The Company reports that it has released its interim consolidated financial statements and Management Discussion and Analysis covering the three and six months ended
References to EBITDA in this press release refer to net earnings from continuing operations before interest, taxes, amortization and deferred income tax expense. EBITDA is not an earnings measure recognized by International Financial Reporting Standards (IFRS) and does not have a standardized meaning prescribed by IFRS. Management believes that EBITDA is an alternative measure in evaluating the Company's business performance. Readers are cautioned that EBITDA should not be construed as an alternative to net income as determined under IFRS; nor as an indicator of financial performance as determined by IFRS; nor a calculation of cash flow from operating activities as determined under IFRS; nor as a measure of liquidity and cash flow under IFRS. The Company's method of calculating EBITDA may differ from methods used by other issuers and, accordingly, the Company's EBITDA may not be comparable to similar measures used by any other issuer.
All amounts are expressed in
HIGHLIGHTS OF THE THREE MONTHS ENDED
-- Reported net income (IFRS) for the three months ended
June 30, 2014was $1,080,846compared to a loss of $160,664for the three months ended June 30, 2013. -- Revenue for the three months ended June 30, 2014reached $5,648,384compared to revenue of $2,660,140for the three months ended June 30, 2013. -- EBITDA was $1,459,510for the three months ended June 30, 2014compared to $179,341for the three months ended June 30, 2013. -- Additional expenditures outside of normal business operations were incurred for legal and accounting issues regarding the Toronto Stock Exchange("TSX") listing in the amount of $66,391and a TSX listing fee of $200,000during the three months ended June 30, 2014. -- The Company substantially completed construction of its new production facilities in Bonham, Texasreflected on the financial statements with an increase of $2,326,290to property and equipment during the three months ended June 30, 2014. -- The Company paid its first dividend. The dividend was for $0.01per share and totaled $436,450. -- All other business expenditures and financial results are in line with management's expectations.
HIGHLIGHTS OF THE SIX MONTHS ENDED
-- Reported net income (IFRS) for the six months ended
June 30, 2014was $2,304,421( $0.05per share) compared to reported net income of $240,636( $0.01per share) for the six months ended June 30, 2013. -- Revenue for the six months ended June 30, 2014reached $11,128,418compared to $4,674,202for the six months ended June 30, 2013, an increase of 238%. -- EBITDA for the six months ended June 30, 2014was $3,126,140(28.1% of revenues) compared to EBITDA of $282,722(6% of revenues) for the six months ended June 30, 2013. -- Reported net income of $2,304,421included items not involving cash for amortization of $53,579and a deferred income tax expense in the amount of $768,140. -- The Company listed on the Toronto Stock Exchangeon May 22, 2014. -- Business growth, product and market development progress, pre-sales strategic costs and financial results for the six months ended June 30, 2014are in line with management's budgets and expectations. -- Cash on deposit at June 30, 2014was $4,502,956. -- Construction costs on new building reached $2,326,290. -- Working capital at June 30, 2014remained healthy at $9,036,611. -- Company remained free of interest-bearing long-term debt commitments. -- Net tangible assets grew to $11,927,070at June 30, 2014up from $8,797,241at December 31, 2013.
LIQUIDITY AND CAPITAL RESOURCES
The working capital position of the Company at
Kelso continues to gain business momentum and is well positioned to capitalize on the high demand for rail tank cars currently being experienced. Our success is fueled by our consistent policy of building our business through the demonstrated merits and economic value of our products. We service the industry's needs thoroughly and carefully and have earned the confidence of railroad regulators and our many stakeholders.
Regulatory bodies are finalizing design criteria for safety enhancements to be incorporated in the production of new tank cars and retrofitted on to existing railroad tank cars carrying flammable liquids such as crude oil and ethanol. Rule changes include the use of a high capacity pressure relief valve to protect against a rise in internal pressure resulting from fire and to provide for faster release of the product. In addition they will require bottom outlet valves that are configured to prevent the operating handle from inadvertently opening the bottom outlet in the event of an accident.
New tank cars built after
With these new developments Kelso is expected to continue its steady business growth. Kelso calculates that there is potential demand for approximately 50,000 pressure relief valves per year through
Although not part of the new guidelines we are also working with industry specialists in crude oil loading terminal technologies on adoption strategies for our one-bolt manway technology. Terminal operators can expect to ship 30% more oil from existing facilities through our higher speed loading and uniform sealing technology improving their netback profits on shipments of crude oil. The case for utilization of our one-bolt manway is economically compelling and adoption strategies are being organized with our stakeholders.
Our financial health and welfare remains very strong. Our assets remain unencumbered and we carry no interest-bearing debt. We are internally financed from operations and our working capital has risen to exceed
We continue to demonstrate our value as a creative innovator and reliable supplier of the products required by the railroad industry. Although we have challenges ahead we are extremely optimistic about our position in the industry and the prospects of our future business development. We will continue to build the quality of our brand and move forward on the improvement of earnings, dividend growth and corporate value on behalf of the shareholders of Kelso.
Kelso is a railroad equipment supplier that produces and sells proprietary tank car service equipment used in the safe loading, unloading and containment of hazardous materials during transport. Products are specifically designed to provide economic and operational advantages while reducing the potential effects of human error and environmental harm during the transport of hazardous materials.
For a more complete business and financial profile of the Company, the financials statements and management discussion and analysis can be viewed in their entirety on the Company's website at www.kelsotech.com or www.sedar.com.
On behalf of the Board of Directors,
Legal Notice Regarding Forward-Looking Statements: This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include that the Company is well positioned to capitalize on the high demand for rail tank cars; regulatory bodies are finalizing rule changes relating to design criteria for safety enhancements as stated in this news release; new tank cars built after
FOR FURTHER INFORMATION PLEASE CONTACT:
Kelso Technologies Inc. James R. BondCEO and President email@example.com Kelso Technologies Inc. Richard LeeChief Financial Officer firstname.lastname@example.org Source: Kelso Technologies Inc.