TORONTO, ONTARIO--(Marketwired - May 1, 2017) - Eurocontrol Technics Group Inc. (TSX VENTURE:EUO)(EUCTF) ("Eurocontrol" or the "Company"), a Canadian public company specializing in the acquisition, development and commercialization of innovative test and measurement technologies for industry with application systems focused on the energy security, semiconductor and precision farming sectors, announces that it has filed its audited financial statements and Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2016.
The year end results reflect a 31% increase in fiscal year revenue to $1,664,737 compared to $1,271,111 for the year ended December 31, 2015 from continuing operations. The Company recognized EBITDA of $13,188,544 ($161,790 in 2015) resulting in net income of $11,533,824 for the year compared to $1,627,042 for the year ended December 31, 2015. Included below is a summary table outlining earnings for the fiscal year and for the three month period compared to the corresponding 2015 period which is followed by a description of recent developments.
Included in the financial statements are discontinued operations relating to the Company's sale of its former wholly owned subsidiary, Global Fluids International (GFI) S.A. (GFI), to SICPA S.A. ("SICPA"), a private Swiss company that is a global leader in the provision of secured identification, traceability and authentication solutions and services, on January 4, 2016 in exchange for $16 million in cash (less transaction payments) and post closing earn-out payments equal to 5% of the net revenues earned by SICPA GFI from contracts entered into (between January 4, 2016 ending January 4, 2022), with a minimum guaranteed of $1.5 million per year for the six year earn-out period (total payment of at least $9,000,000). The Company, through its wholly owned subsidiary, Xenemetrix, entered into a strategic exclusive long term supply, maintenance and support agreement, pursuant to which Xenemetrix will continue to supply to SICPA GFI, Xenemetrix products and services for the oil and gas marking and monitoring field. Further details relating to this sale transaction can be obtained from the Company's continuous disclosure documents including the MD&A for the year ended December 31, 2016.
Bruce Rowlands, Chairman and Chief Executive Officer stated: "We are pleased with the year over year increase in revenues of close to 31% from our operating subsidiary Xenemetrix which was achieved as a direct result of the investment in R&D that we made to update the Xenemetrix ED-XRF product line. R&D investment was also made to refine the development of our semiconductor metrology inspection systems developed by XwinSys and in investigating new ways to utilize ED-XRF technology to develop new markets. Our introduction of state of the art, disruptive technology across all three subsidiaries, Xenemetrix, XwinSys and Croptimal, is a testament to our strong innovation team in Israel and we look forward in 2017 to our technology advances being recognized through commercialization."
Three Months Ended December 31,
Year Ended December 31,
2016
2015
2016
2015
$
$
$
$
Revenue:
- from continuing operations
717,253
402,312
1,664,737
1,271,111
- from discontinued operations
-
1,848,245
-
6,638,331
Total revenue
717,253
2,250,557
1,664,737
7,909,442
Cost of sales:
- from continuing operations
Cost of sales - direct production costs
(390,173)
(273,456)
(842,041)
(657,012)
Cost of sales - amortization and other non cash items
(44,348)
(44,348)
(177,393)
(177,393)
(434,521)
(317,804)
(1,019,434)
(834,405)
- from discontinued operations
Cost of sales - direct production costs
-
(727,813)
-
(2,272,288)
Cost of sales - amortization and other non cash items
-
(68,951)
-
(275,809)
-
(796,764)
-
(2,548,097)
Gross profit - continuing operations
282,732
84,508
645,303
436,706
Gross profit - discontinued operations
-
1,051,481
-
4,090,234
Expenses - continuing operations
(1,487,348)
(1,568,736)
(6,854,628)
(4,267,901)
Expenses - discontinued operations
-
(182,458)
-
(869,820)
Other (expense) income - continuing operations
196,381
(90,631)
950,977
98,172
Other (expense) income - discontinued operations
-
9,341
-
58,554
Income tax recovery - continuing operations
-
2,109,000
308,000
2,109,000
Income tax expense - discontinued operations
-
(9,212)
-
(27,903)
Gain on sale of subsidiary - discontinued operations
-
-
16,484,172
-
Net income (loss) - continuing operations
(1,008,235)
534,141
(4,950,348)
(1,624,023)
Net income (loss) - discontinued operations
-
869,152
16,484,172
3,251,065
Net income (loss)
(1,008,235)
1,403,293
11,533,824
1,627,042
Basic loss per share
- from continuing operations
(0.01)
-
(0.05)
(0.02)
- from discontinued operations
0.00
0.01
0.18
0.04
- net income (loss)
(0.01)
0.02
0.13
0.02
Diluted loss per share
- from continuing operations
(0.01)
-
(0.05)
(0.02)
- from discontinued operations
0.01
0.01
0.18
0.04
- net income (loss)
(0.01)
0.02
0.12
0.02
EBITDA
(1,146,971)
(540,772)
13,188,544
161,790
EBIT
(1,205,722)
(679,372)
12,957,819
(386,756)
Financial and Operating Highlights *
Achieved annual revenue of $1,664,737 from continuing operations, a 31% increase from year end 2015 revenue of $1,271,111
Achieved fourth quarter revenue from continuing operations of $717,253 compared to $402,312, a 78% increase
Recognized annual EBITDA of $13,188,544 compared to $161,790 in 2015
Recognized annual income of $11,533,824 compared to $1,627,042 for the 2015 fiscal year
2016 investment in R&D increased by approximately 81% to $2,958,595 towards finalizing the integration of our ED-XRF technology with automated 2D and 3D image processing technologies for the semiconductor and related microelectronics industries and updating the ED-XRF product line.
* Certain comparative figures have been reclassified to conform to the current year's presentation. These reclassifications did not affect prior years' net losses.
About Eurocontrol Technics Group Inc.
Eurocontrol is a TSX Venture and OTCQB traded company that specializes in the acquisition, development and commercialization of innovative test and measurement technologies for industry with application technologies focused on the energy security, semiconductor and precision farming sectors based on Xenemetrix's core technological platform of ED-XRF. Eurocontrol has three wholly owned subsidiaries, Xenemetrix Ltd., XwinSys Technology Development Ltd. and Croptimal Ltd. and an agreement with SICPA S.A. for semi-annual earn-out payments of 5% (minimum $9 million over six years) on revenues generated from the oil and gas marking and monitoring field relating to the sale of its former subsidiary Global Fluids International (GFI) S.A. Xenemetrix is a leading designer, manufacturer and marketer of ED-XRF systems, a technology that is the most accurate and economic method for determining the chemical composition of many types of materials, including the analysis of petroleum oils and fuel. Xenemetrix has an exclusive long-term supply, maintenance and support agreement with SICPA/GFI to supply SICPA/GFI with Xenemetrix products and services related to the oil and gas marking and monitoring field. XwinSys has developed a patented, fully automated metrology system for the semiconductor industry that combines 2D and 3D image processing technology with Xenemetrix's ED-XRF technology. Croptimal, is introducing a new mobile ED-XRF spectroscopic material analysis laboratory for the precision agriculture industry that could dramatically change agricultural testing methodology and increase crop yields.
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Forward-Looking Statements:
This press release contains forward-looking statements. More particularly, this press release contains statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. The forward-looking statements are based on certain key expectations and assumptions made by Eurocontrol. Although Eurocontrol believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Eurocontrol can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release are those set out in Eurocontrol's management discussion and analysis of the financial condition and results of operations for the year ended December 31, 2016 which is available on the Corporation's profile at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and Eurocontrol undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
