News Column

FSI Announces 2013 Fourth Quarter and Year-End Financial Results

May 2, 2014



ENP Newswire - 02 May 2014

Release date- 01052014 - CALGARY, ALBERTA - Richard Ball, Chief Executive Officer of FSI Energy Group Inc. (TSX VENTURE: FSI) is pleased to announce financial results for the three and twelve months ended December 31, 2013.

With the delivery and completion of most the installation of two major brine plants completed by the third quarter of 2013, FSI focused on contract negotiation for a major brine plant. As a result, no revenue was generated from the foreign segment during this period of pre-contract activity and revenue from the quarter of $364,349 was derived solely from the domestic segment, which was up 98% over the same quarter last year.

The limited revenue generating activity resulted in an operating loss of $557,582 for the quarter or 15% lower than the same quarter last year on the higher domestic revenue. Despite this, the comprehensive loss for the quarter was $429,521 compared to comprehensive income of $45,821 the same quarter last year which resulted from the Company recording a deferred tax recovery of $700,000 on tax assets previously unrecognized.

Although the low activity generated a loss for the quarter, revenue for the year of $12,146,549 mostly from two major brine plants drove operating profit and comprehensive income for the year to $1,031,232 and $771,819, respectively, up from last year's operating loss and comprehensive loss of $1,365,448 and $733,143, respectively.

The Company's liquidity remains firm as:

Current assets of $1.3 million, is more than sufficient to service the Company's short term monetary liabilities of $0.9 million (excluding loan from bank which is payable only upon demand).

The Company is in compliance with its financial covenants and has $0.6 million of unused loan facilities to fund future operations

Although cash used in operations was $5.3 million for year, this primarily reflects that most of the revenue recognized on the brine plants in 2013 was collected the prior year through customer deposits. In addition, it also reflects significant payments to trade payable vendors in respect of brine construction activity the last quarter of 2013.

Further detail may be found in the Company's Management Discussion and Analysis, which is available on SEDAR.

About FSI

Through its wholly owned subsidiary FSI International Services Ltd., FSI Energy Group Inc. is a Calgary-based manufacturing and service company specializing in customized filtration, filtration-related technologies and Brine Plants for the energy, chemical, and water treatment industries.

Non-GAAP Financial Measures

EBITDA does not have a standard definition prescribed by GAAP and therefore may not be comparable to similar measures disclosed by other companies. The Company utilizes these measures in making operating decisions and assessing the Company's financial performance and as an indicator of its ability to service its liabilities. This non-GAAP measure has not been presented as an alternative to net income (loss) or any other measure of performance or liquidity prescribed by GAAP.

Forward-looking Information Cautionary Statement

Certain information contained in this press release, including information and statements which may contain words such as 'could', 'plans', 'should', 'anticipates', 'expect', 'believe', 'will', and similar expressions and statements relating to matters that are not historical facts are forward-looking information. In particular, this press release contains forward-looking information about the completion of the Brine Plant export contracts and the revenues associated therewith.

Forward-looking statements are based on the opinions and estimates of management relying on their experience at the date the statements are made, and are subject to a variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to, the risk factors discussed in FSI's MD&A and other continuous disclosure documents. All of the forward- looking information contained in this press release is qualified by this cautionary statement.

There can be no assurance that the actual results or developments anticipated by FSI, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on FSI or its business operations. FSI disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events. Readers should not place undue reliance on forward-looking information.

Contact:

Richard Ball

President and CEO

FSI Energy Group Inc.

Tel: (403) 571-4230

Fax: (403) 230-3106

www.fsigroup.ca


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Source: ENP Newswire


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