MONTREAL, Nov. 11, 2013 /CNW Telbec/ - Xebec Adsorption Inc. (TSX: XBC) ("Xebec"), a provider of biogas upgrading, natural gas, field gas and hydrogen purification solutions for the clean energy and crude-derived fuels displacement markets, announced today its 2013 third quarter operating results.
- Revenues of $1.9 million for the third quarter of 2013 compared to $3.7 million for the same quarter in 2012, a 47.7% decrease compared to the same period in 2012
- Net income of $0.5 million or $0.01/share for the third quarter in 2013 compared to a net loss of $0.6 million or $0.02/share for the same period in 2012.
| Three months ended
| % of
| Nine months ended
| % of
|Gross margin as a percentage of revenues||26.4%||30.4%||15.7%||20.9%|
|Net income (loss)||491,173||(620,868)||(971,650)||2,031,052|
|Net income (loss) per share - basic ($/share)||0.01||(0.02)||(0.03)||0.05|
|Net income (loss) per share - diluted ($/share)||0.01||(0.02)||(0.03)||0.04|
|Weighted average number of shares||39,363,867||39,363,867||39,363,867||39,363,867|
|As at:|| September 30,
| December 31,
|Total Long term Liabilities||929,217||1,213,873|
|As at:|| November 11,
| November 12,
|* 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.|
Xebec posted revenues of $1.9 million for the third quarter of 2013, a 47.7% decrease compared to $3.7 million in the third quarter of 2012. The decrease is mainly explained by the reduced number of contracts in the gas purification product line.
Revenues were $8.5 million for the nine-month period ended September 30, 2013, compared to $9.4 million for the corresponding period. This decrease of $0.9 million is due mainly to the $2.7 million reduction in sales of the gas purification segment, which was partly offset by the increases in sales of natural gas dryers units and in the compressed gas filtration segment respectively of $1.0 million and $1.1 million. Natural gas dryers and compressed gas filtration product lines showed a significant increase in revenues this year compared to the last fiscal year as a result of strengthen the sales teams in these activity sectors.
As of November 11, 2013, total order backlog stood at $5.9 million, compared to $11.8 million as at November 12, 2012. Part of the decrease in the backlog is explained by a quicker turnaround of the projects and a lower number of gas purification projects in the backlog.
Xebec's gross margin for the third quarter of 2013 amounted to $0.5 million compared to $1.1 million for the same period in 2012. The decline in revenues versus the same period last year is mostly explained by the decrease in the gas purification product line.
For the nine-month period ended September 30, 2013, the total gross margin amounted to $1.3 million, compared to $1.9 million for the same period in 2012. Margins were affected negatively by a $200,000 provision for an ongoing biogas project in Asia and the completion of a biogas project with a negative margin during the year. The sales increase in the gas compression and natural gas dryer product lines mitigated the margin decrease caused by the compressed gas purification product line.
EBITDA and Net Income (loss)
The EBITDA for the third quarter of 2013 amounted to $0.5 million compared to $(0.5) million in the third quarter of 2012. The improvement is mainly explained by the additional $1.3 million gross proceeds received for the remaining milestone related to the sale of the IP portfolio to Air Products. The reduction of $0.4 million in selling and administrative expenses, mainly for salaries and commissions, combined with the decrease of $0.6 million in gross margin also explained the variation for EBITDA for the third quarter of 2013.
For the nine-month period ended September 30, 2013, the EBITDA amounted to $(0.6) million compared to $3.3 million for the same period in 2012. The decline of $3.9 million in EBITDA, compared to the same period last year, reflects primarily the $5.4 million gain on the sales of our IP portfolio to Air Products in 2012, compared to additional proceeds of $1.8 million in 2013 related to this transaction.
The net income for the third quarter of 2013 totaled $0.5 million, or $0.01 per share, compared to a net loss of $0.6 million, or $0.02 per share for the same period in 2012. This increase of $1.1 million in net income is explained by a gain of $1.3 million in Q3-2013 due to the additional proceeds pursuant to the agreement with Air Product, combined with a decrease in selling and administrative expenses by $0.4 million, mainly for salaries and commissions, and partly offset by a decrease in gross margin by $0.6 million.
Net loss for the nine-month period ended September 30, 2013 was $1.0 million, or $0.03 per share, compared to a net income of $2.0 million or $0.05 per share, for the same period in 2012, reflecting a one-time gain on the disposition of the IP portfolio to Air Products of $5.4 million in the second quarter of 2012, compared to a gain of $1.8 million on additional proceeds in 2013 and a decrease in net financial expenses of $0.7 million compared to the same period last year.
Selling and administrative expenses were $1.2 million in the third quarter of 2013, compared to $1.6 million for the same period last year. The decreased is mainly due to a reduction in salaries and commissions, traveling expenses, recruiting fees, rent and professional fees.
For the nine-month period ended September 30, 2013, the selling and administrative expenses were $4.1 million, compared to $4.4 million for the same period last year. The decrease is mainly explained by a reduction of professional fees, amortization and travelling expenses.
As of September 30, 2013, the Company had $0.6 million of cash on hand and $1.2 million of long-term debt outstanding, of which $0.7 million is due within one year.
Resignation of Mr Patrick Palerme
On November 11, 2013, Patrick Palerme resigned as a Director of the Company. His resignation was effective as of the end of today's Board.
2013 Third 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 nine-month period ended September 30, 2013, 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.
SOURCE: Xebec Adsorption Inc.
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