FSI Energy Group Inc.
TSX VENTURE : FSI

May 29, 2013 20:26 ET

FSI Announces 2013 First Quarter Financial Results

CALGARY, ALBERTA--(Marketwired - May 29, 2013) - Richard Ball, Chief Executive Officer of FSI Energy Group Inc. (TSX VENTURE:FSI) ("FSI" or the "Company"), is pleased to announce financial results for the three months ended March 31, 2013.

Financial Highlights: Three months ended March 31:
2013 2012
Revenue 2,949,922 1,300,180
Comprehensive income (loss) 46,840 132,124
EBITDA1 121,721 190,268

FSI started the first quarter of the year with the delivery of a major brine plant to its first client in Kazakhstan, resulting in revenue from the foreign segment of $2,585,211, and total revenue for the quarter of just under $3 million.

Key highlights:

  • Total revenue of $2,949,922 was 127% higher than the same quarter last year
  • The Company's liquidity, enhanced from the economic activity from the fourth quarter last year and current quarter, remains firm as:
    • The Company delivered the second contracted brine plant from 2012 in the first quarter of 2013. Revenue from this project (approximately $7.5 million) will be realized in the second quarter of 2013.
    • Cash and restricted cash (which became unrestricted April 9, 2013) amounted to $2.5 million and is more than sufficient to service the Company's short term monetary liabilities of $1.8 million
    • Although cash flow from operations was negative $3,034,644 for the first quarter compared to positive $59,712 the same quarter last year, this primarily reflects that most of the revenue on the sale of the brine plant this quarter was collected last year through customer deposits and higher payments to trade payable vendors in respect of brine construction activity the last quarter of 2012.

Further detail may be found in the Company's Management Discussion and Analysis - which is available on SEDAR.

1 EBITDA does not have a standard definition prescribed by GAAP and therefore may not be comparable to similar measures disclosed by other companies. The Company utilizes these measures in making operating decisions and assessing the Company's financial performance and as an indicator of its ability to service its liabilities. This non-GAAP measure has not been presented as an alternative to net income (loss) or any other measure of performance or liquidity prescribed by GAAP. EBITDA is calculated as follows:

March 31, 2013 March 31, 2012
Net income $ 132,124 $ 132,124
Addback:
Finance costs 19,949 19,949
Depreciation included in cost of sales 30,906 30,906
Depreciation 7,289 7,289
EBITDA $ 190,268 $ 190,268

About FSI

Through its wholly owned subsidiary FSI International Services Ltd., FSI Energy Group Inc. is a Calgary-based manufacturing and service company specializing in customized filtration, filtration-related technologies and Brine Plants for the energy, chemical, and water treatment industries.

Forward-looking Information Cautionary Statement

Certain information contained in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expect", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking information. In particular, this press release contains forward-looking information about the completion of the Brine Plant export contracts and the revenues associated therewith. Forward-looking statements are based on the opinions and estimates of management relying on their experience at the date the statements are made, and are subject to a variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to, the risk factors discussed in FSI's MD&A and other continuous disclosure documents. All of the forward- looking information contained in this press release is qualified by this cautionary statement. There can be no assurance that the actual results or developments anticipated by FSI, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on FSI or its business operations. FSI disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events. Readers should not place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • FSI Energy Group Inc.
    Richard Ball
    President and CEO
    (403) 571-4230
    (403) 230-3106 (FAX)
    www.fsigroup.ca