WaterFurnace Renewable Energy, Inc. 4th Quarter Results: Net Income Up 18.2%
(U.S.$)
FORT WAYNE, IN, March 10 /CNW/ - WaterFurnace Renewable Energy, Inc. (WFI:TSX) today released the Company's fourth quarter 2009 results. While sales for the fourth quarter lagged last year's record performance by 7.7%, the Company was able to grow net income by 18.2% versus the same quarter last year. For the full year, the Company recorded a record net income of $15,476,000 which was 0.7% ahead of last year's net income while sales for the year were 6.3% below 2008.
The geothermal industry's growth continues to outpace the traditional HVAC industry. Geothermal heat pump systems provide lower life cycle costs that are enhanced in many cases by local electric power rebates and tax incentives at the federal and state levels. The economic return on investment for geothermal systems remains very favorable even though natural gas prices have been lower than normal throughout 2009.
The continuation of a weak economy, tight credit markets, high unemployment and exceptionally low housing starts stifled sales growth for most of 2009. The Company's cost containment initiatives provided the opportunity to enhance margins while making strategic investments in IT infrastructure, expansion of its sales force and launching new products.
Tom Huntington, President and CEO said, "While fighting strong economic headwinds for the majority of 2009, the Company did a stellar job of cost management, market development and positioning itself for the future." Tim Shields, Chairman of the Board stated, "The Board is pleased with the performance of the Company, especially in such economically challenging times. Mr. Huntington and his staff have their sights clearly set to ensure WaterFurnace continues its excellent record of growth and returning value to its shareholders."
Management will conduct a webcast covering the results of the quarter at 4:00 pm Eastern Daylight Time on Thursday, March 11th. Interested parties can listen live or to the recorded version at www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2976820 or at the Company's website: www.waterfurnace.com.
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WaterFurnace Renewable Energy, Inc.
Consolidated Statements of Income
Prepared using Canadian Generally Accepted Accounting Principles
(Thousands of U.S.$ except per share data)
Unaudited Audited
Three months ended Year ended
December 31, December 31,
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2009 2008 2009 2008
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Sales $ 39,410 $ 42,708 $ 129,065 $ 137,815
Cost of sales 24,007 27,455 82,423 89,999
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Gross profit 15,403 15,253 46,642 47,816
Operating expenses 5,023 6,178 20,138 21,427
Research and
development expenses 573 563 2,295 1,997
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Income before interest
and income taxes 9,807 8,512 24,209 24,392
Interest income 21 14 58 142
Interest expense (2) (7) (17) (37)
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Income before income
taxes 9,826 8,519 24,250 24,497
Income taxes 3,775 3,400 8,774 9,123
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Net income $ 6,051 $ 5,119 $ 15,476 $ 15,374
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Basic and diluted
earnings per share
U.S.$ $ 0.50 $ 0.42 $ 1.28 $ 1.27
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WaterFurnace Renewable Energy, Inc.
Consolidated Balance Sheets
Prepared using Canadian Generally Accepted Accounting Principles
(Audited--Thousands of U.S.$)
December 31, December 31,
Assets 2009 2008
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Current assets
Cash and cash equivalents $ 4,785 $ 6,029
Short-term investments 13,368 5,316
Receivables 16,794 18,797
Inventory 5,653 8,714
Other current assets 2,859 2,433
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Total current assets 43,459 41,289
Capital assets 5,345 4,643
Other assets 3,015 2,080
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Total Assets $ 51,819 $ 48,012
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Liabilities
Current liabilities
Payables and accruals $ 7,404 $ 10,542
Income taxes payable 880 2,027
Provision for warranty claims - current
portion 2,215 1,824
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Total current liabilities 10,499 14,393
Capital leases 140 -
Deferred compensation 264 1,085
Provision for warranty claims 8,280 5,827
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Total Liabilities 19,183 21,305
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Shareholders' Equity
Share capital 14,865 14,865
Retained earnings 17,771 11,842
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Total Shareholders' Equity 32,636 26,707
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Total Liabilities & Shareholders' Equity $ 51,819 $ 48,012
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WaterFurnace Renewable Energy, Inc. is traded in both Canadian dollars and U.S. dollars on the Toronto Stock Exchange under the symbol WFI for Canadian dollars and WFI.U for U.S. dollars.
Risk and Uncertainties: This news release contains certain forward-looking statements that may or may not be realized. Investors should not rely solely on this information to make investment decisions. The Company's sales are related to the cost and stability of electricity, fuel oil, propane and natural gas. Federal, state and provincial building codes and energy incentives can also impact sales. The Company is subject to standard risks associated with most companies, such as normal competitive pressures.
For further information: Additional information is available on the Company's website: www.waterfurnace.com
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