TORONTO, ONTARIO -- (Marketwired) -- 10/19/16 -- Augusta Industries Inc. (the "Corporation") (TSX VENTURE: AAO) today released its financial results for the nine months ending September 30, 2016. For the period ending September 30, 2016, the Corporation had record revenues of $3,297,000, an increase of $1,604,000 or 95% as compared to the nine months ending September 30, 2015.
"We are extremely pleased with the record Sales and the financial results for the three quarters of 2016," said Allen Lone, President of the Corporation. "The results for the three quarters of 2016 is an indication of the success that the Corporation has had in signing new quarters in 2016. The results are a true reflection of the Corporation's efforts to increase its sales, decrease costs and focus on a growing market."
Other highlights:
-- Net income before tax for the nine months ending September 30, 2016 was
$80,000 as compared to a loss of $689,000 for the nine months ending
September 30, 2015 - an improvement of $769,000.
-- The net gain per share for the nine months ending September 30, 2016 was
$0.003 compared to the nine months ending September 30, 2015.
-- Gross profit for the nine months ending September 30, 2016 was $878,000
(26.6%) compared to $433,000 (25.6%) for the nine months ending
September 30, 2015. The Corporation also reduced its operating expenses
in the nine months ending September 30, 2016 to $797,000 from $920,000
for the same period in 2015.
Consolidated Financial Highlights
September 30, 2016 December 31, 2015
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Total Current Assets 1,498,000 911,000
Total Non-Current Assets 46,000 56,000
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Total Assets $ 1,544,000 $ 967,000
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Current Liabilities 1,388,000 866,000
Long term debt 36,000 50,000
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Total Liabilities 1,424,000 916,000
Total Equity 120,000 51,000
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Total Liabilities and Equity $ 1,544,000 $ 967,000
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Nine months ended September 30,
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2016 2015
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Sales $ 3,297,000 $ 1,693,000
Cost of sales (2,419,000) (1,260,000)
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Gross profit 878,000 433,000
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Expenses
Research and development (113,000) (155,000)
Selling (28,000) (32,000)
General and administrative (656,000) (733,000)
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Total operating expenses (797,000) (920,000)
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Income (loss) from operations 81,000 (487,000)
Finance costs (13,000) (72,000)
Loss on sale of investments - (43,000)
Foreign exchange gain (loss) 12,000 (87,000)
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Net income (loss) for the period
before tax 80,000 (689,000)
Income tax expense (6,000) -
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Net income (loss) for the period 74,000 (689,000)
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Other comprehensive income (loss) (5,000) 5,000
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Total comprehensive income (loss)
for the period $ 69,000 $ (684,000)
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Earnings (loss) per common share
based on
Net income (loss) for the period
Basic and diluted $ 0.000 $ (0.003)
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The financial statements, notes to the financial statements and Management's Discussion and Analysis for the nine months ending September 30, 2016 are available on SEDAR at www.sedar.com.
About the Corporation:
Through its wholly owned subsidiaries, Marcon International Inc. ("Marcon") and Fox-Tek Canada Inc. ("Fox-Tek"), the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation's FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Augusta Industries Inc.
Allen Lone
President, CEO
(905) 275 -8111 Ext 226
atlone@fox-tek.com
