Xebec Announces Fourth Quarter and Year-End 2017 Financial Results
Reports a Turn-Around Year, Improving Gross Margins and Increasing Order Backlog
MONTREAL (QC), April 25, 2018 - Xebec Adsorption Inc. (TSXV: XBC) ("Xebec"), a global provider of gas generation, purification and filtration solutions announced today its 2017 fourth quarter and full year financial results.
- Significant increase of 60% in order backlog to $13.9 million as of April 23, 2018. This
indicates significant anticipated revenue growth for 2018.
- Revenues of $3.3 million were stable for the fourth quarter of 2017 and 2016
- Revenues of $14.7 million in fiscal 2017 compared to $9.6 million for the same period in 2016, a 54% increase
- Positive EBITDA at $1.1 million for 2017 compared to $(2.0) million in 2016, an improvement of $3.1 million
- Net profit of $0.1 million or $0.002/share in fiscal 2017 compared to a net loss of $2.7 million or $(0.07)/share for the same period in 2016, an improvement of 2.8M
- Positive working capital improved to $1.8 million for a positive current ratio of 1.3:1 compared with a negative working capital of $1.2 million and a 0.8:1 ratio in December 31, 2016.
Xebec posted revenues of $ 3.3 million for the fourth quarter of 2017, same as for the fourth quarter 2016
For the twelve-month period ended December 31, 2017, total revenues amounted to $14.7 million compared to $9.6 million for the corresponding period. This increase of $5.1 million is mainly explained by the increase of revenues for the Clean Technology segment and some sales from the Oil & Gas sector
As of April 23, 2018, total order backlog stood at $13.9 million, compared to $8.7 million as at May 23, 2017, an increase of $5.2 million or 60%.
Xebec’s gross margin as a % of revenues for the fourth quarter of 2017 amounted to 31.2% or $1.0 million compared to 30.6%, or $1.0 million in the same period of last year.
For the twelve-month period ended December 31, 2017 the gross margin stood at 39.1%, up by 16.5% compared to the same period last year. Margins improved mainly due to the mix of sales having higher gross margins and a better absorption of the fixed costs.
EBITDA and Net loss
The EBITDA for the fourth quarter of 2017 amounted to $(0.26) million compared to $0.01 million in the fourth quarter of 2016. This decrease is mainly explained by the significant effort to expand our marketing and sales activities, hire key personnel, increased IR activities and costs related to the issuance of convertible debentures in the final quarter of the year
For the twelve-month period ended December 31, 2017 the EBITDA amounted to $1.1 million, compared to $(2.0) for the same period in 2016, an improvement of $3.1 million. The improvement resulted mainly from a higher volume of revenue and the improvements in the margins.
The net loss for the fourth quarter of 2017 totaled $(0.92) million, or $(0.018) per share, compared to a net loss of $(0.12) million, or $(0.003) per share for the same 2016 period. The change is primarily due to increased sales and marketing efforts, the hiring of key personnel and increase of financial expenses related to issuance of convertible debentures
Net profit for the twelve-month period ended December 31, 2017 amounted to $0.09 million, or $0.002 per share, compared to a net loss of $(2.67) million or $(0.07) per share, for the same period in 2016. The change is primarily due to higher volume of revenue, improvement of margins, and a gain on an insurance claim, partially offset by a lower gain on conversion of shares issued by a subsidiary.
Selling and administrative expenses for the fourth quarter of 2017 increased significantly by $0.6 million to $1.6 million from $1.0 million. This is primarily due to higher expenses related to sales and marketing, the hiring of key personnel and costs related to the issuance of convertible debentures.
For the twelve-month period ended December 31, 2017, the selling and administrative expenses increased by $0.9 million or 20.0% to $5.22 million. This is primarily due to the granting of stock options to directors, officers and employees, to an increase of selling expenses related to higher sales and the hiring of key personnel.
As of December 31, 2017, the Company had $1.3 million cash on hand and a positive working capital of $1.8 million
2017 Fourth 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 December 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 gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multi-national corporations and governments looking to reduce their carbon footprints. Headquartered in Montreal (QC), Xebec designs, engineers and manufactures innovative and transformative products, and has more than 1,500 customers worldwide. With two manufacturing facilities in Montreal and Shanghai, as well as a sales 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, visit Xebec at xebecinc.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. 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. For more information:
CONTACT: Kurt Sorschak, President and CEO, 450-979-8701, firstname.lastname@example.org