CALGARY, Alberta, May 15, 2018 (GLOBE NEWSWIRE) -- Questor Technology Inc. (“Questor” or the “Company”)
(TSX-V:QST) is pleased to announce it’s financial and operating results for the first quarter of 2018.
Highlights
(Stated in Canadian dollars except per share and unit data)
For the three months ended March
31, |
2018
($) |
2017
($) |
Change
(%) |
|
|
|
|
|
|
|
Revenue |
|
|
5,996,936 |
3,023,279 |
98 |
|
Gross profit(1) |
|
|
3,840,344 |
1,460,982 |
>100 |
|
Comprehensive Income |
|
|
1,925,486 |
419,311 |
>100 |
|
Adjusted EBITDA(1) |
|
|
3,492,783 |
847,118 |
>100 |
|
Earnings per share - Basic and Diluted |
0.07 |
0.02 |
>100 |
|
Total assets (end of period) |
|
24,520,794 |
16,505,705 |
49 |
|
Working Capital (end of period) |
|
7,305,454 |
7,280,859 |
(6 |
) |
Total equity (end of period) |
|
20,810,018 |
15,224,118 |
37 |
|
|
|
|
|
|
(1) Non-IFRS financial measure. Please see discussion in the Non-IFRS
Financial Measures section of Questor’s Management’s Discussion and Analysis for the three months ended March 31, 2018.
Revenue in the first quarter of 2018 was $6.0 million, an increase of 98 percent from the same period in 2017.
The Company’s rental revenue increased to $4.3 million from $1.5 million due to higher activity in the United States. The Company
invested $8.2 million in rental unit expansion since March 31, 2017 resulting in 150% more rental units compared to the first
quarter in 2017. The Company continued to realize stong rental utilization during the three months ended March 31, 2018 which was
consistent with the same period of 2017.
Gross profit increased by 163 percent as result of higher rental revenue and its impact on revenue mix. Rental
revenue mix increased from 50% in 2017 to 72% in 2018, rental revenues carry lower cost of sales which resulted in improved overall
margins and gross profit.
During the three months ended March 31, 2018 , the Company renegotiated its existing Operating Loan Facility
(“Operating Loan”), secured an additional Capital Loan Facility (Capital Loan”) and Export Development Canada (“EDC”) Secured
Letter of Guarantee Facility. The Company’s operating loan has been increased to a maximum of $1,000,000 (previously $560,000), the
availability of which is subject to specified margin requirements. The capital loan was secured to assist in the financing of
capital expenditures. The facility makes available a revolving demand capital loan to a maximum of $5,000,000. The EDC
facility was secured to assist in the financing of the day-to-day operations of the Company through the issuance by the Bank of
letters of guarantee, standby letters of credit and performance bonds.
The Company invested $2.3 million into the rental fleet for the three months ended March 31, 2018. The new
rental equipment has been mobilized to the United States region.
PRESIDENT’S MESSAGE
Questor’s President and Chief Executive Officer, Audrey Mascarehas commented on the financial and operating
results for the first quarter of 2018. “We invested $2.3MM this quarter to continue to grow the rental fleet in Colorado to assist
our clients in meeting Regulation 7, which mandates enclosed combustion like Questor’s for oilfield operations to deal effectively
with emissions. In addition to providing rental units for flow backs, we continue to deliver hybrid units to the Colorado market to
solve the emission requirements in the production and operations phase. The hybrid units allow our clients to purchase a base level
of capacity and rent additional capacity to meet the shorter term demands of high initial production or limited gas pipeline take
away capacity. The benefits to the client are lower capital and operating costs, reduced lease footprint and clean enclosed
combustion to meet stringent emission regulations in a capital constrained environment.
Recently, Questor’s Q5000s were independently tested on a client’s site at over 99.99%. The significance of this
live test under normal flowing conditions is that clients are now able to increase their permitted VOC destruction from the default
95% to 99%, when they use a Questor incinerator. This translates directly into an increase in oil production or
sufficient operating room within their new air permits. Questor already has new clients benefitting from this performance
uplift.
