Mr. Allen Lone reports
AUGUSTA ANNOUNCES RESULTS FOR THE THIRD QUARTER AND CORPORATE UPDATE
Augusta Industries Inc. has released its financial results for the nine months ending Sept. 30, 2017.
For the three months ending Sept. 30, 2017, the corporation had revenues of $650,000 as compared with $1,479,000 during the three months ending Sept. 30, 2016. Marcon group backlog sales as on the date of the management's discussion and analysis was $1,988,000. Four of the backlog orders worth $1,723,000 have a long delivery lead time. The corporation also expects to build on the two contracts signed in 2017 by Fox-Tek worth $1,039,000 over a three-year period.
Total loss from operations for the three months ending Sept. 30, 2017, was $160,000 or a net loss of 0.1 cent per share compared with a loss of $74,000 or $0 per share for the three months ending Sept. 30, 2016. Gross margins for the three months ending Sept. 30, 2017, was 21 per cent compared with 13 per cent for the three months ending Sept. 30, 2016, due to the change in mix between Macron and Fox-Tek sales during the period . The operating expenses in the three months ending Sept. 30, 2017, was slightly less at $251,000 compared with $255,000 for the same period in 2016. Stock-based compensation during the three months ending Sept. 30, 2017, was $47,000 while there were no such expenses during the three months ending Sept. 30, 2016.
Marcon group sales in the three months ending Sept. 30, 2017, was $564,000 compared with $1,394,000 in the three months ending Sept. 30, 2016 -- a decrease of $830,000. The sales in Fox-Tek for the three months ending Sept. 30, 2017, were $86,000, close to $85,000 sales for the three months ending Sept. 30, 2016.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands of dollars)
Sept. 30, 2017 Dec. 31, 2016
Current assets $1,146 $1,126
Non-current assets 34 42
Total assets $1,180 $1,168
Current liabilities 1,062 1,000
Long-term debt 213 31
Total liabilities 1,275 $1,031
Total shareholders' (deficiency) equity $(95) $137
(in thousands of dollars)
Three months ended Sept. 30, Nine months ended Sept. 30,
2017 2016 2017 2016
Sales $650 $1,479 $2,225 $3,297
Cost of sales (515) (1,293) (1,646) (2,419)
Gross profit 135 186 579 878
Expenses
Research and development (39) (39) (111) (113)
Selling (6) (8) (25) (28)
General and administrative (206) (208) (663) (656)
Total expenses (251) (255) (799) (797)
(Loss) income before the undernoted (116) (69) (220) 81
Finance costs (4) (5) (11) (13)
(Loss) on sale of investments - - - (90)
Unrealized gain on investments - 90
Stock based compensation (47) - (212) -
Foreign exchange gain 7 - 17 12
Net (loss) income for the period before tax (160) (74) (426) 80
Income tax expense (5) - (5) (6)
Net (loss) income for the period after tax (165) (74) (431) 74
The financial statements, notes to the financial statements and management's discussion and analysis for the nine months ending Sept. 30, 2017, are available on SEDAR.
Corporate update -- business development
Please see section on business development (page 5) in the management's discussion and analysis for the nine months ended Sept. 30, 2017, for details.
About Augusta Industries Inc.
Through its wholly owned subsidiaries, Marcon International Inc. and Fox-Tek Canada, the company 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 U.S. government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment.
Fox-Tek provides world-leading solutions to various sectors, including the oil and gas industry, including fibre optic sensors and electric field mapping systems.
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