Pioneering Technology Corp. Reports Q3 2013 Financial Results
Pioneering Technology Corp. Reports Q3 2013 Financial Results
Mississauga, Ontario CANADA, September 03, 2013 /FSC/ - Pioneering Technology Corp. (PTE - TSX Venture), ("Pioneering" or the "Company"), 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 June 30, 2013. The Company's unaudited financial statements for the three and nine months ended June 30, 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.
Third Quarter ended June 30th, 2013
Total revenue for the quarter ended June 30, 2013 of $545,000 was up versus the previous quarter but down from $631,000 in the same period in 2012. For the quarter ended June 30 , 2013, the Company's net loss was approximately $85,000 ($.004) per share after the capitalization of development costs of $121,000 compared to a loss of approximately $307,000 ($.016) per share for the same quarter in 2012 (capitalized development costs $Nil).
Gross margin for the quarter ended June, 2013 continued to be strong at 53%, although down vs. 61% in the same period year ago. This was the result of mix shift and a large percentage of sales for the quarter being through distributors vs. direct to customers.
Expenses during the quarter were approximately $374,000, down 46% as compared to expenses of approximately $687,000 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 nine months ended June 30, 2013 was approximately ($436,000) or ($0.019) per share compared to $(563,000) or ($0.03) per share in the nine months ended June 30, 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 expects to have both products available for sale early in Q1 of its next fiscal year beginning Oct 1, 2013.
As the North American leader in cooking fire prevention technologies, 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 Company's continuing lobbying efforts are now manifesting themselves in significant national programs that are focused on both problem and solution; support for the Company's engineering solutions and working towards a change to codes and standards and in some cases law.
During the period fire safety officials began to introduce plans for taking on the cooking fire problem in the United States head on introducing a number of new initiatives that will bring profile to the significant problem that exists in the United States and throughout the world. These initiatives will begin later this summer and will be kicked off by the National Fire Protection Association's Fire Prevention Week in October. This year's theme is "Prevent Kitchen Fires". These initiatives will help create significant profile for Pioneering as the leaders in cooking fire prevention technologies.
The International Association of Fire Chief's (IAFC) Board of Directors approved the IAFC Fire & Life Safety Task Force's (FLSS) Report, Positioning Statement and presented their proposed plan for the organization's stated goal of reducing cooking fires and related injuries. The focus of that plan is on promoting temperature limiting technologies that prevent cooking fires from starting in the first place. Pioneering Technology's patented Safe-T-element cooking system is the only technology available today that delivers temperature limiting control ("TLC") on electric coiled stovetops.
The Company has engaged Pauline Fung-On, a finance specialist to assist the Company as it enters the retail channel with its two new products. Harvey Johnson, the Company's part time CFO has resigned to pursue other interests and will not be replaced at this time in an effort to control costs. Pioneering CEO Kevin Callahan will assume CFO responsibilities in the interim with Ms. Fung-On, a CMA, also assisting with the Company's quarterly filing requirements.
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 100,000 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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