4th quarter and fiscal year results out FORT WAYNE, IN, March 11, 2014 /CNW/ - WaterFurnace Renewable Energy, Inc. [WFI:TSX] today released the Company's fiscal year 2013 and fourth quarter results. In 2013 the Company significantly increased gross margins by 2.2 percentage points, rising from 35.7% in 2012 to 37.9% in 2013. Sales of the Company's new 7 Series variable capacity product, a stronger mix of residential sales, and continued cost reduction efforts all contributed to margin growth in 2013.
2013 income before interest, joint venture operations and income taxes was up by 22.2% over 2012. The increase was primarily attributable to reduced Selling, General and Administrative expenses, improved gross margins and a stronger mix of residential sales.
Total comprehensive income for 2013 was up 35.5% as compared to 2012. Earnings per share increased from $0.82 in 2012 to $1.12 in 2013. The Company generated excess cash of $5.5 million after paying $12.6 million in dividends to shareholders in 2013.
Operating expenses were down $1.6 million from 2012, due largely to decreases in sales and marketing expenses, Q4 2012 headcount reductions, and fewer expenses related to business development efforts in 2013, namely the cost in 2012 to form and start up the joint venture (JV) operations in China.
The JV, WaterFurnace Shenglong HVACR Climate Solutions, Ltd. outperformed Company expectations by exceeding $9 million in revenue in its first full year of operations. In addition, the JV posted a profit that exceeded management's expectations. It is anticipated that new products, engineering synergies and expansion into new markets will continue to drive rapid revenue growth in the future. Chairman of the Board Tim Shields remarked, "The performance of our joint venture in China shows how planning, vision and sound strategy along with a tremendous effort on the part of management can really pay off."
International sales, which exclude Canada, were 3.7% of total sales in 2013 compared with 2.9% in 2012. Sales in Asian markets and new opportunities in Russia and Japan have opened up additional revenue sources. Synergies with the joint venture in China have helped drive the Company's international sales over the past year.