Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) today releases preliminary selected financial estimates for the quarter ended September 30, 2014. All amounts are in US dollars.
- Revenues in the third quarter of 2014 were approximately $12.1 million, up approximately 147% from revenues of $4.9-million in the third quarter of 2013.
- Third quarter revenues included approximately $2.0 million from Sol, Inc. which Carmanah acquired on July 2, 2014 and are being recorded on a consolidated basis for the first time. Revenues derived from the historical Carmanah businesses of approximately $10.1 million in the third quarter were up 106% over the third quarter of 2013 revenues of $4.9 million.
- Year-to-date revenues were approximately $30.3 million, up approximately 67% over the comparable period in 2013 of $18.1 million.
- Gross margins in the third quarter of 2014 remained reasonably consistent with margins achieved in the first and second quarters of 2014.
- Carmanah's order backlog grew through the third quarter of 2014 and is significantly higher than the order backlog at the end of the second quarter of 2014.
"We are delighted with year to date revenue growth which we expect to continue into the fourth quarter given our increasing order backlog,” said John Simmons, Chief Executive Officer. "However, and as previously predicted, we also expect profitability to be temporarily reduced through the balance of 2014 and early 2015 by the costs of integrating our acquisition of Sol, Inc."
Full financial statement disclosure is scheduled to be made on or about November 13, 2014, followed by the analyst conference call on or about November 14, 2014. Details respecting the analyst call will be released approximately one week prior to the call.
About Carmanah Technologies Corporation
Since its founding in 1996, Carmanah has become one of the most trusted names in solar technology, delivering reliable and cost-effective solar powered products and systems for industrial applications worldwide. To date, Carmanah's solutions for marine navigation, airfield ground lighting, aviation obstruction, roadway illumination, parking lot lighting, as well as on and off-grid power generation, have been successfully deployed in over 400,000 installations in 110 countries with proven performance in conditions ranging from desert heat to arctic cold.
In 2013, through shareholder led initiatives, the company was restructured under the leadership of CEO John Simmons, while the Company’s largest shareholder, Michael W. Sonnenfeldt, became non-executive Chairman. Carmanah’s current board members demonstrate their belief in Carmanah's future by having been the largest investors in each financing since the restructuring and now, as a group, own the majority of Carmanah's issued and outstanding shares.
Carmanah Technologies Corporation:
Stuart Williams, (250) 380-0052
Chief Financial Officer/Corporate Secretary
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. Examples of forward-looking information in this news release include, but are not limited to, statements with respect to the Company’s backlog and the ability to deliver these orders, and estimates of revenue for the period. For additional information on these risks and uncertainties, see Carmanah’s most recently filed Annual Information Form (AIF) and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company’s website at www.carmanah.com. The risk factors identified in Carmanah’s AIF and MD&A 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.