Mississauga, Ontario--(Newsfile Corp. - March 1, 2016) - Pioneering Technology Corp. (TSXV: PTE) ("Pioneering"), a technology company and North America's leader in cooking fire prevention technologies and products, is pleased to report its financial results for the three months ended December 31, 2015. Pioneering reported revenue of $1.34 million, net income of $191,257 ($0.01 per share) and adjusted EBITDA of $273,700. This marks Pioneering's fifth consecutive quarter of operating profitability.
Kevin Callahan, President & CEO of Pioneering said, "We are pleased to report record quarterly financial results and continued profitability. Year over year revenue for the 12 months ended December 31, 2015 is up over 50% and we expect this trend to continue based on the strength of growing awareness of the home cooking fire problem, the need for our technology solutions, our new distribution relationships and the changing regulatory environment. We have led the creation of the home cooking fire prevention category and the disruption of the cooking appliance industry and are now just starting to see the beginnings of what we believe will be a very sizeable market opportunity."
Financial Highlights for the First Quarter Ended December 31, 2015 and 2014
|First Quarter Ended December 31||2015 ($)||2014 ($)|
In addition to the quarterly highlights noted above, the following metrics highlight Pioneering's growth over the past 12 months:
- Net income over the past 12 months is $250.9K versus a loss in the previous 12 months of $1.23M or a net increase of $1.48M.
- Adjusted EBITDA over the past 12 months is $784.5K versus a loss in the previous 12 months of $1.5M or a net increase of $2.3M.
Kevin Callahan continued, "Pioneering's business is definitely heading in the right direction. We met our Q1 forecast and expect our revenue and profitability to continue to grow significantly. We look forward to providing our shareholders with updates as we continue to achieve our sales and earning milestones."
Pioneering's unaudited financial statements and Management's Discussion and Analysis for the three months ended December 31, 2015 are available for review at www.sedar.com.
Pioneering has historically funded its working capital requirements through a combination of cash flow generated by operations and debt and equity financing. The cost of debt financing as Pioneering has been growing has been expensive. Pioneering is currently pursuing a number of lower cost financing opportunities . In the short term the Company expects to complete a non-brokered private placement of units for gross proceeds of up to $1.5 million at a price of $0.125 per unit. Each unit is expected to consist of one common share and one-half of one share purchase warrant, with each whole warrant exercisable for one common share at a price of $0.25 for eighteen months. Finder's fees in accordance with TSX Venture Exchange ("TSXV") policies may be payable in respect of the placement. The proposed placement is subject to TSXV approval.
About Pioneering Technology Corp: Pioneering, based in Mississauga, Ontario is an "energy smart" technology company and North America's leader in cooking fire prevention technologies and products. Pioneering engineers and brings to market energy-smart solutions for everyday consumer appliances making them safer, smarter, and more efficient. Pioneering's patented cooking-fire prevention technologies/products are engineered to help prevent cooking fires, the number one cause of household fire (a multi-billion dollar problem) in North America. According to the National Fire Protection Association, stovetop cooking is the number one cause of household fire and fire injuries in North America (48% of all household fires - up from 20% in 1980). Pioneering has proprietary cooking fire prevention solutions for the majority of the more than 140 million stoves/ranges and over 140M microwave ovens throughout North America. Pioneering's cooking fire prevention trademarks include Safe-T-element, SmartBurner, RangeMinder & Safe-T-sensor. For more information go to www.pioneeringtech.com.
For more information please contact:
Kevin Callahan, President & CEO of Pioneering, 905-712-2061 ext.222 email@example.com
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 Pioneering's target markets, the demand for Pioneering's products, the availability of funding and the efficacy of Pioneering's technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, Pioneering does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from Pioneering'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 Pioneering's Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Pioneering posted on SEDAR (www.sedar.com).
This news release contains certain forward-looking statements reflecting the Company's current views or expectations on its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.