Questor Technology Inc.
TSX VENTURE : QST

Questor Technology Inc.

May 30, 2006 17:25 ET

Questor Technology Inc.: Announcing First Quarter Results

CALGARY, ALBERTA--(CCNMatthews - May 30, 2006) - Questor Technology Inc. (TSX VENTURE:QST) is pleased to report its unaudited financial and operational results for the three month period ending March 31, 2006.

Significant first quarter results are as follows:

- Revenue of $783,431 a 29 % increase from 2005

- Net earnings of $150,726 a 72 % increase from 2005

Our revenue growth in this first quarter was mainly fuelled by our incinerator rental activity and the revenue generated by our Grande Prairie field service center. The rental incinerators added in 2005, were well utilized through this busy first quarter. Our Grande Prairie field service center has been well received by our clients, keeping our team of service technicians busy. We will continue to expand this portion of our business to keep up with demand.

In this quarter we fabricated the waste gas and produced saltwater disposal system for a large U.S. multi-national for their Asian subsidiary. We are pleased to announce that the system was shipped and the revenue for this sale will be reflected in our second quarter results. We continue to grow internationally and additional sales have been made into the U.S. market.



BALANCE SHEETS
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March 31, December 31,
2006 2005
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(Unaudited)

ASSETS
Current assets
Cash $ 83,117 $ 177,227
Accounts receivable 946,390 607,227
Inventory 102,269 97,758
Prepaid expenses 24,949 49,613
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1,156,725 931,748
Equipment 1,337,562
Intangibles 166,235
Future tax asset 92,000
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$ 2,752,522 $ 2,562,019
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LIABILITIES AND SHARE HOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 543,749 $ 371,282
Bank indebtedness 341,662 374,998
Notes payable 200,000 300,000
Current portion of long-term debt 29,926 29,926
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1,115,337 1,076,206
Long-term debt 42,066 49,548
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------------------------------------------------------------------------
Shareholders' Equity
Share capital 5,183,260 5,183,260
Contributed surplus 58,006 49,878
Deficit (3,646,147) (3,796,873)
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1,595,119 1,436,265
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$ 2,752,522 $ 2,562,019
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INTERIM STATEMENTS OF OPERATIONS AND DEFICIT
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------------------------------------------------------------------------
Three Months Ended
March 31
(Unaudited) 2006 2005
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REVENUE $ 783,431 $ 608,685
DIRECT COSTS 412,867 236,677
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370,564 372,008
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Expenses
General and administrative 188,594 205,339
Interest 13,160 17,261
Research - 46,638
Stock-based compensation 8,128 4,693
Amortization 9,956 10,213
------------------------------------------------------------------------

219,838 284,144
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Net earnings 150,726 87,864

Deficit, beginning of period (3,796,873) (4,143,883)
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Deficit, end of period $ (3,646,147) $ (4,056,019)
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Earnings per share - Basic and Diluted $ 0.006 $ 0.004
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INTERIM STATEMENTS OF CASH FLOWS
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------------------------------------------------------------------------
Three Months Ended
March 31
(Unaudited) 2006 2005
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CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net earnings $ 150,726 $ 87,864
Items not affecting working capital
Stock-based compensation 8,128 4,693
Amortization 36,002 57,959
Gain on sale of rental incinerators - (48,826)
------------------------------------------------------------------------
194,856 101,690
Net changes in non-cash working capital (146,620) 117,886
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48,236 219,576
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FINANCING ACTIVITIES
Repayment of notes payable (100,000) -
Repayment of bank indebtedness (33,336) -
Repayment of long term debt (7,482) (2,604)
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(140,818) (2,604)
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INVESTING ACTIVITIES
Purchase of equipment (1,528) (520,638)
Net proceeds on sale of rental incinerators - 183,315
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(1,528) (337,323)
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Increase (decrease) in cash (94,110) (120,351)

Cash, beginning of period 177,227 137,256
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Cash, end of period $ 83,117 $ 16,905
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Corporate information provided herein may contain words such as "anticipate," "estimate," "expect" and other similar expressions which are intended to identify forward-looking statements. The reader is cautioned that such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward looking statements. These risk and uncertainties include items such as operating performance, regulatory and environmental issues, weather and economic conditions, competition and financing availability.

Questor is engaged in the business of developing environmental technologies for use by the oil & natural gas industry. Its Common Shares trade on the TSX Venture Exchange under the symbol "QST".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Questor Technology Inc.
    Audrey Mascarenhas
    President & C.E.O.
    (403) 571-1530
    or
    Questor Technology Inc.
    David Wallace
    C.F.O.
    (403) 571-1530
    (403) 571-1539 (FAX)
    Website: www.questortech.com