Welcome!

News Feed Item

Pioneering Technology Announces Preliminary Unaudited Record 2016 Year-end Financial Results and Highlights

New Record Highs for Revenue, Net Income & Adjusted EBITDA in Q4 & Full Year 2016

MISSISSAUGA, ONTARIO -- (Marketwired) -- 10/19/16 -- Pioneering Technology Corporation (TSX VENTURE:PTE)(OTC:PTEFF), ("Pioneering" or the "Company"), a technology company and North America's leader in cooking fire prevention technologies and products is very pleased to announce preliminary selected unaudited financial results and business highlights for the fourth quarter and the year ended September 30, 2016. Pioneering's audited financial statements for the year ended September 30, 2016 will be filed on or before January 28, 2017. Audited financial statements for the years ended September 30, 2015 and 2014 are available on SEDAR (www.sedar.com). The financial results discussed below are unaudited and subject to change upon completion of Pioneering's annual audit.

Financial Highlights:

--  Fiscal 2016 revenue of approximately $6.8M, an increase of 55% versus
    $4.4M in 2015. This represents a 70% compound annual growth rate since
    2013. 
--  Record fourth quarter revenue of approximately $2.6M, an increase of
    120% versus the fourth quarter of fiscal 2015 ($1.183M) and up 60%
    versus Q3 2016 ($1.624M - the Company's previous best reported quarter).
--  Gross margin continues to be strong at 61% for the full year 2016. 
--  Fiscal 2016 net income of approximately $1.056M or $0.03 EPS, an
    increase of 649% versus net income of $141K in 2015. Net income for the
    fourth quarter is estimated at approximately $640K 
--  Adjusted EBITDA in fiscal 2016 of approximately $1.9M versus $653K in
    2015, an increase of 191% and for the fourth quarter Adjusted EBITDA is
    estimated at approximately $902K. 
--  Operating Expenses for 2016 fiscal year of approximately $2.8M includes
    one-time expenses associated with stock based compensation. With these
    one-time costs removed Pioneering's expenses increased approximately
    9.8% versus the same period in fiscal 2015 and is attributed to
    investments in sales/marketing and administration to support a growing
    business. 
--  Funding from operations, the $1.5 million private placement completed in
    March, 2016 and new long term debt financing enabled Pioneering to turn
    its negative working capital as of September 30, 2015 of ($1.0M) into
    positive working capital of approximately $3.6M as of September 30,
    2016. This turnaround enabled the pay-out of high interest borrowing, a
    new, fully supportive banking arrangement and will lead to lower future
    interest rates on long term debt and bank borrowing. 

Pioneering CEO Kevin Callahan said of the results, "As a company we have accomplished much in 2016 and we are well positioned for continued growth in 2017 and beyond. Having exceeded our targets and delivered our 6th consecutive quarter of profitability we are well past our inflection point and have proven our business to be profitable, sustainable and capable of delivering increased value to shareholders. With that said, we believe we are just getting started. We believe that our continued focus on penetrating B2B channels combined with external industry developments will help drive revenue growth and company value."

Selected Financial Highlights for Q4 2016 & Year-ended September 30, 2016, 2015 & 2014

                          2016           2015           2014         Q4 2016
                   (unaudited)      (audited)      (audited)     (unaudited)
Revenue             $6,820,000     $4,393,534     $2,924,472      $2,603,000
Gross Profit         4,145,000      2,936,677      1,756,788       1,561,800
Expenses          3,089,000(1)      2,420,416      2,736,978      921,000(1)
Net Income                                                                  
 (Loss)              1,056,000        140,976    (1,183,915)         640,000
EPS Basic                                                                   
 (Loss)                   0.03           0.00         (0.04)            0.02
Adjusted                                                                    
 EBITDA(2)           1,872,000        652,641      (364,535)         902,000
(1) Expenses include stock based compensation and financing related costs.  
(2) Adjusted EBITDA is a Non-GAAP measure. See "Non-GAAP Measures" below.   

Business Highlights:

Customer, Distribution and Market Developments

--  In 2016 Pioneering signed vendor and distribution agreements with three
    of the largest B2B multi-residential, facility and institutional supply
    distributors in North America. These new partnerships helped Pioneering
    deliver one of its key strategic objectives for 2016: to secure formal
    business relationships with large scale U.S. distributors who have
    logistics, sales & marketing capabilities and relevant sales channel
    expertise. The new supply distributors are: 
    --  STAPLES Advantage, a division of Staples Inc. and one of the largest
        facility suppliers in North America, warehoused and began to
        distribute the SmartBurner and Safe-T-sensor products in the U.S. 
    --  HD Supply Canada began selling the SmartBurner product to its B2B
        customers throughout Canada. Success to date in Canada has resulted
        in HD Supply U.S. selling the product to its customers in the United
        States. HD Supply is one of the largest maintenance and facility
        supply companies in North America. 
    --  Wilmar/Interline Brands, owned by Home Depot and the largest
        supplier to multifamily housing in the U.S., warehoused and began
        selling the SmartBurner product to their B2B customers throughout
        the United States. They have SmartBurner inventory in 8 distribution
        centers across the country. 

