
This strategy and the superior characteristics of the products have resulted in rapidly growing sales in both markets and opened up opportunities that could lead to large scale contracts on an ongoing basis.
To find out more about ICI please visit our website at: www.innovativecompositesinc.com.
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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.
"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 its target markets, the demand for ICI's products and the availability of funding. These forward-looking statements are made as of the date hereof and ICI does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from ICI's expectations and projections."
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