MONTREAL, Feb. 1, 2013 /CNW Telbec/ - Sofame Technologies Inc. (TSXV: SDW) (OTC: SFMGF) has reported net sales of $1,802,080 for the 2012 fiscal year ended September 30th, and a net profit of $ $119,974 (6.7%) for the year.
- 2012 Net Sales of $ 1,802,080 compared to $ 2,520,639 in 2011, a decrease of 28.5%
- 2012 Gross Profit of $ 368,820 (20.5%) compared to a Gross Loss of ($ 131,722) (-5.2%) in 2011
- Seven orders totalling $ 2.4 million were received between August 2011 and September 30, 2012
- Two orders were received in 2011, and one was for a large NOx reduction system at a university
- Operating Expenses declined 39.3% in 2012 to $ 515,428 (28.6%) compared to $ 849,058 (33.7%) in 2011
- Net Earnings in 2012 were $ 119,974 (6.7%) compared to a Net Loss of ($ 935,103) (-37.1%) in 2011
- EBITDA in 2012 was $ 581,319 versus negative (- $ 504,590) in 2011
Note: These are the financial highlights only. Management`s Discussion and Analysis, the consolidated financial statements, cash flows, and notes thereto of Sofame Technologies Inc. are available at www.sedar.com.
Comments on the Year Ended September 30, 2012
During 2012 Sofame's order book reflected a marked improvement in demand for the Company's custom engineered industrial energy efficiency products. Sofame continued to close new orders, deliver existing contracts and operate with low overhead costs. Sofame undertook extensive cost reductions over the last three years, and began a program of outsourcing in 2011. The new business model allowed the company to cut overhead, incur costs only when contracts are in production, and pursue more projects simultaneously.
These results are better than expected compared to the past several years of history. Over the last three years, Sofame has adapted to challenging market conditions which included low natural gas prices due to fracking supplies, tight capital investment budgets at end-users, and an absence of bank financing in the normal course of business. In the latter half of 2012, well head gas prices recovered to about $3.25/DT. Two-year payback on energy efficiency investments has become the norm for Sofame's industrial water heating solutions.
According to John Gocek, Sofame's President & CEO, "Sofame's operations are now running smoothly. Marketing in the United States will accelerate since we have installed projects in New York, New Jersey, Illinois, Michigan, Delaware, Colorado, North Carolina and Maine. With the support of investors in New York, we are using the public company to pursue complementary acquisitions of profitable companies in the HVAC industry. The Board's goal in 2013 is to increase Sofame's annual revenues, net profits and cash flow."
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.
SOURCE: SOFAME TECHNOLOGIES INC.
For further information:
President & CEO
(514) 523-6545 x200
Stone Communication Services