TORONTO, ONTARIO–(Marketwired – April 18, 2017) – Augusta Industries Inc. (the “Corporation”) (TSX VENTURE:AAO) is pleased to announce that it has released its financial results for the year ended December 31, 2016. For the year ended December 31, 2016, the Corporation had record revenues of $4,596,000, an increase of $2,478,000 or 117% as compared to the year ended December 31, 2015.
“We are pleased with the record sales and the financial results for 2016,” said Allen Lone, President of the Corporation. “The results are an indication of the success that the Corporation has had in 2016 and are a true reflection of the Corporation’s efforts to increase its sales, decrease costs and focus on a growing market.”
Other highlights:
- Net income before tax for the year ended December 31, 2016 was $6,000 as compared to a loss of $925,000 for the year ended December 31, 2015, an improvement of $931,000.
- Gross profit for the year ended December 31, 2016 was $1,026,000 (22%) an increase of $484,000 or approximately 89% as compared to $542,000 (26%) for the year ended December 31st 2015.
- The Corporation’s operating expenses for the year ended December 31, 2016 were $1,019,000, a reduction of $225,000 or 17% as compared to $1,244,000 for the same period in 2015.
Consolidated Financial Highlights
| Years ended December 31, | ||||||
| 2016 | 2015 | |||||
| $’000s | $’000s | |||||
| Sales | $ | 4,596 | $ | 2,118 | ||
| Cost of sales | (3,570 | ) | (1,576 | ) | ||
| Gross profit | 1,026 | 542 | ||||
| Expenses | ||||||
| Research and development | (155 | ) | (199 | ) | ||
| Selling | (34 | ) | (48 | ) | ||
| General and administrative | (830 | ) | (997 | ) | ||
| Total expenses | (1,019 | ) | (1,244 | ) | ||
| Income (loss) before the undernoted | 7 | (702 | ) | |||
| Finance costs | (18 | ) | (80 | ) | ||
| Loss on sale of investments | – | (133 | ) | |||
| Unrealized gain on investments | – | 90 | ||||
| Foreign exchange gain (loss) | 17 | (100 | ) | |||
| Net income (loss) for the year before tax | $ | 6 | $ | (925 | ) | |
The financial statements, notes to the financial statements and Management’s Discussion and Analysis for the year ended December 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 bended/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 has 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.
Allen Lone
President, CEO
(905) 275 -8111 Ext 226
atlone@fox-tek.com