Methes Energies Reports Fiscal Year 2012 Results

Marketwired

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
November 30, 2011
      For the Year Ended
November 30, 2012
 
                   
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
November 30, 2011
      For the Year Ended
November 30, 2012
 
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.

Contact:

Methes Energies International Ltd.
Michel G. Laporte
Chairman and CEO
702-932-9964

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