Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) today reported its third quarter results for the period ended September 30, 2012.
For the three months ended September 30, 2012, the Company recorded a net loss of $0.8 million on revenues of $6.7 million. Total third quarter 2012 revenues were down $1.8 million over the same period in 2011. The net loss is primarily driven by lower revenues recognized in the current quarter.
“While the quarter demonstrated improvement versus prior quarter we remain disappointed with results to-date,” stated Bruce Cousins, Chief Executive Officer. “The addition of sales resources and focus in each of our signaling markets has yielded significant improvement in pipeline however success in closing on this remains limited. We believe general economic conditions present significant headwind in our efforts with consistent delays in finalizing large project opportunities.”
Financial Condition at September 30, 2012 compared to December 31, 2011
Third quarter 2012 compared to third quarter 2011
Summary of operations:
The year-to-date operational and business highlights in 2012 include the following items:
Reporting Currency and Accounting Standards
Unless otherwise indicated, all financial information presented in this press release is in US dollars and has been prepared in accordance with International Financial Reporting Standards (“IFRS”).
|Adjusted EBITDA reconciliation||
Three months ended
Nine months ended
|(US$ in thousands)||2012||2011||2012||2011|
|Income tax expense/(recovery)||-||68||-||225|
|Terminated Lightech agreement recovery||-||(360)||-||(176)|
|Non-cash stock based compensation||61||108||212||281|
* A Non-IFRS measure
Management believes that the non-IFRS measures presented provide useful information by excluding certain items that may not be indicative of Carmanah’s core operating results and that this non-IFRS measure will allow for a better evaluation of the operating performance of the Company’s business and facilitate meaningful comparison of results in the current period to those in prior periods as well as future periods. Reference to this non-IFRS measure should not be considered as a substitute for results that are presented in a manner consistent with IFRS. This non-IFRS measure is provided to enhance investors’ overall understanding of Carmanah’s current financial performance.
A limitation of utilizing this non-IFRS measure is that the IFRS accounting effects of the non-recurring items do in fact reflect the underlying financial results of Carmanah’ s business and these effects should not be ignored in evaluating and analyzing Carmanah’ s financial results. Therefore, management believes that Carmanah’s IFRS measures of net loss and the same respective non-IFRS measure should be considered together.
Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. One such non-IFRS measure used by management for assessing financial performance is Adjusted EBITDA, defined as net income before interest, income taxes, amortization, non-cash stock-based compensation, and terminated Lightech agreement costs.
Complete set of Financial Statements and Management Discussion & Analysis
A complete set of the third quarter ended September 30, 2012 Financial Statements and Management’s Discussion & Analysis are available on Carmanah’s corporate website. To view these documents, visit: http://www.carmanah.com/Company/Investors/Financial_Reports.aspx. Both documents will also be filed on SEDAR (www.sedar.com).
About Carmanah Technologies Corporation
As one of the most trusted names in solar technology, Carmanah has earned a reputation for delivering strong and effective products for industrial applications worldwide. Industry proven to perform reliably in some of the world's harshest environments, Carmanah solar LED lights and solar power systems provide a durable, dependable and cost effective energy alternative. Carmanah pursues its business strategy within six distinctive product offerings: outdoor lighting, marine signal, aviation signals, traffic signals, Solar EPC Services and GoPower!. Carmanah is actively seeking additional product sales opportunities to add to its top line revenue, as well as extending existing product lines through internal development efforts, strategic business relationships as well as focused acquisitions. Carmanah is a publicly traded company, with common shares listed on the Toronto Stock Exchange under the symbol "CMH”. For more information, visit http://www.carmanah.com.
This release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “expects,” “plans,” “estimates,” “intends,” “believes,” “could,” “might,” “will” or variations of such words and phrases. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties. For additional information on these risks and uncertainties, see Carmanah’ s most recently filed Annual Information Form (AIF) and Annual MD&A, which are available on SEDAR at http://www.sedar.com and on the Company’s website athttp://www.carmanah.com. The risk factors identified in Carmanah’ s AIF and MD&A are not intended to represent a complete list of factors that could affect Carmanah. Accordingly, readers should not place undue reliance on forward-looking statements. Carmanah does not assume any obligation to update the forward-looking information contained in this press release.
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