Questor Technology Inc. Announces Second Quarter 2009 Financial Results
Thu Aug 27, 9:37 AMCALGARY, ALBERTA--(Marketwire - Aug. 27, 2009) - THIS DOCUMENT IS NOT INTENDED FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES.
Questor Technology Inc. ("Questor" or the "Company") (TSX VENTURE: QST.V) announced today its financial and operating results for the three-month and six-month periods ended June 30, 2009. The Company reported net income of $21,031 ($0.001 per basic share) for the second quarter of 2009 and net income of $103,720 ($0.004 per basic share) for the six months ended June 30, 2009 compared to a net loss of $169,877 ($0.007 per basic share) for the second quarter of 2008 and a net loss of $234,925 ($0.01 per basic share) for the six months ended June 30, 2008.
Financial Results Summary
($ unless otherwise noted)
Three months ended Six months ended
June 30 June 30
For the 2009 2008 2009 2008
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Total revenue 1,228,584 387,164 2,391,780 1,013,257
Gross margin(1) 369,863 (27,278) 813,838 75,876
EBITDA(1) 94,532 (161,590) 249,691 (185,739)
Net income (loss) 21,031 (169,877) 103,720 (234,925)
Funds generated from
(used in) operations(1) 101,807 (265,718) 265,761 (253,706)
Total assets 6,434,159 5,703,009 6,434,159 5,703,009
Long-term liabilities 44,596 31,934 44,596 31,934
Shares outstanding
(thousands)(2)
Basic 24,007 23,795 24,007 23,795
Diluted 24,710 23,795 24,710 23,795
Net income (loss) per share
- Basic and diluted $ 0.001 $ (0.007) $ 0.004 $ (0.010)
(1) Non-GAAP financial measure. Please see discussion in the Non-GAAP
Financial Measures section of the Company's Management's Discussion and
Analysis for the three and six months ended June 30, 2009.
(2) Weighted average.
"We are pleased with our profitability during the first six months of 2009, a period of considerable economic uncertainty. Compared to the first half of 2008, Questor's total revenue increased $1.4 million, or 136%. We remain focused on managing the business and maintaining this momentum during the continued low natural gas price environment," said Audrey Mascarenhas, President and Chief Executive Officer. "But the second half of the year will not be without its challenges. We are observing a general delay in purchasing decisions as our clients continue to cope with the current economic environment. And because Questor's activities are positively correlated to the oil and gas industry's prospects, an extended period of lower commodity prices and capital spending may impact Questor's results in the short term." Ms. Mascarenhas added, "To mitigate the effects of economic uncertainty, Questor continues to develop new air quality solutions compatible with existing technology and alternate markets for application of the technology. One of Questor's strengths is its ability to design products for specific operational needs of its clients. Due to changing and more stringent legislation in the United States, Questor recognizes that there is a growing market for the efficient combustion of waste gases characterized by low flow and lower heat content. For these situations in the United States and elsewhere, Questor has recently developed a scaled-down version of its successful, larger incinerators and has developed a new incinerator that will, through design and fabrication efficiencies, perform to meet and exceed new regulatory standards while remaining cost competitive. Questor also continues to pursue its research of the recovery of excess heat to be made available to facility processes. We expect to be at the testing stage later this year and the first commercially available unit would be introduced following completion of this phase. "Given the global attitude evolving towards the effect of climate change and the corresponding shift in corporate responsibility for sustainable development, we remain optimistic about Questor's future," concluded Ms. Mascarenhas. The Company continues to build brand awareness and recognition for its expertise in matters relating to air quality as demonstrated by its invitation to present at several conferences worldwide. Ms. Mascarenhas has committed to participate at the following events in the coming months: - Global Gas Flaring: A Burning Concern Summit in New Delhi, India on Friday, September 18, 2009 at 2:30 p.m. (IST) on the topic of "Curbing Climate Change: A Simple and Sustainable Solution" during the "Emerging Gas Utilization Technologies: Possibilities and Barriers" portion of the international Summit; - 2009 Northeast BC Energy Conference in Dawson Creek, British Columbia, Canada on Thursday, September 24, 2009 at noon (PDT) on the topic of "Waste Gas Combustion: Economic, Efficient and Effective"; - Acid Gas Injection Symposium in Calgary, Alberta, Canada on Monday, October 5, 2009 at 1:00 p.m. (MDT) on the topic of "Acid Gas: When to Inject and When to Incinerate"; and - Managing Total Emissions Conference in Calgary, Alberta, Canada on Thursday, November 19, 2009 at 2:30 p.m. (MST) on the topic of "Best Practices for the Combustion and Conservation of Solution and Waste Gas". A copy of each presentation will be made available on the Company's website. Questor's second quarter 2009 financial statements and notes thereto and Management's Discussion and Analysis for the three months and six months ended June 30, 2009 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 is an international environmental oil field service company founded in late 1994 and headquartered in Calgary, Alberta, Canada with a field office located in Grande Prairie, Alberta, Canada. The Company is focused on clean air technologies with activities in Canada, the United States, Europe and Asia. Questor designs and manufactures high efficiency waste gas incinerators for sale or for use on a rental basis and also provides combustion-related field services. The Company's proprietary incinerator technology destroys noxious or toxic hydrocarbon gases which ensures regulatory compliance, environmental protection, public confidence and reduced operating costs for clients. Questor is recognized for its particular expertise in the combustion of sour gas (H2S). While the Company's current client base is primarily in the oil and gas industry, this technology is applicable to other industries such as landfills, water and sewage treatment, tire recycling and agriculture. Questor trades on the TSX Venture Exchange under the symbol "QST". 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.
