|By Marketwired .||
|February 6, 2013 07:19 PM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/07/13 -- Hanwei Energy Services Corp. (TSX:HE) -
-- Revenue increases 87% to $8.6 million for the three-month period -- EBITDA increases 580% to $2.7 million for the nine-month period -- Confirmed pipe orders to be completed approximately $9.8 million
Hanwei Energy Services Corp. ("Hanwei" or the "Company") today reported its financial results for the quarter ended December 31, 2012 (the "Reporting Period"). All amounts are in Canadian Dollars unless otherwise noted.
For the three months ended December 31, 2012:
-- Revenues were $8.6 million, representing an increase of $4.0 million (or an 87% improvement) as compared to $4.6 million for the same period of the prior year. -- Gross profit was $3.0 million, representing an increase of $1.4 million (or an 88% improvement) as compared to $1.6 million for the same period of 2011. Gross margin as a percentage of sales was 35.4% as compared to 35.1% for the same period of the prior year. The Company aims to maintain a minimum gross profit margin of not less than 30% on an annualized basis. -- EBITDA from continuing operations was $0.7 million, representing an increase of $0.6 million (or a 633% improvement) as compared to $0.1 million for the same period of the prior year. -- Earnings per share was $0.00 as compared to a loss per share of $0.01 for the same period of the prior year.
For the nine months ended December 31, 2012:
-- Revenues were $21.8 million, representing an increase of $0.9 million (or a 4% improvement) as compared to $20.9 million for the same period of the prior year. -- Gross profit was $7.7 million representing an increase of $1.2 million (or an 18% improvement) as compared to $6.5 million for the same period of the prior year. Gross margin as a percentage of sales was 35.6% as compared to 31.2% for the same period of the prior year. -- EBITDA from continuing operations was $2.7 million, representing a $2.3 million increase (or a 580% improvement) as compared to EBITDA from continuing operations of $0.4 million for the same period of the prior year. -- Earnings per share was $0.01 as compared to a loss per share of $0.05 for the same period of the prior year, or an improvement of $0.06 per share.
Bank debt as of December 31, 2012 was $16.8 million versus $24.5 million as of December 31, 2011 and $21.2 million as of September 30, 2012.
The aforementioned financial highlights indicate significant improvements across the Company's key operating metrics. The Company remains focused on increasing sales, stringent management of costs, and continued commitment to manufacturing processes and quality assurance, to drive profitability. Operational highlights in this regard are as follows:
-- The Company continues to actively pursue sales across various international markets. -- Of the $21.8 million of revenues recognized for the nine months ended December 31, 2012 approximately $10.5 million was to the Company's Chinese market and $11.3 million to international markets respectively representing 48% and 52% of total sales. -- This geographic mix of revenue with increases in international orders has offset any current reductions in China sales. The Company's aforementioned $10.5 million in China sales represents a $7.4 million reduction in this market from the same period of the prior year as an outcome of a decrease in demand from major Chinese customers and increased competition from other Chinese GRE pipe and alternative product suppliers. However, the aforementioned international sales of $11.3 million have provided a comparatively greater increase of $8.3 million from international sales of $3.0 million in the same period of the prior year. -- The Company's international sales include completed orders to clients in Kazakhstan of approximately $10 million, representing an increase in this particular market of $6.5 million or 185% for the nine months ended December 31, 2012 (as compared to revenues from this market of $3.5 million for the same period of the prior year). The increase in Kazakhstan was due to successful project references on previous pipe installations providing continued confidence to both new and existing clients in this market. -- In addition to the $21.8 million of revenues noted above, the Company has confirmed pipe orders of approximately $9.8 million as of the date of this press release. -- The Company continues to stringently manage its costs and expenses. -- While revenue for the nine months ended December 31, 2012 grew to $21.8 million from $20.9 million for the same period of the prior year, the Company's cost of revenues reduced to $14.02 million from $14.4 million for the comparative period. -- General and administrative expenses for the nine months ended December 31, 2012 were $3.6 million as compared to $4.4 million for the same period of 2011. The $0.8 million reduction was primarily driven by reductions in employee costs, professional service fees and office rent. -- The Company continues to manage its debt facilities. Subsequent to the quarter end, the Company has repaid a short term loan of Renminbi ("Rmb")8 million ($1.3 million) due to mature on February 27, 2013 and obtained a new Rmb9.3 million ($1.5 million) loan that matures on May 14, 2013 and bears interest of 5.6% per annum. In addition the Company has also renewed a short-term loan of Rmb30 million ($4.8 million) due to mature on March 18, 2013 and the loan matures on January 21, 2014 and bears interest of 8.4% per annum.
Graham Kwan, Executive Vice President and Rick Huang, Chief Financial Officer of Hanwei will host a conference call to discuss its operational and financial results for the quarter ended December 31, 2012. Management invites analysts and investors to participate on the conference call:
Date: Thursday, February 7, 2013
Time: 1:00 p.m., Eastern Time
Dial in number: 1-888-364-3109 or 1-719-325-2469
A replay of the conference call will be available on the Company's website www.hanweienergy.com.
About Hanwei Energy Services Corp.
Hanwei Energy Services Corp. is a leading manufacturer of high and low pressure, fiberglass reinforced plastic pipe products and associated technologies and services for the international oil and gas, and infrastructure industries. Hanwei serves major energy customers in the Chinese and global energy markets.
The forward-looking information in this press release presents the Company's expectations as of the date of this press release and accordingly is subject to change after such date. Readers are cautioned that reference to "orders" hereto are not recognized under IFRS and should not be construed to be indicators of performance or purported to be an alternative to sales or any other financial measures under IFRS. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company does not undertake to update this information at any particular time, except as required by applicable securities legislation.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
Jan. 16, 2017 05:00 PM EST Reads: 3,942
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
Jan. 16, 2017 03:30 PM EST Reads: 4,811
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Jan. 16, 2017 03:15 PM EST Reads: 377
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Jan. 16, 2017 03:15 PM EST Reads: 293
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 16, 2017 02:30 PM EST Reads: 1,539
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 16, 2017 02:15 PM EST Reads: 5,242
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Jan. 16, 2017 01:45 PM EST Reads: 3,583
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Jan. 16, 2017 01:35 PM EST Reads: 244
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Jan. 16, 2017 01:30 PM EST Reads: 3,299
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Jan. 16, 2017 01:00 PM EST Reads: 3,626
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
Jan. 16, 2017 01:00 PM EST Reads: 1,020
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jan. 16, 2017 12:30 PM EST Reads: 5,462
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Jan. 16, 2017 12:30 PM EST Reads: 4,996
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Jan. 16, 2017 12:30 PM EST Reads: 3,348
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
Jan. 16, 2017 12:30 PM EST Reads: 824