Carmanah Technologie : Carmanah Reports Fourth Quarter and Fiscal Year 2011 Results
03/15/2012| 04:01pm US/Eastern
Recommend:
0
VICTORIA, BC, CANADA (March 15, 2012) Carmanah Technologies
Corporation (TSX: CMH) ("the Company" or "Carmanah") today
reported its fourth quarter and fiscal year financial results
for the period ended December 31, 2011.
For the year-end December 31, 2011, the Company recorded a
net loss of $8.6 million on revenues of $35.9 million which
is consistent with the preliminary guidance issued on
February 7, 2012. The significant net loss is primarily
due to an $8.2 million one-time non-cash impairment of
deferred tax assets. The tax assets were written off upon
management's review of their recoverability of the assets
based on a number of factors including Carmanah's early stage
of development, the Company's current and anticipated revenue
stream and its historical net income results.
"Revenue performance of $35.9 million reflects 5.8% growth
year on year. While positive overall, we remain
disappointed in revenue performance for the year and
particularly our lack of headway within Outdoor Lighting."
stated Bruce Cousins, Chief Executive Officer. "In
terms of adjusted EBITDA (a non-IFRS measure), we have
improved results by $0.8 million year on year. In
addition, Cash Flow from Operations continues positive."
Financial Condition at December 31, 2011 compared to December
31, 2010
Cash and cash equivalents of $4.9 million, down $0.8
million from $5.7 million
Working capital of $7.8 million, up $0.3 million from $7.5
million
Continued debt-free operations
Fourth quarter 2011 compared to fourth quarter 2010
Revenues: $7.1 million, down $2.2 million from $9.3 million
Gross margin: 27.5%, up from 26.0%
Operating costs: $2.9 million, down $0.7 million from $3.6
million
Net loss: $8.9 million, up $4.8 million from $4.1 million
Adjusted EBITDA (a non-IFRS measure): negative $0.4
million, up $0.1 million from negative $0.3 million
Fiscal 2011 compared to fiscal 2010
Sales: $35.9 million, up $2.0 million from $33.9 million
Gross margin: 31.4%, down from 33.3%
Operating costs: $11.5 million, down $2.0 million from
$13.5 million
Net loss: $8.6 million, up $3.8 million from $4.8 million
Adjusted EBITDA (a non-IFRS measure): $1.3 million, up $0.8
million from $0.5 million
Summary of operations:
Revenues for the fourth quarter of 2011 were $7.1 million,
down $2.2 million from $9.3 million in the fourth quarter
of 2010. By product sector, revenues are as follows:
Signals, $3.1 million, down from $4.1 million
Illumination, $1.9 million, up from $1.2 million
Grid-tie, $1.0 million, down from $2.9 million
Mobile, $1.1 million, unchanged from $1.1 million
Sales for fiscal 2011 were $35.9 million, up $2.0 million
from $33.9 million in fiscal 2010. Broken down by
product sector, sales are as follows:
Signals, $15.8 million, down from $18.5 million
Illumination, $5.2 million, up from $4.7 million
Grid-tie, $9.7 million, up from $5.6 million
Mobile, $5.2 million, up from $5.1 million
Gross margin percentages for fiscal 2011 were 31.4%, down
from 33.3% for fiscal 2010. Key drivers in margin
erosion include overall sales mix, with stronger
performance in lower margin segments, and foreign currency
exchange rates. Broken down by product sector, gross margin
percentages are as follows:
Signals, 41.5% up from 38.1%
Illumination, 24.8% down from 27.3%
Grid-tie, 19.3% down from 20.0%
Mobile, 29.8% down from 36.2%
Corporate operational highlights during 2011 included:
Appointment of a new Chief Executive Officer - In October
2011, we hired Bruce Cousins as our new Chief Executive
Officer ("CEO"). Bruce replaced Ted Lattimore after
he had announced his departure in May 2011. Mr.
Cousins has a successful track record of delivering
financial, operational and organizational performance and
company profitability in the global technology
industry. Concurrent to his employment agreement, we
completed a private placement with Mr Cousins which
resulted in the issuance of 250,000 shares for proceeds of
$0.1 million. As a part of Ted Lattimore's departure,
we incurred a $0.3 million charge for a separation payment
in the second quarter of 2011 in our Statement of
Operations under the caption "Other income (expense)".
Lightech Electronics Industries Inc. ("Lightech") lawsuit
settlement - In September 2011, we settled the ongoing
litigation surrounding our attempted 2010 acquisition of
Lightech Electronics Industries Inc. Under the
settlement, we agreed to forgo our $0.3 million investment
we had made in Lightech, but received back approximately
$0.3 million in funds previously held in escrow. The
agreement saw both parties release each other from all
current and future claims surrounding this transaction. For
the year-ended December 31, 2011, we recorded a net
recovery of $0.2 million associated with these
actions. In 2010, we had recorded a $1.5 million
loss, $0.9 million in legal, due diligence and financing
charges and $0.6 million related to deposits for the
acquisition.
