SOURCE: Carmanah Technologies Corporation

November 08, 2006 19:31 ET

Carmanah Announces Financial Results for Q3 2006

VICTORIA, BC -- (MARKET WIRE) -- November 8, 2006 -- Carmanah Technologies Corporation (TSX: CMH) is pleased to announce its third quarter results for the three and nine months ended September 30, 2006 and 2005.

Highlights for the quarter:

--  Record Q3 2006 revenues of $17,510,103, representing a 44% increase over
    Q3 2005 revenues of $12,195,908 and 11% over Q2 2006 revenues of $15,844,155.
    
--  Record 2006 year-to-date revenues at $46,048,027, representing a 95%
    increase over the same nine-month period in 2005.
    
--  Record Q3 2006 orders booked of $17,191,817.
    
--  Sales order backlog of $6,363,008 carrying over into Q4 2006.
    
--  Gross margin at 34.7% for Q3 2006 and 34.3% for the nine months ended
    Sept 30, 2006.
    
--  Record Q3 2006 EBITA in the amount of $1,061,884 representing an increase
    of 37% over Q2 2006 at $773,025 and 62% over Q3 2005 at $657,200.
    
--  Record 2006 year-to-date EBITA of $1,963,157 representing a 39% increase
    over the same period last year.
    
--  Q3 2006 net earnings in the amount of $336,505, compared to Q2 2006 net
    earnings of $123,543 and net earnings of $222,470 in Q3 2005.
    
Summary of Results

Overall, Q3 2006 continued to trend according to management's expectations. During the quarter, Carmanah achieved record revenues of $17,510,103, which represents growth of 44% over Q3 2005 at $12,195,908 and 11% over Q2 2006 at $15,844,155. The Company also booked a record $17,191,817 in sales orders and held a significant sales order backlog of $6,363,008 going into Q4 2006. In addition, gross margins improved from 33.8% in Q2 2006 to 34.7% in Q3 2006 and operating expenses declined as a percentage of sales from 31% in Q2 2006 to 30.2% in Q3 2006.

"While revenues continued to grow, Carmanah's management has also been investing significant time developing operational infrastructure," stated Carmanah's CEO, Art Aylesworth. "These changes will enable the Company to scale with the objectives of its five-year business plan."

Q3 2006 saw some significant sales achievements. The highlight was the receipt and substantial delivery of a $2.6M order for 16 complete A704-5 wirelessly controlled, solar-powered LED airfield lighting systems for a large general aviation lighting project. Management anticipates that the trend towards larger orders will continue as the uptake from mainstream buyers increases across all vertical markets and the receptive audience for our technology becomes more widespread.

Management is also seeing growth opportunities for the sales of our solar power systems across a wide range of industrial sectors. With new enabling programs coming on-stream in various jurisdictions and the increasing applications for "off-grid" solar powered solutions, Carmanah's Solar Power Systems Group is well positioned with its diverse technologies and multiple regional locations. In Q3 2006, Carmanah reinforced its position as a leading solar power systems integrator with the unveiling of Canada's largest solar power systems installation at Exhibition Place in Toronto, Ontario. The Company was also contracted in Q3 2006 to supply Canada's largest building- integrated solar power system in British Columbia.

In Q3 2006, the performance of Carmanah's LED Sign Group fell short of expectations. In response, management has initiated new directives targeting faster and more innovative product development and cost competitiveness as this sector sees increased opportunity and competition. Once implemented, management is confident that the division will be better positioned to capitalize on the growing market for solid-state illuminated signage.

Beyond the details of this quarterly report, management is very pleased with the amount of opportunity presenting itself across all of Carmanah's business groups. The demand for solar-based and energy-efficient technologies is growing at an unprecedented rate. "All of the primary drivers, from environmental objectives, energy concerns, popular support, improved technology efficiencies and a reduction in capital costs, continue to bode well for the future of the Company," states Aylesworth. "These macro trends are the basis upon which the Company's business plan and objectives are built."

Overview of Operations

The growth in Carmanah's operations, both organically and through acquisition, has resulted in business activities which include the design, manufacture and/or distribution of three technology groups: solar powered LED lighting, solar power systems and LED-illuminated signage.

