Innovative Composites International Reports Fiscal 2013 First Quarter Financial Results
TORONTO, March 1, 2013 /CNW/ - Innovative Composites International Inc. ("ICI" or the "Company"), (TSXV: IC) (OTCQX: ICIZF, a producer of proprietary engineered composite products, reported its financial results for the fiscal 2013 first quarter ended December 31, 2012. All figures are in U.S. dollars unless otherwise stated.
"Our priority at this time is to address the demand payment notice that we received from the holder of our convertible debenture. To that end, we are taking steps to ensure that we will continue to conduct operations and business development activities going forward, including actively seeking new sources of funds to refinance the convertible debenture," said Terry Ball, CEO of ICI. "With respect to our financial results, the first quarter of fiscal 2013 was a period of transition. We were able to significantly reduce our operating costs, increasing the gross margins on our products, while at the same time strengthen our relationships with existing clients. We are focused on developing new sources of revenue while continuing to enhance our existing portfolio of offerings."
Selected Financial and Operational Highlights
- Revenue was approximately $587,000 for the quarter, compared with $907,000 for the same period in 2012.
- Gross margin for the quarter, after adjustment for IFRS related items, was approximately $187,000 compared to $121,000 for the same period in 2012.
- Total expenses declined by approximately 20% in the quarter compared to the first quarter of 2012.
- Continued to receive a steady flow of purchase orders for specifically engineered enclosures for world leader in heating, air-conditioning and refrigeration ("HVAC") equipment.
- New "load floor" design for automotive sector utilizing proprietary RMor Skin certified by independent laboratory as meeting or exceeding the specifications of Chrysler, Ford and GM.
ICI had revenue of $587,000 for the first quarter of fiscal 2013 compared to $907,000 for the first quarter of fiscal 2012. The decline in revenue was substantially due to the departure of one customer who made the decision to manufacture in-house the product that the Company was supplying. The revenue for the quarter was generated primarily from the sale of specifically engineered enclosures as from sales of Mattex and load floors to the automotive sector.
Cost of Sales for the first quarter of fiscal 2013 (after deducting the reallocation of amortization and depreciation expenses that IFRS requires be included in Cost of Sales) was $401,000, compared to $786,000 for the first quarter of fiscal 2012. The Gross Margin for the first quarter of fiscal 2013 (calculated using the adjusted Cost of Sales) was $187,000 or 32%, compared to $121,000 or 13% for the first quarter of fiscal 2012. The increase in gross margin reflects the Company's efforts to reduce operating expenses and increase efficiencies.
Total expenses for the quarter ended December 31, 2012 were $1,776,000, compared to $2,226,000 for the same period last year. The decrease in expenses reflects the Company's efforts to reduce its operating burn rate.
ICI recorded a net loss for the first quarter of fiscal 2013 of $1,819,000 or $0.02 per share, compared to a net loss of $1,752,000, or $0.03 per share, for the same period in fiscal 2012.
Cash flow used in operating activities for the first quarter of fiscal 2013 were $1,231,000 compared to $1,716,000 for the same period in fiscal 2012.
As at December 31, 2012, ICI had cash and cash equivalents of $2,805,000, compared to $4,156,000 as at September 30, 2012.
ICI has filed its financial statements for the first quarter of fiscal 2013 ended December 31, 2012 and related Management's Discussion and Analysis (MD&A) with securities regulatory authorities. ICI's financial statements, MD&A and related documents are available via www.sedar.com as well as through the Company's website, www.innovativecompositesinc.com.
About Innovative Composites International Inc.
Headquartered in Toronto, Canada, Innovative Composites International Inc. (TSXV: IC) (OTCQX: ICIZF) is a high-tech engineering and manufacturing company whose goal is to utilize its proprietary "green" composite materials and building systems to provide innovative, engineered product solutions to markets that include prefabricated modular housing, shelters and containers, and industrial applications.
To find out more about ICI please visit our website at: www.innovativecompositesinc.com.
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.
"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 its target markets, the demand for ICI's products and the availability of funding. These forward-looking statements are made as of the date hereof and ICI does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from ICI's expectations and projections."
SOURCE Innovative Composites International Inc.