Jan. 30, 2011 (Canada NewsWire Group) --
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EDMONTON, Jan. 30 /CNW/ - Seair Inc. (SDS:TSX Venture Exchange) today released its unaudited financial statements for the quarter ending November 30, 2010.
FINANCIAL RESULTS
Revenue for the quarter ending November 30, 2010 was $465,467, or 59% lower than the first quarter of fiscal 2010. The fiscal 2010 amount included approximately $450,000 in sales of oil sands dewatering units and there were no such sales in the first quarter of fiscal 2011. In fiscal 2010 the portable wastewater rental contribution to revenue was approximately 20% of total revenue. In fiscal 2011 these rental revenues were similar, at approximately $200,000, but constituted 43% of revenue as a result of the overall decrease in revenue. Portable wastewater treatment activity levels increased significantly subsequent to the end of the first quarter of fiscal 2011. Municipal wastewater treatment projects, such as the completion of the Camp He Ho Ha facility, provided 45% of total revenue in the quarter.
Gross profit for the quarter ending November 30, 2010 was $284,088 (61% of revenue) compared to $717,260 (63% of revenue) in the quarter ending November 30, 2009. This $433,172 decrease in gross profit is due to lower revenue.
Total operating expenses decreased by $137,395 to $870,353 (14% decrease) from fiscal 2010 to fiscal 2011. The largest factor was a $104,508 decrease in salaries and benefits stemming from deferring seasonal Septic hiring until it was clear that fleet deployment levels have rebounded. This rebound began in December 2010 and, accordingly, payroll costs for field personnel will increase during Septic's peak winter months
Net loss for the quarter ending November 30, 2010 was $584,846 compared to $265,301 for the corresponding quarter in fiscal 2010.
The complete financial statements are available at www.sedar.com.
BUSINESS UPDATE
Seair continues efforts to diversify and expand its revenue base. In prior years virtually all revenue came from portable wastewater treatment rentals, which is a seasonal business that is tightly linked to western Canadian oil field activity levels. Fleet deployment has been weak in the portable wastewater treatment business for the past two years. However, activity levels have rebounded significantly starting in December 2010. Seair had 39 wastewater treatment units deployed as of January 27, 2011 with additional units scheduled to go out in coming weeks. In fiscal 2010 the peak deployment was approximately 20 units.
In fiscal 2010 flow-through treatment of groundwater was commercialized with 14 units sold to a major oil sands producer. An additional unit was sold in January 2011 and further sales are anticipated in coming periods. Seair's first end-to-end permanent wastewater treatment plant was sold to and installed at the Village at Wolf Creek in fiscal 2010. This has now been followed by a similar, but smaller, plant at Camp Health, Hope and Happiness west of Edmonton.
Several other oil and gas related initiatives are underway, all of which are progressing towards pilot-scale testing. These initiatives include oil sands tailing pond treatment (accelerated settling using diffused CO2 and toxin removal using diffused ozone), SAGD (steam-assisted gravity discharge) water treatment and frac and produced water reuse.
Pilot testing is a critical step in commercializing applications as it involves working with potential customers to prove the field capabilities of the proposed solutions and to provide a basis for determining the requirements and cost of eventual commercial-scale systems. Pilot projects vary considerably in size, complexity and duration but, in general, pilot projects involving Seair equipment take at least 12 months to complete and assess. Resource requirement for pilot projects can be considerable and Seair must assess each opportunity in the context of limited financial and human resources, potential market size, potential competitors, relative strength and willingness of partners and potential customers to collaborate and possible regulatory and environmental hurdles.
About Seair
Seair develops proprietary equipment that diffuses gases into liquids. The introduction of oxygen, ozone or carbon dioxide results in a supersaturated solution, that meets environmental standards and customer needs. Seair's patented technologies can produce extremely small bubbles which are more efficient than other diffusion technologies. Our technologies are used in a variety of applications in the oil and gas industry. We also service customers in such diverse fields as wastewater treatment, pulp and paper, food processing, aquaculture, agriculture/horticulture, sterilization, golf course irrigation and pond treatment and animal enhancement.
Seair is a leading developer of patent-protected diffusion and sterilization technologies, which allow for the efficient diffusion of gases into liquids, thereby facilitating numerous applications in a wide variety of industries, including wastewater treatment, pulp and paper production, food processing, aquaculture, agriculture/horticulture, sterilization, golf course irrigation and pond treatment, animal enhancement and oil and gas. Seair's primary focus is developing and selling equipment that diffuses gases, such as oxygen, ozone or carbon dioxide, into a liquid, resulting in a supersaturated solution. The major difference between Seair's and others' diffusion technologies is Seair's ability to achieve extremely small bubble size, which in turn allows for the mass transfer of gas to fluid. The result is a stable condition, where gases remain in solution for extended periods of time, leading to increased productivity and lower operating costs. Seair provides diffusion-enhanced portable wastewater treatment plants through its subsidiary, Seair Septic.
Parties interested in obtaining further information or receiving news releases and corporate documents from Seair may email such requests to seair@telus.net or visit the Seair website at www.seair.ca.
This news release contains forward-looking statements relating to the future operations of the Seair Inc. and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Seair Inc. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this news release are made as of the date of this news release, and Seair Inc. does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Harold Kinasewich
Seair Inc.
T: 780 477 7188
F: 780 477 6622
E: seair@telus.net
