SOURCE: LiqTech International

LiqTech International

November 14, 2012 16:00 ET

LiqTech International, Inc. Reports 2012 Third Quarter Financial and Operational Results

BALLERUP, DENMARK--(Marketwire - Nov 14, 2012) - LiqTech International, Inc. (OTCQX: LIQT) ("LiqTech") announced today its financial and operational results for the third quarter 2012.

Lasse Andreassen, CEO of LiqTech International, stated, "For the third quarter 2012, we reported revenue of $3,115,471 and a net loss of $427,872. The loss and low revenue is due to continuing slow sales of DPF, which is down $3,915,852 compared to the same quarter 2011.

"The slowdown in DPF sales is mainly a result of a low degree of enforcement of CARB (California Air Resources Board) mandate in California, where a projected installation of 12,000 filters in 2012 has only resulted in 3,030 for the first half of 2012, with almost no improvement in the third quarter.

"LiqTech and its customers continue to believe that CARB mandate will be enforced in California in the near future and we have been producing filters to meet the demand.

"In our 12-year history we have seen delays in mandates, but these mandates have always been enforced as planned. We are in a strong position to take advantage of the market situation and are now exploring a strategic initiative in our DPF business segment which will significantly strengthen our market situation.

"Our SIC Membrane business continues to grow and sales are up 70% for the 9-month period compared to same period last year.

"As we recently announced, after a one-year trial period, we have consummated a major partnership for sales of our membranes with national oil companies in Colombia and Venezuela. We are also seeing strong interest from other major companies in the oil and water industry and are confident that we will see further growth. We continue to discuss strategic partnerships with major companies and will update shareholders as relationships develop.

"Our recent breakthrough, the grant received from The Maritime and Port of Authority of Singapore (MPA), in Ballast Water Treatment Systems in Singapore is also making us confident that we are well positioned in the highly lucrative BWTS business and we expect to see development in by 2015," concluded Mr. Andreassen.

Financial results for the three and nine months ended September 30, 2012:

  • Net sales for the three month period ended September 30, 2012 were $3,115,471 compared to $6,829,535 for the same period in 2011, representing a decrease of $3,714,064, or 54.4%.
  • Net sales for the nine month period ended September 30, 2012 were $13,410,527 compared to $13,552,746 for the same period in 2011, representing a decrease of $142,219, or 1.0%.
  • Gross profit for the three month period ended September 30, 2012 was $579,008 compared to $1,460,369 for the same period in 2011 representing a decrease of $881,361, or 60.4%.
  • Gross profit for the nine month period ended September 30, 2012 was $3,084,859 compared to $3,315,252 for the same period in 2011 representing a decrease of $230,393, or 6.9%.
  • The net loss for the three month period ended September 30, 2012 was $427,872 compared to net income of $484,206 for the same period in 2011, representing a decrease of $912,078.
  • The net loss for the nine month period ended September 30, 2012 was $657,779 compared to a net income of $378,243 for the same period in 2011, representing a decrease of $1,036,022.

Highlights for the quarter ended September 30, 2012:

  • Quarter-over-quarter gross profit increased to $579,008 from $416,167, representing an increase of 39 percent.
  • Quarter-over-quarter operating expenses decreased to $1,246,323 from $1,302,704, representing a decrease of 4.3 percent.
  • Quarter-over-quarter net loss decreased to $427,872 from $552,509, representing a decrease of 22.5 percent.
  • LiqTech entered into a cooperation agreement with Provital Solution A/S -- a manufacturer and developer of advanced water filtration solutions for pool and spa water in the Scandinavia and Australian market.

ABOUT LIQTECH INTERNATIONAL, INC.
LiqTech International, Inc., a Nevada corporation, is a clean technology company that for more than a decade has developed and provided state-of-the-art technologies for gas and liquid purification using ceramic silicon carbide filters, particularly, highly specialized filters for the control of soot exhaust particles from diesel engines and for liquid filtration. It also manufactures kiln furniture. Using nanotechnology, LiqTech develops products using proprietary silicon carbide technology. LiqTech's products are based on unique silicon carbide membranes which facilitate new applications and improve existing technologies. For more information, please visit www.liqtech.com.

Forward-Looking Statements
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.

-Financial charts follow-
 
 
 
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
    As of
September 30,
2012
  As of
December 31,
2011
Current Assets:   (UNAUDITED)    
  Cash   $ 3,710,067   $ 1,033,057
  Accounts receivable, net     4,397,965     5,299,569
  Other receivables     1,005,200     1,528,362
  Inventories     4,067,699     2,980,583
  Prepaid expenses     220,306     301,375
  Current deferred tax asset     102,677     17,786
             
    Total Current Assets     13,503,914     11,160,732
             
Property and Equipment, net of accumulated depreciation     6,563,784     6,647,217
             
Other Assets:            
  Other intangible assets     29,984     34,167
  Other investments     148,571     6,483
  Deposits     200,405     146,184
             
    Total Other Assets     378,960     186,834
             
    Total Assets   $ 20,446,658   $ 17,994,783
   
   
   
