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.
|To view full financials, click here.|
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 $7.8 million in 2009. This increase is due entirely to higher Illumination sales during this period. A summary of revenues from each of the company’s Signals & Illumination and Systems & Other business segments is displayed below:
|Sales Summary||For the three months ended March 31,|
|Signals & Illumination|
|Total Signals & Illumination||6,418||79%||5,579||71%||839||8%|
|Systems & Other|
|Solar Power Systems and Grid-Tie||1,670||21%||1,914||25%||(244)||(4)%|
|Total Systems & Other||1,670||21%||2,241||29%||(571)||(8)%|
Summary of EBITDA and Net Income
The company uses certain non-GAAP measures to assist in assessing its financial performance. Non-GAAP measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. One such non-GAAP measure used for assessing financial performance is Adjusted EBITDA, defined as net income before interest, income taxes, amortization, restructuring charges, goodwill, intangible impairments and discontinued operations.
|Adjusted EBITA Reconciliation||For the three months ended|
|($ 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:
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
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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.