CALGARY, March 14, 2013 /CNW/ - Pure Technologies Ltd. ("Pure" or the "Company") (TSX: PUR) today announced record revenue and profit for the year ended December 31, 2012. Revenue increased 35% year-over-year to $58.4 million and EBITDA increased to $13.1 million from $27,000. Profit increased to $5.2 million ($0.10 per share) compared to a loss of $6.9 million (loss of $0.14 per share) in the prior period. Revenue and EBITDA for the fourth quarter were $15.3 million and $5.1 million, respectively, compared to $14.6 million and $4.2 million in 2011.
"The past year was a significant one for Pure," said Jamie Paulson, Chairman. "Our services have been utilized by more water utilities than ever before and more short-term projects have been converted into long-term programs. We've expanded our addressable markets, continued focused technology investments and are adapting our solutions to the international arena. We ended the year with record revenues and profitability and our growing backlog, currently at over $57 million (not including $6 million in recurring revenues), continues to provide strong growth visibility. Combining all these factors with the strength in our balance sheet, Pure's future has never been brighter."
Table of Selected Financial Results:
For further details on the results, please refer to Pure's Management Discussion and Analysis (MD&A) and Consolidated Financial Statements which are available on the Company's website (www.puretechltd.com).
| ($000's CAD,
indicated and per share
|$ Chg||% Chg|| Twelve
|$ Chg||% Chg|
|Cost of sales||3,071||2,828||243||9||12,872||10,477||2,395||23|
|Gross margin (%)||80||81||78||76|
|Profit (loss) for the period||4,996||1,372||3,624||264||5,217||(6,876)||12,093||176|
|Per share - basic||0.10||0.03||0.10||(0.14)|
|Per share - diluted||0.10||0.03||0.10||(0.14)|
*refer to definition of EBITDA in Pure's MD&A.
Three months ended December 31, 2012
- Total revenues increased 5% year-over-year to $15.3 million from $14.6 million.
- Inspection services (60% of total revenue) increased by 6% based on new work in the Americas.
- Consulting revenue (12% of total revenue) increased by 41% due to new work and customers added by Pure Engineering Services ("PES").
- Total operating expenses decreased 9% year-over-year to $8.8 million from $9.7 million.
- Marketing expenses (25% of total expenses) increased by 10% due to business development activities.
- Engineering and operations expenses (36% of total expenses) and general and administrative expenses (38% of total expenses) decreased by 10% and 2%, respectively.
- EBITDA improved by 21% to $5.1 million from $4.2 million.
- Profit increased 264% to $5.0 million from $1.4 million.
Twelve months ended December 31, 2012
- Total revenues increased 35% year-over-year to $58.4 million from $43.1 million.
- Equipment sales (33% of total) increased by 133%, largely due to an equipment shipment made to Libya in the first quarter following the resumption of services.
- Inspection services (46% of total) increased by 5% due to increased work in the Americas.
- Consulting revenue (11% of total) increased by 45% due to new work and customers added by Pure Engineering Services.
- Monitoring and technical support revenue (10% of total) grew by 21%, reflecting an increase in monitored pipeline distances worldwide.
- Total operating expenses increased by 1% year-over-year to $41.3 million from $40.9 million.
- Marketing expenses (21% of total) and engineering and operations expenses (36% of total) increased by 26% and 7%, respectively, due to an increase in business development activities and overall inspection services.
- General and administrative expenses (35% of total) decreased by 15%, mostly related to restructuring charges in 2011.
- Research and development expenses (8% of total) have grown 4% related to ongoing developments to enhance existing technologies.
- EBITDA significantly improved to $13.1 million from $27,000.
- Profit increased 176% to $5.2 million compared to a loss of $6.9 million.
- Working capital at December 31, 2012 was $69.9 million compared to $61.4 million last year.
- Includes $33.3 million in cash.
2012 Business and Operations Highlights
- Current revenue backlog of more than $57 million, a Company record.
- Recurring revenues from pipeline monitoring and technology licensing approximately $6 million for the year.
- Completed over 300 individual projects world-wide including a PipeDiver® technology inspection for a portion of a major water pipeline feeding into Mexico City - one of the largest international inspections in the Company's history.
- Pure's Engineering Services group initiated six new long-term programs during the year for a total of 17 managed by year's end.
