News on ILI.V just out
ILI TECHNOLOGIES REPORTS RECORD NET INCOME
Calgary, Alberta CANADA, November 28, 2006 /FSC/ - ILI Technologies (2002) Corp. (TSX - VX: ILI), is very pleased to report record financial results for the third quarter ended September 30, 2006. This is the first full quarter of financial contribution from Thermoflex Tubing sales which accounted for approximately 45% of sales for the three month period. Pump and wire sales following completion of the CBM Pumps and Services acquisition in March 2006 were also very strong for the quarter providing diversified growth for ILI. Management is very excited with the progress of Thermoflex Tubing and pump sales during the last quarter and expects continued growth for these products into the foreseeable future.
Revenues for the three months ended September 30, 2006 were a record $1,832,733, a 394% increase over revenues of $371,203 for the same period of 2005. For the first three quarters of 2006, ILI reported revenues of $3,509,640 compared to $944,938 in 2005. With increased sales for both Thermoflex Tubing and pump and wire products, gross margin for the period was 53.8%. The Company expects these healthy margins to continue into the fourth quarter.
General and administration costs for the third quarter were $584,607 (32% of sales) compared to $269,892 (73% of sales) for the third quarter of 2005 and $565,632 (49% of sales) for the second quarter of 2006. Management is making a concerted effort to continue controlling costs. Despite a 59% rise in revenue for the third quarter over the second quarter of 2006, general and administrative costs rose by only 3%.
ILI generated record earnings for the three months ended September 30, 2006. The Company achieved net income of $413,646 or $0.03 per share, an increase of 841% over the third quarter of 2005 and a 523% increase over the second quarter of 2006.
ILI maintained a healthy balance sheet during the third quarter with positive working capital of $2,339,459 or $0.16 per share as at September 30, 2006. Cash decreased during the period from $862,566 to $344,225 due mainly to the increased purchasing of inventory and assets. Accounts receivable increased to $1,133,249 as a direct result of the collection schedule of revenues from Thermoflex Tubing and CBM pumps. Accounts payable at the end of the quarter was $622,570. The Company has no long term debt. Complete financial results will be available shortly on SEDAR.
The financial performance of ILI has changed dramatically over the last 6 months with the commencement of sales of Thermoflex Tubing and the acquisition of CBM Pumps and Services. These products are being sold to some of the largest oil and gas companies operating in Mexico and the southern US with revenues to-date representing a very small percentage of the amount of tubing and pumps that are expected to be sold and delivered over the next year in these areas. The perceived slowdown in the oil and gas service sector in Canada has had no effect on the sales potential of ILI in Mexico and the southern US and is not expected to impact future sales growth in any meaningful manner. The Company plans to expand sales of Thermoflex Tubing into the US and Canada in 2007.
Management is very pleased with revenue growth achieved to-date in 2006 as the Company capitalizes on its growth initiatives following the purchase of CBM Pumps. ILI's revenue growth has continued into the fourth quarter of 2006. Given the large contracts recently announced, revenues during the quarter ended December 31 are expected to surpass $2.5 million.
INTERIM CONSOLIDATED INCOME STATEMENT
(Unaudited)
For the 3 months For the 9 months
ended Sep. 30 ended Sep. 30
2006 2005 2006 2005
--------------------------------------------------------------------------
Revenues $ 1,832,733 $ 371,203 $ 3,509,640 $ 944,938
--------------------------------------------------------------------------
Direct Costs 847,559 25,829 1,432,113 133,433
--------------------------------------------------------------------------
Gross Profit 985,173 345,374 2,077,526 811,505
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Expenses
--------------------------------------------------------------------------
General & Administration 584,607 269,892 1,506,151 582,526
--------------------------------------------------------------------------
Research & Development 960 3,762 7,571 7,787
--------------------------------------------------------------------------
Marketing 4,453 5,191 84,150 48,191
--------------------------------------------------------------------------
Amortization 15,147 5,355 45,441 25,924
--------------------------------------------------------------------------
Interest 1,960 1,042 5,330 3,989
--------------------------------------------------------------------------
Foreign Exchange Loss (Gain) (68,012) 13,744 3,158 35,941
--------------------------------------------------------------------------
Stock Based Compensation 32,412 2,411 102,335 67,235
--------------------------------------------------------------------------
Total Expenses 571,527 301,397 1,754,135 771,593
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Earnings (loss) for the period 413,646 43,977 323,391 39,912
--------------------------------------------------------------------------
Per share $0.03 $0.00 $0.02 $0.00
--------------------------------------------------------------------------
ILI Technologies (2002) Corp. is a high technology company, whose principal business is to develop, manufacture and market oil and gas industry Information Technology (IT) and Operational solutions that improve business performance.
For further information, please contact Serge Bonnet, President, ILI Technologies (2002) Corp, at: Phone: (403) 543-0060, Fax: (403) 543-0069 or E-mail: invest@ilitech.com - Website: ilitech.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
|
