TORONTO, May 31, 2017 (GLOBE NEWSWIRE) -- Augusta Industries Inc. (the “Corporation”) (TSX:AAO) is pleased to announce that it has released its financial results for the three months ending March 31, 2017. For the three months ending March 31, 2017, the Corporation had revenues of $879,000, a decrease of $132,000 or 13% as compared to the three months ending March 31, 2016.
Total loss from operations for the three months ending March 31, 2017 was ($77,000) or a net loss of $0.000 per share, a decrease of $259,000 or $0.001 per share, as compared to a gain of $182,000 or $0.001 per share for the three months ending March 31, 2016. Gross margins for the three months ending March 31, 2017 was 23% compared to 45% for the three months ending March 31, 2016 due to the change in mix between Marcon and FOX-TEK sales during the period. The Corporation also reduced its operating expenses in the three months ending March 31, 2017 to $277,000 from $279,000 for the same period in 2016.
Although the Corporation incurred a loss during the first quarter of 2017, the overall results are encouraging and reflects the success that the Corporation has experienced in its sales effort in 2016. The Corporation’s operational loss of $77,000 for the quarter is amongst the lowest in any quarter apart from 2016,” states Allen Lone, President of the Corporation. “The revenue was a result of the increased spending of the Corporation’s current clients and the addition of new clients through the quarter.” There has been an increase in sales to the US Government by Marcon group by $181,000 in the first quarter of 2017 compared to 2016 but FOX-TEK sales were lower by $313,000 during this period. To a large extent the reason for large reduction in FOX-TEK sales in 2017 is due to a large hardware sale in the first quarter of 2016.
|Consolidated Financial Highlights|
|Three months ended March 31,2017|
|Cost of Sales||(679||)||(550||)|
|Research and development||(37||)||(36||)|
|General and administrative||(233||)||(235||)|
|(Loss) income from operations||(77||)||182|
The financial statements, notes to the financial statements and Management's Discussion and Analysis for the three months ending March 31, 2017 are available on SEDAR at www.sedar.com.
Corporate Update - Business Development
FOX-TEK Canada Inc
The Company will continue to work closely with new and existing clients to strengthen and preserve the relationship in addition to developing new projects with new clients.
The Company continues to enhance the DMAT platform (Data Management and Analysis Tool). The Company has successfully negotiated with several clients new contracts for Engineering services and Data Analysis for the year 2017 and beyond.
The Company CEO and Chief Operations Officer attended the Ontario Centres of Excellence (“OCE”) Discovery 2017 Exhibition & Conference in May 2017. The Company took the opportunity to introduce the technologies to both private and public organizations in addition to a number of capital market firms and are working on post conference meetings with a number of the interested parties.
The Corporation is working closely with The Trans Africa Pipeline project (“T.A.P.”) to provide non-intrusive sensing equipment which will verify the integrity of the pipeline composite at key locations. In addition to the non-intrusive sensing equipment, Fox-Tek will provide optical based sensing technology which would allow T.A.P. to monitor the right of way zones from possible third-party intrusions.
Fox-Tek in association with one of the largest leak detection technology companies, TTK Canada, is marketing a leak detection system to a number of our clients in North America.
Fox-Tek has recently submitted quotation and bids to a number of clients. The list below does not include bids to third parties that fall under confidentiality agreements.
- Corrosion monitoring systems package to one of our largest long standing clients in North America.
- Corrosion monitoring systems package for the East West Pipeline Project JPS1-1 in Saudi Arabia.
- Corrosion monitoring systems package for a UAE firm working on a Dubai Petroleum project.
- A package for a non-intrusive pressure monitoring systems for a tank farm in the United States.
- A technical and commercial bid for the Yibal Kuff Project (YKP) in Oman
Marcon International has built an impressive pipeline of quotes in the first quarter of 2017. We are witnessing increased bidding activity in both the first and second Quarters of 2017. Majority of the larger bids and quotes for Marcon International are time consuming both in preparation of the bidding process and with the client and the end users. This is true in the case of the Port Authorities in Bangladesh as well as some of the larger bids in North America. Marcon has successfully signed numerous deals year to date and will continue to do so and update the public through periodic press releases.
About the Corporation:
Through its wholly owned subsidiaries, Marcon International Inc. (“Marcon”) and Fox-Tek Canada Inc. (“Fox-Tek”), the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon’s principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon’s major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation’s FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management’s best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation’s periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Corporation contact: Allen Lone, President, CEO, Augusta Industries Inc. Tel: (905) 275 -8111 Ext 226 email: firstname.lastname@example.org