Carmanah's Solar LED Lighting Group provides a variety of energy-efficient LED lighting products for marine, aviation, transit, roadway and industrial worksite applications. The Company's Solar Power Systems Group offers a wide range of renewable energy system solutions for industrial, residential and recreational power applications. The Company's LED Sign Group designs and manufactures energy-efficient LED edge-lit signs for corporate identity, point- of-purchase and architectural applications.

Carmanah's headquarters and primary manufacturing and distribution facilities are located in Victoria, British Columbia, Canada. The Company also operates additional manufacturing and distribution facilities in Calgary, Alberta, Canada, as well as regional distribution and sub-assembly facilities in Barrie, ON; Santa Cruz, CA; and London, England.

Carmanah currently has more than 250,000 installations in 110 countries. Carmanah's customer list includes a wide range of government, commercial and private users worldwide, who are serviced directly by the Company or one of its regional authorized distributors and/or sales agents.

Results of Operations

Sales

Carmanah's total revenues for the three months ended September 30, 2006 were $17,510,103, representing a 44% increase over the same period in 2005 at $12,195,908. Revenues for the nine months ended September 30, 2006 were $46,048,027, representing a 95% increase over the same period in 2005 at $23,587,957.

Solar LED Lighting Group

Revenues from the Solar LED Lighting Group were $8,583,825 in Q3 2006, representing an increase of 105% over Q3 2005 at $4,182,574. The Solar LED Lighting Group had record bookings of $9,409,311 for the quarter.

Revenues from the Solar LED Lighting Group for the nine months ended September 30, 2006 were $19,681,737, representing an increase of 54% over the same period in 2005 at $12,768,020. The Solar LED Lighting Group entered Q4 2006 with a sales order backlog of $3,948,413.

Solar Power Systems Group

Revenues from the Solar Power Systems Group amounted to $7,581,953 for the three months ended September 30, 2006 compared to $6,893,372 in 2005, representing an increase of 10% for the quarter. Revenues for the nine months ended September 30, 2006 were $22,357,061. This group was acquired in July 2005 and therefore had no year-to-date comparatives for the same period in 2005. The Solar Power Systems Group entered Q4 2006 with a sales order backlog of $2,210,857.

LED Sign Group

Revenues from the LED Sign Group were $830,160 in sales for Q3 2006, compared to $1,119,962 for Q3 2005. Revenues for the nine months ended September 30, 2006 were $3,076,858, compared to $3,926,565 for the same period in 2005. A significant portion of revenues achieved by this group is through larger orders, and therefore quarter-over-quarter results may vary significantly. The LED Sign Group entered Q4 2006 with a sales order backlog of $203,738.

A summary of revenues from each of Carmanah's technology groups is as follows:

---------------------------------------------------------------------------
Sales Summary   Q1      Q2      Q3      YTD      Q1      Q2      Q3    YTD
(CAD1,000's)   2006    2006    2006     2006    2005    2005    2005   2005
---------------------------------------------------------------------------
Solar LED    $5,327  $5,771  $8,584  $19,682  $3,443  $5,142 $4,183 $12,768
Lighting
---------------------------------------------------------------------------
Solar Power  $6,227  $8,548  $7,582  $22,357  $-      $-     $6,893 $ 6,893
Systems
---------------------------------------------------------------------------
LED Sign     $ 890   $1,356  $  830  $ 3,077  $1,406  $1,400 $1,120 $ 3,927
Group
---------------------------------------------------------------------------
Other
income       $ 250   $  168  $  514  $   932
---------------------------------------------------------------------------
TOTAL      $12,694 $15,843 $17,510 $46,048  $4,849  $6,542  $12,196 $23,587
Cost of Sales and Gross Profit Margin

Carmanah's cost of sales for the Q3 2006 was $11,441,345 (65.3% of sales), resulting in a gross profit margin of 34.7%, compared with gross profit margin of 33.8% for Q2 2006. For the nine months ended September 30, 2006, the Company's gross profit margin was 34.3%, compared with 41.3% for the same period in 2005. The shift in Carmanah's gross margin from 2005 to 2006 is primarily due to the contribution by the Company's Solar Power Systems Group for the nine months ended September 30, 2006 ($22,357,061 at 24% gross margin).

