CRS Electronics

CRS Electronics
Podium Capital Corporation

September 01, 2009 08:00 ET

CRS Electronics Reports Second Quarter Financial Results

Completes Amalgamation and Name Change

WELLAND, ONTARIO--(Marketwire - Sept. 1, 2009) - CRS Electronics Inc. ("CRS"), the operating subsidiary of Podium Capital Corporation (TSX VENTURE:LED), an engineer, designer, and manufacturer of LED lighting, today reported its financial results for the three and six month periods ended June 30, 2009.

For the three months ended June 30, 2009, the Company reported sales of $651,353 and a net loss of $266,874, or $0.01 per share inclusive of a non-cash expense equal to $178,270 for the previously announced grant of stock options. For the six months ended June 30, 2009, the Company reported sales of $1.1 million and a net loss of $371,922 or $0.02 per share. This compares to sales of $1.2 million and a net income of $13,770 for the same six-month period last year. Working capital for the quarter was $154,385 including $87,315 of cash compared to the working capital deficiency of $390,871 on December 31, 2008 and a bank operating loan of $296,391.

"This quarter's results provide further evidence of the success of the launch of our MR16 LED," said Scott Riesebosch, President of CRS Electronics. "Sales of the MR16 increased by 272% over the first quarter of this year as it is quickly gaining a reputation as the industry's best-in-class. We are extremely encouraged by the positive responses we receive from commercial customers who have recently installed our MR16 LEDs. The economic benefits realized by our customers will be key in continuing to drive sales and keep us on target for a record year."

LED lighting product economics and environmental benefits are driving the market revolution and demand for energy savings solutions. CRS's MR16 replacement lamp can reduce energy consumption by 80% and the Company's streetlight solutions can deacrease energy consumption by up to 50%. The market for LED illumination products is expected to grow from $6.0 billion in 2007 to $24 billion by 2012. CRS's experience in automated manufacturing of high quality LED products has positioned the Company to be a leading provider of LED engines to brand name lighting suppliers as well as developing and marketing a suite of proprietary products.

Effective September 1, 2009, the Company completed a previously announced vertical short form amalgamation with its wholly-owned subsidiary, CRS Electronics Inc. (the "Subsidiary"). The Company and the Subsidiary continue as one corporation under the name "CRS Electronics Inc." The share capital of the amalgamated corporation remains the same and the common shares will continue trading on TSX Venture Exchange (the "Exchange") under the symbol "LED". The business of the amalgamated corporation remains the same as that of the Subsidiary.

The amalgamation of the Company and its Subsidiary was undertaken to simplify the corporate structure and to reduce accounting and other administrative costs. The Company previously acquired all of the issued and outstanding shares of the Subsidiary pursuant to the Capital Pool Company program of the Exchange.

Under the terms of the Capital Pool Transaction, the orginal shareholders of CRS Electronics Inc. agreed to enter into an excrow agreement that could have resulted in the forfiture of 10% of the common shares in Podium Capital Corporation they had received in exchange for the common shares they held in CRS Electronics Inc. A total of 1,620,448 common shares were put in escrow. After complying with the terms of the escrow agreement, 1,303,392 were distributed to the seven CRS Electonics Inc. shareholders and 317,056 were returned to the Corporation for cancellation. After the cancellation, the Corporation will have 23,086,094 common shares issued and outstanding. Three insiders of the Corporation who had 1,578,861 held under the escrow agreement forfeited 309,255 common shares.

CRS has granted an aggregate of 50,000 options to purchase common shares at an exercise price of $0.35 per share to a director of the Company, Jason Sparaga. The shares will vest in four months and expire five years after the grant date.

The unaudited interim financial statements and related MD&A can be found on SEDAR at

About CRS

CRS is a leader in the emerging, rapidly-growing market of high efficiency light-emitting-diode ("LED"), or, solid state lighting ("SSL"). The principal activities of CRS include the development, manufacture and sale, primarily in North America, of indoor and outdoor lighting such as LED replacement lamps, LED streetlights, exterior LED warning lights on school buses, child safety systems for school buses and contract manufacturing of LED light boards. CRS is a well-established supplier to both the school bus industry and the LED contract manufacturing industry, providing a stable and growing revenue source. CRS plans to be a major supplier of LED light engines for a variety of applications to be developed by CRS on its own and in conjunction with its customers. The Company currently sells one of the very few replacement LED MR16 lights capable of replacing a halogen 50 watt MR16.

Certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in Podium's public filings, Podium's future outlook and anticipated events or results and can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to capital and operating expenditures, economic conditions, availability of markets for products, availability to develop and manufacture products, availability of sufficient financing, receipt of approvals, satisfaction of escrow requirements, satisfaction of closing conditions, obtaining debt financing for capital expenditures, and any and all other timing, development, operational, financial, economic, legal, regulatory and/or political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other Podium filings, and include sufficient working capital for development and operations, access to adequate services and supplies, availability of markets for products, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and other sources of financing and associated cost of funds, availability of a qualified work force, availability of manufacturing equipment, no material changes to the tax and regulatory regime and the ultimate ability execute its business plan on economically favourable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Podium filings at and other unforeseen events or circumstances. Other than as required by law, Podium does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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