CALGARY, Alberta, Aug. 15, 2017 (GLOBE NEWSWIRE) -- Questor Technology Inc. (“Questor” or the “Company”) (TSX-V:QST) is pleased to announce its financial and operating results for the second quarter of 2017.
Revenue in the second quarter of 2017 was $3.9 million, an increase of $3.2 million from the same period in 2016. Second quarter adjusted EBITDA was $1.6 million which is an increase of $2.2 million over the comparable period in 2016. The Company recorded net income of $1 million, $0.04 per share, in the second quarter of 2017, compared to a net loss of $0.6 million, ($0.02 per share), recorded in the same period in 2016.
Revenue for the six months ended June 30, 2017 was $7.0 million versus $2.9 million in 2016, for an increase of $4.1 million. Adjusted EBITDA was $2.4 million which is an increase of $2.8 million over the comparable period in 2016. For the six months ended June 30, 2017, net income was $1.4 million, $0.05 per share, compared to a net loss of $0.6 million, ($0.02 per share), recorded in the same period in 2016.
This quarter revenue from incinerator sales and incinerator rentals each increased by $1.5 million respectively, with service revenue making up the remainder. The Company’s rental revenue increased to $2.1 million from $0.6 million, a 266% growth due to the Company relocating rental equipment to more active areas in the United States. The Company has invested $2.9 million in rental unit expansion since June 30th 2016 increasing the number of rental units by 54% compared to the second quarter in 2016. Rental utilization during the three months ended June 30, 2017 increased 96% versus the same period of 2016. Approximately 47% of the $4.0 million order received from a key customer for hybrid units was delivered by the end of second quarter of 2017 contributing to the growth in sales revenue. The majority of the balance of this order will be delivered by the end of the third quarter. The company generated 79% of its revenue in the United States this quarter.
The Company’s success in the United States is based on the introduction and implementation of our innovative “hybrid” incineration technology. The technology allows clients to purchase a shorter unit that provides a base level of capacity for the life of the pad site and rent an upper stack that provides additional capacity to meet the shorter term demands of high initial production. The benefits to the client are lower capital and operating costs, reduced lease footprint and clean enclosed combustion to meet stringent emission regulations. “This innovative technology solution has the advantage of generating both sales and rental revenue for Questor.” said Ms. Audrey Mascarenhas, Questor’s President and CEO. “Questor will continue to commit capital to grow its presence in regions where producers are looking for high performing, cost-effective technologies to manage their waste gases and fugitive emissions,” she added.
Based on strong demand for our rental and hybrid equipment in the United States, Questor has increased its 2017 capital budget by $1.9 million from $3.4 million to $5.3 million. With this $1.9 million increase, the Company expects to add 10 additional rental units by the end of the year, increasing the rental fleet by 80 percent from December 31, 2016. Questor expects the $5.3 million of rental fleet investment to be completed with no equity or debt financings.
HIGHLIGHTS
(Stated in Canadian dollars except per share and unit data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||
| 2017 | 2016 | 2017 | 2016 | |||
| Revenue | 3,936,470 | 697,268 | 6,959,749 | 2,921,066 | ||
| Gross Profit (Loss)(1) | 2,363,512 | (132,129 | ) | 3,824,494 | 781,748 | |
| Adjusted EBITDA(1) | 1,599,366 | (587,272 | ) | 2,446,484 | (401,386 | ) |
| Profit (Loss) for the period | 959,023 | (596,802 | ) | 1,375,193 | (592,644 | ) |
| Per share — basic | 0.04 | (0.02 | ) | 0.05 | (0.02 | ) |
| Per share — diluted | 0.04 | (0.02 | ) | 0.05 | (0.02 | ) |
| Number of rental incinerators & stacks (end of the period) | 48 | 26 | 48 | 26 | ||
| Through-put capacity rental fleet (MMscfd) | 131.9 | 60.5 | 131.9 | 60.5 | ||
| As at | June 30, 2017 | December 31, 2016 |
| Working capital, end of period | 6,806,424 | 7,595,068 |
| Total assets, end of period | 18,955,795 | 16,346,546 |
| Total equity, end of period | 16,262,712 | 14,765,975 |
(1) Non-IFRS financial measure. Please see discussion in the Non-IFRS Financial Measures section of Questor’s Management’s Discussion and Analysis for the three months ended June 30, 2017 and year ended December 31, 2016.
The Company will continue to expand its presence in the United States. Colorado has been a demonstrated leader in effecting a reduction in harmful emissions during the same period where industry has increased drilling activity. The state legislator has mandated the use of enclosed combustion which has resulted in producers more readily gaining approval for projects from state and local authorities as well as earning support from neighboring residents. Questor has worked diligently at providing high-quality products to industry that meets these demands. Questor’s Colorado operations are based in Brighton where the technician support has been doubled this year to meet clients’ needs and provide excellence in service. “The Company is proud to be recognized and selected for its solutions and will continue its pursuit of earning the confidence and business of existing clients as well as new customers.” said Ms. Audrey Mascarenhas, Questor’s President and CEO.
Questor’s consolidated financial statements and notes thereto and Management’s Discussion and Analysis for the three months ended June 30, 2017 will be available shortly on the Company’s website at www.questortech.com and through SEDAR at www.sedar.com.
ABOUT QUESTOR TECHNOLOGY INC.
Questor is a public, international environmental Cleantech company founded in late 1994 and headquartered in Calgary, Alberta, with field offices located in; Grande Prairie, Alberta; Brighton, Colorado; and Brooksville, Florida. The company is active in Canada, the United States, Europe and Asia and is focused on clean air technologies that safely and cost effectively improves air quality, support energy efficiency and greenhouse gas emission reductions.
Questor designs, manufactures and services high efficiency waste gas combustion systems; as well as, power generation systems and water treatment solutions utilizing waste heat. Our proprietary incinerator technology is utilized worldwide in the effective management of methane, hydrogen sulphide gas, volatile organic hydrocarbons, hazardous air pollutants and BTEX gases ensuring sustainable development, community acceptance and regulatory compliance. Questor and its subsidiary, ClearPower Systems are providing solutions for landfill biogas, syngas, waste engine exhaust, geothermal and solar, cement plant waste heat in addition to a wide variety of oil and gas projects in Canada, throughout the United States, the Caribbean, Western Europe, Russia, Thailand, Indonesia and China. With a focus on solid engineering design, our products enable our clients to operate cost effectively in an environmentally responsible and sustainable manner.
Questor trades on the TSX Venture Exchange under the symbol ‘QST’.
| Audrey Mascarenhas | Dan Zivkusic |
| President and Chief Executive Officer | Chief Financial Officer |
| Phone: (403) 571-1530 | Phone: (403) 539-4371 |
| Facsimile: (403) 571-1539 | Facsimile: (403) 571-1539 |
| Email: amascarenhas@questortech.com | Email: dzivkusic@questortech.com |
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company’s current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company’s public disclosure documents. Many factors could cause the Company’s actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This document is not intended for dissemination or distribution in the United States.