Excellium Inc.

Excellium Inc.

March 22, 2013 17:39 ET

Excellium Inc. Announces End-of-Year 2012 Results

MONCTON, NEW BRUNSWICK--(Marketwire - March 22, 2013) - Excellium Inc. (TSX VENTURE:XLM) (the "Corporation" or "Excellium"), a Tier II issuer listed on the TSX Venture Exchange (the "Exchange"), announced today its financial results for the fiscal year ended December 31, 2012.

The year ended being under budget in the last year, with every segment performing under end-of-year pressure. The financial results were disappointing compared to the results of the previous year and the Corporation continued to suffer from the combination of transitioning to a public company, and of restructuring the organization while executing in parallel two major projects.

The year's results are significantly impacted by project delays, cost overruns on a major project, the listing expenses resulting from the reverse acquisition of the public-traded corporation Azura Ventures Ltd., non-recurring expenditures resulting from the one-time cost of going public and a failed acquisition attempt.

Summary of significant events of the quarter

  • Continued execution of two major projects
  • Maintaining backlog of contracts with regular clients
  • Several significant new projects are being pursued

In 2012, Excellium had an increase in revenues of 35.0% at $4,994,750 compared to $3,669,820 in 2011. Electronic Security increased from 69.5% of revenues in 2011 to 88.7% of revenues in 2012 while Electronic Identification decreased from 30.5% to 11.3% of Excellium's revenues.

The Corporation suffered a net loss of $3,167,903 in 2012 compared to a net loss of $1,634,751 in 2011. The loss is mainly attributable to the listing expenses resulting from the reverse acquisition of the public-traded corporation Azura Ventures Ltd, the non-recurring costs related to this acquisition and the significant decrease incurred in margins of the Electronic Security Segment for the quarter, due to cost overruns. Gross margins of one important contract were unexpectedly much lower because of the nature of the work done. However, it is expected that the balance of the upcoming work to complete this contract, including extras required by the client will provide improved overall contract margins.

The Business is still in its development phase and has not quite yet reached the size to generate sufficient revenues to produce a positive income.

Excellium is a security company specialized in biometrics identity systems and proactive security management and in the integration of security products for the institutional and industrial markets. Excellium is active in two distinct but complementary lines of business: electronic security, which includes security management, access control and video surveillance, and electronic identification, comprising background checks and biometric identification. Excellium's common shares are listed on the TSX Venture under the trading symbol "XLM" and the year-end Financial Statements and the Management's Discussion & Analysis and its continuous disclosure filings are available on SEDAR at www.sedar.com. For further information about Excellium, please visit its website at www.excellium.ca.

Cautionary Note Regarding Forward-Looking Statements

Certain information in this press release regarding the Company, including, but not limited to, the Company's business objectives, strategies and priorities, the generation of cash flows and other statements that are not historical facts, are "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements can generally be identified by words such as "may", "should", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook" and similar expressions. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable securities laws. These statements are based on information currently available to the Company's management and on the current assumptions, intentions, plans, expectations and estimates of the management regarding the Company's future growth, results of operations, performance and opportunities as well as the economic environment in which it operates. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside the Company's control. A number of factors could cause actual results of the Company to differ materially from the results discussed in the forward-looking statements, including, but not limited to: market conditions for financing; competitive conditions, whether related to new competitors or current competitors; change in the Company's or its competitors current pricing strategies; changes in national and local business and economic conditions; legislation and governmental regulation; changes in accounting policies, practices and standards; and the results of operations and financial condition of the Company and other factors referenced in the Company's continuous disclosure filings which are available on SEDAR at www.sedar.com. Although the forward-looking statements contained herein are based upon what the Company believes to be reasonable assumptions on the date of this press release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Certain assumptions underlying the forward-looking statements contained herein include assumptions related to the Company's ability to obtain financing on conditions favorable to the Company, future cash flows, and market conditions. Readers should not place undue reliance on these forward-looking statements.

These forward-looking statements are made as of the date of this press release and, accordingly, are subject to change after such date. Forward-looking statements are provided herein for the purpose of giving information about the Company's current strategic priorities, expectations and plans, allowing investors and others to get a better understanding of the Company's business outlook and operating environment. Readers are cautioned, however, that such information may not be appropriate for other purposes. The Company assumes no obligation to update such forward-looking statements to reflect new information, future events or otherwise, except as required by applicable securities laws. Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other special items or of any transactions that may be announced or that may occur after the date of this press release. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them. The Company therefore cannot describe the expected impact in a meaningful way or in the same way it presents known risks affecting the business. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

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.

Contact Information

  • Excellium Inc.
    Jean-Claude Siew
    President and CEO
    (514) 798-8899