Pioneering Technology Corp. Reports 2012 Financial Results
(via Thenewswire.ca)
Mississauga, ON - January 28, 2013 - Pioneering Technology Corp. ("Pioneering" or the "Company") (TSX Venture: PTE), an "Energy Smart" product innovation/consumer goods company and North America's leader in cooking fire prevention technologies, reports its financial results for the twelve months ended September 30, 2012. The Company's audited financial statements for the twelve months ended September 30, 2012, together with its Management's Discussion and Analysis of these results, are available for review under the Company's profile at www.sedar.com.
FY 2012 Financial Results
Revenue for the twelve month period ended September 30, 2012 was $2.39 million, an increase of 9% as compared with $2.19 million in FY 2011. Gross profit for the twelve month period ended Sept 30, 2012 was $1.47 million compared with $1.40 million in FY 2011; an increase of 4.3%. Comprehensive loss for the period was ($729,584) or ($.039) per share compared to $3,499 or $.000 per share in FY 2011. The Company believes adjusted EBITDA is also a useful measure as a proxy for operating cash flow and facilitates period-to-period operating comparisons. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock based compensation, restructuring costs including general and administration expenses, and other non-recurring gains or losses including transaction costs related to acquisition. Adjusted EBITDA for FY 2012 was ($369,368) compared to $218,261 in FY 2011. These results reflect the Company's strategic decision in 2012 to invest in sales resources and new product development to accelerate growth by leveraging the Company's success and its established leadership position in the area of cooking fire safety. It also reflects the capitalization of development costs associated with new product development as management expects new products to provide opportunities for incremental revenue and growth in the future.
Other Initiatives
Private Placement completed
On January 28, 2013, the Company completed a non-brokered private placement through the issuance of 7,500,000 units at $0.10 per unit, for gross proceeds of $750,000. Each unit comprises one common share and one half of one common share purchase warrant (warrant). Each warrant is exercisable at $0.15 per share for a period of two years.
Proceeds from the raise will be used for working capital, development/commercialization of the Company's two new products and to execute the go-to-market plan in order to begin to realize revenue from these two new products.
New products
The Company is in the process of completing two new products and securing regulatory approval for the sale of these new products. The Company has begun discussions with retailers. Feedback has been very positive and the Company continues to refine it's go to market strategy for both products to ensure maximum awareness of the significant consumer problems these products help to solve, product positioning relative to competition, product configuration and pricing strategy.
FY 2012 Business Highlights
The Canadian Association of Fire Chiefs passes resolution in support of "high end heat limiting technology"
The Canadian Association of Fire Chiefs, a division of the International Association of Fire Chiefs, passed a resolution "in support of tested affordable technology for electric coil ranges to drastically reduce the number of stovetop cooking fires and burned food incidents by reducing the high-end temperature at which burners operate". Pioneering's patented Safe-T-element cooking system is the only technology available today that provides high-end heat limiting capabilities for electric coiled ranges.
Approximately 85% of the largest subsidized housing providers in Ontario have mandated the Safe-T-element (STE) technology
The STE's reputation within the housing market continues to grow. More and more housing providers throughout Canada and the US are mandating the STE and or high-end heat limiting technology for use in their properties and in some instances cities are writing it into law. The latest example is Union City Georgia who recently passed a city ordinance mandating the use of high-end heat limiting technology.
Pioneering Technology issued US patent for Safe-T-sensor(TM) (STS) technology
On November 29, 2011, Pioneering was issued a patent by the United States Patent and Trademark Office for its STS technology designed to help detect and diffuse burning and/or smoking conditions in various cooking/heating appliances. The issuance of this patent paves the way for launching this innovative microwave application at retail and to introducing it to original equipment manufacturers in an effort to having the technology incorporated at source. The STS is now being purchased by universities, hospitals, senior's facilities and large corporations where evacuations caused by false alarms create dangerous situations for patients/tenants/workers and have a significant impact on workplace productivity.
US Military expands installation of STE to new bases and recommends the product as a "quality of life" improvement for all Military Family Housing
The STE is currently installed in military housing on over 30 U.S. bases worldwide. The technology, now proven in thousands of military housing units around the world, is recommended for use in all government owned and operated military family housing.
Pioneering Technology partners with Almo Corporation - the largest independent home appliance distributor in the United States
Pioneering and Almo Corporation signed a distribution agreement during the quarter that enables Almo to offer Pioneering's Safe-T branded line of product solutions. Almo is the largest national independent distributor of major appliances in the United States operating over 1-million square feet of distribution space from nine strategically located warehouses throughout the United States. Almo provides Pioneering the reach it needs to support its existing line of Safe-T branded product solutions and the new products it plans to introduce in the near future.
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About Pioneering Technology Corp: Pioneering, based in Mississauga, Ontario is an "Energy Smart" product innovation/consumer goods company and North America's leader in cooking fire prevention technology. Pioneering engineers and brings to market energy smart solutions for consumer products making them safer, smarter and/or more efficient. Pioneering's patented and patent pending Safe-T-element(R) cooking system is engineered to help prevent stove top cooking fires, the number one cause of fire in North America, and to reduce the amount of electricity required to cook. Available on new ranges or as a retrofit, the STE technology is installed on over 80,000 ranges in multi-residential housing (low income, seniors, college/university and military) throughout the world. Pioneering trademarks include Safe-T-element(R), Safe-T-Sensor(TM), Powergrill(TM), Battery Eliminator(R), Powerpak(TM) and the Hydro-free Furnace Fan(TM). For more information visit: www.pioneeringtech.com.
For further information contact: Kevin Callahan, President & CEO at (905) 712-2061 ext. 222.
Forward Looking Statements
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in the Corporation's target markets, the demand for the Corporation's products, the availability of funding, the efficacy of the Corporation's technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Corporation's expectations and projections.
Non-GAAP Measures
Adjusted EBITDA is a measure not recognized under Canadian generally accepted accounting principles ("GAAP"). However, management of Pioneering believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization; stock based compensation, restructuring costs, impairment charges, and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.
Adjusted EBITDA does not have any standard meanings prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with GAAP and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Corporation's Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of the Corporation posted on SEDAR (www.sedar.com).
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
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