Methes Energies Reports Fiscal Year 2012 Results
LAS VEGAS, NV--(Marketwire - Feb 26, 2013) - Methes Energies International Ltd. (NASDAQ: MEIL), a renewable energy company that offers an array of products and services to a network of biodiesel fuel producers, on February 25, 2012 reported its operating results for the year ended November 30, 2012.
Revenue totaled approximately $6.5 million for the year ended November 30, 2012 compared to $11.8 million in the year ended November 30, 2011. Net loss was approximately $3.97 million or $0.67 per common share in 2012, compared to a net loss of approximately $811,000 or $0.15 per common share in 2011.
2012 and Recent Highlights
Installed two Denami 3000 biodiesel processors at the Sombra facility for a total capacity of 13 million gallons per year.
Successfully completed an IPO with a listing on NASDAQ Capital Market.
The Sombra facility received approval from the EPA and became an approved foreign biodiesel producing facility.
Increased our work force from 12 employees to over 30 employees.
Increased our rail car fleet from 18 to 28 rail cars.
Successfully completed a Private Placement raising net proceeds of approximately $ 1.5 million.
Signed contract for delivery of 50 rail cars in early 2013.
Michel G. Laporte, Methes Energies' Chairman and CEO, said, "We accomplished a lot during fiscal year 2012 with a number of initiatives going on. The most important milestones were the commissioning of our Sombra facility and the approval by the EPA as a Foreign Biodiesel Producer for biodiesel produced in Sombra, although we did not begin full scale production at Sombra in fiscal 2012. We are now well positioned to take full advantage of a strong biodiesel market so far in 2013."
METHES ENERGIES INTERNATIONAL LTD. | |||||||||
Consolidated Balance Sheets | |||||||||
(Expressed in US dollars) | As at | As at | |||||||
November 30, | November 30, | ||||||||
2011 | 2012 | ||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 1,693,301 | $ | 402,724 | |||||
Accounts receivable, net | 1,122,323 | 303,418 | |||||||
Inventories | 1,187,442 | 1,196,798 | |||||||
Prepaid expenses and deposits | 13,163 | 100,972 | |||||||
Deferred financing fees | - | 26,334 | |||||||
Total current assets | 4,016,229 | 2,030,246 | |||||||
Deposits | 860,923 | 13,813 | |||||||
Property, plant and equipment, net | 2,968,699 | 8,231,826 | |||||||
Intangible assets, net | 400,358 | 413,027 | |||||||
Total assets | $ | 8,246,209 | $ | 10,688,912 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable and accrued liabilities | $ | 2,441,493 | $ | 1,762,666 | |||||
Short-term loan | - | 1,509,600 | |||||||
Payable to related parties | 520,881 | 1,617,999 | |||||||
Total liabilities | 2,962,374 | 4,890,265 | |||||||
Stockholders' equity | |||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued or outstanding at November 30, 2011 and 2012, respectively | - | - | |||||||
Common stock, $0.001 par value, 75,000,000 shares authorized; 5,734,447 and 6,553,169 shares issued and outstanding at November 30, 2011 and 2012, respectively | 5,734 | 6,553 | |||||||
Additional paid-in capital | 11,598,421 | 16,033,123 | |||||||
Subscription receivable | (46,056 | ) | - | ||||||
Accumulated deficit | (6,274,264 | ) | (10,241,029 | ) | |||||
Total stockholders' equity | 5,283,835 | 5,798,647 | |||||||
Total liabilities and stockholders' equity | $ | 8,246,209 | $ | 10,688,912 | |||||
METHES ENERGIES INTERNATIONAL LTD. | |||||||||
Consolidated Statements of Operations | |||||||||
(Expressed in US dollars) | |||||||||
For the Year Ended | For the Year Ended | ||||||||
Revenue | |||||||||
Biodiesel sales | $ | 9,731,355 | $ | 5,801,146 | |||||
Feedstock sales | 838,994 | 393,208 | |||||||
Glycerin sales | 132,526 | 49,894 | |||||||
Government incentives | 518,872 | 299,540 | |||||||
Equipment sales | 256,342 | (241,342 | ) | ||||||
Royalties | 107,148 | 66,445 | |||||||
Others | 200,616 | 180,857 | |||||||
11,785,853 | 6,549,748 | ||||||||
Cost of goods sold | 10,120,570 | 5,998,728 | |||||||
Gross profit | 1,665,283 | 551,020 | |||||||
Operating expenses | |||||||||
Selling, general and administrative expenses | 2,436,615 | 4,270,773 | |||||||
Loss before interest and taxes | (771,332 | ) | (3,719,753 | ) | |||||
Other income (expenses) | |||||||||
Interest expense | (39,750 | ) | (250,146 | ) | |||||
Interest income | 132 | 3,134 | |||||||
Loss before income taxes | (810,950 | ) | (3,966,765 | ) | |||||
Income taxes | - | - | |||||||
