Advertisement
VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS -- (Marketwire) -- 12/17/12 -- Kelso Technologies Inc. (the "Company" or "Kelso") (TSX VENTURE: KLS)(OTCQX: KEOSF) -
The Company reports that it has released its financial reports for the year ended August 31, 2012.
HIGHLIGHTS OF FOURTH QUARTER ENDED AUGUST 31, 2012
-- Quarterly revenue reaches $1,292,871 (2011 -$459,083).-- Weekly shipments average $99,452 (2011 - $35,314).-- Loss of $231,991 (2011 - $677,731) includes year end audit adjustments and accruals.-- Loss is in line with management's budgets and expectations.-- Loss includes non-cash amortization of $21,220 and share based compensation of $14,664.-- Product development finishes new #27 external pressure relief valve designed for crude oil transport.-- The #27 valve successfully passes independent engineering tests.-- The #27 valve fuels new sales for remainder of calendar 2012 at approximately $3,000,000.
HIGHLIGHTS OF YEAR ENDED AUGUST 31, 2012
-- Annual revenue reaches record $2,233,807 (2011- $1,326,024).-- Gross profit maintained at 25% (2011 - 24%) on low volume production and rising commodity prices.-- Loss of $1,276,827 (2011 - loss of $1,463,869) is in line with management budgets and expectations.-- Loss includes amortization of $45,031, stock based payments of $71,132 and foreign exchange fluctuation costs of $75,587.-- Working capital at August 31, 2012 was $1,422,376.-- Earnings improve to a loss of $0.04 per share in 2012 compared to $0.05 per share in 2011.-- Exercise of warrants and options generate $841,040 in new equity capital during fiscal year.-- Company remains debt free.
LIQUIDITY, CAPITAL RESOURCES AND FINANCIAL RISKS
At August 31, 2012 the Company had cash on deposit in the amount of $2,582; accounts receivable of $877,526; HST receivable of $26,577; prepaid expenses of $82,999 and inventory of $1,196,465 compared to cash on deposit of $1,457,934; accounts receivable of $337,562; HST receivable of $92,551, prepaid expenses of $45,755 and inventory of $251,171 at August 31, 2011.
The working capital position of the Company at August 31, 2012 was $1,422,376 which includes $16,362 due to related parties compared to a working capital position of $1,916,036 which includes $17,000 due to related parties at August 31, 2011. At August 31, 2012, the Company has no long-term liabilities.
Subsequent to the year ended August 31, 2012 Kelso successfully closed a non-brokered private placement in the amount of US$1,197,000 on September 28, 2012 to adequately finance rapid sales growth.
OUTLOOK
Over the past two years we have accessed development capital; improved our business reputation; developed our modern production infrastructure; gained required regulatory approvals; executed our marketing initiatives; and commenced distribution of our products in growing numbers to key North American rail tank car manufacturers, shippers of hazardous materials and many retrofit/repair businesses.
We continue to build the quality of our brand in the railroad industry. Success relies on our ability to develop, engineer, reliably supply and service our "best technology" product solutions that address the demanding technology criteria of our railroad customers. We are very confident that we have gained their confidence, approval and their willingness to adopt our products.
