Mississauga, ON - May 31, 2012 - Pioneering Technology Corp. ("Pioneering" or the "Corporation") (TSX Venture: PTE), an energy smart product innovation and consumer goods company, recently reported its financial results for the three months ended March 31, 2012. The Company's unaudited financial statements for the three months and six months ended March 31, 2012, together with its Management's Discussion and Analysis of these results, are available for review under the Company's profile at www.sedar.com.
Q2 Financial Results
Revenue for the quarter was $609,043 up 41% versus Q1 and relatively flat versus the same quarter in fiscal 2011 of $627,646. Gross Margin improved to 58.5% up from 55.7% versus the same quarter last year. Adjusted EBITDA for the quarter was approximately ($156,000) versus $8,000 during the same period in 2011. Adjusted EBITDA for the six months year-to-date was ($338,000) compared to $28,000 in the same period 2011 reflecting the Company's strategic decision to invest in people and new product development to leverage its successes over the past year and accelerate growth.
Q2 Business Highlights
-The Manitoba Housing Authority (MHA) was the first province in Canada to mandate Safe-T-element for all of its new and replacement electric coil ranges. MHA is also retrofitting many of its existing ranges in its properties. After a successful trial they are now installing the product on mass. MHA has over 13,000 housing units under management.
-City Housing Hamilton (CHH) passed a mandate requiring that all new or replacement electric coil ranges must include the Safe-T-element technology. CHH has 7,100 housing units under management.
-The Company entered into meaningful discussions with private Military Housing Property Managers in the U.S. regarding installation of the Safe-T-element in their properties based on its fire prevention and energy savings capabilities and on the products success in government owned and operated military housing throughout the US and overseas. The STE was recently recommended by the US military for installation in all government owned/operated military family housing.
-The Company continued to work with the Vision 20/20 taskforce whose mandate it is to provide a national forum for sustained, collaborative planning to reduce fire loss in the United States. The STE in particular and the high end heat limiting technology it provides continues to receive high level organizational support and endorsement and is currently being reviewed and tested by multiple agencies throughout NA whose goal it is to reduce the number of fires in NA by imposing standards, code, and legislative changes.
-The Company's Safe-T-sensor technology for microwave ovens was featured at the 2012 Vision 20/20 "Models in Fire Prevention" Symposium. Ohio University was invited to share the success of their "Nuisance Alarm Reduction on Campus" program featuring Pioneering's Safe-T-sensor. Results over the past school year (75% reduction in burnt food runs versus the annual average) means that Ohio University is exceeding its target of reducing nuisance runs over the next 3 years. Ohio expects the trend to continue resulting in a savings of approximately $222,000 and better safety for its students and first responders.
-The Company made substantial progress during the quarter on two new complimentary products that it is planning to bring to market in the fall of 2012 and will expand its reach and relevance beyond its current channels. These new product opportunities will drive incremental revenue and margin for the Company.
-The Company strengthened its Board of Directors and Management Team with the addition of three new appointments. Meri-K Appy, an internationally recognized leader in fire and life safety education and Richard Adair a highly regarded technology and financial executive joined the Board and will bring valuable experience and expertise to the organization as it continues to grow. The Company also appointed Harvey Johnson, an internationally trained KPMG CA as its Chief Financial Officer.
About Pioneering Technology Corp: Pioneering is an "Energy Smart" product innovation company based in Mississauga, Ontario, that engineers and brings to market energy smart solutions for consumer products making them safer, smarter and/or more efficient. The patented Safe-T-element(R) cooking system is engineered to help prevent stove top cooking fires, the number one cause of fire in North America, and to reduce the amount of electricity required to cook. The patent pending Safe-T-sensor is designed to detect burning conditions in microwave ovens shutting it off before it causes a fire or triggers a fire alarm. Pioneering trademarks include Safe-T-element(R), Safe-T-Sensor(TM), Powergrill(TM), Battery Eliminator(R), Powerpak(TM) and the Hydro-free Furnace Fan(TM). For more information visit: www.pioneeringtech.com.
For further information contact: Kevin Callahan, President & CEO at (905) 712-2061 ext. 222.
Forward Looking Statements
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in the Corporation's target markets, the demand for the Corporation's products, the availability of funding, the efficacy of the Corporation's technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Corporation's expectations and projections.
Adjusted EBITDA is a measure not recognized under Canadian generally accepted accounting principles ("GAAP"). However, management of Pioneering believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges, and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.
Adjusted EBITDA does not have any standard meanings prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with GAAP and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Corporation's Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of the Corporation posted on SEDAR (www.sedar.com).
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
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