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
--  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
--  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
 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™ and SmartBurner™ 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.

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
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium 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. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
SYS-CON Events announced today that Enzu 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. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
Qosmos, the market leader for IP traffic classification and network intelligence technology, has announced that it will launch the Launch L7 Viewer at CloudExpo | @ThingsExpo Silicon Valley, being held November 1 – 3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The L7 Viewer is a traffic analysis tool that provides complete visibility of all network traffic that crosses a virtualized infrastructure, up to Layer 7. It facilitates and accelerates common IT tasks such as VM migra...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
SYS-CON Events announced today that Coalfire 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. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, will contrast how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He will show the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He will also have live demos of building immutable pipe...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
SYS-CON Events announced today that Cloudbric, a leading website security provider, 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. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, you'll learn about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how Docke...