NEW YORK, Sept. 20, 2011 (GLOBE NEWSWIRE) -- SunSi Energies Inc. ("SunSi") (OTCQB:SSIE), a provider of the specialty chemical trichlorosilane ("TCS") to the solar industry, today provided financial guidance for its fiscal year ending May 31, 2012.
For fiscal 2012, SunSi expects to record revenue in the range of $49 – $52 million and realize EBITDA of $3.2 – $4.1 million. These figures compare with $15.1 million in revenue and EBITDA of $330,000 for fiscal 2011. EBITDA Less Non-Controlling Interests is expected to increase to $2.2 – $3.1 million in 2012, from $148,000 recorded in fiscal 2011.
| SunSi Energies Inc. Snapshot | ||
| 2011 Actual (audited) | 2012 Guidance | |
| Revenue | $15.1M | $49M - 52M |
| EBITDA | $330,000 | $3.2M - 4.1M |
| EBITDA Less Non-Controlling Int. | $148,000 | $2.2M - 3.1M |
| TCS Capacity (MT) as of 5/31/11 | 45,000 | 0 |
| Current TCS Capacity (MT) | 0 | 55,000 |
| Est. TCS Capacity 5/31/12 | 0 | 100,000 |
The expected more than 300% increase in revenue and significant increase in EBITDA in 2012 over fiscal 2011 is a function of recording a full year of revenue from the Company's Baokai and Wendeng operations, an increase in TCS capacity for half of fiscal 2012 at Wendeng, and production related economies of scale.
The Company is currently seeking financing to expand its Wendeng facility from 30,000 metric tons (MT) of TCS capacity to 75,000 (MT). Separately, management is involved in discussions to acquire another scalable TCS facility with 20,000 MT of capacity that could be expanded to 60,000 MT. Guidance for 2012 does not include any potential revenues related to this expansion or from a potential acquisition.
David Natan, SunSi Energies' Chief Executive Officer, said, "Our 2012 guidance reflects a full year of operations at Baokai and Wendeng, and the added capacity of 10,000 MT at Wendeng which is expected to be fully utilized when it becomes operational in late October 2011. Despite a challenging solar industry marketplace which has experienced a very significant price decrease in polysilicon prices, we continue to generate profitable operations. Our operating profitability is due in large part to our competitive advantages including our low cost structure and China-based high quality production facilities which are in close proximity to our key customers."
About SunSi Energies Inc.
SunSi Energies' goal is to become one of the world's largest producers of trichlorosilane (TCS). The Company plans to achieve this objective by acquiring and developing a portfolio of high-quality, scalable, strategically located TCS production facilities that possess a potential for future growth and expansion. U.S. based SunSi controls approximately 55,000 metric tons of TCS production in China. TCS is a chemical primarily used in the production of polysilicon, which is an essential raw material in the production of solar cells for PV panels that convert sunlight to electricity. TCS is considered to be the first product in the solar PV value chain before polysilicon, and is also the principal source of ultrapure silicon in the semiconductor industry. For further information, please visit the company's website at http://www.sunsienergies.com.
Non-GAAP Financial Measures
From time to time, SunSi management may publicly disclose certain "non-GAAP financial measures" in the course of its financial presentations, earnings releases, earnings conference calls, and otherwise. For these purposes, the SEC defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial positions, or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with GAAP in financial statements, and vice versa for measures that include amounts, or is subject to adjustments that effectively include amounts, that are excluded from the most directly comparable measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States. Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Pursuant to the requirements of Regulation G, whenever the Company refers to a non-GAAP financial measure, the Company will also generally present, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references with such comparable GAAP financial measure.
Forward-Looking Statements
This news release contains forward-looking statements related to the future financial condition and results of SunSi's operations. Forward looking statements are based on SunSi's current expectations and estimates regarding: TCS markets and industry in which we operate being the most profitable segment of the solar energy value chain and management's beliefs and assumptions regarding these markets, qualifying for a listing on a major exchange, achieving fiscal 2012 financial guidance, increasing the trading volume and price of SunSi's stock, future earnings and revenue projections, receiving additional TCS orders from companies outside of China, completion of our Wendeng expansion plan, achieving our overall expansion plan, and other TCS related acquisition transactions, and uplisting to a major exchange. These statements are subject to important risks and uncertainties, which are difficult to predict, and assumptions which may prove to be inaccurate. Some of the factors that could cause results or events to differ materially from current expectations include, but are not limited to: general economic conditions, market or business conditions; general stock market performance; the performance of the solar energy industry in general; changing competitive environment; changing regulatory conditions or requirements; changing technology; raising sufficient capital to fund the expansion of Wendeng to 75,000 MT; the price of TCS sold within China and outside of China; the level of production by the Wendeng factory; our joint venture Baokai's success in attaining new clients under its TCS distribution agreement; the decision by a major exchange to reject the Company's application for listing; the decision by companies located outside of China to purchase TCS and success in implementing productivity initiatives. Some of these factors are largely beyond the control of SunSi. Should any factor impact SunSi in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted.
All of the forward looking statements made in this document are qualified by these cautionary statements, therefore, there can be no assurance that the results or developments anticipated by SunSi will be realized or, even if substantially realized, that they will have the expected consequences for SunSi. Readers should not place undue reliance on any forward-looking statements. Furthermore, SunSi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other occurrence.