These distribution partners have large existing customer bases and strong relationships with primary decisions makers. The relationships are expected to continue to provide Pioneering with opportunities to increase sales significantly in key market verticals where cooking fires are a problem. These new partners have extensive sales networks focused on selling into all of Pioneering's desired channels helping to accelerate channel penetration and growth while at the same time helping to keep sales and marketing related expenses in check.

An example of the significant impact these partnerships will have on future sales growth can be evidenced by the sale to a large suite style hotel chain (see press release dated September 6, 2016) that equipped over 17,000 hotel rooms with the SmartBurner product. This purchase represents approximately 20% of this hotel chain's hotel inventory. Pioneering is currently working with its distribution partner to equip the remaining 80% in 2017 and 2018. This one customer represents a small percentage of this distributors entire customer base. Penetrating this channel and other distributor channel customers in 2017 is a strategic priority for Pioneering and has the potential to drive significant revenue growth.

--  Pioneering continued to work on large energy efficiency projects with
    industry heavyweights Johnson Controls and Siemens in the United States.
    These organizations continue to include the Safe-T-element as a key
    component of their overall energy efficiency contracts both individually
    and in conjunction with the Department of Housing and Urban Development.
    In affordable housing channels Safe-T-element is a proven and preferred
    solution for energy performance contractors. 
--  MiddleOak, an insurance carrier that specializes in multifamily
    insurance for apartments and community associations through its network
    of authorized agents in 33 states across the United States, is now
    providing an annual discount of 7% off the property premium to all of
    their policyholders who install the SmartBurner product in their
    properties. Pioneering has many partnerships with insurance brokers and
    underwriters, but MiddleOak is the first insurance carrier to offer a
    premium discount that rewards policyholders for installing the
    SmartBurner product - this is a trend that Pioneering expects to
    leverage and grow with other insurance carriers. 

Industry Developments

--  The UL standard change for electric coil stoves is expected to be
    published in the coming months and is expected to be effective in June
    2018. This new standard change, when implemented, will require all
    electric coil stoves sold in North America to pass an oil ignition test.
    Pioneering believes it is well positioned with its Temperature Limiting
    Control technology and Safe-T-element(TM) and SmartBurner(TM) products
    to take advantage of this impending standard change. Pioneering's
    technology is the only technology that currently meets the new standard
    for electric coil stoves - the stove type of choice in multi-residential
    housing. Pioneering led the efforts that created the new industry
    standard and will continue to develop/source new products that will help
    prevent cooking fires on ALL stove platforms (not just electric coil)
    which could result in further standard changes in the future. 

Financing Developments

Historically, the Company financed its working capital requirements through a combination of cash flow generated by operations and debt financing. During 2016 Pioneering worked hard to strengthen its balance sheet and position the company for long term growth. In 2016 Pioneering:

--  Completed its planned, non-brokered private placement equity financing
    for $1.5M. 
--  Secured a new $1.75M long-term debt facility with RoyNat Capital (a
    division of Scotia Bank) at a significantly lower interest rate than it
    had previously been paying on a prior debt financing arrangement. 
--  Secured a new bank operating line with TD for $500K. 
--  Paid off all of its debt with suppliers and invested in inventory to
    support the planned business growth. 

The above financing activities, coupled with 55% revenue growth, means that as of September 30, 2016 Pioneering had a working capital ratio of approximately 3.87 - a significant improvement from the working capital ratio as of September 30, 2015.

About Pioneering Technology Corp: Pioneering, based in Mississauga, Ontario is an "energy smart" technology company and North America's leader in innovative cooking fire prevention technologies. Pioneering engineers and brings to market energy-smart solutions for everyday consumer appliances making them safer, smarter, and more efficient. The company's patented technologies/products address a multi-billion-dollar problem - cooking fires. According to the National Fire Protection Association, stovetop cooking is the number one cause of household fire and fire injuries in North America (48% of all household fires - up from 20% in 1980). Pioneering's temperature limiting control (TLC) technology is now installed in over 150,000 multi-residential housing units across North America without a single cooking fire being reported and delivering a return on investment for its customers. Pioneering has proprietary cooking fire prevention solutions, including its trademarked Safe-T-element, SmartBurner, RangeMinder & Safe-T-sensor, for the majority of the more than 140 million stoves/ranges and over 140 million microwave ovens throughout North America. For more info, go to www.pioneeringtech.com.

Forward Looking Statements

The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in Pioneering's target markets, the demand for Pioneering's products, the availability of funding and the efficacy of Pioneering's technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, Pioneering does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from Pioneering's expectations and projections.

Non-GAAP Measures

Adjusted EBITDA is a measure not recognized under Canadian generally accepted accounting principles ("GAAP"). However, management of Pioneering believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.

Adjusted EBITDA does not have any standard meanings prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with GAAP and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Pioneering's Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Pioneering posted on SEDAR (www.sedar.com).

This news release contains certain forward-looking statements reflecting the Company's current views or expectations on its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

Contacts:
Pioneering Technology Corp.
Kevin Callahan
President & CEO
905-712-2061 ext. 222
[email protected]

Contact Financial Corp.
Rob Gamley
Investor Relations
604-689-7422
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
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 busine...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st 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 w...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
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 busine...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...