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
   
    As of
September 30,
2012
    As of
December 31,
2011
 
Current Liabilities:   (UNAUDITED)        
  Lines of credit   $ -     $ 1,259,936  
  Notes payable - current portion     -       259,396  
  Notes payable - related party, net of discount     -       3,328,183  
  Current portion of capital lease obligation     197,061       191,444  
  Accounts payable - trade     1,407,388       3,026,960  
  Accrued expenses     833,920       1,212,746  
  Accrued income taxes payable     157,227       3,710  
  Other accrued liabilities     6,989       154  
                 
    Total Current Liabilities     2,602,585       9,282,529  
                 
                 
Notes payable and long-term debt, less current portion     -       350,000  
Long-term capital lease obligations, less current portion     798,306       950,351  
Deferred tax liability     428,555       668,484  
                 
    Total Long-Term Liabilities     1,226,861       1,968,835  
    Total Liabilities     3,829,446       11,251,364  
                 
Stockholders' Equity:                
Common stock; par value $0.001, 100,000,000 shares authorized, 24,111,500 and 21,600,000 shares issued and outstanding at September 30, 2012, and December 31, 2011, respectively     24,112       21,600  
  Additional paid-in capital     12,680,712       5,603,517  
  Retained earnings     4,626,803       5,284,583  
  Deferred compensation     (170,477 )     (268,282 )
  Other comprehensive income, net     (570,464 )     (596,011 )
  Note receivable from a shareholder, net of discount     -       (3,328,183 )
  Non-controlled interest in subsidiaries     26,526       26,195  
    Total Stockholders' Equity     16,617,212       6,743,419  
                 
    Total Liabilities and Stockholders' Equity   $ 20,446,658     $ 17,994,783  
   
   
   
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES  
(UNAUDITED) CONSOLIDATED STATEMENTS OF OPERATIONS  
   
    For the Three Months Ended
September 30
    For the Nine Months Ended
September 30
 
    2012     2011     2012     2011  
                                 
Net Sales   $ 3,115,471     $ 6,829,535     $ 13,410,527     $ 13,552,746  
Cost of Goods Sold     2,536,463       5,369,166       10,325,668       10,237,494  
                                 
Gross Profit     579,008       1,460,369       3,084,859       3,315,252  
                                 
Operating Expenses:                                
  Selling expenses     557,235       402,648       1,816,612       1,037,853  
  General and administrative expenses     597,886       263,243       1,871,017       1,139,078  
  Research and development     91,202       126,680       470,502       374,505  
                                 
    Total Operating Expenses     1,246,323       792,571       4,158,131       2,551,436  
                                 
Income from Operations     (667,315 )     667,798       (1,073,272 )     763,816  
                                 
Other Income (Expense)                                
  Interest and other income     12,455       31,417       111,294       50,189  
  Interest (expense)     (7,376 )     (59,923 )     (133,264 )     (139,166 )
  Gain (loss) on currency transactions     12,478       8,658       76,077       (25,832 )
                                 
    Total Other Income (expense)     17,557       (19,848 )     54,107       (114,809 )
                                 
Income Before Income Taxes     (649,758 )     647,950       (1,019,165 )     649,007  
                                 
Income Tax Expense     (221,886 )     91,347       (361,386 )     188,557  
                                 
Net Income (Loss)     (427,872 )     556,603       (657,779 )     460,450  
                                 
Less Net Income (Loss) Attributable To Non-Controlled Interests in Subsidiaries     -       72,397       -       82,207  
                                 
Net Income (Loss) Attributable To LiqTech   $ (427,872 )   $ 484,206     $ (657,779 )   $ 378,243  
                                 
Basic Earnings Per Share   $ (0.02 )   $ 0.03     $ (0.03 )   $ 0.03  
                                 
Weighted Average Common Shares Outstanding     24,111,500       14,251,721       23,488,208       10,974,237  
                                 
Diluted Earnings Per Share   $ (0.02 )   $ 0.03     $ (0.02 )   $ 0.03  
                                 
Weighted Average Common Shares Outstanding Assuming Dilution     25,094,201       15,761,847       26,394,383       11,477,612  
   
   
   
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES  
(UNAUDITED) CONSOLIDATED STATEMENTS OF OTHER  
COMPREHENSIVE INCOME  
   
    For the Three Months Ended
September 30
    For the Nine Months Ended
September 30
 
    2012     2011     2012     2011  
                                 
Net Income (Loss)   $ (427,872 )   $ 556,603     $ (657,779 )   $ 460,450  
                                 
Currency Translation, Net of Taxes     185,670       (456,337 )     25,547       (65,918 )
                                 
Other Comprehensive Income (Loss)   $ (242,202 )   $ 100,266     $ (632,232 )   $ 394,532  
                                 
Comprehensive Income (Loss) Attributable To Non-controlling Interest in Subsidiaries     (575 )     (7,499 )     (331 )     11,521  
                                 
Comprehensive Income Attributable To LiqTech International, Inc.   $ (242,777 )   $ 92,767     $ (632,563 )   $ 406,053  

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