Toronto, Ontario–(August 28, 2017) – Augusta Industries Inc. (TSXV: AAO) (the “Corporation”) is pleased to announce that it has released its financial results for the six months ending June 30, 2017.
For the three months ending June 30, 2017, the Corporation had revenues of $697,000, a decrease of $110,000 or 14% as compared to the three months ending June 30, 2016. Gross margins for the three months ending June 30, 2017 was 35% ( $244,000 ) compared to 29% ( $231,000 ) for the three months ending June 30, 2016 due to the change in mix between Macron and FOX-TEK sales during the period.
Total loss from operations for the three months ending June 30, 2017 was $28,000 or a net loss of $0.00 per share compared to a loss of $32,000 or $0.001 per share for the three months ending June 30, 2016. The Corporation was more or less able to maintain its operating expenses in the three months ending June 30, 2017 at $272,000 compared to $263,000 for the same period in 2016. Stock based compensation during the three months ending June 30, 2017 was $63,000 while there were no such expenses during the three months ending June 30, 2016.
Marcon group sales in the three months ending June 30, 2017 was $596 compared to $701 in the three months ending June 30, 2016 – a decrease of $105,000. The sales in FOX-TEK for the three months ending June 30, 2017 were $101,000 compared to $106,000 sales for the three months ending June 30, 2016.
Although the Corporation incurred a loss during the three months ending June 30, 2017, the Corporation expects to build on the contracts signed in 2017 by FOX-TEK and the Pipeline of orders in the Marcon group to reduce the operational losses over the second half of the year.
Consolidated Financial Highlights
|
June 30, 2017
In $‘000s |
December 31, 2016
In $‘000s |
| Current Assets |
846 |
1,126 |
| Non-Current Assets |
37 |
42 |
| Total Assets |
883 |
1,168 |
| Current Liabilities |
833 |
1,000 |
| Long term debt |
21 |
31 |
| Total Liabilities |
854 |
1,031 |
| Total Shareholders’ Equity |
29 |
37 |
|
|
Three months ended June 30, |
Six months ended June 30, |
| Â |
|
2017
in $’000s |
2016 in
$’000s |
2017
in $’000s |
2016
in $’000s |
| Sales |
697 |
807 |
1,576 |
1,818 |
| Cost of sales |
(453) |
(576) |
(1,132) |
(1,126) |
| Gross profit |
244 |
231 |
444 |
692 |
| Expenses |
|
|
|
|
| Research and development |
(35) |
(38) |
(72) |
(74) |
| Selling |
(11) |
(12) |
(18) |
(19) |
| General and administrative |
(226) |
(213) |
(459) |
(448) |
| Total expenses |
(272) |
(263) |
(549) |
(541) |
| (Loss) income before the undernoted |
(28) |
(32) |
(105) |
151 |
| Finance costs |
(4) |
(4) |
(7) |
(8) |
| Stock based compensation |
(63) |
– |
(164) |
– |
| Foreign exchange gain |
11 |
– |
11 |
12 |
| Net (loss) income for the period before tax |
(84) |
(36) |
(265) |
155 |
| Income tax expense |
|
– |
– |
– |
(6) |
| Net (loss) income for the period after tax |
(84) |
(36) |
(265) |
149 |
The financial statements, notes to the financial statements and Management’s Discussion and Analysis for the six months ending June 30, 2017 are available on SEDAR at www.sedar.com.
Corporate Update
FOX-TEK Canada Inc.
The Corporation continues to work closely with its existing clients to ensure their needs are met in order to strengthen and preserve the relationship between the Corporation and its clients while continuing to develop new relationships with new clients. The Corporation’s Vice President of Operations will be visiting various Indian oil and gas companies, both private and state owned, early in the 3rd Quarter of 2017 to explore a number of promising opportunities.
The Corporation has been working to fulfill its engineering and field services obligations in order to meet the requirements of the contract announced on July 10, 2017 with one of the Corporation’s largest and long standing clients in North America.
The Corporation continues to work with The Trans Africa Pipeline project (“T.A.P.”) to provide non-intrusive sensing equipment which will verify the integrity of the pipeline composite at key locations. In addition to the non-intrusive sensing equipment, FOX-TEK will provide optical based sensing technology which would allow T.A.P. to monitor the right of way zones from possible third-party intrusions.
The Corporation’s registration is underway with Petrobras supplier of corrosion detection monitoring systems, optical strain/pressure/temperature sensors & leak detection technology. The Corporation is working closely with FIBOS to explore opportunities to deploy advanced high precision optical strain acquisition systems.
The list below does not include bids to third parties that fall under confidentiality agreements.
a)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Leak detection system package to a number of our clients in North America.
b)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Singed an NDA with a Government body to evaluate and explore Confidential information relating to pipeline leak detection technology in order take the next step towards formalizing a collaborative working relationship.
c)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Corrosion monitoring systems package to one of our largest long standing clients in North America. Survey of the locations is underway as part of the contractors signed and announced July 10 2017. A package will be assembled for new EFM Systems Quotation early in the 3rd Quarter 2017.
d)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Corrosion monitoring systems package for the East West Pipeline Project JPS1-1 in Saudi Arabia.
e)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Corrosion monitoring systems package for a UAE firm working on a Dubai Petroleum project.
f)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â A package for a non-intrusive pressure monitoring systems for a tank farm in the Unites States.
g)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â A package for a non-intrusive pressure monitoring systems for the Power Generation Industry
h)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â A technical and commercial bid for the Yibal Kuff Project (YKP) in Oman.
Marcon International
Marcon International has built an impressive pipeline of quotes in the 1st half of 2017. It is witnessing increased bidding activity in both the 1st and 2nd Quarters of 2017. Majority of the larger bids and quotes for Marcon International are time consuming both in preparation of the bidding process and with the client and the end users. Marcon has successfully signed numerous deals year to date and will continue to do so and update the public thru periodic press releases.
About the Corporation:
Through its wholly owned subsidiaries, Marcon International Inc. (“Marcon”) and FOX-TEK, the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon’s principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon’s major clients include Sabic Services, BNGC, BAPETCO, Qatar Petroleum, QGas & Qatar Petrochemical.
FOX-TEK develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation’s FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
Corporation contact:
Allen Lone, President, CEO, Augusta Industries Inc.
Tel: (905) 275 -8111 Ext 226 email: [email protected]
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and as neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management‘s best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation‘s periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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