FORT WAYNE, IN, Nov. 4 /CNW/ -- WaterFurnace Renewable Energy, Inc. (WFI:TSX) announced third quarter results today. Tom Huntington, President and CEO stated, "Sales for the third quarter of 2009 were 9% lower as compared to record third quarter 2008 sales. We are pleased that we were able to maintain an earnings level in line with these lower sales. We continue to make strategic investments in technology, product development and expansion of our sales channels. As we enter the fourth quarter, we are seeing an uptick in sales orders, but do not expect to meet the record sales pace set last year."
Chairman of the Board Tim Shields added, "While every business is feeling the effects of a slow economy and tighter credit markets, the Board is pleased with the Company's overall performance and supports continued investment in expanding the Company's business base and infrastructure. Both the Board and management are excited about the future and continue to ensure that WaterFurnace is well positioned to continue its leadership role as the premiere geothermal manufacturer."
The Board of Directors approved a dividend of $0.19 per share to be paid December 1, 2009, to shareholders of record at the market close of November 18, 2009. The complete quarterly report is posted on the Company's website: www.waterfurnace.com. Management will conduct a webcast covering the results of the quarter at 11:00 am Eastern Daylight Time on Friday, November 6th. Interested parties can listen live or to the recorded version at www.newswire. ca/en/webcast/viewEvent.cgi?eventID=2855380 or at the Company's website: www.waterfurnace.com.
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WaterFurnace Renewable Energy, Inc.
Consolidated Statements of Income
Prepared using Canadian generally accepted accounting principles
(Unaudited - Thousands of U.S.$ except per share data)
Three months ended Nine months ended
September 30, September 30,
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2009 2008 2009 2008
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Sales $ 36,209 $ 39,964 $ 89,655 $ 95,107
Cost of sales 22,962 25,230 58,416 62,544
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Gross profit 13,247 14,734 31,239 32,563
Operating expenses 4,865 5,741 15,115 15,249
Research and
development
expenses 507 490 1,722 1,434
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Income before interest
and income taxes 7,875 8,503 14,402 15,880
Interest income 29 35 37 128
Interest expense (7) (12) (15) (30)
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Income before income
taxes 7,897 8,526 14,424 15,978
Income taxes 2,950 3,278 4,999 5,723
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Net income $ 4,947 $ 5,248 $ 9,425 $ 10,255
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Basic and diluted
earnings per
share U.S.$ $ 0.41 $ 0.43 $ 0.78 $ 0.85
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WaterFurnace Renewable Energy, Inc.
Consolidated Balance Sheets
Prepared using Canadian Generally Accepted Accounting Principles
(Unaudited--Thousands of U.S.$)
September 30, December 31,
2009 2008
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Assets
Current assets
Cash and cash equivalents $ 3,761 $ 6,029
Short-term investments 10,368 5,316
Receivables 16,823 18,797
Inventory 6,360 8,714
Other current assets 2,709 2,433
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Total current assets 40,021 41,289
Capital assets 4,854 4,643
Other assets 2,727 2,080
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Total Assets $ 47,602 $ 48,012
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Liabilities
Current liabilities
Payables and accruals $ 8,178 $ 10,542
Income taxes payable 272 2,027
Provision for warranty claims
- current portion 2,138 1,824
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Total current liabilities 10,588 14,393
Capital leases 150 -
Deferred compensation 261 1,085
Provision for warranty claims 7,599 5,827
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Total Liabilities 18,598 21,305
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Shareholders' Equity
Share capital 14,865 14,865
Retained earnings 14,139 11,842
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Total Shareholders' Equity 29,004 26,707
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Total Liabilities & Shareholders' Equity $ 47,602 $ 48,012
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WaterFurnace Renewable Energy, Inc. is traded in both Canadian dollars and U.S. dollars on the Toronto Stock Exchange under the symbol WFI for Canadian dollars and WFI.U for U.S. dollars.
Risk and Uncertainties: This news release contains certain forward-looking statements that may or may not be realized. Investors should not rely solely on this information to make investment decisions. The Company's sales are related to the cost and stability of electricity, fuel oil, propane and natural gas. Federal, state and provincial building codes and energy incentives can also impact sales. The Company is subject to standard risks associated with most companies, such as normal competitive pressures.