In addition to meeting industry’s requirements for emissions control resulting from drilling, fracturing and
production operations, Questor is seeing a significant demand for emissions control for well abandonment operations. Recent
Colorado State regulations require producers to abandon inactive wells prior to being eligible to receive permits for drilling new
wells. Colorado has mandated the use of enclosed combustion for all Plugging and Abandonment (P&A) operations. To address
these needs Questor redirected part of the 2018 capital budget to design, built and deploy three new specially designed P&A
hydraulic trailer-combustor set-ups this quarter, all of which have been rented. With continuing demand Questor will add new
P&A units which allow clients to set up and demobilize in minutes while being transported from site to site.
Questor is proud to be recognized and selected for its cost effective solutions and will continue its pursuit of
earning the confidence and business of existing clients as well as new customers. Our solid equipment performance, ease of setup
and user friendliness has given us a reputation for best in class. With our strong balance sheet, we will continue to commit
capital to grow our presence in regions where producers are looking for high performing, cost-effective technologies to manage
their waste gas and fugitive emissions. Other States in the US are in the process of implementing similar rules to those in
Colorado to deal with emissions. Questor has demonstrated in Colorado that our technology cost effectively deals with methane
emissions and other hazardous air pollutants.
We are pursuing opportunities in jurisdictions where regulations mandate not just clean combustion but the
beneficial use of the gas. Our diverse technologies such as power and water treatment from waste heat, are key components to
meeting that mandate and important to our strategy for diversification and differentiation.
Questor’s Vice President of Sales and Marketing is actively diversifying our customer base and Questor is fully
engaged in providing solutions for the complete life cycle. We have established a strong supply chain and vendor network to
scale up in a timely way that has been tested and can respond and grow with us. The young age of our rental fleet provides
the platform for sustainable revenue generation. Our strong balance sheet will allow us to take advantage of the
opportunities we see in the pipeline for Questor in 2018”.
Questor’s consolidated financial statements and notes thereto and Management’s Discussion and Analysis for the three months
ended March 31, 2018 will be available shortly on the Company’s website at www.questortech.com and through SEDAR at www.sedar.com.
ABOUT QUESTOR TECHNOLOGY INC.
Questor Technology Inc. (“Questor” or the “Company”) is incorporated in Canada under the Business Companies Act
(Alberta). Questor is a public, international environmental Cleantech company founded in 1994 and headquartered in Calgary,
Alberta, with field offices located in; Grande Prairie, Alberta; Brighton, Colorado; and Brooksville, Florida. The Company is
active in Canada, the United States, Europe and Asia and is focused on clean air technologies that safely and cost effectively
improves air quality, support energy efficiency and greenhouse gas emission reductions. Questor designs, manufactures and services
high efficiency waste gas combustion systems; as well as, power generation systems and water treatment solutions utilizing waste
heat. The Company’s proprietary incinerator technology is utilized worldwide in the effective management of Methane, Hydrogen
Sulphide gas, Volatile Organic Hydrocarbons, Hazardous Air Pollutants and BTEX gases ensuring sustainable development, community
acceptance and regulatory compliance. Questor and its subsidiary, ClearPower Systems are providing solutions for landfill biogas,
syngas, waste engine exhaust, geothermal and solar, cement plant waste heat in addition to a wide variety of oil and gas projects
in Canada, throughout the United States, the Caribbean, Western Europe, Russia, Thailand, Indonesia and China.
Questor trades on the TSX Venture Exchange under the symbol ‘QST’.
Audrey Mascarenhas |
Dan Zivkusic |
President and Chief Executive Officer |
Chief Financial Officer |
Phone: (403) 571-1530 |
Phone: (403) 539-4371 |
Facsimile: (403) 571-1539 |
Facsimile: (403) 571-1539 |
Email: amascarenhas@questortech.com |
Email: dzivkusic@questortech.com |
|
|
Certain information in this news release constitutes forward-looking statements. When used in this news release,
the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and
similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news
release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of
operations, performance, business projects and opportunities and financial results. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such
forward-looking statements. Such statements reflect the Company’s current views with respect to future events based on certain
material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in
market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the
Company’s public disclosure documents. Many factors could cause the Company’s actual results, performance or achievements to vary
from those described in this news release, including without limitation those listed above. These factors should not be construed
as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking
statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking
statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak
only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these
forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this
cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This document is not intended for dissemination or distribution in the United States.
![Primary Logo](https://resource.globenewswire.com/Resource/Download/4a323883-2aff-4f0e-9bcf-ea48f4cfca8b?size=1)
![](http://www.globenewswire.com/newsroom/ti?ndecode=NzA2NDAjNzI2NzEwMg==)