MONTREAL, March 7, 2013 /CNW Telbec/ - Sofame Technologies Inc. (TSXV: SDW) (OTC: SFMGF) has reported net sales of $414,915 for Q1 of the 2013 fiscal year ended December 31st, and a net profit of $ 3,928 (0.7%) for the period.
- Q1 2013 Net Sales of $ 414,915 compared to $ 529,200 in Q1 2012, and $ 321,904 in Q4 2012
- Q1 2013 Gross Profit of $ 110,808 (20.9%) compared to $ 225,587 (42.6%) in Q1 2012
- Q1 2013 Net Earnings were $ 3,928 (0.7%) compared to $ 71,523 (13.5%) in Q1 2012
- Q1 2013 EBITDA was $ 103,357 (24.9%) versus $ 167,938 (31.7%) in Q1 2012
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 First Quarter Ended December 31, 2012
Closing seven orders valued at $2.4 million was a significant achievement in 2012. Sofame's order book reflected a marked improvement in demand for the Company's custom engineered industrial energy efficiency products. Over the last three years, Sofame undertook extensive cost reductions, and began a program of outsourcing in 2011. The new business model allowed the company to cut overhead and incur costs only when contracts are in production. Installation and start-up of these energy recovery systems was achieved despite tight working capital conditions, 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, and two-year payback on energy efficiency investments (50% ROI) has become the norm for Sofame's industrial water heating solutions. These results are better than expected compared to the past several years of history.
Marketing in the United States is accelerating since systems are now installed in New York, New Jersey, Illinois, Michigan, Delaware, Colorado, North Carolina and Maine. Several major cogeneration projects have been quoted recently as interest in clean burning natural gas-fired turbines to make electricity efficiently is becoming widespread in the United States. With low overhead costs, contracts in hand, and seasoned leaders experienced in the HVAC industry at the helm of the company, the 2013 fiscal year is off to a strong start.
With the support of investors in New York, Montreal and Toronto, the Board is using the public company to pursue acquisitions of complementary profitable companies in the HVAC industry. Revenues from Sofame's core business are expected to grow in 2013, however, the Board's goal is to aggressively expand annual revenues, net profits and cash flow. Management believes that an acquisition strategy makes sense in the current environment.
According to John Gocek, Sofame's President & CEO, "Sofame expects to close the balance of its $250,000 private placement at $0.02 cents by March 15th. Efforts to complete a $1 million asset-based loan have intensified in recent months. The short-term goal is to reduce borrowing costs, and repay the $250,000 bridge loan, now that the Sofame is cash flow positive."
SOURCE: SOFAME TECHNOLOGIES INC.
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