MONTREAL, Aug. 31, 2015 /CNW Telbec/ - Xebec Adsorption
Inc. (TSX: XBC) ("Xebec"), a provider of gas purification and
filtration solutions for the natural gas, field gas, biogas,
helium, and hydrogen markets, announced its 2015 second quarter
operating results today.
- Revenues of $2.2 million for the
second quarter of 2015 compared to $3.5
million for the same quarter in 2014, a 37.4% decrease
compared to the same period in 2014.
- Net loss of $1.2 million or
$0.03/share for the three month
period in 2015 compared to a net loss of $0.7 million or $0.02/share for the same period in 2014.
Financial
Highlights:
|
|
Three months
ended
June 30,
|
% of
Change
|
Six months
ended
June 30,
|
% of
Change
|
|
2015
|
2014
|
|
2015
|
2014
|
|
(In millions of
dollars)
|
(unaudited)
|
(unaudited)
|
|
(unaudited)
|
(unaudited)
|
|
Revenues
|
2.2
|
3.5
|
-37.4%
|
5.3
|
6.1
|
-13.8%
|
Gross
margin
|
0.2
|
1.0
|
-75.7%
|
0.9
|
1.6
|
-43.6%
|
Gross margin as a
percentage of revenues
|
10.9%
|
28.1%
|
|
17.4%
|
26.5%
|
|
EBITDA*
|
(1.1)
|
(0.6)
|
|
(1.0)
|
(1.4)
|
|
Net income
(loss)
|
(1.2)
|
(0.7)
|
|
(1.2)
|
(1.6)
|
|
Net income (loss) per
share - basic ($/share)
|
(0.03)
|
(0.02)
|
|
(0.03)
|
(0.04)
|
|
Net income (loss) per
share - diluted ($/share)
|
(0.03)
|
(0.02)
|
|
(0.03)
|
(0.04)
|
|
Weighted average
number of shares
|
39,363,867
|
39,363,867
|
|
39,363,867
|
39,363,867
|
|
As at:
|
|
|
|
June 30,
2015
|
December
31,
2014
|
|
Total
assets
|
|
|
|
5.2
|
7.4
|
|
Total Long term
Liabilities
|
|
|
|
0.8
|
0.3
|
|
Equity
|
|
|
|
(0.5)
|
0.9
|
|
As at:
|
|
|
|
August 31,
2015
|
August
28,
2014
|
|
Back log
|
|
|
|
5.2
|
6.8
|
|
* 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.
|
Financial Results
Revenues
Xebec posted revenues of $ 2.2
million for the second quarter of 2015, a 37.4% decrease
compared to $3.5 million in the
second quarter of 2014. This decrease is explained by lower sales
in the Natural Gas Dryer segment and Gas Purification respectively
by $(0.2) million and $(0.5) million, and no sales in the Associated
Gas segment during this quarter compared to $0.6 million in the corresponding period last
year.
Revenues were $5.3 million for the
six-month period ended June 30, 2015
compared to $6.1 million for the
corresponding period. This decrease is mainly due to lower sales in
Gas Purification segment and Associated Gas segment by respectively
$(0.4) million and $(0.6) million.
Order Backlog
As of August 31, 2015, total order
backlog stood at $5.2 million,
compared to $6.8 million as at
August 28, 2014.
Gross Margin
Xebec's gross margin for the second quarter of 2015 amounted to
$0.2 million compared to $1.0 million for the same period in 2014. The
decline versus the same period last year is mostly explained by the
negative gross margin generated by one biogas project during this
quarter, combined with the negative impact of fixed costs
associated with lower volume of sales.
For the six-month period ended June 30,
2015, the total gross margin amounted to $0.9 million, compared to $1.6 million for the same period in 2014. Margins
were affected negatively in 2015 by the completion of a biogas
project with a negative gross margin in Q2-2015.
EBITDA and Net loss
The EBITDA for the second quarter of 2015 amounted to
$(1.1) million compared to
$(0.6) million in the second quarter
of 2014. This variation of the EBITDA is attributable to the
decrease of $0.8 million in gross
margin offset partly by a reduction of $0.3
million in selling and administrative cost.
For the six-month period ended June 30,
2015, the EBITDA amounted to $(1.0)
million compared to $(1.4)
million in the second quarter of 2014. Despite the overall
lower gross margin of $(0.7) million,
better control of selling and administrative costs ($0.7 million), reduced research and development
costs ($0.1 million), combined with a
foreign exchange gain ($0.2 million)
have contributed to an improvement compared to the same period of
last year.
Net loss for the second quarter of 2015 totaled
$(1.2) million, or ($0.03) per
share, compared to a net loss of $0.7 million, or ($0.02) per share for the same period in
2014.This higher net loss is explained by a lower gross margin of
$0.8 million, offset partly by a
decrease in selling and administrative cost of $0.3 million.
Net loss for the six-month period ended June 30, 2015 amounted to $1.2 million, or ($0.03) per share, compared to a net loss of
$(1.6) million or ($0.04) per
share, for the same period in 2014. This decrease of $0.4 million in net loss compared to 2014 is
related to the same reason given above for the improvement of the
EBITDA.
Selling and administrative expenses decreased by $0.3 million to $1.3
million in the second quarter of 2015 compared to
$1.6 million for the same period in
2014, representing a reduction of 21.9%. The decrease is mainly
explained by a reduction of expenses in salaries, professional
fees, travel, IT and advertising.
For the six-month period ended June 30,
2015, the selling and administrative expenses were
$2.3 million, compared to
$3.0 million for the same period last
year. The decrease is mainly explained by the implementation of
cost control measures such as reduction of salaries, travel and IT
cost for $(0.5) million.
As of June 30, 2015, the Company
had $0.4 million of cash on hand,
$0.4 million of bank loan and
$0.8 million of long-term debt
outstanding, of which $0.1 million is
due within one year.
2015 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 six and
three-month periods ended June 30,
2015, 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 1,500 customers worldwide, Xebec designs, engineers and
manufactures innovative products that transform raw gases into
marketable sources of clean energy. Xebec's strategy is focused on
establishing leadership positions in markets where demand for gas
purification, natural gas dehydration, and filtration is growing.
Headquartered in Montreal (QC),
Xebec is a global company with two manufacturing facilities in
Montreal and Shanghai, as well as a sales office in
Houston Texas (USA) and
distribution network in North
America and Asia. Xebec
trades on the TSX Venture Exchange 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.