Carmanah offers product solutions to a variety of market sectors at various gross profit margins. The blended gross profit margin is significantly affected by the ratio of sales contributed by the various technological groups, by the product mix sold, as well as the related market sector.

Wages and Benefits

For the three months ended September 30, 2006, wage and benefit expenses were 15.6% as a percentage of revenue compared to 17.6% for Q3 2005 and 15.1% for Q2 2006. Wage and benefit expenses for the nine months ended September 30, 2006 were 16.4%, compared to 18.6% for the same period in 2005.

Wage and benefit expenses for the three months ended September 30, 2006 increased 27% to $2,727,862, compared with $2,143,824 for Q3 2005. For the nine months ended September 30, 2006, wage and benefit expenses increased 73% to $7,552,820, compared with $4,377,094 for the same period in 2005. This increase is primarily due to the following:

--  $1,600K in additional 2006 wage expenses resulting from the acquisition
    of the Solar Power Systems Group in June 30, 2005.
    
--  $608K in additional commissions expense resulting from overall increased
    sales.
    
--  $145K in wage and stock-based compensation expense for severance of a
    senior manager.
    
--  $348K in additional stock-based compensation expense.
    
The Company also increased its sales, marketing, finance and administrative staff in support of overall growth.

Office and Administration

As a percentage of revenue, office and administration expenses for Q3 2006 were 6%, compared to 6% for Q3 2005 and 6% for Q2 2006. Office and administration expenses for the nine months ended September 30, 2006 were also 6%, compared to 7% for the same period in 2005.

Office and administration expenses in Q3 2006 were $1,001,703, representing a 34% increase over Q3 2005 of $746,623. Office and administration expenses for the nine months ended September 30, 2006 were $2,803,692, representing an increase of 70% over the same period in 2005 at $1,651,171. This increase is primarily due to:

--  The acquisition of the Solar Power Systems Group in July 2005, which has
    no comparatives for the same periods in 2005, contributed to this increase
    with the additional costs of its four sub-assembly and warehouse operations
    (Victoria, BC, Calgary, AB, Barrie, ON, and Santa Cruz, CA).
    
--  The expansion into Carmanah's new 28,000 square foot warehouse facility,
    as well as the associated increase in overall office, administration and
    information technology expenses.
    
--  Increased public company-related costs, including a one-time expense in
    Q1 2006 in the amount of $117,000 to transfer its listing from the TSX Venture
    Exchange to the TSX Toronto Stock Exchange, as well as an overall increase in
    regulatory fees and expenses paid under the new listing.
    
Sales and Marketing

As a percentage of revenue, sales and marketing expenses for Q3 2006 were 3%, compared to 4% for Q3 2005 and 4% for Q2 2006. Sales and marketing expenses for the nine months ended September 30, 2006 were 4%, compared to 5% for the same period 2005.

Sales and marketing expenses for Q3 2006 were $542,538, representing a 27% increase over Q3 2005 of $425,805. Sales and marketing expenses for the nine months ended September 30, 2006 were $1,700,356, representing a 41% increase over $1,201,908 for the same period in 2005. The Company continued to increase sales and marketing activities for new and existing product lines throughout its worldwide marketplace and is expanding its sales and marketing efforts to include the Power Systems Group's customers and verticals.

Research and Development

As a percentage of revenue, research and development expenses for Q3 2006 were 4%, compared to 1% for Q3 2005, and 3% for Q2 2006. Research and development expenses for the nine months ended September 30, 2006 were 3%, compared to 4% for the same period 2005.

