LiqTech International, Inc. Reports 2015 First Quarter Results

- Management to Host Conference Call Today at 11:00 am ET -

May 14, 2015, 09:10 ET from LiqTech International, Inc.

BALLERUP, Denmark, May 14, 2015 /PRNewswire/ -- LiqTech International, Inc. (NYSE MKT: LIQT) a clean technology company that manufactures and markets highly specialized filtration products and systems, announced today its financial and operational results for first quarter 2015. 

2015 Q1 Highlights  

  • Total first quarter sales were $2.10 million.
  • The Company reported a net loss of $1.17 million
  • We ended the quarter in a net cash position of $3.27 million
  • On January 6th the Company announced that it had received a USD $2.4 million purchase order for a system based on the Company's SiC membranes.
  • On January 6th the Company announced a USD $350,000 SiC membrane system to be delivered in 2015 for use in cleaning the exhaust emissions for the marine industry. New marine regulations, effective January 2015, indicate a significant market opportunity.  
  • On February 3, 2015, the Company announced a USD $150,000 follow-on order from a German customer to be delivered in the 2nd quarter of 2015. The order is for the removal of heavy metals from a flue gas cleaning process at a German power plant. 
  • On March 2, 2015, the Company announced that it received its first pilot order from Grundfos, a leading global pump producer, for a newly developed in-well situated ground water treatment system. 
  • On March 10, 2015, a purchase order for two systems based on the Company's SiC membranes totaling USD $660,000 was received from a customer that had previously placed the first commercial order this year. 

Sequential Comparison of the Three Month Periods ended March 31, 2015 and December 31, 2014 

  • Net sales for the three months ended March 31, 2015 were $2.10 million, compared to $2.46 million for the three months ended December 31, 2014, a decrease of $0.36 million or 14.6%.
  • Gross profit for the three months ended March 31, 2015 was a loss of $47,000 compared to a loss of $776,000 for the three months ended December 31, 2014, representing an improvement of $729,000 or 93.9%.   
  • Operating loss for the three months ended March 31, 2015 was $1.79 million, compared to an operating loss of $2.86 million for the three months ended December 31, 2014, representing an improvement of $1.07 million or 37.4%.
  • Net loss for the three months ended March 31, 2015 was $1.17 million, compared to a net loss of $1.90 million for the three months ended December 31, 2014, representing an improvement of $0.73 million or 38.4%.

Management Commentary 

As previously released, our first quarter results were disappointing as anticipated but they do not diminish our confidence that 2015 should be a year of improvement. 

First quarter sales were lower largely due to the tougher economic environment starting in late 2014 that has resulted in potential orders being pushed out.  Order delays or postponements are not necessarily cancellations and we continue to believe that many of these orders will be realized in subsequent quarters.

Sales of diesel particulate filters (DPF) have leveled out at a low level due primarily to continued decreased mandate activity in the United States.

Our new strategy of focusing on a limited number of key markets and developing total water-related solutions and systems is resonating with our customers. Since we implemented our new strategy late last year, our sales pipeline has showed good improvement in quality and has more than doubled in value.

We are beginning to see the first orders from our improved sales pipeline and we are very pleased to report a strong first quarter increase in our order intake, with year-on-year orders up 129% from the same quarter last year.  Our order intake in Q1 2015 was $5.79 million, up from $2.53 million (adjusted for currency effects) in Q1 2014.

With the significant improvement in first quarter order intake and our strong pipeline of high quality projects, we remain confident that the company will make progress this year.

Conference Call Details:

Interested parties may participate in the call by dialing (877) 407-8029 or (201) 689-8029. It is recommended to dial in approximately 10 to 15 minutes prior to the scheduled start time. The conference call will also be available on replay starting at 3:00 p.m. EDT on May 14, 2015 and ending on May 28, 2015. To access the replay, please dial (877) 660-6853 and enter the conference id# 13609708. The access number for the replay for international callers is (201) 612-7415.

Callers from Denmark can dial in using the following numbers:

Denmark (fixed) ATT                  802 521 64
Denmark (mobile) ATT               802 519 17

ABOUT LIQTECH INTERNATIONAL, INC.

LiqTech International, Inc., a Nevada corporation, is a clean technology company that for more than a decade has developed and provided state-of-the-art technologies for gas and liquid purification using ceramic silicon carbide filters, particularly highly specialized filters for the control of soot exhaust particles from diesel engines and for liquid filtration.  Using nanotechnology, LiqTech develops products using proprietary silicon carbide technology.  LiqTech's products are based on unique silicon carbide membranes which facilitate new applications and improve existing technologies.  In particular, Provital Solutions A/S (www.provital.dk/), the Company's subsidiary, has developed a new standard of water filtration technology to meet the ever increasing demand for higher water quality.  By incorporating LiqTech's SiC liquid membrane technology with its longstanding systems design experience and capabilities it offers solutions to the most difficult water pollution problem.

