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Carmanah Technologies Corp (2)
Symbol CMH
Shares Issued 18,922,210
Close 2018-05-10 C$ 4.94
Market Cap C$ 93,475,717
Recent Sedar Documents

Carmanah earns $594,000 (U.S.) in Q1 2018

2018-05-10 20:48 ET - News Release

Mr. Evan Brown reports

CARMANAH REPORTS FIRST QUARTER 2018 RESULTS

Carmanah Technologies Corp. has released its first-quarter financial results for the period ended March 31, 2018. Currency amounts are in U.S. dollars unless otherwise noted and are for Carmanah's continuing operations which exclude the operating results from the Company's Power Division segment which was divested by way of two separate transactions in 2017.

In the first quarter of 2018, Carmanah generated revenues of USD $14.9 million, up USD $3.8 million or 34.3% over the first quarter of 2017 revenues of USD $11.1 million. The increase in revenues was attributed to stronger performance by the Company's Signals segment, which generated revenues of USD $13.5 million, up USD $4.0 million or 41.2% over the first quarter of 2017 revenues of USD $9.6 million. The Illumination segment generated revenues of USD $1.4 million, down USD $0.1 million or 8.9% over the first quarter of 2017 revenues of USD $1.5 million, as the transition to our next generation EverGen product continued.

Gross margin percentage in the first quarter of 2018 was 42.4%, down 2.5% compared to the same period in 2017. The reduction in gross margins resulted from sales mix in the quarter.

Core operating expenditures in the first quarter of 2018 were USD $5.3 million, up from USD $4.0 million in the first quarter of 2017. The increase was due to the amortization of acquired intangible assets from Vega and EKTA and the overall increase in G&A expenses associated with the acquisition of Vega.

Net income in the first quarter of 2018 was USD $0.6 million which was unchanged from the same period in 2017.

Carmanah management relies on Adjusted EBITDA1 (a non-IFRS measure) to gauge financial performance. In the first quarter of 2018, the Company generated Adjusted EBITDA of USD $1.8 million, up 11.0% from USD $1.6 million in the same period in 2017. A table reconciling net income and Adjusted EBITDA is included in this release.

"Important operational progress was made by our Company in the first quarter", said John Simmons, CEO. "During the quarter, capping more than a year of development, our Telematics vertical received orders and began shipping its first products. Also in the quarter the Company acquired a patent portfolio which now allow Carmanah's Traffic vertical to resume the pursuit of sales from its very popular Rectangular Rapid Flashing Beacon without concerns of intellectual property infringement. Finally, continued progress was made during the quarter for our consolidating integration of Vega Industries by Sabik Marine and we are targeting the third quarter 2018 to fully integrate and cease operating in New Zealand.

Highlights for the quarter are provided below:

 
                    Three months ended March 31,
(US$ thousands)              2018          2017 
         
Revenue                    14,942        11,127        
Gross margin %             42.4%         44.9%         
Core operating expenditures(5,286)       (4,069)       
Net income after tax       594           609           
Adjusted EBITDA1           1,826         1,645         

Financial Condition at March 31, 2018 compared to December 31, 2017

  • Cash and cash equivalents of USD $8.2 million, down USD $3.6 million from USD $11.8 million, primarily due to repayment of our term loan.
  • Working capital of USD $20.0 million, down USD $1.2 million from USD $21.2 million

Complete set of Financial Statements and Management Discussion & Analysis

A complete set of the first quarter ended March 31, 2018 Financial Statements and Management's Discussion & Analysis are available on Carmanah's corporate website. To view these documents, visit the company's website. Both documents are also filed on SEDAR. The financial information included in this release is qualified in its entirety and should be read together with the audited consolidated financial statements for the year ended December 31, 2017, including the notes thereto.

About Carmanah Technologies Corporation

Carmanah designs, develops and distributes a portfolio of products focused on energy optimized LED solutions for infrastructure. Since 1996, we have earned a global reputation for delivering durable, dependable, efficient and cost-effective solutions for industrial applications that perform in some of the world's harshest environments.

We seek Safe Harbor.

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