Carmanah Technologies Corporation (TSX: CMH) (“the Company” or “Carmanah”) has released preliminary selected financial estimates for the quarter and the year ended December 31, 2015.
Revenues for the fourth quarter of 2015 are expected to be approximately USD $21.0 million, up 56% over prior year quarter of USD $13.5 million. Revenues for the year ended December 31, 2015 are expected to be approximately USD $68.0 million, up 56% over fiscal 2014 revenues of $43.7 million.
Revenues, both in the fourth quarter and the fiscal year, grew organically and due to inclusion of revenues from the acquisition of the Sabik Group of Companies which closed on July 2, 2015. Year over year the Company’s Signals and Power segments achieved organic growth rates of approximately 14% and 53% respectively while the Company’s Illumination segment declined 15% in spite of a significant rebound in revenues in the fourth quarter.
Order backlog at December 31, 2015 was approximately USD $15.0 million. This compares to the order backlog at the end of the third quarter 2015 of USD $16.9 million and the order backlog as at December 31, 2014 of USD $9.0 million.
Gross margins in the fourth quarter of 2015 are expected to be reasonably consistent with margins achieved in the first nine months of the year.
The analysts that provide coverage of Carmanah have estimated the Company’s Adjusted EBITDA for 2015. The consensus average of these estimates is Adjusted EBITDA of USD $8.2 million. The Company estimates that its Adjusted EBITDA will exceed analyst consensus.
“We are delighted by our strong results in 2015 during which we combined strong revenue growth and careful expense management both of which led to record levels of Adjusted EBITDA.” said John Simmons, Chief Executive Officer. “As we begin 2016, we do so with great optimism. We have a strong balance sheet, an outstanding portfolio of products and excellent staff resources. And while we expect continued positive momentum from our business initiatives, there could be future variances in quarter by quarter due to the project and timing nature of our revenues.”
Full financial statement disclosure is scheduled to be made on or about March 30, 2016, followed by the analyst conference call on or about March 31, 2016. Details for the analyst call will be released approximately one week prior to the call.
About Carmanah Technologies Corporation
Headquartered in Victoria, British Columbia, Carmanah produces a portfolio of products focused on energy optimized LED and solar technologies. We design, develop and distribute energy efficient LED solutions for infrastructure including: signaling systems for the marine aids to navigation, airfield ground lighting, offshore wind marking, aviation obstruction and traffic markets. Carmanah’s product portfolio also includes industrial and commercial solar powered outdoor LED lighting systems, and solar on and off-grid power generation systems. Since 1996, we have earned a global reputation for delivering strong and effective products for industrial applications that perform reliably in some of the world’s harshest environments. Our LED and solar power systems provide durable, dependable, efficient and cost-effective solutions which have been deployed in over 400,000 installations in 110 countries. The Carmanah brand portfolio includes Go Power! and recently acquired companies, Sol and Sabik.
Carmanah Technologies Corporation:
Evan Brown, (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,” “estimates,” “could,” “will” or variations of such words and phrases. Forward-looking statements or information in this news release relate to, among other things: revenues, and revenue growth, for the fourth quarter and year ended December 31, 2015; order backlogs; gross margins and estimates of EBITDA and Adjusted EBITDA. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Carmanah or Sabik to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such factors include, but are not limited to: our ability to become a worldwide leader in the marine aids to navigation industry, the potential growth of the off shore wind safety market or our ability to participate in any growth and other general uncertainties that may impact actual outcomes. These forward-looking statements are based on management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. Carmanah disclaims any obligation to update, or to publicly announce, any such statements, events or developments except as required by law.
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.
 NON-GAAP FINANCIAL MEASURES: EBITDA and Adjusted EBITDA. This news release presents information about EBITDA and Adjusted EBITDA, both of which are non-IFRS financial measures, to provide supplementary information about 2015 operating performance. Carmanah defines EBITDA as net income or loss before interest, income taxes, amortization, and non-cash stock based compensation. Adjusted EBITDA removes unusual or non-operating items from EBITDA, such merger and acquisition costs, restructuring charges, asset write offs, and foreign exchange gains and losses. Carmanah is including the non-IFRS financial measure in this news release in order to provide guidance as to analyst predictions of Adjusted EBITDA and the Company’s own estimate of Adjusted EBITDA. Carmanah uses these non-IFRS measures internally to make strategic decisions, forecast future results and evaluate its performance. EBITDA and Adjusted EBITDA are not intended as a substitute for IFRS measures. Readers should refer to the “Definitions and Reconciliations” section of the Company’s most recently filed MD&A for the three and nine months period ended September 30, 2015 for a more detailed discussion of these measures and their calculation.