- Email: [email protected]
H2O Innovation, Canada
COMPANY WATCH
H2O Innovation, Canada
MFRI Inc, USA
Key Figures (C$ thousand) Fourth quarter ended 30.6 2011
2010
Sales
8086.2
5921.4
Cost of Sales
6056.6
4596.0
Gross Profit
2029.6
1325.4
Operating Income/(Loss)
(781.9)
(8244.8)
EBITDA
(198.7)
(785.2)
Net Loss
(271.4)
(6220.4)
Year ended 30.6 Sales Cost of Sales Gross Profit Operating Income/(Loss) EBITDA Net Loss
November 2011
2010
Net Sales Of Which: Filtration Products
64.0
61.9
25.3
21.0
Cost of Sales
53.2
48.2
Gross Profit Of Which: Filtration Products
10.8
13.7
3.5
2.4
0.1
2.8
0.5
(0.5)
Income/(Loss) from Operations Of Which: Filtration Products
2011
2010
28 798.2
27 726.6
Income/(Loss) before Income Taxes
(0.2)
2.4
20 721.6
Net Income/(Loss)
(1.8)
2.9
20 231.9 8566.2
7006.0
(1626.3)
(10 587.6)
90.8
(2821.0)
(1616.8)
(9997.9)
COMMENT H20 Innovation has posted sales for its fourth quarter of fiscal 2011 of C$8.1 million, up 37% on the previous year. Net loss for the period was C$271 419 compared to 2010’s C$6.2 million. Results for the corresponding full-year followed a similar pattern with net sales up 4% at US$28.8 million, while the net loss was reduced from C$10.0 million to C$1.6 million. “Fiscal 2011 has ended on a sustained growth momentum, as shown by our backlog of water treatment systems which reached a record-high level of C$36.6 million, its highest level since the foundation of H20 Innovation eleven years ago,” Frédéric Dugré, the company’s president and CEO, said. “This 148% increase in our backlog at year-end compared to fiscal 2010, combined with an increase in gross margin of 4.4
Key Figures (US$ million) Second quarter ended 31.7 2011
percentage points, an important decrease of our operating expenses and the integration of the operations of our new Indian joint-venture H20 Innovation India have enabled us to record positive EBITDA for the fiscal year.” Dugré said H20 Innovation had refined its business model during fiscal 2011 and was now focused on three main target markets: the municipal sector (smalland medium-sized), the energy sector and the mining industry. “The synergy that exists between our sales of systems and our sales of specialty chemicals and consumables is better understood by our clients, our partners and our employees, and the streamlining of our operating and administrative services enabled us to reduce costs and increase our efficiencies,” he said. ■ www.h2oinnovation.com
Six months ended 31.7 2011 Net Sales Of Which: Filtration Products
2010
117.4
111.7
50.1
40.2
Cost of Sales
98.4
87.2
Gross Profit Of Which: Filtration Products
19.0
24.5
6.8
5.1
Income/(Loss) from Operations Of Which: Filtration Products
(1.6)
2.7
1.0
(1.0)
Income/(Loss) before Income Taxes
(2.3)
1.9
Net Income/(Loss)
(3.3)
2.4
COMMENT MFRI has posted second quarter sales for fiscal 2012 of US$64.0 million, up 3.4% on a year earlier. It posted a net loss, however, of US$1.8 million compared with a profit of US$2.9 million in the fiscal 2011 comparator. The company’s Filtration Products segment performed well in the quarter with its net sales up 20.5% on a year earlier at US$25.3 million, gross profit 44.9% stronger at US$3.5 million and a US$0.5 million profit from operations reversing a US$0.5 million loss. The segment’s performance for the corresponding six-months was
similar with a 24.8% increase in net sales to US$50.1 million and a 34.9% increase in gross profit to US$6.8 million. “We believe that maintaining our diversified product mix and geographic reach during the difficult economic climate of recent years has benefited our company,” David Unger, MFRI’s CEO, said. “In 2011, new orders in North America, Europe and the Middle East show improvement over prior periods. We will continue to make strategic investments to facilitate growth for the long term.” ■ www.mfri.com
Filtration Industry Analyst
9
H2O Innovation, Canada
MFRI Inc, USA
Key Figures (C$ thousand) Fourth quarter ended 30.6 2011
2010
Sales
8086.2
5921.4
Cost of Sales
6056.6
4596.0
Gross Profit
2029.6
1325.4
Operating Income/(Loss)
(781.9)
(8244.8)
EBITDA
(198.7)
(785.2)
Net Loss
(271.4)
(6220.4)
Year ended 30.6 Sales Cost of Sales Gross Profit Operating Income/(Loss) EBITDA Net Loss
November 2011
2010
Net Sales Of Which: Filtration Products
64.0
61.9
25.3
21.0
Cost of Sales
53.2
48.2
Gross Profit Of Which: Filtration Products
10.8
13.7
3.5
2.4
0.1
2.8
0.5
(0.5)
Income/(Loss) from Operations Of Which: Filtration Products
2011
2010
28 798.2
27 726.6
Income/(Loss) before Income Taxes
(0.2)
2.4
20 721.6
Net Income/(Loss)
(1.8)
2.9
20 231.9 8566.2
7006.0
(1626.3)
(10 587.6)
90.8
(2821.0)
(1616.8)
(9997.9)
COMMENT H20 Innovation has posted sales for its fourth quarter of fiscal 2011 of C$8.1 million, up 37% on the previous year. Net loss for the period was C$271 419 compared to 2010’s C$6.2 million. Results for the corresponding full-year followed a similar pattern with net sales up 4% at US$28.8 million, while the net loss was reduced from C$10.0 million to C$1.6 million. “Fiscal 2011 has ended on a sustained growth momentum, as shown by our backlog of water treatment systems which reached a record-high level of C$36.6 million, its highest level since the foundation of H20 Innovation eleven years ago,” Frédéric Dugré, the company’s president and CEO, said. “This 148% increase in our backlog at year-end compared to fiscal 2010, combined with an increase in gross margin of 4.4
Key Figures (US$ million) Second quarter ended 31.7 2011
percentage points, an important decrease of our operating expenses and the integration of the operations of our new Indian joint-venture H20 Innovation India have enabled us to record positive EBITDA for the fiscal year.” Dugré said H20 Innovation had refined its business model during fiscal 2011 and was now focused on three main target markets: the municipal sector (smalland medium-sized), the energy sector and the mining industry. “The synergy that exists between our sales of systems and our sales of specialty chemicals and consumables is better understood by our clients, our partners and our employees, and the streamlining of our operating and administrative services enabled us to reduce costs and increase our efficiencies,” he said. ■ www.h2oinnovation.com
Six months ended 31.7 2011 Net Sales Of Which: Filtration Products
2010
117.4
111.7
50.1
40.2
Cost of Sales
98.4
87.2
Gross Profit Of Which: Filtration Products
19.0
24.5
6.8
5.1
Income/(Loss) from Operations Of Which: Filtration Products
(1.6)
2.7
1.0
(1.0)
Income/(Loss) before Income Taxes
(2.3)
1.9
Net Income/(Loss)
(3.3)
2.4
COMMENT MFRI has posted second quarter sales for fiscal 2012 of US$64.0 million, up 3.4% on a year earlier. It posted a net loss, however, of US$1.8 million compared with a profit of US$2.9 million in the fiscal 2011 comparator. The company’s Filtration Products segment performed well in the quarter with its net sales up 20.5% on a year earlier at US$25.3 million, gross profit 44.9% stronger at US$3.5 million and a US$0.5 million profit from operations reversing a US$0.5 million loss. The segment’s performance for the corresponding six-months was
similar with a 24.8% increase in net sales to US$50.1 million and a 34.9% increase in gross profit to US$6.8 million. “We believe that maintaining our diversified product mix and geographic reach during the difficult economic climate of recent years has benefited our company,” David Unger, MFRI’s CEO, said. “In 2011, new orders in North America, Europe and the Middle East show improvement over prior periods. We will continue to make strategic investments to facilitate growth for the long term.” ■ www.mfri.com
Filtration Industry Analyst
9