Synex International Inc. Announces Refiling of 2nd Quarter Financial Documents
Vancouver, British Columbia--(Newsfile Corp. - March 19, 2020) - Synex International Inc. (TSX: SXI) ("Synex" or the "Company") announced today the refiling of its unaudited interim financial statements for the three and six months ended December 31, 2019 and related management's discussion and analysis in order to add greater clarity and insight relating to the ongoing restructuring efforts, cash flow expectations regarding dividends, Kyuquot revenues, impairment recovery, line of credit terms and related party details.
For the three months ended December 31, 2019 ("Q2 2020") revenue decreased to $929,014 from $1,110,862 in the corresponding period in fiscal 2019 ("Q2 2019"). Electricity sales from Q2 2020 were $898,463, which is $157,911 lower than Q2 2019. For the six months ended December 31, 2019, revenue decreased to $1,354,783 from $1,522,470 in the corresponding period in fiscal 2019. Electricity sales for the six months ended December 31, 2019 were $1,286,988, which is $69,327 lower than the corresponding period in fiscal 2019.
The net income attributable to shareholders of the Company for Q2 2020 was $285,512 as compared to the net income attributable to shareholders of $3,728 for Q2 2019. The increase in net income for Q2 2020 as compared to Q2 2019 is primarily due to restructuring initiatives that include an overall reduction is staffing level saving $126,599 over the prior quarter as well as reductions in other categories. Going forward management remains aggressive in reviewing and assessing its costs structure to ensure maximum value for the goods and services it receives. The net income per share in Q2 2020 was $0.01 as compared to nil in Q2 2019.
The capital expenditures in respect of the development of run-of-river hydro projects in British Columbia for Q2 2020 were $53,925 as compared to $63,223 for Q2 2019. The capital expenditures in respect of the development of run-of-river hydro projects in British Columbia for the six months ended December 31, 2019 were $60,306 as compared to $123,393 for the six months ended December 31, 2018.
At December 31, 2019, the Company had a cash balance of $495,757 as compared to $499,436 at June 30, 2019. The total loan principal outstanding to the Canadian Western Bank was $13,828,088 at December 31, 2019 as compared to $13,794,104 at June 30, 2019. Loans payable at December 31, 2019 included a current portion of $13,366,299 and a non-current portion of $461,789.
The Company is a run-of-river hydro developer, operator and engineering firm. The Company wholly owns or has a proportionate interest in a net total 12 MW of operating facilities in British Columbia, and a Vancouver Island grid connection and utility carrying on business as Kyuquot Utility. The Company also has 9.4 MW of construction ready run-of-river projects, and applications and land tenures on another 24 potential hydroelectric sites totaling over 150MW of installed Capacity in British Columbia.
"Daniel J. Russell"
Daniel J. Russell, President & CEO
Forward-looking Information - This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information included in this press release reflects the current expectations of Synex management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "target", "will", "would" and the negative of these terms and other similar terminology or expressions have been used to identify the forward-looking information, which includes, without limitation: any forecasts with respect to financial performance and capital expenditures and the nature, timing, benefits and expected costs of future hydroelectric project development.
Forward-looking information involves significant risk, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally, including those identified from time to time in the forward-looking information. Such risk factors or assumptions include, but are not limited to: changes in economic conditions, risks associated with the construction and operation of hydroelectric facilities and changes in government policies. Synex cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors should be considered carefully and undue reliance should not be placed on the forward-looking information. For additional information with respect to certain of these risks or factors, reference should be made to the continuous disclosure materials filed from time to time by Synex with Canadian securities regulatory authorities. Synex assumes no obligation or intention to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
Additional Information - This press release should be read in conjunction with Synex's management discussion and analysis and consolidated interim financial statements for the period ended September 30, 2019. This and additional information can be accessed at www.synex.com and under Synex's company profile on www.sedar.com.
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