MISSISSAUGA, ONTARIO–(Marketwired – May 31, 2016) –
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Pioneering Technology Corp. (TSX VENTURE:PTE) (“Pioneering”), a technology company and North America’s leader in cooking fire prevention technologies and products, is pleased to report its financial results for the second quarter and the six months ended March 31, 2016. The Company’s unaudited financial statements and Management’s Discussion and Analysis are available for review at www.sedar.com.
Financial Highlights:
- Fourth consecutive quarter of profitability and sixth consecutive quarter of positive adjusted EBITDA.
- Revenues of $1,256,656 for the 2nd quarter (up 55% versus Q2 2015).
- Gross margin of $822,896 (65%).
- Net income of $85,061 (up 254% versus Q2 2015).
- Adjusted EBITDA of $175,369 (up 548% versus Q2 2015).
- Positive earnings per share of $0.01 for the first six months of fiscal 2016.
- Completed private placement of $1.5 million in capital to repay indebtedness (eliminating existing high interest financing) and to help fund inventory and growth.
Kevin Callahan, President & CEO of Pioneering said, “Our business has now delivered profitable net income over the past four quarters and continues to grow. In addition, our expenses are actually down this quarter and year to date versus the previous year, but appear higher due to foreign exchange. We have proven that this is a relevant and sustainable business, with significant long term growth potential. We have created the category and led the innovation in the cooking appliance industry. New distribution relationships with industry supply leaders are now starting to positively impact sales as their substantial sales forces are delivering new opportunities significantly broadening our reach. Current changes to the cooking appliance regulatory environment will further drive growth and scale. We are just scratching the surface of this market and starting to see the beginnings of what is a very sizeable market opportunity for the Company, our proprietary technologies and our product solutions.”
Selected Financial Highlights for the Second Quarter & Six months Ended March 31, 2016 and 2015:
| Six months ending: | Three months ending: | ||||||||
| 03/31/16 | 03/31/15 | 03/31/16 | 03/31/15 | ||||||
| Revenue | $ | 2,593,205 | $ | 2,003,201 | $ | 1,256,656 | $ | 809,575 | |
| Gross Profit | $ | 1,606,905 | $ | 1,241,021 | $ | 822,896 | $ | 548,183 | |
| Net Income (Loss) | $ | 276,320 | $ | 26,496 | $ | 85,061 | $ | (54,963 | ) |
| Expenses* | $ | 1,181,875 | $ | 1,111,440 | $ | 658,124 | $ | 536,108 | |
| Adjusted EBITDA | $ | 572,343 | $ | 169,251 | $ | 175,369 | $ | 27,361 | |
| EPS | $ | 0.01 | $ | 0.00 | $ | 0.00 | $ | 0.00 | |
* Expenses include realized & unrealized foreign exchange gain/loss – if foreign exchange is excluded, expenses for the 3 months and 6 months ended March 31, 2016 decreased by 9% and 17% respectively versus prior year.
New Financing(s) and a Strengthened Balance Sheet to Support Future Growth
During the quarter the Company significantly strengthened its Balance Sheet and is now positioned to invest to continue growing and achieve the aggressive targets it has established for the business. During the period Pioneering completed both a Private Placement of $1,500,000 and finalized a new five-year loan agreement with Roynat Capital for up to $1,750,000. The Company received the first tranche of $500,000 during the quarter, expects to receive the second $500,000 tranche in mid Q3 and the remaining $750,000, if required, later in the year. Proceeds have been used to repay indebtedness (eliminating existing high interest financing), fund inventory, invest in business development to support B2B partner channels, create greater awareness for the business in the investment community and for general working capital purposes. The Company now has a strong ratio of current assets to current liabilities which has enabled the Company to negotiate new and more favourable banking terms freeing up cash to invest in the future growth of the business.
About Pioneering Technology Corp.: Pioneering, based in Mississauga, Ontario is an “energy smart” technology company and North America’s leader in cooking fire prevention technologies and products. Pioneering engineers and brings to market energy-smart solutions for everyday consumer appliances making them safer, smarter, and more efficient. Pioneering’s patented cooking-fire prevention technologies/products are engineered to help prevent cooking fires, the number one cause of household fire (a multi-billion-dollar problem) in North America. According to the National Fire Protection Association, stovetop cooking is the number one cause of household fire and fire injuries in North America (48% of all household fires – up from 20% in 1980). Pioneering has proprietary cooking fire prevention solutions for the majority of the more than 140 million stoves/ranges and over 140 million microwave ovens throughout North America. Pioneering’s cooking fire prevention trademarks include Safe-T-element, SmartBurner, RangeMinder & Safe-T-sensor. For more information go to www.pioneeringtech.com.
Forward-Looking Statements
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management’s current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in Pioneering’s target markets, the demand for Pioneering’s products, the availability of funding and the efficacy of Pioneering’s technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, Pioneering does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from Pioneering’s expectations and projections.
Non-GAAP Measures
Adjusted EBITDA is a measure not recognized under Canadian generally accepted accounting principles (“GAAP”). However, management of Pioneering believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.
Adjusted EBITDA does not have any standard meanings prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with GAAP and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Pioneering’s Adjusted EBITDA should be read in conjunction with the financial statements and management’s discussion and analysis of Pioneering posted on SEDAR (www.sedar.com).
This news release contains certain forward-looking statements reflecting the Company’s current views or expectations on its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
Kevin Callahan
President & CEO
905-712-2061 ext. 222
kcallahan@pioneeringtech.com
www.pioneeringtech.com
For investor relations:
Contact Financial Corp.
Rob Gamley
604-689-7422
rob@contactfinancial.com