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EDMONTON, Dec. 28, 2011 /CNW/ - Seair Inc. (SDS:TSX Venture Exchange) today released its audited financial statements for the year ending August 31, 2011.
Revenue for the year ending August 31, 2011 was $3,696,333, or 7% higher than fiscal 2010. Two key factors in the fiscal 2011 revenue increase were the turnaround in Seair's portable wastewater treatment business and the sale of a pilot-scale produced water treatment plant to Texas-based R360 Environmental Services.
Revenue from rental of portable wastewater treatment plants rose from $929,628 in fiscal 2010 to $1,864,711 in fiscal 2011 (a 101% increase). Improved plant deployment, stemming from overall oil and gas service sector improvement in conjunction with Seair establishing a full-time sales presence in Calgary in December 2010, drove this revenue increase. However, the fiscal 2011 rebound still only represents approximately 50% fleet deployment at the peak of the winter operating season. Management believes the rental fleet will be fully deployed during the peak of fiscal 2012 and, accordingly, revenues from this aspect of Seair's business should continue to increase strongly.
Gross profit for the year ending August 31, 2011 was $2,624,419 (71% of revenue) compared to $2,276,909 (66% of revenue) in the year ending August 31, 2010. This $347,510 increase in gross profit is due to higher revenue, particularly from portable wastewater treatment plant rentals and a slightly lower than normal gross margin percentage in fiscal 2010.
Total operating expenses increased by $492,694 to $4,322,204 (13% increase) from fiscal 2010 to fiscal 2011 compared to the 7% and 15% increases to revenue and gross margin, respectively. The largest net contributors to the net operating expense increase were non-cash items (stock-based compensation up $164,970 and amortization of equipment held for rental up $159,532). Stock-based compensation stemmed from incentive stock options granted in June 2011 whereas there were no options granted in fiscal 2010. Amortization of equipment held for rental is calculated on a usage basis, so higher deployment rates in fiscal 2011 led to higher amortization expense.
Net loss for the year ending August 31, 2011 was $1,657,785 compared to a loss of $1,579,494 for fiscal 2010. This $77,840 change was a direct result of increased revenue and gross margin offset by higher non-cash operating expenses.
The complete financial statements are available at www.sedar.com.
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 firstname.lastname@example.org 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.
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