For more information, please visit: www.liqtech.com

Follow LiqTech on LinkedIn: http://www.linkedin.com/company/liqtech-international

Follow LiqTech on Twitter: https://twitter.com/LiqTech

Forward-Looking Statements

This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

-Financial Charts Follow-

 

LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS




As of



As of




March 31,



December 31,




2015



2014




UNAUDITED






Current Assets:









Cash


$

3,079,788



$

5,853,752


Restricted cash balances



193,662




218,879


Accounts receivable, net



1,841,277




1,992,206


Other receivables



167,206




344,331


Cost in excess of billing



742,757




1,172,658


Inventories



4,763,769




4,914,866


Prepaid expenses



110,832




55,990


Current deferred tax asset



71,340




109,637











Total Current Assets



10,970,631




14,662,319











Property and Equipment, net accumulated depreciation



4,027,685




4,524,386











Other Assets:









Other investments



5,365




6,085


Long term deferred tax asset



3,696,780




3,496,459


Goodwill



7,459,659




8,460,512


Other intangible assets



13,603




16,708


Deposits



229,116




259,070











Total Other Assets



11,404,523




12,238,834











Total Assets


$

26,402,839



$

31,425,539


  (Continued)

LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS




As of



As of




March 31,



December 31,




2015



2014




UNAUDITED






Current Liabilities:









Current portion of capital lease obligations


$

147,710



$

170,187


Accounts payable



1,430,807




2,336,942


Accrued expenses



1,029,412




1,439,735


Accrued income taxes payable



-




570


Deferred revenue / customers deposits



71,727




144,476











Total Current Liabilities



2,679,656




4,091,910











Long-term capital lease obligations, less current portion



272,873




368,614











Total Long-Term Liabilities



272,873




368,614











Total Liabilities



2,952,529




4,460,524











Stockholders' Equity:









Common stock; par value $0,001, 100,000,000 shares authorized, 39,404,782 and 39,404,782 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively



39,405




39,405


Additional paid-in capital



35,632,410




35,632,410


Accumulated deficit



(6,554,264)




(5,382,852)


Deferred compensation



(431,826)




(504,748)


Other comprehensive income, net



(5,215,177)




(2,835,917)


Non-controlled interest in subsidiaries



(20,238)




16,717











Total Stockholders' Equity



23,450,310




26,965,015











Total Liabilities and Stockholders' Equity


$

26,402,839



$

31,425,539


 

LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES

(UNAUDITED) CONSOLIDATED STATEMENTS OF OPERATIONS




For the Three Months Ended




March 31,




2015



2014


Net Sales


$

2,104,501



$

3,197,502


Cost of Goods Sold



2,151,467




2,642,374











Gross Profit



(46,966)




555,128











Operating Expenses:









Selling expenses



692,723




669,547


General and administrative expenses



816,067




672,657


Non-cash compensation expenses



72,922




220,418


Research and development expenses



162,473




100,586











Total Operating Expense



1,744,185




1,663,208











Loss from Operations



(1,791,151)




(1,108,080)











Other Income (Expense)









Interest and other income



243




3,195


Interest expense



(15,186)




(11,521)


Gain (loss) on investments



7,366




(2,119)


Gain on currency transactions



233,191




2,787











Total Other Income (Expense)



225,614




(7,658)











Loss Before Income Taxes



(1,565,537)




(1,115,738)











Income Tax Benefit



(391,529)




(358,442)











Net Loss



(1,174,008)




(757,296)











Less Net Loss Attributable To Non-Controlled Interests in Subsidiaries



(2,596)




(1,861)











Net Loss Attributable To LiqTech


$

(1,171,412)



$

(755,435)











Basic Loss Per Share


$

(0.03)



$

(0.03)











Weighted Average Common Shares Outstanding



39,404,782




27,212,500











Diluted Loss Per Share


$

(0.03)



$

(0.03)











Weighted Average Common Shares Outstanding Assuming Dilution



39,404,782




27,212,500


 

CONTACT:

Wolfe Axelrod Weinberger Associates, LLC 
Stephen D. Axelrod, CFA/Donald C. Weinberger 
(212) 370-4500, (212) 370-4505 fax 
steve@wolfeaxelrod.com, don@wolfeaxelrod.com 

SOURCE LiqTech International, Inc.



RELATED LINKS

http://www.liqtech.com