(U.S.$)
FORT WAYNE, IN, May 9, 2012 /CNW/ - WaterFurnace Renewable Energy, Inc. [WFI:TSX] today released the Company's first quarter results. Net income for Q1 2012 was $857 thousand up from $487 thousand in Q1 2011. Earnings per share increased year over year by $0.03 per share from $0.04 in Q1 2011 to $0.07 in Q1 2012. When adjusting for LoopMaster's discontinued operations, sales compared to last year were equivalent. Q1 gross profit dollars increased year over year by $260 thousand or 3.5%. Gross profit percent rose from 26.2% of net sales in Q1 2011 to 28.2% in Q1 2012 despite a continued higher mix of commercial products that carry lower margins.
The Company experienced another increase in market share despite a continued shrinking of the geothermal HVAC market. Residential replacement sales remained depressed due primarily to reduced consumer spending in an uncertain economy, which was also a limiting factor on overall system sales.
First quarter highlights included the Company's introduction of the 5 Series product line. This new generation of products was launched with a number of improvements for installing contractors and homeowners, yet was introduced at a lower price point than the previous generation of product. This move was especially notable as the Company's major competitors executed price increases during the same period.
The Company's Chairman of the Board, Tim Shields stated, "The positive results of the first quarter are a culmination of relationships the Company has forged with customers and vendors, and an employee culture we've worked hard to develop. Price reduction efforts, innovative new products, sales channel development and new business ventures are the driving force behind our first quarter success. The Board is pleased with the way the Company has positioned itself to expand its role as the industry leader as the economy recovers."
Tom Huntington, President & CEO, agreed that new product introductions combined with continued sales channel development and new business ventures will be a focus of the Company for the balance of 2012.
"While we work diligently on business development efforts that are of critical strategic importance, the first quarter results clearly show our keen focus growing margins and market share," Huntington said, "This speaks well of all our employees and their ability to manage tough times while sowing seeds for future growth."
In addition, the Board of Directors approved a quarterly dividend of $0.24 U.S. per share for shareholders of record on May 18, 2012, with payment on June 1, 2012.
The first quarter report to shareholders is available at www.waterfurnace.com and filed on SEDAR at www.sedar.com. The CEO and CFO will conduct a webcast covering the results of the quarter at 4:00 PM Eastern Daylight Time on Thursday, May 10, 2012. Those interested can listen live or to the recorded version at http://www.newswire.ca/en/webcast/detail/945865/1012461 or at the Company's website: www.waterfurnace.com.
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WaterFurnace Renewable Energy, Inc. Consolidated Statements of Comprehensive Income Prepared using International Financial Reporting Standards (Unaudited-Thousands of U.S.$ except per share data) |
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| Three months ended March 31, | ||||
| 2012 | 2011 | |||
| Sales | $ 27,641 | $ 28,737 | ||
| Cost of sales | 19,856 | 21,212 | ||
| Gross profit | 7,785 | 7,525 | ||
| Operating expenses | 5,878 | 5,839 | ||
| Research and development expenses | 510 | 517 | ||
| Income before interest and income taxes | 1,397 | 1,169 | ||
| Finance income | 43 | 19 | ||
| Finance expense | (325) | (37) | ||
| Income before income taxes | 1,115 | 1,151 | ||
| Income tax expense | 258 | 664 | ||
| Net income | 857 | 487 | ||
| Unrealized gain on translation of foreign operations (net of tax) | 46 | -- | ||
| Other comprehensive income | 46 | -- | ||
| Total comprehensive income | $ 903 | $ 487 | ||
| Earnings per share U.S.$ on net income | $ 0.07 | $ 0.04 | ||
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WaterFurnace Renewable Energy, Inc. Consolidated Statements of Financial Position Prepared using International Financial Reporting Standards (Unaudited—Thousands of U.S.$) |
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| March 31, | December 31, | |||
| 2012 | 2011 | |||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $ 11,352 | $ 11,646 | ||
| Short-term investments | 10,202 | 10,181 | ||
| Receivables | 16,306 | 20,126 | ||
| Income taxes receivable | 32 | -- | ||
| Inventory | 11,818 | 9,188 | ||
| Prepaids and deposits | 797 | 1,264 | ||
| Total current assets | 50,507 | 52,405 | ||
| Property, plant and equipment | 6,652 | 6,762 | ||
| Deferred tax assets | 8,741 | 7,686 | ||
| Intangible assets | 1,665 | 1,713 | ||
| Total Assets | $ 67,565 | $ 68,566 | ||
| Liabilities | ||||
| Current liabilities | ||||
| Payables and accruals | $ 6,266 | $ 7,041 | ||
| Income taxes payable | -- | 652 | ||
| Provision for warranty claims - current portion | 3,547 | 3,274 | ||
| Total current liabilities | 9,813 | 10,967 | ||
| Finance leases | 66 | 76 | ||
| Deferred compensation | 379 | 749 | ||
| Provision for warranty claims | 17,328 | 15,104 | ||
| Total Liabilities | 27,586 | 26,896 | ||
| Shareholders' Equity | ||||
| Share capital | 18,000 | 17,505 | ||
| Foreign exchange translation adjustment | 52 | 6 | ||
| Retained earnings | 21,927 | 24,159 | ||
| Total Shareholders' Equity | 39,979 | 41,670 | ||
| Total Liabilities and Shareholders' Equity | $ 67,565 | $ 68,566 | ||
Forward-Looking Information Cautionary Notice
Certain statements in this release constitute forward-looking statements within the meaning of applicable Canadian securities laws. Readers are cautioned not to place undue reliance on such statements. Investors should not rely solely on this information to make investment decisions. These statements are subject to certain assumptions, risks and uncertainties. In addition, WaterFurnace'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. WaterFurnace is subject to standard risks associated with most companies, such as normal competitive pressures. These and other risks could cause WaterFurnace's actual results, performance, achievements and developments to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Other risk factors can be found in WaterFurnace's Annual Information Form and other public documents filed by WaterFurnace with Canadian securities regulatory authorities. WaterFurnace assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
More Information
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.
WaterFurnace designs, manufactures and distributes geothermal heat pumps. The geothermal units use the renewable solar energy stored just below the surface of the earth to dramatically reduce the energy consumed by buildings for heating, cooling and hot water.
Additional information about the Company and its products is available on the Company's website: www.waterfurnace.com. Or call (260) 478-5667 and ask for investor relations.
WaterFurnace Renewable Energy, Inc.
9000 Conservation Way
Fort Wayne, Indiana 46809-9794
(260) 478-5667
