WaterFurnace Renewable Energy, Inc. Announces Third Quarter Results: (U.S.$)

FORT WAYNE, IN, Nov. 4 /CNW/ - WaterFurnace Renewable Energy, Inc. (WFI:TSX) announced third quarter results today. Tom Huntington, President and CEO stated, "Sales for the third quarter of 2009 were 9% lower as compared to record third quarter 2008 sales. We are pleased that we were able to maintain an earnings level in line with these lower sales. We continue to make strategic investments in technology, product development and expansion of our sales channels. As we enter the fourth quarter, we are seeing an uptick in sales orders, but do not expect to meet the record sales pace set last year."

Chairman of the Board Tim Shields added, "While every business is feeling the effects of a slow economy and tighter credit markets, the Board is pleased with the Company's overall performance and supports continued investment in expanding the Company's business base and infrastructure. Both the Board and management are excited about the future and continue to ensure that WaterFurnace is well positioned to continue its leadership role as the premiere geothermal manufacturer."

The Board of Directors approved a dividend of $0.19 per share to be paid December 1, 2009, to shareholders of record at the market close of November 18, 2009. The complete quarterly report is posted on the Company's website: www.waterfurnace.com. Management will conduct a webcast covering the results of the quarter at 11:00 am Eastern Daylight Time on Friday, November 6th. Interested parties can listen live or to the recorded version at www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2855380 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
            (Unaudited - Thousands of U.S.$ except per share data)



                               Three months ended         Nine months ended
                                  September 30,             September 30,
                           ------------------------  ------------------------
                               2009         2008         2009         2008
                           -----------  -----------  -----------  -----------
    Sales                  $   36,209   $   39,964   $   89,655   $   95,107
      Cost of sales            22,962       25,230       58,416       62,544
                           -----------  -----------  -----------  -----------
    Gross profit               13,247       14,734       31,239       32,563
      Operating expenses        4,865        5,741       15,115       15,249
      Research and
       development
       expenses                   507          490        1,722        1,434
                           -----------  -----------  -----------  -----------
    Income before interest
     and income taxes           7,875        8,503       14,402       15,880
      Interest income              29           35           37          128
      Interest expense             (7)         (12)         (15)         (30)
                           -----------  -----------  -----------  -----------
    Income before income
     taxes                      7,897        8,526       14,424       15,978
      Income taxes              2,950        3,278        4,999        5,723
                           -----------  -----------  -----------  -----------
    Net income              $   4,947    $   5,248    $   9,425    $  10,255
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------
    Basic and diluted
     earnings per
     share U.S.$            $    0.41    $    0.43    $    0.78    $    0.85
                           -----------  -----------  -----------  -----------
                           -----------  -----------  -----------  -----------

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                     WaterFurnace Renewable Energy, Inc.
                         Consolidated Balance Sheets
       Prepared using Canadian Generally Accepted Accounting Principles
                       (Unaudited--Thousands of U.S.$)

                                                   September 30, December 31,
                                                           2009         2008
                                                     -----------  -----------
    Assets
    Current assets
      Cash and cash equivalents                       $   3,761    $   6,029
      Short-term investments                             10,368        5,316
      Receivables                                        16,823       18,797
      Inventory                                           6,360        8,714
      Other current assets                                2,709        2,433
                                                     -----------  -----------
    Total current assets                                 40,021       41,289

    Capital assets                                        4,854        4,643
    Other assets                                          2,727        2,080
                                                     -----------  -----------
    Total Assets                                      $  47,602    $  48,012
                                                     -----------  -----------
                                                     -----------  -----------
    Liabilities
    Current liabilities
      Payables and accruals                           $   8,178    $  10,542
      Income taxes payable                                  272        2,027
      Provision for warranty claims
       - current portion                                  2,138        1,824
                                                     -----------  -----------
    Total current liabilities                            10,588       14,393

    Capital leases                                          150            -
    Deferred compensation                                   261        1,085
    Provision for warranty claims                         7,599        5,827
                                                     -----------  -----------
    Total Liabilities                                    18,598       21,305
                                                     -----------  -----------
                                                     -----------  -----------
    Shareholders' Equity
      Share capital                                      14,865       14,865
      Retained earnings                                  14,139       11,842
                                                     -----------  -----------
    Total Shareholders' Equity                           29,004       26,707
                                                     -----------  -----------
                                                     -----------  -----------
    Total Liabilities & Shareholders' Equity          $  47,602    $  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.

SOURCE WaterFurnace Renewable Energy, Inc.

For further information: For further information: Additional information is available on the Company's website: www.waterfurnace.com.

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