|By Marketwired .||
|June 23, 2014 07:59 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/23/14 -- Hanwei Energy Services Corp. (TSX: HE) ("Hanwei" or the "Company"), today reported its financial results for the year ended March 31, 2014 (the "2014 Fiscal Year"). All amounts are in Canadian Dollars unless otherwise noted.
For the year ended March 31, 2014:
-- FRP pipe sales totalled $18.0 million as compared to $30.0 million for the prior year. The significant decrease of $12 million (or 40%) was primarily due to the continued slow down in the Company's China market with a number of major projects by China's state owned oil companies placed on hold. Revenue in the Company's China market reduced to $5.4 million from $10.7 million in the prior year. Additionally, in the Company's Kazakhstan market, revenue reduced to $12.2 million from $17.7 million with increased competition from local manufacturers. Revenues were most significantly down in the first quarter of the 2014 Fiscal Year ($3.8 million as compared to $9.6 million in the same quarter of the prior year) and the third quarter of the 2014 Fiscal Year ($3.4 million as compared to $8.6 million in the same quarter of the prior year). -- As a result of reduced revenues throughout the year, the gross margin for the 2014 Fiscal Year declined to $4.0 million (or 22% as a percentage of revenues) as compared to $9.9 million (or 33% as a percentage of revenues) for the prior year. EBITDA from continuing operations was negative $1.2 million for the year ended March 31, 2014 as compared to $4.3 million for the prior year. The Company reduced operating expenses over the prior year by approximately $900,000. -- Loss from continuing operations was $2.3 million as compared to income from continuing operations of $2.4 million for the prior year. Basic and diluted loss per share from continuing operations was both $0.03 for the year ended March 31, 2014 as compared to basic and diluted income per share from continuing operations of $0.03 for the prior year. -- Net income was $0.8 million as compared to $2.4 million of the prior year. Basic and diluted income per share was $0.01 as compared to basic and diluted income per share of $0.03 for the prior year. This included a net foreign exchange gain for the year ended March 31, 2014 of approximately $3.4 million from the sale of Hanwei Green.
For the three months ended March 31, 2014:
-- Revenue for the fourth quarter of the 2014 Fiscal Year was $7.0 million as compared to $7.9 million for the same period of the prior year. -- Net income was $0.8 million for the fourth quarter of the 2014 Fiscal Year as compared to $1.8 million for the same period of the prior year. -- Basic and diluted earnings per share was $0.02 for the fourth quarter of the 2014 Fiscal Year as compared to basic and diluted earnings per share of $0.03 for the same period of the prior year.
The Company continues to effectively manage its debt facilities. The total principal amount of all bank loans was $5.2 million as at March 31, 2014 and amounts due to related parties (primarily a loan from a shareholder) was $3.1 million, representing a 33% debt to equity ratio (total debt including due to related party amounts divided by total shareholders' equity). For reference, the aggregate principal amount of bank loans and amounts due to related parties as at March 31, 2013 was $17.2 million.
As of March 31, 2014, the Company's cash balance was approximately $5.5 million versus approximately $4.7 million for the same date of the prior year. Also of March 31, 2014, the Company's Net Asset Value per share for its continuing operations was $0.48 (compared to $0.49 as at March 31, 2013).
Events Subsequent to the year ended March 31, 2014
-- As of May 31, 2014, FRP pipe sales orders for deliveries subsequent to March 31, 2014 were $2.9 million. These sales orders are expected to be completed within the fiscal year ending March 31, 2015. Of these sales orders, $0.8 million or 29% are from customers in the China market with $2.1 million or 71% from customers in international markets. -- Hanwei completed the transfer of all mineral rights and surface leases in June 2014 for its acquisition of certain oil and gas interests occupying some 4,000 acres located approximately 40 km south west of Edmonton, Alberta (the "Leduc Lands"). The Company has a 100% working interest in five wells and 60% working interest in one well. The Company's development program aims to enhance production in the area focused on the Nisku and Wabamun formations for both oil and gas production. The Company's current development plan is focused on: work over activities on an existing well to increase gas production; work over activities on an existing horizontal oil well to be stimulated with multi-stage fracturing technology; and thereafter new horizontal oil wells to be stimulated with multi-stage fracturing technology. New flow line works if required for increased production would utilize Hanwei's FRP pipe products.
