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Augusta Announces Results for the Third Quarter and Corporate Update
November 30, 2017 9:02 AM EST | Source: IntellaEquity Inc.
Toronto, Ontario--(Newsfile Corp. - November 30, 2017) - Augusta Industries Inc. (TSXV: AAO) (the "Corporation") is pleased to announce that it has released its financial results for the nine months ending September 30, 2017.
For the three months ending September 30, 2017, the Corporation had revenues of $650,000 as compared to $1,479,000 during the three months ending September 30, 2016. Marcon group backlog sales as on the date of the MD&A is $1,988,000. Four of the backlog orders worth $1,723,000 have a long delivery lead time. The Corporation also expects to build on the two contracts signed in 2017 by FOX-TEK worth $1,039,000 over a three year period.
Total loss from operations for the three months ending September 30, 2017 was $160,000 or a net loss of $0.001 per share compared to a loss of $74,000 or $0.000 per share for the three months ending September 30, 2016. Gross margins for the three months ending September 30, 2017 was 21% compared to 13% for the three months ending September 30, 2016 due to the change in mix between Macron and FOX-TEK sales during the period . The operating expenses in the three months ending September 30, 2017 was slightly less at $251,000 compared to $255,000 for the same period in 2016. Stock based compensation during the three months ending September 30, 2017 was $47,000 while there were no such expenses during the three months ending September 30, 2016.
Marcon group sales in the three months ending September 30, 2017 was $564,000 compared to $1,394,000 in the three months ending September 30, 2016 - a decrease of $830,000. The sales in FOX-TEK for the three months ending September 30, 2017 were $86,000 close to $85,000 sales for the three months ending September 30, 2016.
Consolidated Financial Highlights
| September 30, 2017 In $'000s | December 31, 2016 In $'000s | |||
| Current Assets | 1,146 | 1,126 | ||
| Non-Current Assets | 34 | 42 | ||
| Total Assets | $ 1,180 | $ 1,168 | ||
| Current Liabilities | 1,062 | 1,000 | ||
| Long term debt | 213 | 31 | ||
| Total Liabilities | 1,275 | $ 1,031 | ||
| Total Shareholder's (Deficiency) Equity | $ (95) | $ 137 | ||
| | | Three months ended September 30, | Nine months ended September 30, | ||
| 2017 (In '000S) | 2016 (In '000S) | 2017 (In '000S) | 2016 (In '000S) | ||
| Sales | $ 650 | $ 1,479 | $ 2,225 | $ 3,297 | |
| Cost of sales | (515) | (1,293) | (1,646) | (2,419) | |
| Gross profit | 135 | 186 | 579 | 878 | |
| Expenses | | | | | |
| Research and development | (39) | (39) | (111) | (113) | |
| Selling | (6) | (8) | (25) | (28) | |
| General and administrative | (206) | (208) | (663) | (656) | |
| Total expenses | (251) | (255) | (799) | (797) | |
| (Loss) income before the undernoted | (116) | (69) | (220) | 81 | |
| Finance costs | (4) | (5) | (11) | (13) | |
| Loss on sale of investments | - | - | - | (90) | |
| Unrealized gain on investments | | | - | 90 | |
| Stock based compensation | (47) | - | (212) | - | |
| Foreign exchange gain | 7 | - | 17 | 12 | |
| Net (loss) income for the period before tax | (160) | (74) | (426) | 80 | |
| Income tax expense | (5) | - | (5) | (6) | |
| Net (loss) income for the period after tax | (165) | (74) | (431) | 74 | |
The financial statements, notes to the financial statements and Management's Discussion and Analysis for the nine months ending September 30, 2017 are available on SEDAR at www.sedar.com.
Corporate Update - Business Development
Please see section on Business Development (Page 5 ) in the MD&A for the nine months ended September 30, 2017 for details.
About the Corporation:
Through its wholly owned subsidiaries, Marcon International Inc. ("Marcon") and Fox-Tek Canada Inc. ("Fox-Tek"), the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation's FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
Corporation contact:
Allen Lone, President, CEO, Augusta Industries Inc.
Tel: (905) 275 -8111 Ext 226 email: atlone@fox-tek.com
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and as neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.