Net loss for the year | $ | (810,950 | ) | $ | (3,966,765 | ) | |||
Net Loss Per Common Share - Basic and Diluted | $ | (0.15 | ) | $ | (0.67 | ) | |||
Weighted average number of common shares - Basic and Diluted | 5,269,183 | 5,961,659 | |||||||
METHES ENERGIES INTERNATIONAL LTD. | ||||||||||
Consolidated Statements of Cash Flows | ||||||||||
(Expressed in US dollars) | ||||||||||
For the Year Ended | For the Year Ended | |||||||||
Cash flow from operating activities: | ||||||||||
Net loss for the year | $ | (810,950 | ) | $ | (3,966,765 | ) | ||||
Adjustments to reconcile net loss to net cash used in operations | ||||||||||
Depreciation and amortization | 174,279 | 258,414 | ||||||||
Non-cash stock compensation | 99,233 | 246,949 | ||||||||
Unrealized foreign exchange loss | - | 44,700 | ||||||||
Penalty share expense | - | 399,998 | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | (741,968 | ) | 818,905 | |||||||
Inventories | (943,620 | ) | (9,356 | ) | ||||||
Prepaid expenses and deposits | (855 | ) | (87,809 | ) | ||||||
Accounts payable and accrued liabilities | 1,011,793 | (678,827 | ) | |||||||
Customer deposits | (119,854 | ) | - | |||||||
Net cash used in operating activities | (1,331,942 | ) | (2,973,791 | ) | ||||||
Cash flows from investing activities: | ||||||||||
Additions to property, plant and equipment | (550,704 | ) | (4,657,100 | ) | ||||||
Purchase of intangibles | (60,735 | ) | (30,000 | ) | ||||||
Deposits for equipment | (860,923 | ) | - | |||||||
Net cash used in investing activities | (1,472,362 | ) | (4,687,100 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Payable to related parties | 185,989 | 1,097,118 | ||||||||
Short-term loan | - | 1,464,900 | ||||||||
Deferred financing fees | - | (26,334 | ) | |||||||
Issuance of Common Stock/Units | 4,113,540 | 3,834,630 | ||||||||
Net cash provided by financing activities | 4,299,529 | 6,370,314 | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,495,225 | (1,290,577 | ) | |||||||
Cash and cash equivalents, beginning of year | 198,076 | 1,693,301 | ||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 1,693,301 | $ | 402,724 | ||||||
About Methes Energies International Ltd.
Methes Energies International Ltd. is a renewable energy company that offers a variety of products and services to biodiesel fuel producers. Methes also offers biodiesel processors that are unique, truly compact, fully automated state-of-the-art and continuous flow that can run on a wide variety of feedstocks. Methes markets and sells biodiesel fuel produced at its showcase production facility in Mississauga, Ontario, Canada and at its recently commissioned 13 MGY facility in Sombra, Ontario, to customers in the U.S. and Canada, as well as providing multiple biodiesel fuel solutions to its clientele. Among its services are selling commodities to its network of biodiesel producers, selling their biodiesel production and providing clients with proprietary software to operate and control their processors. Methes also remotely monitors the quality and characteristics of its clients' production, upgrades and repairs their processors and advises clients on adjusting their processes to use varying feedstock to improve the quality of their biodiesel. For more information, please visit www.methes.com.
This press release contains forward-looking statements regarding future events and financial performance. In some cases, you can identify these statements by words such as "may," "might," "will," "should," "except," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of these terms and other comparable terminology. These statements involve a number of risks and uncertainties and are based on numerous assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. There are or may be important factors that could cause our actual results to materially differ from our historical results or from any future results expressed or implied by such forward looking statements. These factors include, but are not limited to, risks and uncertainties discussed under the section entitled "Risk Factors" in our Registration Statement on Form S-1, filed June 22, 2012, as amended, and the Company's filings with Securities and Exchange Commission from time to time which are available at the U.S. Securities and Exchange Commission website at www.sec.gov. The forward-looking statements in this press release are based upon management's reasonable belief as of the date hereof. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
