EDMONTON, Nov. 9 /CNW/ - PowerComm Inc. (PCG:TSX) ("PowerComm" or the "Corporation") today released its financial results for the second quarter of fiscal year. The corporation had a net income of $ 1,917,000 or $ .03 per share for the quarter. This compares to a loss of $ 178,000 for the same period in the previous year. Revenue for the quarter was $ 15,856,000, down from $ 20,535,000 in the previous year, and EBITDA was $ 2,977,000, up from $ 501,000 in the comparable period.
"We are realizing the success of our cost reduction programs implemented earlier in the year" said Wayne Rutherford, President and CEO. "We are seeing a positive trend since the end of our previous fiscal year, and have now produced two consecutive profitable quarters in difficult economic conditions." he concluded.
Following the end of the quarter the corporation announced that it had signed a binding agreement to sell substantially all of the assets of the corporation to Powell Industries Inc. of Houston Texas, which is subject to a shareholder vote on December 15th 2009. It is the Corporation's intention to distribute to the shareholders of PowerComm, as soon and as tax effectively as possible, all of the proceeds from the APA, net of transaction expenses, taxes, and the ongoing costs to maintain the administration and existence of the Corporation as a reporting issuer.
Complete financial information, definitions and MD&A are available on www.SEDAR.com
PowerComm remains in compliance with its banking arrangement pursuant to which the bank has agreed to forbear from demanding or taking any action to collect its loan.
The news release contains certain forward-looking statements, including management's assessment of future plans and operations and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond PowerComm's control. Such risks and uncertainties include, without limitation, risks associated with the Corporation's ability to market successfully to current and new customers; supply and demand for PowerComm's services and products and industry activity levels; capital expenditure programs; projections of commodity prices and costs; the Corporation's ability to obtain material and equipment from suppliers; operating risk liability; expansion of services and products by internal growth or acquisition; the Corporation's ability to obtain additional financing on satisfactory terms; the impact of general economic and industry conditions; changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced; competitive conditions; the lack of availability of qualified personnel or management; fluctuations in foreign exchange or interest rates, stock market volatility; and obtaining required approvals of regulatory authorities. PowerComm's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that PowerComm will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to PowerComm or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as of the date of this news release and PowerComm does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
SOURCE POWERCOMM INC.
For further information: For further information: Wayne R. Rutherford, President and Chief Executive Officer or J.D. Snowdon, Executive Vice President Corporate Services at (780) 465-7038 or at firstname.lastname@example.org