New head office facility - In September 2011, we moved into
our new 13,000 square foot head office facility in Victoria
B.C. The new head office has a 5 year lease term and
a 5 year renewal option and is located on 250 Bay Street,
Victoria, B.C., Canada. During the second and third
quarters of 2011, we invested approximately $0.6 million in
leasehold improvements.
Organizational realignment within our Lighting group - In
the fall of 2011, we implemented a new team based approach
within the Lighting group to help focus sales and planning
activities. Under the new structure, each segment has
its own leadership and supporting team and is directly
responsible for the development and results of their
business. This new structure should help to maintain
a constant focus on each of our markets to meet their
unique objectives.
Reporting Currency and Change in Accounting Standards
Unless otherwise indicated, all financial information
presented in this press release is in US dollars and has been
prepared in accordance with International Financial Reporting
Standards ("IFRS"). The conversion to IFRS from Canadian
Generally Accepted Accounting Principles became effective
January 1, 2011. Please refer to the Company's most recently
issued consolidated financial statements for further
discussion.
Adjusted EBITDA
Three months ended December 31
Year ended December 31
(US$ in thousands)
2011
2010
2011
2010
Net loss
(8,888)
(4,103)
(8,553)
(4,771)
Add/(deduct):
Interest
-
(3)
4
11
Income tax expense/(recovery)
3,987
(1,206)
4,212
(1,482)
Amortization
280
300
1,102
1,243
EBITDA*
(4,621)
(5,012)
(3,235)
(4,999)
Restructuring
-
491
-
807
Terminated Lightech agreement costs/(recovery)
-
1,228
(176)
1,470
Impairment of Investment tax credits
4,051
-
4,051
-
Retirement provision
-
-
261
-
Non-cash stock based compensation
147
62
428
294
Intangible asset impairment
-
2,969
-
2,969
Adjusted EBITDA*
(423)
(262)
1,329
541
* A Non-IFRS measure
Management believes that the non-IFRS measures presented
provide useful information by excluding certain items that
may not be indicative of Carmanah's core operating results
and that this non-IFRS measure will allow for a better
evaluation of the operating performance of the Company's
business and facilitate meaningful comparison of results in
the current period to those in prior periods as well as
future periods. Reference to this non-IFRS measure should not
be considered as a substitute for results that are presented
in a manner consistent with IFRS. This non-IFRS measure is
provided to enhance investors' overall understanding of
Carmanah's current financial performance.
A limitation of utilizing this non-IFRS measure is that the
IFRS accounting effects of the non-recurring items do in fact
reflect the underlying financial results of Carmanah's
business and these effects should not be ignored in
evaluating and analyzing Carmanah's financial results.
Therefore, management believes that Carmanah's IFRS measures
of net loss and the same respective non-IFRS measure should
be considered together.
Non-IFRS measures do not have any standardized meaning
prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.
One such non-IFRS measure used for assessing financial
performance is Adjusted EBITDA, defined as net income before
interest, income taxes, amortization, non-cash stock-based
compensation, restructuring charges, retirement provision,
and terminated Lightech agreement costs.
Complete set of Financial Statements and Management
Discussion & Analysis
###
About Carmanah Technologies Corporation
As one of the most trusted names in solar technology,
Carmanah has earned a reputation for delivering strong and
effective products for industrial applications worldwide.
Industry proven to perform reliably in some of the
world's harshest environments, Carmanah solar LED lights
and solar power systems provide a durable, dependable and
cost effective energy alternative. Carmanah is a
publicly traded company, with common shares listed on the
Toronto Stock Exchange under the symbol "CMH". For more
information, visit www.carmanah.com.
This release may contain forward-looking statements. Often,
but not always, forward-looking statements can be identified
by the use of words such as "expects," "plans," "estimates,"
"intends," "believes," "could," "might," "will" or variations
of such words and phrases. Forward-looking statements involve
known and unknown risks, uncertainties, and other factors
which may cause the actual results, performance, or
achievements of Carmanah to be materially different from any
future results, performance, or achievements expressed or
implied by the forward-looking statements. These statements
are based on management's current expectations and beliefs
and are subject to a number of risks and uncertainties. For
additional information on these risks and uncertainties, see
Carmanah's most recently filed Annual Information Form (AIF)
and Annual MD&A, which are available on SEDAR at www.sedar.com and on the
Company's website at www.carmanah.com. The
risk factors identified in Carmanah's AIF and MD&A are not
intended to represent a complete list of factors that could
affect Carmanah. Accordingly, readers should not place undue
reliance on forward-looking statements. Carmanah does not
assume any obligation to update the forward-looking
information contained in this press release.
This press release was issued by Carmanah Technologies Corporation and was initially posted at http://www.carmanah.com. It was distributed, unedited and unaltered, by noodls on 2012-03-15 21:50:14 PM. The issuer is solely responsible for the accuracy of the information contained therein.
Recommend:
