NEWS RELEASE
CALGARY, AB
March 1, 1999
SHARES OUTSTANDING 13,930,978
FOR IMMEDIATE RELEASE
TCT 3rd QUARTER FINANCIALS
Thermal Control Technologies Corp. (ASE:TCT NASD OTC PINK SHEETS:TCTCF) is pleased to announce its financial results (unaudited) for the third quarter ending December 31, 1998.
Thermal Control Technologies Corp. has undergone many significant changes during the first nine months of this year. There were some disruptions in manufacturing caused by the relocation of its main manufacturing facility to Prescott and the retraining of the new workforce. In spite of the relocation, TCT managed to increase product sales to $6,078,170 from $5,273,683 for the same period last year. Cost of goods sold as a percentage of product sales have improved even further to 44.5% as compared to 48% for the previous year. The third quarter earnings per share were $.06 on an after-tax basis, double what was reported for the first six months.
The Management of Thermal Control Technologies have been very disappointed with the stock price over the last year, especially in light of the advancements made by the Corporation. The increase in property, plant & equipment to $17,600,966 from $6,595,326 at the end of the third quarter last year has allowed the Company to compete on a level it was not able to compete at before. The Australasian and Western Canadian distribution channels have been indicative of distributor confidence in not only TCT's product, but the Company's ability to increase production and supply as their distribution avenues increase. Working Capital has been in a deficit position since the second quarter and many measures have been undertaken to remedy this situation. The loan approval from the Arizona Department of Commerce in the amount of U$500,000 will go a long way to bolster the Company's cash position which was $472,831 at the end December. Additionally, the remaining U$775,000 Charge Air Cooler patent payment has been restructured with the initial payment being April 1, 1999 of U$387,500 in TCT shares (subject to regulatory approval) and U$50,000 in cash and the balance payable over the next five years.
For the nine month period ended December 31, 1998
December 1998 December 1997
Revenue:
Oil and gas sales, net of royalties $ 46,405 95,205
Product sales 6,078,170 273,683
6,124,575 5,368,888
Expenses:
Cost of manufacturing product sold 2,703,958 2,521,085
General and administrative 1,401,888 844,518
Interest on long term debt 418,491
Depletion and amortization 273,447 252,266
Oil and Gas Production 55,672 63,665
$ 4,853,456 $ 3,681,534
NEWS RELEASE
CALGARY, ALBERTA
March 1, 1999
Page Two
December 1998 December 1997
Earnings before income tax 1,271,119 1,687,354
Provision for income tax
Current 483,219 150,000
Deferred (63,750) _______
419,469 150,000
Net Earnings 851,650 1,537,354
Retained earnings, beginning of period 1,649,165 539,412
Retained earnings, end of period $ 2,500,815 $ 2,076,766
Basic earnings, per share before tax 0.09 0.137
Basic earnings, per share after tax 0.06 0.125
The Company has concluded and/or is currently undergoing testing of several cooling systems developed by TCT's research, engineering and manufacturing departments in conjunction with OEM engine manufacturers, truck and bus manufacturers, and industrial power generation system OEM's. TCT is confident that the successful results already obtained with many of the systems as well as continued testing will soon lead to the OEM certification of TCT's advanced cooling systems.
TCT is a manufacturer of advanced heat exchange equipment for sale and distribution into the automotive, heavy duty truck and industrial equipment, agricultural and marine engine aftermarkets. TCT's major product is a line of revolutionary charge air coolers for aftermarket installation on Class 8 heavy-duty trucks and on buses. TCT is also an OEM supplier of complete cooling systems to heavy-duty trucking and industrial manufacturers.
For further information please contact Blaine Maller, President & CEO or Cameron D. Schuler, CIM FCSI, Director of Corporate Communications at 1-800-230-6061 or visit TCT's web site at tct.ca.
On behalf of the Board of Directors of Thermal Control Technologies Corp.
Blaine Maller
President & CEO
SEC File Number 82-4280
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN |
