Progress Continues on Path to Profitability
ICP Solar Technologies Inc. (OTCBB: ICPR.OB, FRANKFURT: K1U.F), a developer, manufacturer and marketer of proprietary solar panels and products, today announced financial results for the fourth quarter and twelve months ended January 31, 2009.
Highlights for the Quarter
- Sales were $0.9 million for the fiscal fourth quarter, up 39% from $0.7 million in the fourth quarter of fiscal 2008
- SG&A expenses declined 50% in the fourth quarter ended January 31, 2009 versus the fourth quarter of fiscal 2008
- Adjusted EBITDA was $(0.9) million for the quarter, versus $(1.8) million in the quarter ended January 31, 2008
- ICP Solar also recently announced a number of important developments, including an expanded licensing agreement with The Coleman Company, the introduction of additional long-lasting Sunsei® lighting products, and new distribution partnerships with both OutBack Power Systems and Integrated Metering Systems
“In line with what was stated when we reported preliminary results for the fourth quarter in February, ICP Solar has achieved a good deal of progress with regards to both its streamlining efforts and growth initiatives this year,” said Sass Peress, CEO. “Even with the global economy still finding its footing, we are seeing steady demand for our products and a robust order book for fiscal 2010. In addition, we continue to offer superior, innovative solutions within the market for renewable energy applications, as demonstrated by our successful rollout of the Sunsei® GreenMeter® systems in North America and abroad. We believe that the wide variety of stimulus measures being enacted across the globe - and the increasing interest in solar-powered products - will provide upward momentum to our expansion plans going forward.
“In recognition of our current positioning, expertise, and the optimism we see for the future of our industry, ICP Solar will hold its first ever earnings conference call on Wednesday, April 29th for the fourth quarter of fiscal 2009. We certainly hope that many long term investors and equity research analysts can join us as we review results and discuss our growth strategy for fiscal 2010. As the economy recovers and oil prices invariably rise, we anticipate even greater interest in our unique, mobile, technology-leading solar applications. ICP Solar has never been better positioned for growth and performance improvement than it is today.”
Financial Results
Revenue for the fourth quarter of fiscal 2009 was $0.9 million, as compared with $0.7 million in the fourth quarter of fiscal 2008, reflecting increased shipments of the Company’s products in North America. Gross loss was near breakeven at $(28,924), versus a gross loss of $(0.3) million last year. The Company's operating loss for the quarter was $(1.3) million versus $(2.6) million in the prior-year period, with the decrease primarily due to lower SG&A expense. Adjusted EBITDA for the fourth quarter of fiscal 2009 was $(0.9) million, as compared with $(1.8) million in the fourth quarter of fiscal 2008. The Company posted a comprehensive net loss for the fourth quarter of $(2.4) million, or $(0.07) per diluted share, compared with a net loss of $(2.6) million, or $(0.09) per diluted share, in fiscal 2008.
Conference Call
ICP Solar will host its first ever earnings conference call at 10:00 a.m. Eastern on April 29, 2009 for the fiscal fourth quarter and year ended January 31, 2009. During the call, Sass Peress, CEO, will review the company’s operations and financial results. The telephone number for the conference call is 800-938-1123.
Non-GAAP Measures
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 net income (loss) before interest, income taxes, amortization, financing costs and non-cash charges ("Adjusted EBITDA").
About ICP Solar Technologies, Inc:
ICP Solar is a developer, manufacturer and marketer of solar panels, solar cell based products, solar monitoring software and solar power management solutions. Through the application of its own intellectual property and next-generation technologies, the Company aims to be the solar industry's innovation leader. For the past 20 years, ICP Solar has been a lead innovator in the consumer solar market and has now begun to apply that same innovation philosophy to the OEM, rooftop and power generation segment of the solar industry. ICP Solar's management has over 50 years of experience in the renewable energy sector. ICP Solar markets its products under its Sunsei® brand of solar products and is the North American licensee of the Coleman® brand in the solar charger category. ICP Solar is also helping the environment by offering these solar technologies and green solutions to the renewable energy sector. The company's headquarters are located in Montreal, Canada, with an R&D center in St. John’s Canada and additional locations in the USA, Ireland, France and the UK. Additional information may be found at www.icpsolar.com
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 ICP Solar Technologies Inc. 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 ICP Solar Technologies Inc.’s Annual Report for the fiscal year ended January 31,2008, as filed on EDGAR at www.sec.gov. The risk factors identified in ICP Solar Technologies Inc. Annual Report are not intended to represent a complete list of factors that could affect ICP Solar Technologies Inc. Accordingly, readers should not place undue reliance on forward-looking statements. ICP Solar Technologies Inc. does not assume any obligation to update the forward-looking information contained in this press release.
| ICP Solar Technologies Inc. | ||||||||||||||||
| Consolidated Interim Statements of Operations and Comprehensive Loss | ||||||||||||||||
| For the Years Ended January 31, | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Expressed in U.S. Funds | ||||||||||||||||
| For the three months | For the Twelve months | |||||||||||||||
| ended January 31, | ended January 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Net Sales | $ | 913,102 | $ | 657,021 | $ | 5,903,196 | $ | 6,541,232 | ||||||||
| Cost of Sales | 942,026 | 915,898 | 4,569,435 | 4,375,063 | ||||||||||||
| Gross Margin | (28,924 | ) | (258,877 | ) | 1,333,761 | 2,166,169 | ||||||||||
| Expenses | ||||||||||||||||
| Selling, general and administrative | 1,141,271 | 2,296,904 | 5,772,124 | 7,513,739 | ||||||||||||
| Depreciation and amortization | 60,933 | 10,063 | 82,034 | 109,661 | ||||||||||||
| Research and development | 82,533 | 78,642 | 643,629 | 87,812 | ||||||||||||
| Foreign exchange (gain) loss | 2,589 | (36,512 | ) | (76,832 | ) | 10,484 | ||||||||||
| 1,287,327 | 2,349,097 | 6,420,957 | 7,721,696 | |||||||||||||
| Operating Loss | (1,316,251 | ) | (2,607,974 | ) | (5,087,196 | ) | (5,555,527 | ) | ||||||||
| Interest expense | (118,091 | ) | (30,588 | ) | (287,420 | ) | (299,352 | ) | ||||||||
| Interest income | 7,053 | 6,751 | 13,008 | 22,077 | ||||||||||||
| Forgiveness of loan receivable | - | - | (88,973 | ) | - | |||||||||||
| Write-down of loan receivable and convertible debenture | (1,920,328 | ) | - | (1,920,328 | ) | (229,128 | ) | |||||||||
| Accretion of discount on convertible notes | 0 | (27,112 | ) | (167,495 | ) | (586,163 | ) | |||||||||
| Discount on loan receivable | 0 | (25,961 | ) | 166,404 | (644,619 | ) | ||||||||||
| Discount on convertible debentures | (624,735 | ) | - | (1,612,390 | ) | |||||||||||
| Gain on modification of convertible debentures | 602,726 | 602,726 | ||||||||||||||
| Financing costs | 0 | - | (382,761 | ) | ||||||||||||
| Accretion of discount on loan receivable | 20,186 | 129,148 | 78,947 | 344,767 | ||||||||||||
| Interest expense on put warrant | 426,667 | - | (600,000 | ) | ||||||||||||
| Gain on disposition of subsidiary | - | - | 9 | 2,818,207 | ||||||||||||
| (1,606,520 | ) | 52,238 | (4,198,273 | ) | 1,425,789 | |||||||||||
| Net Earnings (Loss) before Income Taxes | $ | (2,922,771 | ) | $ | (2,555,736 | ) | $ | (9,285,469 | ) | $ | (4,129,738 | ) | ||||
| Income Taxes | (600,000 | ) | 93,000 | - | 93,000 | |||||||||||
| Net Earnings (Loss) | $ | (2,322,771 | ) | $ | (2,648,736 | ) | $ | (9,285,469 | ) | $ | (4,222,738 | ) | ||||
| Other Comprehensive Income (Loss) | ||||||||||||||||
| Foreign currency translation adjustment | (3,955 | ) | - | (207,156 | ) | 2,250 | ||||||||||
| Comprehensive (Loss) | $ | (2,326,726 | ) | $ | (2,648,736 | ) | $ | (9,492,625 | ) | $ | (4,220,488 | ) | ||||
| Basic Weighted Average Number of Shares Outstanding | 34,090,717 | 30,148,509 | 34,090,717 | 30,148,509 | ||||||||||||
| Basic and Diluted Earnings (Loss) Per Share | (0.07 | ) | (0.09 | ) | (0.28 | ) | (0.14 | ) | ||||||||
ICP Solar Technologies, Inc. | ||||||||||||||||
Adjusted EBITDA Reconciliation | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Expressed in U.S. Funds | ||||||||||||||||
| For the three months | For the twelve months | |||||||||||||||
| ended January 31, | ended January 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Net Earnings (Loss) before Income Taxes | $ | (2,922,771 | ) | $ | (2,555,736 | ) | (9,285,469 | ) | (4,129,738 | ) | ||||||
| Interest | 118,091 | 30,588 | 287,420 | 299,352 | ||||||||||||
| Interest expense on put warrant | (426,667 | ) | - | 600,000 | - | |||||||||||
| Depreciation | 60,933 | 10,063 | 82,034 | 109,661 | ||||||||||||
Amortization of loan discount | 0 | 25,961 | (166,404 | ) | 644,619 | |||||||||||
| Accretion of discount on convertible notes | 0 | 27,112 | 167,495 | 586,163 | ||||||||||||
| Amortization of discount on convertible debentures | 624,735 | - | 1,612,390 | - | ||||||||||||
| Accretion of discount on loan receivable | (20,186 | ) | (129,148 | ) | (78,947 | ) | (344,767 | ) | ||||||||
| EBITDA | $ | (2,565,864 | ) | $ | (2,591,160 | ) | $ | (6,781,482 | ) | $ | (2,834,710 | ) | ||||
| Other non-cash items: | ||||||||||||||||
| Forgiveness of loan receivable | - | - | 88,973 | - | ||||||||||||
| Foreign exchange | 2,589 | (36,512 | ) | (76,832 | ) | 10,484 | ||||||||||
| Gain on disposition of subsidiary | - | - | (9 | ) | (2,818,207 | ) | ||||||||||
| Write-down of loan receivable and convertible debenture | 1,920,328 | - | 1,920,328 | 229,128 | ||||||||||||
| Gain on modification of convertible debentures | (602,726 | ) | - | (602,726 | ) | - | ||||||||||
| Stock based compensation | 305,552 | 862,400 | 1,815,655 | 2,772,201 | ||||||||||||
| Adjusted EBITDA | $ | (940,121 | ) | $ | (1,765,272 | ) | $ | (3,636,093 | ) | $ | (2,641,104 | ) | ||||
| ICP Solar Technologies Inc. | |||||||||
| Consolidated Interim Balance Sheet | |||||||||
| As at January 31, 2009 | |||||||||
| (Unaudited) | |||||||||
| Expressed in U.S. Funds | |||||||||
| January 31, 2009 | January 31, 2008 | ||||||||
| Assets | |||||||||
| Current | |||||||||
| Cash | $ | 193,517 | $ | 20,967 | |||||
| Term deposit | 505,301 | ||||||||
| Accounts receivable | 622,981 | 873,976 | |||||||
| Inventories | 1,492,808 | 2,426,177 | |||||||
| Prepaid expenses | 12,941 | 86,898 | |||||||
| 2,322,247 | 3,913,319 | ||||||||
| Property and Equipment | 88,030 | 85,478 | |||||||
Intangible, net of accumulated amortization of $53,200 (2008-$nil) | 120,914 | - | |||||||
| Investment in EPOD Solar (Wales) Ltd. | - | 1 | |||||||
| Loan receivable, net of $953,729 provision | - | 2,200,158 | |||||||
| Investment in Convertible Debenture net of $967,600 provision | 1 | - | |||||||
| $ | 2,531,192 | $ | 6,198,956 | ||||||
| Liabilities | |||||||||
| Current | |||||||||
| Bank indebtedness | 1,102,311 | ||||||||
| Accounts payable and accrued liabilities | 1,648,023 | 920,396 | |||||||
| Put option liability | 67,555 | ||||||||
| Government grants payable | 17,533 | 27,036 | |||||||
| Senior Secured Convertible Debentures, less | |||||||||
| unamortized discount of $ 2,708,934 (2008-$nil) | 171,517 | ||||||||
| 1,904,628 | 2,049,743 | ||||||||
| Convertible Notes, less unamortized discount of $ nil | - | 682,508 | |||||||
(2008 - $167,492) | |||||||||
| Put Warrant | 3,600,000 | ||||||||
| Shareholders' Deficiency | |||||||||
| Capital Stock | 351 | 328 | |||||||
| Additional Paid-In Capital | 16,157,546 | 13,105,085 | |||||||
| Accumulated Other Comprehensive Loss | (1,005,625 | ) | (798,469 | ) | |||||
| Accumulated Deficit | (18,125,708 | ) | (8,840,239 | ) | |||||
| (2,973,436 | ) | 3,466,705 | |||||||
| $ | 2,531,192 | $ | 6,198,956 | ||||||
Contacts:
ICP Solar Technologies Inc.
Sass Peress, 514-270-5770
Chief
Executive Officer
or
Investor Relations:
Chris
Witty, 646-438-9385
cwitty@darrowir.com
