Victoria, BC, Canada - (May 6, 2010) - Carmanah Technologies Corporation (TSX: CMH) today announces its first quarter financial results for the three-month period ending March 2010. Sales for Q1 2010 were $8.1 million, up $0.3 million from the same period last year. First quarter Signals & Illumination sales increased to $6.4 million from $5.6 million, mainly due to a significant increase in Illumination product sales.
Highlights for the Quarter
- Sales: $8.1 million, up from $7.8 million for the same period in 2009
- Gross margin: 39.3%, up from 36.5% in 2009
- Operating costs: $3.4 million, down from $3.9 million in 2009
- Net income/(loss): $Nil, improved from $(0.2) million in 2009
- Adjusted EBITDA: $0.3 million, down from $0.4 million in 2009
- Cash flow from operations: $0.6 million, down from $0.8 million in 2009
- Cash balance: $8.3 million as at March 31, 2010, down from $8.7 million at December 31, 2009
- Debt: Continued debt-free operation
|To view full financials, click here.|
Summary of Results
Carmanah enters 2010 with momentum in the key Signalling & Illumination sectors. New product introductions and attention to specific lighting customer requirements have provided the company with revenue in these strategically important markets despite a risk-adverse industry. Emphasizing prudent and practical fiscal management, margins improved compared to the fourth quarter of 2009. The focus on strategic distribution partnerships was further strengthened with the announcement of a new partnership with Semex S.A. of Monterrey, Mexico; for the manufacturing and distribution of Carmanah traffic and illumination products within several named countries in Latin America. The Ontario, Canada Feed-in-Tariff program announcements were made during the quarter and the announcements favour some significant improvement in Carmanah Grid-tie sales in future quarters.
"Carmanah's steady state revenue performance belies the progress made in a new product introduction to the Signalling market and sales progress in the massive Illumination market," states Ted Lattimore, Carmanah CEO. "Our first quarter 2010 sales of the new 650 signals are replacing orders of the workhorse 600 series lanterns in the Signalling area at a ratio of nearly 2:1. In Illumination, our EverGEN™ 1500 series products have set yet another quarterly sales record, leading our illumination sales to a quarterly total of $1.6 million. The two new successful product lines are a result of continuous market assessment and investment in research and development. We're pleased to see the immediate positive market take-up."
"During the first quarter of 2010 Carmanah continued to maintain its strong cash and working capital position and have zero debt," said Roland Sartorius, Carmanah CFO. "With the restructuring now behind us, we are starting 2010 by executing on several growth strategies for the company while maintaining our focus to deliver bottom line results and not jeopardize our liquidity".
Sales for the first quarter of 2010 were $8.1 million, up from $7.8 million in 2009. This increase is due entirely to higher Illumination sales during this period. A summary of revenues from each of the company's Signals & Illumination and Systems & Other business segments is displayed below:
|Sales Summary||For the three months ended March 31,|
|Signals & Illumination|
|Total Signals & Illumination||6,418||79%||5,579||71%||839||8%|
|Systems & Other|
|Solar Power Systems and Grid-Tie||1,670||21%||1,914||25%||(244)||(4)%|
|Total Systems & Other||1,670||21%||2,241||29%||(571)||(8)%|
Summary of EBITDA and Net Income
- Adjusted EBITDA for Q1 2010 was $0.3 million, a decrease from Q1 2009 of $0.4 million.
- Net income was $Nil, improved from Q1 2009 net loss of $(0.2) million.
The company uses certain non-GAAP measures to assist in assessing its financial performance. Non-GAAP measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. One such non-GAAP measure used for assessing financial performance is Adjusted EBITDA, defined as net income before interest, income taxes, amortization, restructuring charges, goodwill, intangible impairments and discontinued operations.
|Adjusted EBITA Reconciliation||For the three months ended|
|($ thousands)||March 31, 2010||March 31, 2009|
|Adjusted EBITA||$ 279||$ 362|
Highlights During the Quarter (including subsequent events)
During this quarter, Carmanah has shown continued success in deploying EverGEN™ 1500 series outdoor area lighting products. The 1500 series was the driver of $1.6 million Illumination revenue for the quarter - another in a year-long trend of continual increasing quarterly sales of EverGEN™. In April 2010, sales began for the EverGEN™ 1700 series, designed by frog design, with a launch of a new addition to the 1700 product line planned for the May 2010 LIGHTFAIRÂ® Tradeshow and Conference in Las Vegas, Nevada.
