Xebec Announces 2017 First Quarter Operating Results Reports Revenue Growth of 35%, EBITDA at 22% and 17% Net Profit
MONTREAL (QC), May 24, 2017 - Xebec Adsorption Inc. (TSXV: XBC) ("Xebec"), a provider of gas generation, purification, and filtration solutions announced today its 2017 first quarter operating results.
• Revenues of $3.3 million for the first quarter of 2017 compared to $2.5 million for the same quarter in 2016, a 34.9% increase compared to the same period in 2016.
• Gross profit of $1.4 million or 43.3% of revenues for the first quarter of 2017 compared to $0.4 million for the same quarter in 2016, a 298% increase compared to the same period in 2016.
• Net earnings of $0.6 million or $0.01 per share for the three month period ending March 31, 2017 compared to a net loss of $1.1 million or $0.03 per share for the same period in 2016, an improvement of $1.6 million.
• Positive EBITDA of $0.7 million for the three month period ending March 31, 2017 compared to a negative EBITDA of $0.9 million for the same period in 2016, an improvement of $1.6 million.
• Backlog increased by $3.0 million, from $5.7 million in May 30, 2016 to $8.7 million in May 23, 2017.
• Selling and administrative expenses decreased by $0.2 million in the first quarter of 2017 compared to the same quarter of 2016.
As of March 31, 2017, the Company had $0.8 million of cash on hand and improved its working capital deficit from ($1.2) million at December 31, 2016 to ($0.1) million at March 31, 2017.
Current Market Conditions and Guidance for 2017
Current market conditions are favorable in the Industrial, Cleantech and Oil & Gas segments, allowing us to plan for significant increases in total revenue in 2017. Xebec expects revenue growth of 60% to 80% for 2017 compared to 2016, leading to revenues in the range of CDN$ 14 to 17 million. For Fiscal 2017 Xebec expects consolidated earnings per share (EPS) in the range of 0.01 to 0.03.
Clean Technology – Hydrogen and Renewables
Since the middle of 2016, Xebec has made significant progress on order bookings for its Cleantech products. Xebec has seen its market for renewable gas units (RNG) increase significantly in Europe, especially since it announced a break-through in its adsorption technology that will improve methane recovery, reduce operating costs and, therefore, improve profitability for its customers. Xebec anticipate further opportunities in its hydrogen purification for fuel cell applications. Segment revenue is anticipated to grow strongly in 2017.
Oil and Gas Processing
After two years of development work, Xebec has started commercialization of its membrane products under the “MTX Solutions®” brand. Xebec has several planned deployments of membranes into existing operating plants for client verification purposes. These test deployments will be on a “test & pay” basis, i.e. if the tests are successful the client will have to pay for the membranes that have been installed. As we move through the year, Xebec expects an acceleration in revenue generation in this segment. Xebec has started to quote complete gas treatment systems to selected customers, and expects that this quotation activity will lead to first sales orders for complete systems within the next 12 to 18 months.
With these advanced membrane systems for CO2 removal from natural gas, Xebec offers operators a significant reduction in operating costs, which is particularly important if the underlying commodity (natural gas) is depressed in price. Xebec expects initial “test & pay” revenues for 2017 to accelerate as the year progresses.
Industrial Compressed Air and Gas Treatment
Since 2015, Xebec has been working on completing its product portfolio with additional complementary products and services: refrigerated air dryers, modular air dryers, vacuum regenerated air dryers, nitrogen and oxygen generators, including specialized air and gas filters for stationary and mobile applications. Xebec expects solid growth in this segment in 2017.
2017 First 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 three-month period ended March 31, 2017, 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 renewable energy through gas purification and generation, 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, Europe, and Asia. Xebec trades on the TSX Venture Exchange under the symbol XBC. For additional information on the company, its products and services, please visit the Xebec website at www.xebecinc.com.
Caution Concerning Forward-Looking Statements
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. 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 involves 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, and 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.
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