During Q3 2006, gross research and development expenses increased to $1,063,926 for the quarter, compared with $206,773 for Q3 2005. This increase included contract development costs of $284,335 for development of the Company's wireless control feature now available on its 700 Series solar LED lighting fixtures. These contract development costs were expensed in the quarter, compared to a contract development recovery of $60,000 in the same quarter of the previous year. For the nine months ended September 30, 2006, gross research and development expenses increased 136% to $2,496,255, compared with $1,056,785 for the same period in 2005. The increase in gross research and development expenses is primarily due to continued investment in new product development, cost reduction initiatives and existing product enhancements across all of the Company's technology groups.

During Q3 2006, a SR&ED investment tax credit in the amount of $410,165 was booked against total research and development expenses, resulting in net research and development expenses of $653,761. For the nine months ended September 30, 2006, a SR&ED investment tax credit in the amount of $936,674 booked against year-to-date research and development expenses, resulting in net research and development expenses of $1,559,581. In 2005, $103,000 in SR&D investment tax credit was recorded for the three months and nine months period ended September 30.

Income Tax

Income tax expense for Q3 2006 totaled $490,216. This amount is comprised of current tax expense of $511,227 and future income tax recovery of $21,011. The current tax expense relates to taxable income generated by Carmanah in the normal course of operations. Current tax expense as a percentage of pre-tax earnings is high due to non-deductible expenses, primarily stock-based compensation along with other adjustments related to future tax estimates.

Earnings

Earnings before interest, taxes and amortization (EBITA) for Q3 2006 were $1,061,884, compared to $657,200 for Q3 2005. For the nine months ended September 30, 2006, EBITA were $1,963,157, compared to $1,411,242 for the same period in 2005.

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 EBITA. EBITA is calculated as net earnings before interest income, taxes and amortization. A reconciliation of EBITA to net earnings is as follows:

--------------------------------------------------------------------------
                            Three months ended        Nine months ended
                               September 30,           September 30,
                             2006        2005        2006           2005
--------------------------------------------------------------------------
Net earnings-as reported  $336,505     $222,470    $436,758       $873,109
--------------------------------------------------------------------------
Add back (deduct):
--------------------------------------------------------------------------
Interest Income           (41,913)     (29,127)     (160,803)     (115,037)
--------------------------------------------------------------------------
Income taxes               490,216      227,405      896,993       227,405
--------------------------------------------------------------------------
Amortization of equipment
And leaseholds             214,351      192,730      599,542       359,922
--------------------------------------------------------------------------
Amortization of             62,725       43,722      190,667        65,843
intangibles
--------------------------------------------------------------------------
EBITA                   $1,061,884     $657,200   $1,963,157    $1,411,242
--------------------------------------------------------------------------
Net earnings for Q3 2006 were $336,505, compared with $222,470 for Q3 2005. For the nine months ended September 30, 2006, net earnings were $436,758 compared with $873,109 for the same period in 2005. Carmanah is focused on maintaining or increasing the gross margins across all of its technology groups, and continuing to reduce overall operating expenses as a percentage of sales.

Balance Sheet Highlights

Carmanah's cash, cash equivalents, and short-term investments at September 30, 2006 were $6,294,411, compared to $4,444,241 at June 30, 2006 and $11,662,214 at December 31, 2005.

Net cash usage from operations for the nine months ended September 30, 2006 was $4,676,522. This is primarily due to:

--  $4,901,064 in increased inventory levels in support of increased sales
    forecasts, particularly in areas of solar panel supply.
    
--  $1,137,038 in prepayments to suppliers to secure solar panel product.
    
--  $3,374,151 in increased accounts receivables due to increased sales
    growth, particularly through the latter part of third quarter.
    
--  $2,433,744 increase in accounts payable and accrued liabilities due to
    increased sales growth and inventory purchases.
    
During the nine months ended September 30, 2006, Carmanah also invested $1,642,688 in leasehold improvements and equipment related to setup and completion of the Company's new production and warehousing facility, as well as to improvements to its head office facility in anticipation of physically integrating Soltek and Carmanah sales and administration staff. These projects were effectively completed by the end of Q2 2006. These improvements have prepared Carmanah's facilities for the anticipated growth over the next two years. The Company anticipates no further significant facilities-related investments in the foreseeable future.

