Reports positive EBITDA on significantly improved GM
MONTREAL, March 30, 2012 /CNW Telbec/ - Xebec Adsorption Inc. (TSX: XBC) ("Xebec"), a provider of biogas upgrading, natural gas and hydrogen purification solutions for the clean energy market, announced today its 2011 fourth quarter financial results.
- Positive EBITDA of $0.1 million for the twelve month period in 2011 compared to ($12.0) million for the same period in 2010.
- Gross margin for the twelve month period in 2011 amounted to $4.2 million compared to $0.1 million for the same period in 2010, a $4.1 million increase. Improved gross margin of 29.6% for the twelve month period in 2011 compared to 0.6% for the same period in 2010.
- Revenue for the twelve month period in 2011 amounted to $14.2 million, compared to $13.5 million for the same period in 2010, a 5.4% increase.
"We are pleased with our year-end results. Compared to an EBITDA loss of $12.0 million in 2010, we have delivered a positive EBITDA of $0.1 million, and despite our challenging working capital environment in 2011, we delivered an increase in revenues of 5.4% and a gross margin of $4.2 million. Last week, we announced an IP transaction with Air Products that has resulted in a significant strengthening of our balance sheet and will provide the working capital necessary for our business to go forward and pave the way towards increased profitability in the short term. Demand for our products in the natural gas, biogas and hydrogen segments is stronger than ever, and our outlook for 2012 is exceptionally positive", said Kurt Sorschak, Chief Executive Officer of Xebec.
|Three months ended||% of||Twelve months||% of|
|December 31,||Change||ended December 31,||Change|
|Gross margin as a percentage of revenues||3.7%||-13.6%||29.6%||0.6%|
|Basic and diluted loss per share||(0.02)||(0.11)||(0.04)||(0.43)|
|Weighted average number of shares||39,363,867||39,363,867||39,363,867||39,363,867|
|December 31,||December 31,||December 31,||December 31,|
|Long term debt||1,327,436||2,802,816||1,327,436||2,802,816|
|March 30,||March 31,||March 30,||March 31,|
* EBITDA is a non-IFRS financial measure and the Company defines it as earnings from operations excluding financial charges, taxes, foreign exchange loss (gain) and amortization.
Other Recent Highlights
- Xebec announced that it has received an order for a M-3200 Pressure Swing Adsorption ("PSA") system to upgrade natural gas at a greenfield chemical plant to be constructed in Valayat, Gujarat State, India. The total value of the contract is approximately CAD2.3 million.
- Subsequent to year-end, Xebec announced it has sold to Air Products its intellectual property ("IP") portfolio, including the patents and patent applications relating to its gas separation technology. In this transaction, Xebec has also transferred ownership of its research & development facilities in Burnaby and Surrey, as well as other equipment located in British Columbia. Pursuant to this transaction, Xebec has received aggregate gross proceeds of CAD$8,600,000. The transaction is also subject to payments for the achievement of certain conditions to be met within the next 24 months. Xebec has also entered into a license agreement with Air Products allowing Xebec to continue to sell its systems, predominantly in the biogas, natural gas and associated gas purification markets.
- Subsequent to year-end, Xebec announced that it has been awarded a $2.2 million contract to supply a biogas upgrading plant for a waste to energy project located in South Korea.
- Subsequent to year-end, Xebec received first orders from three new customers valued at CDN$540,000 for its NGX line of natural gas dryers for use in compressed natural gas ("CNG") refueling stations in Uzbekistan, Kazakhstan, Afghanistan and Thailand. Orders for these units were placed by market leading suppliers of equipment used in natural gas fueling stations and by PTT (SET:PTT), a large publicly traded Thai petrochemical company and a leading developer of natural gas refueling infrastructure in Thailand.
Xebec posted revenues of $2.7 million for the fourth quarter of 2011, a 20.3% decrease compared to $3.4 million in the fourth quarter of 2010. For the twelve-month period ended December 31, 2011, the total revenues amounted to $14.2 million, a 5.4% increase compared to $13.5 million for the same period last year. This increase is the result of a stronger order backlog going into Q3/11 and revenue from the monetization of certain intellectual property.
As of March 30, 2012, total order backlog stood at $11.1 million, compared to $10.8 million as at March 30, 2011.
Xebec's gross margin for the fourth quarter of 2011 amounted to $0,1 million compared to $(0,4) million for the same 2010 period. For the twelve-month period ended December 31, 2011, the total gross margin amounted to $4.2 million, compared to $0.1 million for the same period last year, resulting mainly from an increase in margin from product sales, newly added engineering contracts and license revenues, combined with our cost control measures.
EBITDA and Net Loss
The EBITDA for the fourth quarter of 2011 amounted to $(1.6) million compared to $(3.8) million in the fourth quarter of 2010. For the twelve-month period ended December 31, 2011, the EBITDA amounted to $0,1 million compared to $(12.0) million for the same period last year. The improved EBITDA is the result of our continuous efforts to improve gross margin and control costs.
The net loss for the fourth quarter of 2011 totaled $2.0 million, or $0.02 per share, compared to a net loss of $3.9 million, or $0.11 per share for the same 2010 period. For the twelve-month period ended December 31, 2011, net loss was $1.5 million or $0.04 per share, compared to $13.2 million or $0.43 per share for the same period last year, reflecting a $4.1 million improvement in gross margins and a $3.9 million decrease in selling and administrative costs, a 2.0 million decrease in research and development costs and a $2.3 million gain on disposition of property plant and equipment which resulted from the sale of the building during the third quarter of 2011.
Selling and administrative expenses were $2.0 million in the fourth quarter of 2011, compared to $3.1 million for the same period last year. For the twelve-month period ended December 31, 2011, selling and administrative expenses were $6.8 million compared to $10.7 million for the corresponding period in 2010.
As of December 31, 2011, the Company had $0.4 million of cash on hand, $0.5 million outstanding in short-term bank loans, and $1.3 million of long-term debt outstanding, of which $0.3 million is due within one year.
Xebec 2011 fourth quarter Financial Statements and Management's Discussion and Analysis include further information on the Company.
2011 Fourth Quarter Financial Statements and Management's Discussion and Analysis
The complete financial statements, notes to financial statements and Management's Discussion and Analysis for the three-month and twelve-month periods ended December 31, 2011, are available on the Company's Website at www.xebecinc.com or on the SEDAR Website at www.sedar.com.
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of clean energy solutions to corporations and governments looking to reduce their carbon footprints. With more than 1,300 customers worldwide, Xebec designs, engineers and manufactures innovative products that transform raw gases into marketable sources of clean energy mainly used as transportation fuel. Xebec's strategy is focused on establishing leadership positions in markets where demand for biogas upgrading, natural gas dehydration, liquefaction and hydrogen purification is growing. Headquartered in Montreal (QC), Xebec is a global company with two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America and Asia. Xebec trades on the TSX under the symbol XBC. For additional information on the company and its products and services, please visit the Xebec web site at www.xebecinc.com.
Caution Concerning Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking" statements within the meaning of applicable securities laws. This forward looking information includes, but is not limited to, the expectations and/or claims of management of Xebec with respect to information regarding the business, operations and financial condition of Xebec. Forward-looking information contained in this press release involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xebec or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This list is not exhaustive of the factors that may affect forward-looking information contained in this press release. When used in this press release, such statements use such words as "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "will" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements.
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