Pioneering Technology Corp. Reports Q2 2013 Financial Results
Pioneering Technology Corp. Reports Q2 2013 Financial Results
Mississauga, Ontario CANADA, May 30, 2013 /FSC/ - Pioneering Technology Corp. (PTE - TSX Venture), an "Energy Smart" product innovation/consumer goods company and North America's leader in cooking fire prevention technologies, reports its financial results for the three months ended March 31, 2013. The Company's unaudited financial statements for the three and six months ended March 31 2013, together with its Management's Discussion and Analysis of these results, are available for review under the Company's profile at www.sedar.com.
Second Quarter ended March 31st, 2013
Total revenue for the quarter ended March 31, 2013 of $407,000 was up versus the previous quarter but down from $609,000 in the same period in 2012. For the quarter ended March 31, 2013, the Company's net loss was approximately $156,000 ($.007) per share after the capitalization of development costs of $65,000 compared to a loss of approximately $294,000 ($.016) per share for the same quarter in 2012 (capitalized development costs $Nil).
Gross margin for the quarter ended March 31, 2013 continued to be strong at 70% vs. 59% in the same period year ago. This was the result of a large percentage of sales for the quarter being direct to customers.
Expenses during the quarter were approximately $441,000, down 32% as compared to expenses of approximately $655,000 during the same period in 2012. This decrease in expenses was driven by the capitalization of development costs as well as cost cutting initiatives implemented by the Company.
Adjusted EBITDA for the six months ended March 31, 2013 was approximately ($358,000) or ($0.016) per share compared to $(425,000) or ($0.023) per share in the six months ended March 31, 2012. These results reflect the Company's strategic decision to cut costs in sales and marketing while investing in new product development and capitalizing those development costs.
The Company's investment in product development is focused on two important new product technologies that will leverage the Company's leadership position in the area of cooking fire safety and expand its product portfolio improving the Company's ability to penetrate additional channels and consumer markets. The Company expects that these new products will play an important role in helping to drive incremental revenue and growth.
The Company continued to make significant progress in creating top of mind awareness for its technologies with the fire protection community, housing providers and legislators in both Canada and the U.S. The sales pipeline for the Safe-T-element(r) is strong and continues to grow as awareness for the product is driven by successful installations, continued sales penetration of key multi-residential channels and support from fire service organizations throughout North America.
The Company continues to expand its reach into the U.S. military channel working with both the Department of Defense and private sector property managers who manage properties on behalf of the U.S military.
The Company is making significant progress in promoting the Safe-T-element(r) product's energy savings benefits. The Company is proactively leveraging its recent successes in this area and is attracting new electricity Local Distribution Companies (LDC's) and Energy Contract Companies (ESCOs) in both Canada and the United States who are considering the technology as a means to help drive energy savings in their local distribution territory and/or in properties under their management.
The Company was successful in increasing the STE's inclusion as a "Qualified Allocation Plan" ("QAP") product in the U.S. as West Virginia became the 7th state to include STE in its QAP. Property developers in these states receive tax credits for including the STE product in properties as they are built and/or redeveloped. The potential revenue opportunity for the STE in the U.S. state QAP market is significant.
About Pioneering Technology Corp: Pioneering, based in Mississauga, Ontario is an "Energy Smart" product innovation/consumer goods company and North America's leader in cooking fire prevention technology. Pioneering engineers and brings to market energy smart solutions for consumer products making them safer, smarter and/or more efficient. Pioneering's patented and patent pending 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. Available on new ranges or as a retrofit, the STE technology is installed on over 80,000 ranges in multi-residential housing (low income, seniors, college/university and military) throughout the world. 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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