As per the December 2005 financing, management advised that funds raised would be primarily used for significant infrastructure improvements, as well as pro- active inventory investment related to potential supply-side challenges in the photovoltaics market. With the availability of dollars to invest in inventory, management was able to negotiate supply contracts through to the end of 2007. As a result, current inventory levels are being monitored and reduced where appropriate.

Net working capital as at September 30, 2006 was $27,568,076 with a current ratio of 4.4:1.

About Carmanah Technologies Corporation

Carmanah is an award-winning manufacturer specializing in renewable and energy-efficient technology solutions. The Company is currently focused on three technology groups: solar power systems & equipment, solar-powered LED lighting and LED illuminated signage.

Carmanah is headquartered in Victoria, British Columbia, Canada and has branch offices and/or sales representation in 11 cities across Canada, the United States and the United Kingdom. With more than 250,000 installations worldwide, Carmanah is one of the world's premier suppliers of energy-efficient products.

The shares of Carmanah Technologies Corporation are publicly traded on the Toronto Stock Exchange under the symbol "CMH" and on the Berlin and Frankfurt Stock Exchanges under the symbol "QCX". For more information, please visit www.carmanah.com.

On Behalf of the Board of Directors,
Carmanah Technologies Corporation

" Praveen Varshney "
Praveen Varshney, Director
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward- looking statements. These risks and uncertainties are described under the caption "Note Regarding Forward-looking Statements" and "Key Information - Risk Factors" and elsewhere in Carmanah's Annual Report for the fiscal year ended December 31, 2005, as filed with the U.S. Securities and Exchange Commission and which are incorporated herein by reference. Carmanah does not assume any obligation to update the forward-looking information contained in this press release.


CARMANAH TECHNOLOGIES CORPORATION

Consolidated Balance Sheets
(Expressed in Canadian dollars)

September 30, 2006 and December 31, 2005
(Unaudited)

-------------------------------------------------------------------------
                                            September 30,    December 31,
                                                2006             2005
-------------------------------------------------------------------------
Assets
-------------------------------------------------------------------------
Current assets:
-------------------------------------------------------------------------
Cash and cash equivalents                    $5,064,411        $1,882,214
-------------------------------------------------------------------------
Short-term investments                        1,230,000         9,780,000
-------------------------------------------------------------------------
Accounts receivable, net                     12,049,421         8,675,270
-------------------------------------------------------------------------
Inventories                                  15,913,704        11,012,640
-------------------------------------------------------------------------
Prepaid expenses and deposits                 1,486,212           705,073
-------------------------------------------------------------------------

                                             35,743,748        32,055,197
-------------------------------------------------------------------------
Equipment and leasehold improvements, net     3,139,400         2,096,254
-------------------------------------------------------------------------
Intangible assets, net                        1,176,318         1,325,055
-------------------------------------------------------------------------
Goodwill                                     12,368,019        12,330,543
-------------------------------------------------------------------------
Future income taxes                           1,073,000           985,500
-------------------------------------------------------------------------
                                            $53,500,485       $48,792,549
-------------------------------------------------------------------------
Liabilities and Shareholders' Equity
-------------------------------------------------------------------------
Current liabilities:
-------------------------------------------------------------------------
Accounts payable and accrued liabilities     $7,518,700        $5,268,246
-------------------------------------------------------------------------
Deferred revenue                                473,681             -
-------------------------------------------------------------------------
Income taxes payable                            183,291           434,636
-------------------------------------------------------------------------
Current portion of obligations under               -               19,990
capital leases
-------------------------------------------------------------------------
                                              8,175,672         5,722,872
-------------------------------------------------------------------------
Obligations under capital leases                  -                14,991
-------------------------------------------------------------------------
Obligation to former shareholders                 -             2,631,580
of SPS to be settled in
shares
-------------------------------------------------------------------------
                                               8,175,672        8,369,443
-------------------------------------------------------------------------
Shareholders' equity:
-------------------------------------------------------------------------
Share capital                                 42,718,189       38,772,138
-------------------------------------------------------------------------
Contributed surplus                            1,811,288        1,292,390
-------------------------------------------------------------------------
Retained earnings                                795,336          358,578
-------------------------------------------------------------------------
                                              45,324,813       40,423,106
-------------------------------------------------------------------------
                                             $53,500,485      $48,792,549
-------------------------------------------------------------------------


