Q3 results CARMANAH TECHNOLOGIES CORPORATION ("CMH-V")
- Second Consecutive Profitable Quarter And Record Revenue
Carmanah Technologies Corporation is pleased to announce its third
quarter results for the three months ended September 30, 2002. Highlights
for the quarter are as follows:
* Revenue up 81% over Q3 2001 to $1,632,523;
* Profit of $43,472 for the quarter, as compared to net loss of
$84,889 for Q3 2001;
* Gross profit for the quarter reached a record 59% as direct
sales increase;
* Earnings before income tax, depreciation and amortization
(EBITDA) was $146,389;
* Revenue growth (81%) outpaced expenditures (61%);
* Investment into developing new markets continued.
"This has been an exciting year for our company," stated Art
Aylesworth, Carmanah's CEO. "Several key developments have come together
to put our products at the forefront of the rising market for solar-powered
LED lighting."
Carmanah's continued success is due to both the ongoing popularity of
its marine navigation lights as well as the spread of its core proprietary
solar-powered LED technology to new markets and applications. Key
developments in the third quarter include:
* In August, Carmanah's 700 Series lights became the first
solar-powered LED-based marine lights to be officially approved by the U.S.
Coast Guard (USCG) for use in the U.S. Aids-to-Navigation System, an
approval process that took three years. This approval has international
implications, as other regulatory bodies often follow the lead of the USCG.
* In September, Carmanah was designated a U.S. Federal Supply
Contractor. Carmanah now supplies lights directly to the U.S. federal
government as a pre-approved supplier, without a bidding process. In the
first month of becoming a Federal Supply Contractor, the USCG purchased US
$180,000 worth of lights from Carmanah.
* Major inroads have been made into the railway market with both
solar-powered LED hazard lighting as well as bridge markers. Sales into
the railway market accounted for approximately 18% of Carmanah's revenues
in the third quarter.
Summary of Results for 2002
3 Months Ended September 30
Carmanah recorded a record $1,632,523 in revenues. This was an 81%
increase of $733,107 over the same period in 2001.
Direct cost of goods totaled $664,427, as compared to $444,177 for the
three months ended September 30, 2001. Total operational expenses were
$928,529, a 61% increase over the $577,686 in the same period in 2001.
Gross profit as a percentage of sales reached a record 59%. Net
income was $43,472 as compared to a net loss of $84,889 for the same period
in 2001.
9 Months Ended September 30
Carmanah recorded a record $4,527,850 in revenues for the nine-month
period. This was an increase of 79% over the same period in 2001. Revenue
growth was achieved through (i) the continued growth of marine sales in
existing product lines; (ii) expansion into the railway and mining markets
with existing products; and (iii) expansion into the transportation and
transit markets with entirely new products. Unit sales increased from
10,879 units sold and delivered for the first nine months of 2001 to 15,981
for the first nine months of 2002.
Direct cost of goods totaled $1,913,786 as compared to $1,184,030 for
the nine months ended September 30, 2001. Gross profit as a percentage of
sales was 58% as compared to 53% during the same period in 2001. This
increase is a result of the Company's movement towards more direct selling
through dedicated sales staff and an aggressive e-commerce program. EBITDA
for the nine-month period was $345,605.
Total operational expenses were $2,620,847 as compared to $1,637,108
for the same period in 2001. This increase is attributed to the increased
staff and administrative expenses necessary to support the Company's
expansion into new products and new markets. As a percentage of sales, the
operating expenses are down to 58%, as compared to 65% for the same period
in 2001. Increasing investment is being made into markets that will be
primary sources of revenues in the months and years to come.
Net income was $49,729 as compared to a net loss of $300,652 for the
same period in 2001. The overall increase in net income is a result of an
increase in sales.
Net working capital as at September 30, 2002 was $2,018,539 (current
ratio of 5.75:1) as compared to $1,664,885 (current ratio of 4.76:1) as at
December 31, 2001. The cash balance was $617,912 at quarter end as
compared to $1,060,817 as at December 31, 2001. The decrease was primarily
attributable to an increase in inventory levels.
The Company's non-current liabilities at September 30, 2002 totalled
$52,127 and subsequent to quarter end, the operating credit facility was
increased from $200,000 to $300,000.
About Carmanah Technologies Inc.
Carmanah is an award winning alternative energy manufacturer
specializing in patented solar-powered LED lighting solutions for the
marine, transit, roadway and railway markets. To-date, the company has
more than 45,000 units installed in 110 countries. The shares of Carmanah
Technologies Corporation (parent company) are publicly traded on the TSX
Venture Exchange under the symbol "CMH" and on the Berlin and Frankfurt
Stock Exchanges under the symbol "QCX". For further information, please
visit www.carmanah.com.
