Pure Technologies Announces First Quarter 2014 Results and Declares Quarterly Dividend
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SOURCE Pure Technologies Ltd.
CALGARY, May 12, 2014 /CNW/ - Pure Technologies Ltd. ("Pure" or the
"Company") (TSX: PUR) announces its financial performance for the three
month period ended March 31, 2014. For the first quarter, the Company
recorded revenue of $12.6 million, EBITDA of $99,000 and profit of
$607,000. This compares to revenue of $12.4 million, EBITDA of $504,000
and a loss of $1.2 million in the first quarter of last year.
"Following a strong 2013, Pure captured record backlog and delivered
sound quarterly results," said Jamie Paulson, Chairman of Pure.
"Backlog is more than $75 million as a result of new, long-term
contracts awarded by existing customers. This is an increase of over
50% compared to December figures. The major contributor was the
Miami-Dade award which is our largest North American contract to date,
and highlights our client's commitment to a cost-effective, proactive
asset management strategy for critical water pipelines. We expect to be
awarded additional long-term contracts from new and existing customers
over time. Backlog does not include yearly recurring revenues of more
than $7 million expected from pipeline monitoring and technical
support. Early this year we also announced our first ever dividend
payment to shareholders, a major Company milestone, reflecting Pure's
strong capital position, cash flow generation and our confidence to
enhance shareholder return while continuing with investments important
to the Company's growth."
Table of Selected Financial Results: For further details on the results, please refer to Pure's Management
Discussion and Analysis (MD&A) and Consolidated Financial Statements
which are available on the Company's website (www.puretechltd.com).
($000's CAD, unless otherwise
indicated and per share amounts)
Three months ended March 31, 2014
Three months ended March 31, 2013
Cost of sales
Gross margin (%)
Profit (loss) for the period
Per share - basic
Per share - diluted
Three months ended March 31, 2014
Total quarterly revenue increased to $12.6 million from $12.4 million in
the prior quarter primarily from Equipment sales (17% of total) growing
by 43% due to new customers in the U.S., and Consulting revenue (20% of
total) increasing by 59% from new pipeline condition assessment
programs added in the Americas and Australia.
Total operating expenses were $11.0 million compared to $10.6 million in
the prior quarter. The overall increase is from Marketing expenses (27%
of total) up 25% and Engineering and Operations (45% of total) up 9%,
reflecting business development initiatives and additional technical
staff to manage future work.
EBITDA of $99,000 compared to $504,000 in the prior quarter, and profit
of $607,000 compared to a loss of $1.2 million in the prior period.
Profit for the quarter resulted from the recognition of deferred tax
assets accumulated in prior periods.
Working Capital at March 31, 2014 was $75.2 million.
Includes $36.6 million in cash and no debt.
Business, Operations & Outlook
The Americas region, Pure's main growth area, generated 87% of total
revenue for the quarter and increased 12% compared to the prior period.
Some projects, previously planned for the first quarter, have been
moved by our clients to accommodate their schedules; the second half of
the year is expected to be very busy for the Company. Preparations
continue for these major condition assessment programs aimed to extend
the useful life of water pipelines.
Pure made announcements during the quarter underscoring the strength and
stability of its business and operations. Pure was awarded with a new
US$23.2 million, four year contract by a long-term client in
Miami-Dade. This award demonstrates the client's commitment to a
cost-effective, proactive asset management strategy for their critical
water pipeline assets and adds to the work Pure has performed since
2010. It is expected that additional long-term programs, which will
include engineering and condition assessment services for water and
wastewater pipelines, will be put into place with existing customers.
In addition, Pure announced its first ever dividend payment to
shareholders, a major Company milestone. This significant development
reflects Pure's strong capital position and its confidence to enhance
shareholder return while continuing with investments important to the
Company's growth. Pure's business is characterized by low capital
expenditures, stable Research & Development expenditures, significant
recurring revenues, growing cash flow and expanding addressable
markets. These attributes will allow the Company's Board of Directors
to consider future dividend increases over time.
The Company's Board of Directors has declared a quarterly dividend of
$0.03 per common share ($0.12 per common share annualized), payable on
June 13, 2014 to shareholders of record on May 30, 2014. Pure's first
ever dividend was paid on April 15, 2014 to shareholders of record as
of the close of business on March 31, 2014.
The Company hereby notifies all shareholders that the dividend payable
on June 13, 2014 will be designated as an "eligible dividend" for
Canadian income tax purposes pursuant to subsection 89(14) of the
Income Tax Act (Canada).
The Company further advises that Dr. Helge Daebel (Director since March
1, 2012) will not stand for re-election at the annual meeting of
shareholders to be held on May 13, 2014.
"On behalf of our management team and Board of Directors, I want to
thank Helge for his valuable service and contributions to the Company
and its shareholders," said Jamie Paulson, Chairman of Pure.
A teleconference will be held to discuss these results on May 13, 2014,
at 10:30 am ET. Presentation slides will be made available on the
Company's website prior to the call.
Teleconference: The telephone numbers for the conference are toll-free 1-888-231-8191
(within North America) and 647-427-7450 (Local / International). Please
provide the operator with the Conference Call ID or Topic when dialing
in to the call.
Conference ID: 31132796
Topic: Pure Technologies Ltd., 2014 First Quarter Results
A replay will be available approximately two hours after the call and
will be available for two weeks. Access the replay by calling
1-855-859-2056 (toll-free within North America) or 416-849-0833 (Local
/ International). Use the following Passcode followed by the number
Webcast & Presentation Slides: Investors will be able to listen to the conference over the Internet as
well as access presentation slides (in pdf format) to follow along
during the call.
Links to the webcast and presentation slides will be available
approximately 30 minutes prior to the call on Pure's website. Under the
"Investors" main menu tab, select "Presentations and Webcasts".
The webcast will be archived for 90 days.
About Pure Technologies Ltd.
Pure Technologies Ltd. is an international asset management technology
and services company which has developed patented technologies for
inspection, monitoring and management of critical infrastructure around
the world. Pure's business model incorporates four distinct but
complementary business streams:
Sales of proprietary monitoring technologies for pipelines, bridges and
structures (SoundPrint®, SoundPrint® AFO);
Recurring revenuefrom data analysis and site maintenance for these technologies, and from
Specialized engineering servicesin areas related to asset management, primarily in the area of pipeline
condition assessment for water and wastewater infrastructure.
This release contains forward-looking statements. Forward-looking
statements, without limitation, may contain the words "believes",
"expects", "anticipates", "estimates", "intends", "plans", or similar
expressions. Forward-looking statements are not guarantees of future
performance. They involve risks, uncertainties and assumptions and the
Company's actual results could differ materially from those
anticipated. Forward-looking statements are based on the opinions and
estimates of Management at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
projected in the forward-looking statements. In the context of any
forward-looking information please refer to risk factors detailed in,
as well as other information contained in, the Company's filings with
Securities Regulators (www.sedar.com).
® Registered Trademarks, property of Pure Technologies Ltd.
"The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release"
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