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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 this business.
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 systems.
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 solutions.
Parties interested in obtaining further information or receiving news releases and corporate documents from Seair may email such requests to [email protected] 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 securities law.
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