On Behalf of the Board of Directors
Carmanah Technologies Corporation
Praveen Varshney, Director
//ST
CARMANAH TECHNOLOGIES CORPORATION
Consolidated Interim Balance Sheets
September 30, 2002 and December 31, 2001
(Unaudited - Prepared by Management)
September 30, December 31,
2002 2001
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents $ 617,912 $ 1,060,817
Accounts receivable 993,185 358,958
Taxes recoverable 13,862 23,888
Prepaid expenses and deposits 37,082 26,777
Inventories 751,012 587,439
Current portion of
advances receivable 30,014 49,472
2,443,067 2,107,351
Advances receivable 111,500 111,500
Capital assets 379,132 279,873
Deferred development costs 50,021 216,895
Patents and other intangibles 35,457 29,487
$ 3,019,177 $ 2,745,106
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and
accrued liabilities $ 362,615 $ 340,876
Due to related parities 2,140 --
Bank loan 30,000 30,000
Current portion of
long-term debt 5,402 27,790
Current portion of
obligations under capital lease 6,371 25,800
Current portion of
future income taxes 18,000 18,000
424,528 442,466
Long-term debt 21,823 17,143
Obligations under capital lease 30,304 30,304
Shareholders' equity:
Share capital 3,267,346 3,029,746
Contributed surplus 26,188 26,188
Retained earnings (Deficit) (751,012) (800,741)
2,542,522 2,255,193
$ 3,019,177 $ 2,745,106
CARMANAH TECHNOLOGIES CORPORATION
Consolidated Interim Statements of Operations and Deficit
For the nine months ended September 30, 2002 and 2001
(Unaudited - Prepared by Management)
Three months ended Nine months ended
September 30, September 30,
2002 2001 2002 2001
Revenues $1,632,523 $ 899,416 $4,527,850 $2,528,399
Cost of goods sold 664,427 444,177 1,913,786 1,184,030
Gross margin 968,096 455,239 2,614,064 1,344,369
Operating expenses:
Amortization of:
Capital assets 39,630 29,274 88,344 76,282
Deferred
development costs 55,625 35,060 166,874 99,629
Patents and other
intangible assets 2,529 1,802 6,683 5,550
Bank charges
and interest 5,133 6,371 33,975 21,954
Office and
administration 150,100 119,338 393,662 300,263
Research and
development 156,065 19,845 474,565 145,132
Sales and marketing 136,292 39,755 417,669 152,241
Wages and benefits 383,155 326,241 1,039,075 836,057
928,529 577,686 2,620,847 1,637,108
Operating income
(loss) for
the period 39,567 (122,447) (6,783) (292,739)
Other income:
Interest and
other income 3,905 39,277 56,512 82,291
Reverse takeover
costs -- (1,719) -- (90,204)
3,905 37,558 56,512 (7,913)
Income (loss)
for the period 43,472 (84,889) 49,729 (300,652)
Deficit, beginning
of period (794,484) (340,005) (800,741) (124,242)
Deficit, end of
period $ (751,012) $ (424,894) $ (751,012) $ (424,894)
Earnings (loss)
per share $0.002 $(0.005) $0.002 $(0.018)
Weighted average
number of shares
outstanding 20,652,710 16,841,442 20,652,710 16,841,442
CARMANAH TECHNOLOGIES CORPORATION
Consolidated Interim Statements of Cash Flows
For the nine months ended September 30, 2002 and 2001
(Unaudited - Prepared by Management)
Three months ended Nine months ended
September 30, September 30,
2002 2001 2002 2001
Cash provided by (used in):
Operations:
Income (loss) for
the period 43,472 (84,889) 49,729 (300,652)
Amortization, an item
not involving
cash 97,784 66,135 261,901 181,461
Changes in non-cash
operating working
capital:
Accounts receivable (349,654) (143,832) (634,225) (285,176)
Taxes recoverable (3,936) 31,930 10,026 (57,979)
Inventories 82,296 45,630 (163,573) (108,538)
Prepaid expenses
and deposits (1,473) (954) (10,305) (2,736)
Advances receivable 6,625 2,500 19,458 2,500
Accounts payable and
accrued liabilities 29,285 (26,176) 21,739 88,489
(95,601) (109,656) (445,250) (482,631)
Investing:
Cash received on the
reverse takeover of
Carmanah Technologies
Inc. -- -- -- 1,768,014
Capital asset additions (114,429) (48,299) (187,603) (142,496)
Deferred development costs -- (145,771) -- (145,771)
Patents and
other intangibles (2,404) 505 (12,653) (9,527)
(116,833) (193,565) (200,256) 1,470,220
Financing:
Due to related parties 2,140 -- 2,140 --
Share issuance costs -- (31,835) 237,600 (31,835)
Bank loan -- (20,000) - (50,000)
Repayment of long term debt 14,606 3,545 (17,710) (10,852)
Obligations under
capital leases (6,484) (28,939) (19,429) 27,239
10,262 (77,229) 202,601 (65,448)
Increase (decrease) in cash
and cash equivalents (202,172) (380,450) (442,905) 922,141
Cash and cash equivalents,
beginning of period 820,084 1,488,225 1,060,817 185,634
Cash and cash
equivalents, end
of period 617,912 1,107,775 617,912 1,107,775
//et
TEL: (604) 629-0264 CARMANAH TECHNOLOGIES CORPORATION
TEL: (866) 629-0264
FAX: (604) 682-4768
EMAIL: investors@carmanah.com
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-0- Oct/23/2002 16:43 GMT |
