Augusta Industries Inc.

November 29, 2011 18:18 ET

Augusta Announces Q3 Results

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2011) - Augusta Industries Inc. (the "Corporation") (TSX VENTURE:AAO), a developer and manufacturer of patented non-intrusive sensing systems, today announced its third quarter results from operations.

The unaudited interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB").

During the three month period ended September 30, 2011, total revenues were $1,069,000 ($3,054,000 for the nine month period ended September 30, 2011) compared to total revenues of $454,000 from the period April 28th to September 30, 2010. The increase in revenue is attributable to the efforts of the Corporation in focusing its efforts in increasing sales to existing clients and expanding its client base outside of North America.

Losses from Operations for the three month period ended September 30, 2011, was $16,000 ($384,000 for the nine month period ended September 30, 2011) compared to Losses from Operations of $61,000 for the period April 28th to September 30, 2010. The decrease in the loss from operations is indicative of the success that the Corporation has had in its efforts in merging the operations of the Corporation and Marcon International Inc. and achieving synergies to reduce losses.

About the Corporation:

Through its wholly owned subsidiaries, Marcon International Inc. ("Marcon") and FOX TEK Canada Inc., 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.

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.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Corporation contact:
    Augusta Industries Inc.
    Allen Lone
    President, CEO & CFO
    (905) 338-2323 Ext 22