Questor Technology Inc.
TSX VENTURE : QST

Questor Technology Inc.

August 26, 2005 12:00 ET

Questor Technology Inc.: Announcing Second Quarter Results

CALGARY, ALBERTA--(CCNMatthews - Aug. 26, 2005) - Questor Technology Inc. (TSX VENTURE:QST) is pleased to report its unaudited financial and operational results for the six month period ended June 30, 2005 along with comparative information for the respective period in 2004. Net earnings for the second quarter were $56,318, which was an $86,765 increase from the $30,447 loss reported in the second quarter of 2004. Due to the excellent results that were experienced in 2003 and 2004 rental activity, management initiated an expansion of our rental equipment pool. In the first quarter of 2005, we completed constructing Q3000's, which have their own self-erecting trailers. These incinerators will significantly increase our rental capacity in Western Canada. We also completed construction of well testing incinerators in Italy. These incinerators are currently available for rent and have already been sent out on two contracts with large international organizations. Another contract will begin in early September.

Significant first half activities are as follows:

- increased revenues 75% for the first half of 2005 compared to 2004.

- increased net earnings 90% for the first half of 2005 compared to 2004.

- completed the construction of trailerized Q3000 incinerators for the rental pool.

- completed the construction of Q3000 incinerators in Italy for international rentals.

- began selling large incinerators for international use, establishing a new market with significant growth potential.

- completed the first phase in research of the HeatQuest heat recovery process.



BALANCE SHEETS
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June 30 December 31
2005 2004
------------------------------------------------------------------------
(unaudited)
Assets
Current assets
Cash $ 36,088 $ 137,256
Accounts receivable 820,194 579,265
Inventory 117,204 321,957
Prepaid expenses 17,047 210,269
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990,533 1,248,747
Equipment 1,419,217 783,583
Intangibles 190,078 205,974
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$ 2,599,828 $ 2,238,304
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 642,394 $ 429,231
Notes payable 700,000 700,000
Current portion of long-term debt 10,414 10,414
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1,352,808 1,139,645
Long-term debt 17,358 22,565
------------------------------------------------------------------------
1,370,166 1,162,210
------------------------------------------------------------------------
Shareholders' Equity
Share capital 5,183,260 5,183,260
Contributed surplus 46,103 36,717
Deficit (3,999,701) (4,143,883)
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1,229,662 1,076,094
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$ 2,599,828 $ 2,238,304
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INTERIM STATEMENTS OF OPERATIONS AND DEFICIT
(Unaudited)
------------------------------------------------------------------------
------------------------------------------------------------------------
Three Months Ended June 30 Six Months Ended June 30
2005 2004 2005 2004
------------------------------------------------------------------------

REVENUE $ 634,517 $ 216,180 $ 1,419,376 $ 812,833
DIRECT COSTS 282,250 36,060 647,355 313,349

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352,267 180,120 772,021 499,484
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Expenses
General and
administrative 231,359 184,502 436,699 369,019
Interest 17,452 59 34,712 2,475
Research (12,968) - 33,670 -
Stock-based
compensation 4,693 - 9,386 -
Depreciation and
amortization 55,413 26,006 113,372 51,970
------------------------------------------------------------------------
295,949 210,567 627,839 423,464
------------------------------------------------------------------------
Net earnings (loss)
for the period 56,318 (30,447) 144,182 76,020
Deficit, beginning
of period (4,056,019) (4,175,957) (4,143,883) (4,282,424)
------------------------------------------------------------------------
Deficit, end
of period $(3,999,701) $(4,206,404) $(3,999,701) $(4,206,404)
------------------------------------------------------------------------
------------------------------------------------------------------------
Net earnings (loss)
per share - Basic
and Diluted $ 0.002 $ (0.001) $ 0.006 $ 0.003
------------------------------------------------------------------------
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INTERIM STATEMENTS OF CASH FLOW
(Unaudited)
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------------------------------------------------------------------------
Three Months Ended June 30 Six Months Ended June 30
2005 2004 2005 2004
------------------------------------------------------------------------

CASH PROVIDED BY
(USED IN):
OPERATING ACTIVITIES
Net earnings (loss)
for the period $ 56,318 $ (30,447) $ 144,182 $ 76,020
Items not affecting
working capital
Depreciation and
amortization 55,413 26,006 113,372 51,970
Stock-based
compensation 4,693 - 9,386 -
------------------------------------------------------------------------
Cash flow from
operations 116,424 (4,441) 266,940 127,990
Net changes in
non-cash working
capital (201,501) (19,992) 370,209 (190,003)
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(85,077) (24,433) 637,149 (62,013)
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FINANCING ACTIVITIES
Issue of shares,
net of issue costs - - - 16,200
Issue of long-term
debt - - - 41,658
Long-term debt
repayments (2,603) (4,956) (5,207) (90,159)
------------------------------------------------------------------------
(2,603) (4,956) (5,207) (32,301)
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INVESTING ACTIVITIES
Purchase of equipment - (60,837) (972,638) (106,739)
Net book value of
equipment sold 106,863 - 239,528 3,415
------------------------------------------------------------------------
106,863 (60,837) (733,110) (103,324)
------------------------------------------------------------------------

Increase (decrease)
in cash 19,183 (90,226) (101,168) (197,638)

Cash, beginning of
period 16,905 188,934 137,256 296,346
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Cash, end of period $ 36,088 $ 98,708 $ 36,088 $ 98,708
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Corporate information provided herein may contain words such as "anticipate," "estimate," "expect" and other similar expressions which are intended to identify forward-looking statements. The reader is cautioned that such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward looking statements. These risk and uncertainties include items such as operating performance, regulatory and environmental issues, weather and economic conditions, competition and financing availability.

Questor is engaged in the business of developing environmental technologies for use by the oil & natural gas industry. Its Common Shares trade on the TSX Venture Exchange under the symbol "QST".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Questor Technology Inc.
    Audrey Mascarenhas
    President & C.E.O.
    (403) 571-1530
    (403) 571-1539 (FAX)
    or
    Questor Technology Inc.
    David Wallace
    C.F.O.
    (403) 571-1530
    (403) 571-1539 (FAX)
    Website: www.questortech.com