Other highlights during this quarter included:
- Sales of the 650 Solar LED Signaling Lights Reach 7,000 Units. Sales of the new 650 series solar LED aviation and marine signaling lights exceeded 7,000 units since the line's launch in mid-2009. (April 22, 2010)
- Carmanah and Sabik Oy partner to Deliver Total Marine Lighting Solutions. Marine lighting pioneers Carmanah and Sabik joined forces to deliver a complete range of marine lighting solutions under the Carmanah/Sabik brand. Under the terms of the agreement, both Carmanah and Sabik will expand their marine product families to include the other company's marine lighting solutions and will leverage each others' sales and distribution channels to deliver a complete range of marine lights to their respective global customer bases. (March 18, 2010)
- Carmanah and ADB Airfield Solutions expand partnership globally. ADB and Carmanah expanded their partnership agreement to include Europe, South America, the Middle East/Africa and Asia Pacific. This agreement now links Carmanah and ADB worldwide, enabling both companies to proceed with a global partnership focused on complementing ADB's line of airfield lighting products with a range of solar powered LED airfield lights manufactured by Carmanah. (March 9, 2010)
- Carmanah illuminates public park in Santiago, Chile. A public park in Santiago, Chile lit its pathways with EverGEN™ solar LED lights from Carmanah. Provided through Carmanah distributor Emelta S.A., the EverGEN™ units are installed around a walking path that runs throughout Juan Pablo II Park in the community of Las Condes in Santiago. (February 23, 2010)
- Carmanah illuminates World Cup supply site with Solar LED Aviation lighting. Carmanah, through its South African distributor, Sun Solutions, supplied solar powered LED airfield lights to Waterkloof Air Force Base in South Africa (ICAO: FAWK). The Air Force Base is home to the South African Presidential Squadron and is a designated supply hub for World Cup 2010. (February 16, 2010)
- Carmanah lights up Polynesian Marine facilities. Docks and wharfs throughout French Polynesia are now being illuminated with EverGEN™ solar LED lighting from Carmanah. This unique installation is the result of a government initiative to increase safety and security and significantly reduce operational costs at key marine facilities throughout the Polynesian Islands. (February 2, 2010)
- Carmanah Partners with Hong Kong based Jardine Engineering Corporation (JEC) to distribute Solar LED Lighting Products. Carmanah entered into a distribution agreement with the Jardine Engineering Corporation (JEC), a member of Hong Kong-based Jardine Matheson Group. Under the terms of the agreement, JEC will distribute Carmanah's solar LED lighting products throughout Hong Kong, Macau, the Philippines and Thailand. (January 28, 2010)
- Dr. David Suzuki Public School powers up with Carmanah solar technology. The Dr. David Suzuki Public School in Greater Essex County District School Board of Windsor, Ontario, received a Carmanah 32 kW grid-tied Photovoltaic power system with funding provided by the Government of Ontario Green Schools Initiative. (January 20, 2010)
- Carmanah Technologies illuminates Central Spokane, WA Parking Lot with Solar Lighting. The Spokane Public Facilities District illuminated a central city parking lot with solar LED lighting from Carmanah. Installed as part of a new parking lot facility constructed in conjunction with the INB Performing Arts Center in downtown Spokane, the Carmanah EverGEN™ 1530 solar LED lights provide the first LED site lighting in the city. Centrally located and easily recognizable as a sustainable energy solution, the lights are showcasing the Spokane Public Facilities District's continued commitment to going green. (January 12, 2010)
- Carmanah & Semex establish Mexican manufacturing and distribution partnership. Carmanah and Semex concluded a manufacturing & distribution partnership that will bring leading-edge solar LED lighting and solar-powered traffic beacon technology to Mexico and Latin America. Carmanah and Semex have partnered to manufacture solar LED lighting and signaling solutions for outdoor lighting and traffic applications at Semex's facility in Monterrey, Mexico. The manufacturing agreement will allow both companies to penetrate further into the outdoor lighting market in Mexico and will help them to service major clients across the region. (January 7, 2010)
Complete set of Financial Statements and Management Discussion & Analysis
A complete set of Q1 2010 Financial Statements and Management's Discussion & Analysis are available on Carmanah's corporate website. To view full financials, visit: www.carmanah.com/Company/Investors/Financial_Reports.aspx.
About Carmanah Technologies Corporation
As one of the most trusted names in solar technology, Carmanah has earned a reputation for delivering strong and effective products for industrial applications worldwide. Industry proven to perform reliably in some of the world's harshest environments, Carmanah solar LED lights and solar power systems provide a durable, dependable and cost effective energy alternative. Carmanah is a publicly traded company, with common shares listed on the Toronto Stock Exchange under the symbol "CMH". For more information, visit carmanah.com.
Carmanah Technologies Corporation
Chief Financial Officer
For further information, please contact:
Public Relations: David Davies
Forward Looking Statements
This release may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "expects," "plans," "estimates," "intends," "believes," "could," "might," "will" or variations of such words and phrases. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties which are described under the caption "Note Regarding Forward-looking Statements" and "Key Information - Risk Factors" and elsewhere in Carmanah's Annual Report for the fiscal year ended December 31, 2009, as filed on SEDAR at www.sedar.com. The risk factors identified in Carmanah's Annual Report are not intended to represent a complete list of factors that could affect Carmanah. Accordingly, readers should not place undue reliance on forward-looking statements. Carmanah does not assume any obligation to update the forward-looking information contained in this press release.