MONTREAL, Nov. 6, 2015 /CNW Telbec/ - Xebec
Adsorption Inc. (TSXV: XBC) ("Xebec"), a provider of gas
purification and filtration solutions for the natural gas, field
gas, biogas, helium, and hydrogen markets, announced its 2015 third
quarter operating results today.
- Revenues of $2.0 million for the
third quarter of 2015 compared to $4.3
million for the same quarter in 2014, a 52.6% decrease
compared to the same period in 2014.
- Net loss of $1.0 million or
$0.03/share for the three month
period in 2015 compared to a net income of $0.4 million or $0.01/share for the same period in 2014.
Financial
Highlights:
|
|
|
|
|
|
|
Three months
ended
September 30,
|
% of
Change
|
Nine months
ended
September 30,
|
% of
Change
|
|
2015
|
2014
|
|
2015
|
2014
|
|
(In millions of
dollars)
|
(unaudited)
|
(unaudited)
|
|
(unaudited)
|
(unaudited)
|
|
Revenues
|
2.0
|
4.3
|
-52.6%
|
7.3
|
10.5
|
-29.8%
|
Gross
margin
|
0.4
|
1.6
|
-73.2%
|
1.3
|
3.3
|
-58.4%
|
Gross margin as a
percentage of revenues
|
21.2%
|
37.5%
|
|
18.4%
|
31.1%
|
|
EBITDA*
|
(0.9)
|
0.5
|
|
(1.9)
|
(0.9)
|
|
Net income
(loss)
|
(1.0)
|
0.4
|
|
(2.2)
|
(1.2)
|
|
Net income (loss) per
share - basic ($/share)
|
(0.03)
|
0.01
|
|
(0.06)
|
(0.03)
|
|
Net income (loss) per
share - diluted ($/share)
|
(0.03)
|
0.01
|
|
(0.06)
|
(0.03)
|
|
Weighted average
number of shares
|
39,363,867
|
39,363,867
|
|
39,363,867
|
39,363,867
|
|
As at:
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|
|
|
September 30,
2015
|
December
31,
2014
|
|
Total
assets
|
|
|
|
8.2
|
7.4
|
|
Total Long term
Liabilities
|
|
|
|
4.2
|
0.3
|
|
Equity
|
|
|
|
(2.0)
|
0.9
|
|
As at:
|
|
|
|
November
6,
2015
|
October
27,
2014
|
|
Back log
|
|
|
|
5.8
|
6.0
|
|
* 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.
|
Financial Results
Revenues
Xebec posted revenues of $ 2.0
million for the third quarter of 2015, a 52.6% decrease
compared to $4.3 million in the third
quarter of 2014. This decrease is mainly explained by lower sales
in the Natural Gas Dryer segment and Gas Purification segment
respectively by $(1.1) million and
$(1.1) million, and no sales in the
Associated Gas segment during this quarter compared to $0.2 million in the corresponding period last
year.
Revenues were $7.3 million for the
nine-month period ended September 30,
2015 compared to $10.5 million
for the corresponding period. This decrease of $3.2 million is mainly due to lower sales in the
Natural Gas Dryer segment, Gas Purification segment and Associated
Gas segment by respectively $(1.0)
million, $(1.5) million and
$(0.9) million.
Order Backlog
As of November 6, 2015, total
order backlog stood at $5.8 million,
compared to $6.0 million as at
October 27, 2014.
Gross Margin
Xebec's gross margin for the third quarter of 2015 amounted to
$0.4 million compared to $1.6 million for the same period in 2014. The
decline versus the same period last year is mostly explained by the
negative impact of fixed costs in connection with lower volume of
sales.
For the nine-month period ended September
30, 2015, the total gross margin amounted to $1.3 million, compared to $3.3 million for the same period in 2014. Margins
were mainly affected negatively in 2015 by the completion of a
biogas project with a negative gross margin in Q2 2015.
EBITDA and Net loss
The EBITDA for the third quarter of 2015 amounted to
$(0.9) million compared to
$0.5 million in the third quarter of
2014. This variation of the EBITDA is attributable to the decrease
of $1.2 million in gross margin and
an increase of research and development cost by $0.2 million.
For the nine-month period ended September
30, 2015, the EBITDA amounted to $(1.9) million compared to $(0.9) million in the third quarter of 2014.
Despite the overall lower gross margin of $(2.0) million, better control of selling and
administrative costs ($0.8 million),
combined with a foreign exchange gain ($0.2
million) have contributed to reduce the difference on the
EBITDA level compared to the same period last year.
Net loss for the third quarter of 2015 totaled
$(1.0) million, or ($0.03) per
share, compared to a net income of $0.4 million, or $0.01 per share for the same period in 2014. This
higher net loss is explained by a lower gross margin of
$1.2 million, and an increase of
research and development cost by $0.2
million.
Net loss for the nine-month period ended September 30, 2015 amounted to $2.2 million, or ($0.06) per share, compared to a net loss of
$(1.2) million or ($0.03) per
share, for the same period in 2014. This increase of $1.0 million in net loss compared to 2014 is
related to the lower gross margin of $(2.0)
million offset partly by a better control of selling and
administrative cost ($0.8 million)
combined with a higher foreign exchange gain ($0.2 million).
Selling and administrative expenses decreased by $0.1 million to $1.4
million in the third quarter of 2015, representing a
reduction of 5.5%. The decrease is mainly explained by a reduction
of expenses in salaries, professional fees, IT and advertising.
For the nine-month period ended September
30, 2015, the selling and administrative expenses were
$3.7 million, compared to
$4.5 million for the same period last
year. The decrease is mainly explained by the implementation of
cost control measures such as reduction of salaries, travel and IT
cost for $0.7 million.
As of September 30, 2015, the
Company had $3.5 million of cash on
hand, $0.4 million of bank loan and
$4.2 million of long-term debt
outstanding, of which $0.2 million is
due within one year.
Resignation of Chief Financial Officer
Xebec also announced today that Mr. Alnoor Mandjee, (CPA, CA) has tendered his
resignation as Chief Financial Officer and Corporate Secretary of
the Company for personal reasons, effective November 13, 2015. The Company would like to
thank Mr. Mandjee for his contribution and wish him the best in the
future. Xebec has initiated a search to fill his position.
2015 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 nine and
three-month periods ended September 30,
2015, 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 1,500 customers worldwide, Xebec designs, engineers and
manufactures innovative products that transform raw gases into
marketable sources of clean energy. Xebec's strategy is focused on
establishing leadership positions in markets where demand for gas
purification, natural gas dehydration, and filtration is growing.
Headquartered in Montreal (QC),
Xebec is a global company with two manufacturing facilities in
Montreal and Shanghai, as well as a sales office in
Houston Texas (USA) and
distribution network in North
America and Asia. Xebec
trades on the TSX Venture Exchange 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.