Update on Disposition of Hanwei Green
On May 27, 2013, the Company had reached an agreement to sell all of the equity interest in its wholly owned subsidiary Kerui Green Energy Equipment (Tianjin) Co. Ltd. ("Hanwei Green") to a private Chinese company for an amount of $11.6 million (RMB65 million). The major asset of Hanwei Green is a manufacturing plant located in Tianjin, China, which was constructed for wind blade production. The closing of the transaction was subject to the regulatory approval of the transfer of the subsidiary's business license to reflect the new ownership. As of February 28, 2014, the transfer of the business license of Hanwei Green was completed. As at March 31, 2014, the Company received payments from this transaction of $0.7 million (RMB4 million). Due to delays in the closing of the transaction caused by the regulatory approval process, the Company is discussing with the buyer to determine a payment schedule for the remainder of the proceeds.
Update on Outstanding Wind Receivable:
During the year ended March 31, 2012, the Company executed a contract for sale of the majority of its wind power equipment inventory to a Chinese customer for agreed items totalling $16.6 million (RMB93.6 million). To date $13.3 million (RMB75.3 million) of this amount has been received by the Company. The balance to be paid is approximately $3.3 million (RMB18.3 million). The Company has initiated legal action against this customer and expects a full recovery of this outstanding amount.
Hanwei will host a conference call to discuss its operational and financial results for the year ended March 31, 2014. Graham Kwan, Executive Vice President and Rick Huang, Chief Financial Officer of Hanwei will host the call. Management invites analysts and investors to participate on the conference call:
Date: Tuesday, June 24, 2014 1:00 p.m., Eastern Time (10:00 am Pacific Time: Time) Dial in number: 1-888-576-4398 or 1-719-457-2689 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 pressure, fiberglass reinforced plastic ("FRP") pipe products and associated technologies and services for the international oil and gas infrastructure industries. Hanwei serves major energy customers in the Chinese and global energy markets. The Company owns producing oil and gas rights located near Edmonton, Alberta.
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.
FORWARD-LOOKING INFORMATION AND NON-GAAP MEASURES
Certain information in this press release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions a description of which is set out in the risk factors section of the Company's Annual Information Form dated June 20, 2014 and Management Discussion and Analysis for the year ended March 31, 2014 both of which are filed with Canadian securities regulators and available on SEDAR at www.sedar.com. The forward-looking information in this press release describes the Company's expectations as of the date of this press release.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. 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.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Jul. 28, 2016 10:30 AM EDT Reads: 757
StackIQ has announced the release of Stacki 3.2. Stacki is an easy-to-use Linux server provisioning tool. Stacki 3.2 delivers new capabilities that simplify the automation and integration of site-specific requirements. StackIQ is the commercial entity behind this open source bare metal provisioning tool. Since the release of Stacki in June of 2015, the Stacki core team has been focused on making the Community Edition meet the needs of members of the community, adding features and value, while ...
Jul. 28, 2016 10:15 AM EDT Reads: 482
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Jul. 28, 2016 10:00 AM EDT Reads: 262
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Jul. 28, 2016 09:30 AM EDT Reads: 1,394
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
Jul. 28, 2016 09:28 AM EDT Reads: 206
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Jul. 28, 2016 09:00 AM EDT Reads: 1,604
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
Jul. 28, 2016 08:30 AM EDT Reads: 358
"We formed Formation several years ago to really address the need for bring complete modernization and software-defined storage to the more classic private cloud marketplace," stated Mark Lewis, Chairman and CEO of Formation Data Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 08:30 AM EDT Reads: 1,678
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Jul. 28, 2016 07:45 AM EDT Reads: 920
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Jul. 28, 2016 07:30 AM EDT Reads: 519
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Jul. 28, 2016 07:15 AM EDT Reads: 697
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Jul. 28, 2016 06:45 AM EDT Reads: 1,863
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Jul. 28, 2016 06:45 AM EDT Reads: 1,560
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Jul. 28, 2016 05:45 AM EDT Reads: 2,326
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 28, 2016 04:45 AM EDT Reads: 1,382