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EDMONTON, AB, Feb. 28, 2012 /CNW/ - Seair Inc. (SDS:TSX Venture Exchange) today released its unaudited financial statements for the quarter
ending November 30, 2012.
Revenue for the quarter ending November 30, 2012 was $1,006,690, or 116%
higher than fiscal 2011. The increase was primarily attributable to a
rebound in the portable wastewater treatment business, with revenue
from rentals to oilfield camps being approximately 400% higher than in
the prior year. The strong first quarter revenue was based upon initial
fleet deployment but the bulk of Seair's rental fleet was not deployed
until December 2011 and January 2012. The fleet was fully deployed
during the winter peak in 2012 so the improvement in year-over-year
sector revenue will be even greater in the second quarter of fiscal
2012. Seair is actively seeking rental situations extending beyond the
normal winter peak in order to keep deployment levels as high as
possible throughout the year and lessen the seasonality of the portable
wastewater treatment business.
Gross profit for the quarter ending November 30, 2011 was $685,600 (68%
of revenue) compared to $284,088 (61% of revenue) in the quarter ending
November 30, 2010. This $401,512 increase in gross profit is due to
higher revenue from portable wastewater treatment plant rentals
combined to a return to normal gross margin percentage's typical of
Total operating expenses increased by $609,906 to $1,501,760 (68%
increase) from fiscal 2011 to fiscal 2012 compared to the 116% and 141%
increases to revenue and gross margin, respectively. The items
contributing most to the operating expense increase were both non-cash
in nature. Stock-based compensation and amortization of equipment held
for rental increased by a combined $409,287, or 67% of the total
operating expense change.
Net loss for the quarter ending November 30, 2011 was $816,586 compared
to a loss of $606,347 for the same quarter in fiscal 2011. This
$210,239 increase in loss, in spite of increased revenue and gross
margin, stemmed from higher non-cash operating expenses (specifically
stock-based compensation expense, and amortization of portable
wastewater treatment units) as well as expense items (e.g., repairs and
maintenance) where the benefits of the expense will be realized through
increased fleet deployment and revenue in subsequent quarters.
Seair is also announcing an extension to the private placement financing
referenced in our January 13, 2012 press release. The terms of the
financing are unchanged from those outlined in the prior press release.
The complete financial statements are available at www.sedar.com.
Seair develops proprietary equipment that diffuses gases, such as
oxygen, ozone and carbon dioxide, into liquids. Seair's patented
technologies can produce extremely small bubbles which are more
efficient than other diffusion technologies. The result is a stable
condition, where gases remain in solution for extended periods of time,
leading to increased productivity and lower operating costs. This, in
turn, facilitates gas-based treatment of complex and challenging
wastewater and allows Seair to provide full water reuse and closed loop
Seair applications include frac and produced water treatment, efficient
aeration of industrial ponds, mine dewatering, end-to-end sewage
treatment for permanent residential communities and remote work camps,
golf course irrigation and pond treatment, and oil sands/SAGD water
Parties interested in obtaining further information or receiving news
releases and corporate documents from Seair may email such requests to firstname.lastname@example.org or visit the Seair website at www.seair.ca.
This news release contains forward-looking statements relating to the
future operations of the Seair Inc. and other statements that are not historical facts. Forward-looking
statements are often identified by terms such as "may", "should",
"anticipate", "expects" and similar expressions. Any statements that
are contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements. Such
forward-looking statements are subject to important risks,
uncertainties and assumptions. The reader is cautioned that assumptions
used in the preparation of any forward-looking information may prove to
be incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous known
and unknown risks, uncertainties, and other factors, many of which are
beyond the control of Seair Inc. As a result, we cannot guarantee that
any forward-looking statement will materialize and the reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect and
actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly
qualified by this cautionary statement.
The forward-looking statements contained in this news release are made
as of the date of this news release, and Seair Inc. 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 expressly required by Canadian
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SOURCE SEAIR Inc.
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