CARMANAH TECHNOLOGIES CORPORATION

Consolidated Statements of Operations and Retained Earnings (Deficit)
(Expressed in Canadian dollars)

For the three and nine months ended September 30, 2006 and 2005
(Unaudited)

--------------------------------------------------------------------------
                        Three months ended            Nine months ended
                            September 30,                September 30,
                         2006             2005       2006          2005
--------------------------------------------------------------------------
Sales             $17,510,103      $12,195,908   $46,048,027   $23,587,957
--------------------------------------------------------------------------
Cost of sales      11,441,345        8,023,990    30,247,216    13,850,674
--------------------------------------------------------------------------
                    6,068,758        4,171,918    15,800,811     9,737,283
--------------------------------------------------------------------------
Operating expenses:
--------------------------------------------------------------------------
Wages and benefits  2,727,862        2,143,824     7,552,820     4,377,094
--------------------------------------------------------------------------
Office and          1,001,703          746,623     2,803,692     1,651,171
administration
--------------------------------------------------------------------------
Sales and             542,538          425,805     1,700,356     1,201,908
marketing
--------------------------------------------------------------------------
Research and        1,063,926          206,773     2,496,255     1,056,785
development
--------------------------------------------------------------------------
Research and        (410,165)         (103,000)     (936,674)    (103,000)
development ITC's
--------------------------------------------------------------------------
Bank charges           81,010            94,693       221,205      142,083
--------------------------------------------------------------------------
Amortization of:
--------------------------------------------------------------------------
Equipment and         214,351           192,730       599,542      359,922
leasehold improvements
--------------------------------------------------------------------------
Intangible assets      62,725            43,722       190,667       65,843
--------------------------------------------------------------------------
                    5,283,950         3,751,170    14,627,863    8,751,806
--------------------------------------------------------------------------
Operating income      784,808           420,748     1,172,948      985,477
--------------------------------------------------------------------------
Other income:
--------------------------------------------------------------------------
Interest and           41,913            29,127       160,803      115,037
other income
--------------------------------------------------------------------------
Earnings before       826,721           449,875     1,333,751    1,100,514
income taxes
--------------------------------------------------------------------------
Income tax expense
(recovery)
--------------------------------------------------------------------------
Current               511,227             7,888     1,012,646      305,888
--------------------------------------------------------------------------
Future               (21,011)           219,517     (115,653)     (78,483)
--------------------------------------------------------------------------
                      490,216           227,405       896,993      227,405
--------------------------------------------------------------------------
Net earnings          336,505           222,470       436,758      873,109
for the period
--------------------------------------------------------------------------
Retained earnings     458,831           328,255       358,578    (322,384)
(deficit), beginning
of period
--------------------------------------------------------------------------
Retained earnings,   $795,336          $550,725      $795,336     $550,725
end of period
--------------------------------------------------------------------------
Earnings per share:
--------------------------------------------------------------------------
Basic                  $0.008            $0.006        $0.011       $0.026
--------------------------------------------------------------------------
Diluted                 0.008             0.006         0.010        0.025
--------------------------------------------------------------------------
Weighted average number of
shares outstanding:
--------------------------------------------------------------------------
Basic              42,352,201        34,804,078    41,438,580   33,277,563
--------------------------------------------------------------------------
Diluted            42,903,071        36,400,154    42,227,066   34,873,639
--------------------------------------------------------------------------




CARMANAH TECHNOLOGIES CORPORATION
Consolidated Statements of Cash Flows
(Expressed in Canadian dollars)

For the three and nine months ended September 30, 2006 and 2005
(Unaudited)


