Questor Technology Inc.
TSX VENTURE : QST

Questor Technology Inc.

November 27, 2006 09:00 ET

Questor Technology Inc.: Announcing Third Quarter Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 27, 2006) - (07:00-MST) Questor Technology Inc. (QTI)(TSX VENTURE:QST) is pleased to report its unaudited financial and operational results for the three month and nine month periods ending September 30, 2006. This was a very active quarter for QTI with the sale of many smaller units in both Canada and the United States. In the second quarter, our sales were dominated by a large international contract that was completed and shipped. We commissioned and started this unit up the third quarter.

In September, we were invited to speak at the ECO Expo Asia Environmental conference in Hong Kong on improving air quality with our technology. Air quality is a critical issue in these areas, as in other parts of the world. Questor is well positioned to take advantage of this opportunity with their technology and services. We are also in discussions with a large international oil and gas producer in this area to supply incinerators for their well testing needs. A preliminary technical agreement has been signed.

Revenue for the third quarter, ending September 30, 2006, increased by 132% to $824,531 from revenue of $355,642 for the corresponding period in 2005. The third quarter net earnings were $106,879. This is a $94,005 increase from the $12,874 reported net earnings for the corresponding period in 2005. The Company has revenues of $2,559,561 for the nine months ended September 30, 2006, which is a 71% increase over revenues of $1,497,092 for the corresponding period in 2005. Net earnings for the first nine months of the year of $424,414 is a 215% increase from the $157,056 reported net earnings for the corresponding period in 2005.

Questor has demonstrated consistent profitable per share growth, over the last few years. We have been expanding our customer base and building a reputation for a superior product and exceptional field service. This has allowed Questor to execute a sustainable business model with repeat orders from our satisfied customers. We plan to continue with our business strategy to grow both internationally and in North America, and we will further develop strategic relationships to generate additional growth opportunities. We also plan on looking at ways to expand our services and product lines such as heat recovery and co-generation.

We look forward to keeping our shareholders apprised on the implementation of our growth strategy in future quarters.



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Three Months Nine months ended
Ended September 30 September 30
2006 2005 2006 2005
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REVENUE $ 824,531 $ 355,642 2,559,561 $ 1,497,092
DIRECT COSTS 531,162 50,082 1,448,352 512,346
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293,369 305,560 1,111,209 984,746
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EXPENSES
General and
administrative 159,210 260,082 529,927 696,780
Interest 7,964 17,644 30,153 52,357
Research - - - 33,670
Stock-based
compensation 9,288 4,693 25,951 14,079
Amortization 10,028 10,267 29,764 30,804
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186,490 292,686 615,795 827,690
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Net earnings for
the period 106,879 12,874 495,414 157,056
Deficit, beginning
of period (3,408,338) (3,999,701) (3,796,873) (4,143,883)
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Deficit, end of
period $ (3,301,459) $ (3,986,827) $ (3,301,459) $ (3,986,827)
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Net earnings per
share -- Basic and
Diluted $ 0.004 $ 0.001 $ 0.021 $ 0.007
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Three Months Nine months ended
Ended September 30 September 30
2006 2005 2006 2005
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CASH PROVIDED BY (USED IN):

OPERATING ACTIVITIES
Net earnings for the period 106,879 $ 12,874 $ 495,414 $ 157,056
Items not affecting working
capital
Depreciation and
amortization 35,407 56,116 107,236 169,488
Stock-based compensation 9,288 4,693 25,951 14,079
Gain on sale of rental
incinerators (99,402) (81,672) (99,402) (173,432)
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Cash flow from operations 52,172 (7,989) 529,199 167,191
Net changes in non-cash
working capital (387,540) 97,462 (424,848) 13,847
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(335,368) 89,473 105,351 181,038
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FINANCING ACTIVITIES
Issue of bank indebtedness - 400,000 - 400,000
Repayment of bank
indebtedness (25,002) - (75,006) -
Repayment of notes payable - - (300,000) -
Long-term debt repayments (7,484) (2,604) (22,445) (7,811)
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(32,486) 397,396 (397,451) 392,189
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INVESTING ACTIVITIES
Purchase of equipment (3,999) (6,533) (6,539) (525,347)
Net proceeds on sale of
rental incinerators 124,956 107,462 124,956 438,750
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120,957 100,929 118,417 (86,597)
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Increase (decrease) in cash (246,897) 587,798 (173,683) 486,630

Cash, beginning of period 250,441 36,088 177,227 137,256
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Cash, end of period $ 3,544 $ 623,886 $ 3,544 $ 623,886
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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)
    Website: www.questortech.com