Questor Technology Inc.
TSX VENTURE : QST

Questor Technology Inc.

November 08, 2005 17:00 ET

Questor Technology Inc.: Announcing Third Quarter Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 8, 2005) - Questor Technology Inc. (TSX VENTURE: QST) is pleased to report its unaudited financial and operational results for the three and nine month periods ended September 30, 2005 along with comparative information for the respective period in 2004. Net earnings for the three months ended September 30, 2005 were $12,874, which was a $23,900 increase from the loss of ($11,026) reported in the same period of 2004 despite the wet summer in Western Canada.

Significant nine months highlights are as follows:

- revenues increased 52% for the three quarters of 2005 compared to 2004.

- net earnings increased 142% to 159,056 for the three quarters of 2005 from $64,994 reported in 2004.


Significant third quarter activities are as follows:

- revenues increased 10% for the third quarter of 2005 compared to 2004.

- net earnings increased $23,900 to $12,874 from a loss of $11,026 reported in 2004.

- sold first unit to United States. Plan to pursue and grow this market.

- opened a Grande Prairie service centre. Incinerator parts, service and rentals in the North will be coordinated from this location.

- Questor was invited to speak at the World Petroleum Congress in South Africa on incinerator technology as a solution to solving the worldwide flare gas dilemma. This opportunity gave Questor international exposure and is expected to enhance our exposure internationally and have already provided key contacts that will be exploited in the future.



QUESTOR TECHNOLOGY INC.
BALANCE SHEETS
------------------------------------------------------------------------
September 30 December 31
2005 2004
------------------------------------------------------------------------
(unaudited)
ASSETS

Current assets
Cash $ 623,886 $ 137,256
Accounts receivable 500,568 579,265
Inventory 84,537 321,957
Prepaid expenses 23,283 210,269
------------------------------------------------------------------------
1,232,274 1,248,747

Equipment 1,351,792 783,583
Intangibles 182,130 205,974
------------------------------------------------------------------------
$ 2,766,196 $ 2,238,304
------------------------------------------------------------------------
------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
Accounts payable and accrued
liabilities $ 393,799 $ 429,231
Notes payable 700,000 700,000
Current portion of long-term debt 110,414 10,414
------------------------------------------------------------------------
1,204,213 1,139,645

Long-term debt 314,754 22,565
------------------------------------------------------------------------
1,518,967 1,162,210
------------------------------------------------------------------------

Shareholders' Equity
Share capital 5,183,260 5,183,260
Contributed surplus 50,796 36,717
Deficit (3,986,827) (4,143,883)
------------------------------------------------------------------------
1,247,229 1,076,094
------------------------------------------------------------------------
$ 2,766,196 $ 2,238,304
------------------------------------------------------------------------
------------------------------------------------------------------------


QUESTOR TECHNOLOGY INC.
INTERIM STATEMENTS OF OPERATIONS AND DEFICIT
(Unaudited)
------------------------------------------------------------------------
Three Months Ended Nine months Ended
September 30 September 30
2005 2004 2005 2004
------------------------------------------------------------------------

REVENUE $ 491,390 $ 446,126 $ 1,910,766 $ 1,258,959

DIRECT COSTS 139,981 248,969 787,336 562,318
------------------------------------------------------------------------
351,409 197,157 1,123,430 696,641
------------------------------------------------------------------------

EXPENSES
General and
administrative 260,082 175,920 696,780 544,252
Interest 17,644 - 52,357 3,162
Research - - 33,670 -
Stock-based compensation 4,693 - 14,079 -
Depreciation and
amortization 56,116 32,263 169,488 84,233
------------------------------------------------------------------------
338,535 208,183 966,374 631,647
------------------------------------------------------------------------

Net earnings (loss)
for the period 12,874 (11,026) 159,056 64,994

Deficit, beginning
of period (3,999,701) (4,206,404) (4,143,883) (4,282,424)
------------------------------------------------------------------------
Deficit, end of
period $(3,986,827)$(4,217,430)$(3,986,827) $(4,217,430)
------------------------------------------------------------------------

Net earnings (loss)
per share - Basic
and Diluted $ 0.001 $ (0.001)$ 0.005 $ 0.003
------------------------------------------------------------------------
------------------------------------------------------------------------


QUESTOR TECHNOLOGY INC.
INTERIM STATEMENTS OF CASH FLOW
(Unaudited)
------------------------------------------------------------------------
Three Months Ended Nine months Ended
September 30 September 30
2005 2004 2005 2004
------------------------------------------------------------------------

CASH PROVIDED BY
(USED IN):

OPERATING ACTIVITIES
Net earnings (loss)
for the period $ 12,874 $ (11,026) $ 157,056 $ 64,994
Items not affecting
working capital
Depreciation and
amortization 56,116 32,263 169,488 84,233
Stock-based
compensation 4,693 - 14,079 -
------------------------------------------------------------------------
Cash flow from
operations 73,683 21,237 340,623 149,227
Net changes in
non-cash working
capital 97,462 261,211 467,671 71,208
------------------------------------------------------------------------
171,145 282,448 808,294 220,435
------------------------------------------------------------------------

FINANCING ACTIVITIES
Issue of shares - - - 16,200
Issue of long-term debt 400,000 - 400,000 41,658
Long-term debt
repayments (2,604) (3,326) (7,811) (93,485)
------------------------------------------------------------------------
397,396 (3,326) 392,189 (35,627)
------------------------------------------------------------------------

INVESTING ACTIVITIES
Purchase of equipment (6,533) (282,338) (979,171) (389,077)
Net book value of
equipment sold 25,790 - 265,318 3,415
------------------------------------------------------------------------
19,257 (282,338) (713,853) (385,662)
------------------------------------------------------------------------

Increase (decrease)
in cash 587,798 (3,216) 486,630 (200,854)

Cash, beginning
of period 36,088 98,708 137,256 296,346
------------------------------------------------------------------------
Cash, end of period $ 623,886 $ 95,492 $ 623,886 $ 95,492
------------------------------------------------------------------------
------------------------------------------------------------------------


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