QUESTOR TECHNOLOGY INC.
BALANCE SHEETS
(unaudited)
June 30 December 31
As at 2009 2008
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ASSETS
Current assets
Cash and cash equivalents $ 3,107,827 $ 3,259,037
Accounts receivable 1,578,137 1,761,597
Income and other taxes receivable 29,973 6,226
Inventory 400,796 384,914
Prepaid expenses and deposits 41,861 80,340
Deferred expenses 31,045 29,160
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5,189,639 5,521,274
Property and equipment 1,214,339 1,176,529
Intangibles 30,181 44,680
Deferred expenses - 30,575
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$ 6,434,159 $ 6,773,058
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 397,903 $ 667,792
Current portion of long-term debt 27,886 37,498
Income and other taxes payable 8,346 285,795
Deferred revenue and deposits 218,729 146,707
Future income tax liability - 9,281
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652,864 1,147,073
Long-term debt 5,077 15,232
Other long-term liabilities - 30,575
Future income tax liability 39,519 26,710
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697,460 1,219,590
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Shareholders' equity
Share capital 5,265,736 5,265,736
Contributed surplus 363,063 283,552
Retained earnings 107,900 4,180
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5,736,699 5,553,468
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$ 6,434,159 $ 6,773,058
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QUESTOR TECHNOLOGY INC.
STATEMENTS OF INCOME, COMPREHENSIVE INCOME
AND RETAINED EARNINGS (DEFICIT)
(unaudited)
Three months ended Six months ended
June 30 June 30
For the 2009 2008 2009 2008
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Revenue
Incinerator sales and
services $ 932,382 $ 16,727 $ 1,504,974 $ 294,364
Incinerator rentals and
services 132,024 108,970 571,294 353,384
Combustion services 115,169 71,658 261,175 158,110
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1,179,575 197,355 2,337,443 805,858
Less: Direct costs 809,712 224,633 1,523,605 729,982
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369,863 (27,278) 813,838 75,876
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Other revenue 49,009 189,809 54,337 207,399
Expenses
General and
administrative 333,592 320,642 698,219 626,936
Foreign exchange loss
(gain) 20,980 31,619 (21,359) (100,894)
Depreciation and
amortization 10,369 10,237 20,626 19,933
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364,941 362,498 697,486 545,975
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Income (loss) before
interest expense and
income tax expense 53,931 (199,967) 170,689 (262,700)
Interest expense
Short-term debt - 4,176 322 4,497
Long-term debt 504 504 1,008 1,008
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Income (loss) before
income tax expense 53,427 (204,647) 169,359 (268,205)
Income tax expense
Current income tax 33,532 37,711 62,111 37,711
Future income tax
(recovery) (1,136) (72,481) 3,528 (70,991)
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Net income (loss) and
comprehensive income
(loss) 21,031 (169,877) 103,720 (234,925)
Retained earnings
(deficit), beginning
of period 86,869 (688,924) 4,180 (623,876)
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Retained earnings
(deficit), end of
period $ 107,900 $ (858,801) $ 107,900 $ (858,801)
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Net income (loss) per
share
Basic and diluted $ 0.001 $ (0.007) $ 0.004 $ (0.010)
Weighted average number
of shares outstanding
Basic 24,007,370 23,794,870 24,007,370 23,794,870
Diluted 24,709,526 23,794,870 24,553,537 23,794,870
QUESTOR TECHNOLOGY INC.
STATEMENTS OF CASH FLOWS
(unaudited)
Three months ended Six months ended
June 30 June 30
For the 2009 2008 2009 2008
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Operating activities
Net income $ 21,031 $ (169,877) $ 103,720 $ (234,925)
Items not involving cash:
Depreciation and
amortization 40,601 38,377 79,002 76,961
Future income taxes (1,136) (72,481) 3,528 (70,991)
Share-based compensation 41,311 37,531 79,511 74,517
Gain on disposition of
assets - (99,268) - (99,268)
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101,807 (265,718) 265,761 (253,706)
Net change in non-cash
working capital (154,887) (516,327) (296,382) (249,371)
Foreign exchange loss
(gain) on cash 47,694 34,451 30,149 (82,772)
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(5,386) (747,594) (472) (585,849)
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Investing activities
Additions of property
and equipment (30,303) (10,033) (100,823) (30,435)
Dispositions of property
and equipment - 139,733 - 139,733
Decrease to development
costs - 9,373 - -
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(30,303) 139,073 (100,823) 109,298
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Financing activities
Increase to short-term
debt - 296,710 - 219,559
Repayment of long-term
debt (9,883) (15,067) (19,766) (32,251)
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(9,883) 281,643 (19,766) 187,308
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Effect of exchange rates
on cash (47,694) (34,451) (30,149) 82,772
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Decrease in cash and cash
equivalents (93,266) (361,329) (151,210) (206,471)
Cash and cash equivalents,
beginning of period 3,201,093 2,908,855 3,259,037 2,753,997
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Cash and cash equivalents,
end of period $3,107,827 $2,547,526 $3,107,827 $2,547,526
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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.ContactsAudrey Mascarenhas Questor Technology Inc.
President and Chief Executive Officer
(403) 571-1530
(403) 571-1539 (FAX)
Email: amascarenhas@questortech.com
Website: www.questortech.com
158.94 (1.43%)