- At year end, monitoring over 900 km of large-diameter prestressed concrete water pipes, a record distance to date, using Pure's AFO monitoring technology.
- Installed a 47 km monitoring system in Mexico in record time.
- Successfully intervened on three separate major U.S. water pipelines showing signs of failure.
- Significantly increased the total length of oil & gas pipelines inspected - up 195% since the end of 2011 - utilizing Pure's SmartBall® leak detection technology.
The Company's core Americas region has performed exceptionally well during the year. Pure's operations group completed a record amount of individual projects within the water and oil & gas pipeline sectors and expects this trend will continue in 2013. Gross margins improved to 78% from 76% last year as a result. Pure's engineering services department has successfully transitioned into the trusted advisor role for water agencies committed to building long-term and cost-effective management strategies.
The Company completed a number of major enhancements to existing technology platforms, ultimately providing clients with improved data for the management of infrastructure assets. These enhancements, made to tools such as Pure's Sahara and PipeDiver technologies, allow for greater versatility with a reduction in mobilization and operational costs. Additional technologies under development are expected to be commercialized in the coming periods, further expanding Pure's addressable markets.
Pure continues to see tremendous potential looking ahead within its international markets. Lack of infrastructure knowledge and high water losses continue to plague overseas operators, as well as trying to find the funds to tackle these problems. The Company's international work has been receiving greater recognition in demonstrating how its technology-based solutions can address these immediate concerns.
To manage future growth, Pure added 27 new personnel during 2012 while achieving economies of scale from the integration of two prior acquisitions. For 2013, the Company is looking to add more qualified staff to capitalize on all the opportunities it sees in the coming months.
A teleconference will be held to discuss these results on March 15, 2013, at 10:30 am ET. Presentation slides will be made available on the Company's website prior to the call.
Teleconference: The telephone numbers for the conference are toll-free 1-888-231-8191 (within North America) and 647-427-7450 (Local / International). Please provide the operator with the Conference Call ID or Topic when dialing in to the call.
- Conference ID: 10806985
- Topic: Pure Technologies Ltd., 2012 Fourth Quarter and Year End Conference Call.
- A replay will be available approximately two hours after the call and will be available for one week. Access the replay by calling 1-855-859-2056 (toll-free within North America) or 416-849-0833 (Local / International). Use the following Passcode followed by the number sign: 10806985
Webcast & Presentation Slides: Investors will be able to listen to the conference over the Internet as well as access presentation slides (in pdf format) to follow along during the call.
- Links to the webcast and presentation slides will be available approximately 30 minutes prior to the call at: http://puretechltd.com/investors/presentations.shtml
- The webcast will be archived for 90 days.
About Pure Technologies Ltd.
Pure Technologies Ltd. is an international asset management technology and services company which has developed patented technologies for inspection, monitoring and management of critical infrastructure around the world. Pure's business model incorporates four distinct but complementary business streams:
- Sales of proprietary monitoring technologies for pipelines, bridges and structures (SoundPrint®, SoundPrint® AFO);
- Recurring revenue from data analysis and site maintenance for these technologies, and from technology licensing;
- Premium technical services including pipeline inspection, leak detection and condition assessment (P-Wave®, SmartBall®, Sahara®, PipeDiver®, PureRobotics™);
- Specialized engineering services in areas related to asset management, primarily in the area of pipeline condition assessment for water and wastewater infrastructure (Openaka Corp., Price Brothers UK Ltd, and Jason Consultants).
This release contains forward-looking statements. Forward-looking statements, without limitation, may contain the words "believes", "expects", "anticipates", "estimates", "intends", "plans", or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and the Company's actual results could differ materially from those anticipated. Forward-looking statements are based on the opinions and estimates of Management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. In the context of any forward-looking information please refer to risk factors detailed in, as well as other information contained in, the Company's filings with Securities Regulators (www.sedar.com).
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SOURCE: Pure Technologies Ltd.
For further information:
To find out more about Pure Technologies Ltd. (TSX: PUR), visit our website at www.puretechltd.com. Or contact James E. Paulson, Chairman, Karen Keebler, Chief Financial Officer or Paul Moon, Investor Relations at (403) 266-6794 or e-mail to [email protected].