MONTREAL, Aug. 14, 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 second quarter
operating results.
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Revenues of $2.8 million for the second quarter of 2013 compared to $4.2
million for the same quarter in 2012, a 34.7% decrease compared to the
same period in 2012
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Net loss of $0.4 million or $0.01/share for the three month period in
2013 compared to a net loss of $0.5 million for the same period in
2012.
Financial Highlights:
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Three months ended
June 30,
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% of
Change
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Six months ended
June 30,
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% of
Change
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2013
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2012
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2013
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2012
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(In dollars)
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
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Revenues
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2,744,601
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4,205,388
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-34.7%
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6,569,540
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5,735,046
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14.6%
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Gross margin
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447,905
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1,126,979
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-60.3%
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827,716
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847,513
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-2.3%
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Gross margin as a percentage of revenues
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16.3%
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26.8%
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12.6%
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14.8%
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EBITDA*
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(151,624)
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(384,215)
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(1,129,932)
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3,782,745
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Net income (loss)
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(381,585)
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(514,198)
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(1,462,823)
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2,651,920
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Net income (loss) per share - basic ($/share)
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(0.01)
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(0.01)
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(0.04)
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0.07
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Net income (loss) per share - diluted ($/share)
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(0.01)
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(0.01)
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(0.04)
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0.06
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Weighted average number of shares
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39,363,867
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39,363,867
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39,363,867
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39,363,867
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As at:
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June 30,
2013
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December 31,
2012
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Total assets
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8,702,978
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9,734,306
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Total Long term Liabilities
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965,278
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1,213,873
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Equity
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163,737
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1,737,339
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As at:
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August 14,
2013
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August 2,
2012
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Back log
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5,608,316
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13,110,486
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*
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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
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Financial Results
Revenues
Xebec posted revenues of $2.8 million for the second quarter of 2013, a
34.7% decrease compared to $4.2 million in the second quarter of 2012.
The decrease is mainly explained by the reduced number of contracts in
the gas purification product line, namely custom biogas plants.
Revenues were $6.6 million for the six-month period ended June 30, 2013,
compared to $5.7 million for the corresponding period. This growth is
due mainly to the $1.1 million increase in sales of natural gas dryers
units, the $1.0 million increase in the compressed gas filtration
segment combined with a $0.9 million reduction in the gas purification
segment as explained above. Natural gas dryers and compressed gas
filtration product lines showed a significant increase in revenues this
year compared to the last fiscal year.
Order Backlog
As of August 14, 2013, total order backlog stood at $5.6 million,
compared to $13.1 million as at August 2, 2012. Part of the decrease in
the backlog is explained by a quicker turnaround of the projects and a
lower number of biogas plants in backlog.
Gross Margin
Xebec's gross margin for the second quarter of 2013 amounted to $0.4
million compared to $1.1 million for the same period in 2012. The
decrease in revenues in the gas purification product line combined with
a negative margin on a biogas project during the quarter led to lower
margin generation. The Company is currently modifying its business
model for biogas projects, in order to return higher and more stable
margins.
For the six-month period ended June 30, 2013, the total gross margin
amounted to $0.8 million, compared to $0.8 million for the same period
in 2012. Margins were affected negatively by a $200,000 provision for
an ongoing biogas project in China and the completion of a biogas
project with a negative margin during Q2-2013. 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 loss
The EBITDA for the second quarter of 2013 amounted to $(0.2) million
compared to $(0.4) million in the second quarter of 2012. The
improvement is mainly explained by the $0.5 million additional gross
proceeds received for the remaining milestone related to the sale of
the IP portfolio to Air Products. The decrease in selling and
administrative expense is mainly due to the decrease in professional
fees and in research and development expenses combined with the
decrease in gross margin also explained the variation for EBITDA for
the second quarter of 2013.
For the six-month period ended June 30, 2013, the EBITDA amounted to
$(1.1) million compared to $3.8 million for the same period in 2012.
The decline in EBITDA reflects primarily the $5.4 million gain on the
sales of its IP portfolio to Air Products in Q1-2012 compared to
additional proceeds of $0.5 million in Q2-2013 related to this
transaction.
The net loss for the second quarter of 2013 totaled $0.4 million, or
$0.01 per share, compared to a net loss of $0.5 million, or $0.01 per
share for the same 2012 period, reflecting a decrease in gross margin
of $0.6 million combined with a decrease in research and development of
$0.08 million due to the tax credit receivable and the decrease in
selling and administrative expense of $0.2 million related to
recruiting fees. The decrease is also explained by a gain of $0.5
million in Q2-2013 due to the additional proceeds pursuant to the
agreement with Air Product and an increase in net financial expenses
for the additional royalty of $0.06 million related to agreement
mentioned above.
Net loss for the six-month period ended June 30, 2013 was $1.5 million,
or $0.04 per share, compared to net income of $2.7 million or $0.07 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 $0.5 million on the
additional proceed in Q2-2013 and a decrease in net financial expenses
of $0.7 million compared to same period last year.
Selling and administrative expenses were $1.5 million in the second
quarter of 2013, compared to $1.6 million for the same period last
year. The decreased is mainly due to a reduction in professional fees.
For the six-month period ended June 30, 2013, the selling and
administrative expenses were $2.9 million, compared to $2.8 million for
the same period last year. The increase is explained by employees
working on a reduced schedule in Q1-2012 until the IP transaction of
March 2012 combined with the decrease in professional fees mentioned
above.
As of June 30, 2013, the Company had $0.9 million of cash on hand and
$1.3 million of long-term debt outstanding, of which $0.7 million is
due within one year.
2013 Second 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 period ended
June 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.
