|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.
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
May. 1, 2016 01:30 PM EDT Reads: 1,546
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
May. 1, 2016 01:30 PM EDT Reads: 767
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
May. 1, 2016 01:00 PM EDT Reads: 1,727
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
May. 1, 2016 12:45 PM EDT Reads: 761
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
May. 1, 2016 12:15 PM EDT Reads: 604
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
May. 1, 2016 12:15 PM EDT Reads: 2,310
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
May. 1, 2016 12:00 PM EDT Reads: 1,104
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
May. 1, 2016 11:45 AM EDT Reads: 1,482
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
May. 1, 2016 11:00 AM EDT Reads: 829
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
May. 1, 2016 11:00 AM EDT Reads: 629
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
May. 1, 2016 11:00 AM EDT Reads: 1,084
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
May. 1, 2016 11:00 AM EDT Reads: 789
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
May. 1, 2016 10:15 AM EDT Reads: 1,156
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
May. 1, 2016 10:15 AM EDT Reads: 954
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?
May. 1, 2016 10:00 AM EDT Reads: 923