TORONTO, ONTARIO–(Marketwired – May 25, 2016) – Augusta Industries Inc. (the “Corporation”) (TSX VENTURE:AAO) is pleased to announce that it has released its financial results for the three months ending March 31, 2016. For the three months ending March 31, 2016, the Corporation had record revenues of $1,011,000, an increase of $479,000 or 90% as compared to the three months ending March 31, 2015.
Total comprehensive income for the three months ending March 31, 2016 was $178,000 or a net gain of $0.001 per share, an increase of $374,000 or $0.002 per share, as compared to a loss of $196,000 or $0.003 per share for the three months ending March 31, 2015. Gross margins for the three months ending March 31, 2016 was 45.6% compared to 35.5% for the three months ending March 31, 2015. The Corporation also reduced its operating expenses in the three months ending March 31, 2016 to $279,000 from $299,000 for the same period in 2015.
“The record results for the first quarter of 2016 is an indication of the success that the Corporation has experienced in its sales efforts in 2015 and 2016,” states Allen Lone, President of the Corporation. “The record revenue was a result of the increased spending of the Corporation’s current clients and the addition of new clients through the quarter.”
| Consolidated Financial Highlights | ||||||||
| March 31, 2016 | December 31, 2015 | |||||||
| Total current assets | $ | 1,164,000 | $ | 911,000 | ||||
| Total non-current assets | $ | 52,000 | $ | 56,000 | ||||
| Total Assets | $ | 1,216,000 | $ | 967,000 | ||||
| Current liabilities | $ | 942,000 | $ | 866,000 | ||||
| Long-term debt | $ | 45,000 | $ | 50,000 | ||||
| Total Liabilities | $ | 987,000 | $ | 916,000 | ||||
| Total Shareholders’ Equity | $ | 229,000 | $ | 51,000 | ||||
| Total Liabilities and Shareholders’ Equity | $ | 1,216,000 | $ | 967,000 | ||||
| March 31, 2016 | March 31, 2015 | |||||||
| Revenue | $ | 1,011,000 | $ | 532,000 | ||||
| Expenses | ||||||||
| Direct costs | $ | 550,00 | $ | 343,000 | ||||
| Selling, general and administrative | $ | 243,000 | $ | 247,000 | ||||
| Research and development | $ | 36,000 | $ | 42,000 | ||||
| Total Expenses | $ | 829,000 | $ | 632,000 | ||||
| Other Expenses | ||||||||
| Finance costs | $ | (4,000 | ) | $ | (19,000 | ) | ||
| Loss on sale of investments | – | $ | (43,000 | ) | ||||
| Foreign exchange gain / (loss) | $ | 13,000 | $ | (28,000 | ) | |||
| $ | 820,000 | $ | (732,000 | ) | ||||
| Income before taxes | $ | 191,000 | $ | (200,000 | ) | |||
| Income taxes | $ | 6,000 | – | |||||
| Net and comprehensive income | $ | 185,000 | $ | (200,000 | ) | |||
The financial statements, notes to the financial statements and Management’s Discussion and Analysis for the three months ending March 31, 2016 are available on SEDAR at www.sedar.com.
About the Corporation:
Through its wholly owned subsidiaries, Marcon International Inc. (“Marcon”) and Fox-Tek Canada Inc. (“Fox-Tek”), the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon’s principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon’s major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation’s FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and as neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management’s best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation’s periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
