Questor Technology Inc.
TSX VENTURE : QST

Questor Technology Inc.

May 27, 2009 18:30 ET

Questor Technology Inc. Announces First Quarter 2009 Financial Results

CALGARY, ALBERTA--(Marketwire - May 27, 2009) -

THIS DOCUMENT IS NOT INTENDED FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES.

Questor Technology Inc. ("Questor" or the "Company") (TSX VENTURE:QST) announced today it's financial and operating results for the three-month period ended March 31, 2009.



Financial Results Summary

($ unless otherwise noted)

For the three months ended March 31 2009 2008
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Total revenue 1,163,196 626,093
Gross margin(1) 443,975 103,154
EBITDA(1) 155,159 (24,149)
Income (loss) before interest expense
and income tax expense(1) 116,758 (62,733)
Net income (loss) 82,689 (65,048)
Funds generated from operations(1) 164,113 12,012
Total assets 6,627,142 5,814,657
Long-term liabilities 45,262 44,957

Shares outstanding (thousands)(2)
Basic 24,007 23,795
Diluted 24,385 23,795
Net income (loss) per share - Basic $ 0.003 $ (0.003)
Net income (loss) per share - Diluted $ 0.003 $ (0.003)

(1) Non-GAAP financial measure. Please see discussion in the Non-GAAP
Financial Measures section of the Company's Management's Discussion and
Analysis for the three months ended March 31, 2009.
(2) Weighted average.


Total revenue for the three months ended March 31, 2009 increased by $537,103, or 85.8 percent, compared to the same period in 2008, resulting in a net income increase of $147,737 quarter-over-quarter.

"While the current economic and market uncertainties are presenting its challenges, Questor delivered profitable results in first quarter 2009," said Audrey Mascarenhas, President and Chief Executive Officer. "We continue to see strong interest in our technology and have more than $31 million of bids outstanding pending completion of the tender process and notification of the clients' purchase decision. While the number of the bids for which Questor will ultimately be successful, their quantum and timing is not reasonably determinable, the market opportunity to generate revenue is building. And we have a strong team in place and the financial capacity to capitalize on these opportunities. Based on the level of bid activity for permanent applications of our technology and the current order backlog of $1.2 million, we are anticipating positive results for the second quarter of 2009."

Ms. Mascarenhas added, "Apart from expanding our existing business, a key strategic focus is the development of a process to convert waste heat to energy. We see this technology as a natural extension to our current products and services, the demand for which would create substantial growth opportunities for the Company."

"Questor continues to build brand awareness and corporate influence. The Company is being featured in a promotional video produced by Calgary Economic Development on investment opportunities in Alberta's energy sector. As well, Questor, in partnership with Golder Associates Ltd. and Strategic Results Consulting Inc., is preparing a study for the Clean Air Strategic Alliance (CASA) on the 'Evaluation and Cost of Eliminating Routine Solution Gas Flaring and Venting, and Possible Exemptions'," concluded Ms. Mascarenhas.

Shareholders are invited to attend the Company's Annual General Meeting to be held on Tuesday, June 9, 2009 at 3:00 p.m. (local time) in the Cardium Room of the Calgary Petroleum Club, located at 319 - 5th Avenue S.W., Calgary, Alberta. In addition to the formal business items, management will be presenting an overview of Questor's results for the financial year ended December 31, 2008 and for the three months ended March 31, 2009 and discussing the Company's strategy for the future.

Questor's first quarter 2009 financial statements and notes thereto and Management's Discussion and Analysis for the three months ended March 31, 2009 will be available shortly on the Company's website at www.questortech.com and through SEDAR at www.sedar.com.

ABOUT QUESTOR TECHNOLOGY INC.

Questor is an international environmental oil field service company founded in late 1994 and headquartered in Calgary, Alberta, Canada with a field office located in Grande Prairie, Alberta, Canada. The Company is focused on clean air technologies with activities in Canada, the United States, Europe and Asia. Questor designs and manufactures high efficiency waste gas incinerators for sale or for use on a rental basis and also provides combustion-related field services. The Company's proprietary incinerator technology destroys noxious or toxic hydrocarbon gases which ensures regulatory compliance, environmental protection, public confidence and reduced operating costs for clients. Questor is recognized for its particular expertise in the combustion of sour gas (H2S). While the Company's current client base is primarily in the oil and gas industry, this technology is applicable to other industries such as landfills, water and sewage treatment, tire recycling and agriculture.