--------------------------------------------------------------------------
                           Three months ended         Nine months ended
                              September 30,              September 30,
                           2006           2005        2006          2005
--------------------------------------------------------------------------
Cash provided by (used in):
--------------------------------------------------------------------------
Operations:
--------------------------------------------------------------------------
Net earnings for         $336,505       $222,470    $436,758      $873,109
the period
--------------------------------------------------------------------------
Items not involving cash:
--------------------------------------------------------------------------
Amortization              277,076        236,452     790,209       425,765
--------------------------------------------------------------------------
Reclassification of          -              -        117,000          -
previously recorded
share issuance costs
--------------------------------------------------------------------------
Stock-based               272,200        126,298     678,752       285,652
compensation
--------------------------------------------------------------------------
Future income             (21,012)       (78,483)   (115,653)      (78,483)
taxes (recovery)
--------------------------------------------------------------------------
Net changes in          1,033,561     (2,291,613) (6,583,588)   (2,925,753)
non-cash working
capital
--------------------------------------------------------------------------
                        1,898,330     (1,784,876) (4,676,522)   (1,419,710)
--------------------------------------------------------------------------
Investing:
--------------------------------------------------------------------------
Short-term investments      -          3,400,000   8,550,000     2,900,000
--------------------------------------------------------------------------
Purchase of Soltek,         -         (5,559,889)      -        (5,559,889)
net of cash acquired
--------------------------------------------------------------------------
Purchase of equipment    (254,850)      (260,472) (1,642,688)     (899,782)
and leasehold
--------------------------------------------------------------------------
improvements
--------------------------------------------------------------------------
Purchase of intangible    (20,057)        (2,537)    (41,930)      (37,454)
assets
--------------------------------------------------------------------------
Other                       -                -       (37,476)         -
--------------------------------------------------------------------------
                         (274,907)    (2,422,898)  6,827,906    (3,597,125)
--------------------------------------------------------------------------
Financing:
--------------------------------------------------------------------------
Proceeds on share         242,100      2,670,465   1,100,717     3,864,158
issuance
--------------------------------------------------------------------------
Share issuance costs        -            (25,768)    (34,923)      (56,000)
--------------------------------------------------------------------------
Bank loan                   -          1,116,496        -        1,116,496
--------------------------------------------------------------------------
Repayment of long           -             (4,067)       -           (4,067)
term debt
--------------------------------------------------------------------------
Principal payments of     (15,353)        (5,486)    (34,981)      (19,123)
obligations under capital
--------------------------------------------------------------------------
leases
--------------------------------------------------------------------------
                          226,747      3,751,640   1,030,813     4,901,464
--------------------------------------------------------------------------
Increase (decrease)     1,850,170       (456,134)  3,182,197      (115,371)
in cash and cash
equivalents
--------------------------------------------------------------------------
Cash and cash           3,214,241      1,242,174   1,882,214       901,411
equivalents, beginning
of period
--------------------------------------------------------------------------
Cash and cash          $5,064,411       $786,040  $5,064,411      $786,040
equivalents,
end of period
--------------------------------------------------------------------------
Supplemental cash flow
information:
--------------------------------------------------------------------------
Cash during the period
for:
--------------------------------------------------------------------------
Bank charges              $40,954        $94,693    $104,845      $142,083
and interest paid
--------------------------------------------------------------------------
Income taxes paid          $-             $-        $352,315       $-
---------------------------------------------------------------------------
Non-cash investing and
financing activities:
--------------------------------------------------------------------------
Issuance of shares         $-             $-      $2,631,580       $-
to former shareholders
of SPS
--------------------------------------------------------------------------
Shares issued on            -          4,000,000       -         4,000,000
purchase of Soltek
--------------------------------------------------------------------------

Contact Information

  • For further information, please contact:

    Investor Relations:
    Mark Komonoski, Director
    Investor Relations
    Tel: +1 (403) 470-8384
    Toll-Free: 1-877-255-8483
    Email Contact

    Media:
    David Davies
    Public Relations
    Tel: (250) 382-4332
    Email Contact

    CHANGE THE WORLD WITH US™

    Carmanah Technologies Corporation
    Building 4, 203 Harbour Road
    Victoria, BC
    Canada V9A 3S2
    Worldwide: +1 (250) 380-0052
    Toll Free: 1-877-722-8877 (Canada and USA)
    Fax: (250) 380-0062
    E-mail: Email Contact