Questor trades on the TSX Venture Exchange under the symbol "QST".

Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.



QUESTOR TECHNOLOGY INC.
BALANCE SHEETS
(unaudited)

March 31 December 31
As at 2009 2008
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ASSETS
Current assets
Cash and cash equivalents $ 3,201,093 $ 3,259,037
Accounts receivable 1,587,067 1,767,823
Inventory 460,745 384,914
Prepaid expenses and deposits 55,761 80,340
Deferred expenses 45,390 29,160
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5,350,056 5,521,274
Property and equipment 1,239,656 1,176,529
Intangibles 37,430 44,680
Deferred expenses - 30,575
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$ 6,627,142 $ 6,773,058
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 645,716 $ 667,792
Current portion of long-term debt 32,692 37,498
Income and other taxes payable 8,003 285,795
Deferred revenue and deposits 215,564 146,707
Future income tax liability 5,548 9,281
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907,523 1,147,073
Long-term debt 10,155 15,232
Other long-term liabilities - 30,575
Future income tax liability 35,107 26,710
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952,785 1,219,590
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Shareholders' equity
Share capital 5,265,736 5,265,736
Contributed surplus 321,752 283,552
Retained earnings 86,869 4,180
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5,674,357 5,553,468
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$ 6,627,142 $ 6,773,058
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QUESTOR TECHNOLOGY INC.
STATEMENTS OF INCOME, COMPREHENSIVE INCOME
AND RETAINED EARNINGS (DEFICIT)
(unaudited)

For the three months ended March 31 2009 2008
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Revenue
Incinerator sales and services $ 572,592 $ 277,637
Incinerator rentals and services 439,270 244,414
Combustion services 146,006 86,452
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1,157,868 608,503
Less: Direct costs 713,893 505,349
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443,975 103,154
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Other revenue 5,328 17,590

Expenses
General and administrative 364,627 306,294
Foreign exchange gain (42,339) (132,513)
Depreciation and amortization 10,257 9,696
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332,545 183,477
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Income (loss) before interest expense
and income tax expense 116,758 (62,733)
Interest expense
Short-term debt 322 321
Long-term debt 504 504
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Income (loss) before income tax expense 115,932 (63,558)
Income tax expense
Current income tax 28,579 -
Future income tax 4,664 1,490
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Net income (loss) and comprehensive
income (loss) 82,689 (65,048)
Retained earnings (deficit),
beginning of period 4,180 (623,876)
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Retained earnings (deficit), end of period $ 86,869 $ (688,924)
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Net income (loss) per share
Basic $ 0.003 $ (0.003)
Diluted $ 0.003 $ (0.003)

Weighted average number of shares outstanding
Basic 24,007,370 23,794,870
Diluted 24,384,818 23,794,870



QUESTOR TECHNOLOGY INC.
STATEMENTS OF CASH FLOWS
(unaudited)

For the three months ended March 31 2009 2008
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Operating activities
Net income $ 82,689 $ (65,048)
Items not involving cash:
Depreciation and amortization 38,401 38,584
Future income taxes 4,664 1,490
Share-based compensation 38,200 36,986
Write-down of inventory 159 -
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164,113 12,012
Net change in non-cash working capital (141,654) 266,956
Foreign exchange gain on cash (17,545) (117,223)
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4,914 161,745
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Investing activities
Additions to property and equipment (70,520) (20,403)
Additions to development costs - (9,372)
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(70,520) (29,775)
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Financing activities
Repayment of short-term debt - (77,151)
Repayment of long-term debt (9,883) (17,184)
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(9,883) (94,335)
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Effect of exchange rates on cash 17,545 117,223
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Increase (decrease) in cash and cash equivalents (57,944) 154,858
Cash and cash equivalents, beginning of period 3,259,037 2,753,997
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Cash and cash equivalents, end of period $ 3,201,093 $ 2,908,855
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Neither 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.

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