BURNABY, BC, Dec. 2, 2016 /CNW/ - IWG Technologies Inc.
(TSX-V: IWG) ("the Company" or "IWG") today announced results for
the fiscal year ended September 30,
2016, which include an 18% increase in net income and 2%
growth in revenue. All amounts are expressed in Canadian dollars
unless otherwise indicated.
The annual results include fourth quarter revenues of
$2,728,268, on par with the prior
year's fourth quarter, and net income of $607,213, a 52% increase from the prior year's
fourth quarter. The fourth quarter net income includes the
recognition of a Scientific Research and Development Expenditures
credit recorded, and a positive impact from foreign exchange
fluctuation.
This year's results provided net earnings of 3.8 cents per share compared to 3.3 cents in the prior year. Detailed
financial statements and MD&A will be available on
www.sedar.com and the Company's website at www.iwgtech.com.
The results are summarized as follows:
|
|
|
|
|
|
|
Three month period
ended
|
|
Year
ended
|
|
|
September
30
|
|
September
30
|
Expressed in
thousands of dollars
|
|
2016
|
|
2015
|
Change
|
|
2016
|
|
2015
|
Change
|
(except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
2,728
|
$
|
2,731
|
0%
|
$
|
9,732
|
$
|
9,514
|
2%
|
Gross
profit
|
|
1,564
|
|
1,341
|
17%
|
|
5,346
|
|
4,543
|
18%
|
Income before
tax
|
|
850
|
|
506
|
68%
|
|
2,090
|
|
1,754
|
19%
|
Net income
|
|
607
|
|
400
|
52%
|
|
1,512
|
|
1,282
|
18%
|
Net income per
share
|
|
1.5¢
|
|
1.0¢
|
|
|
3.8¢
|
|
3.3¢
|
|
EBITDA
|
$
|
1,023
|
$
|
671
|
|
$
|
2,710
|
$
|
2,326
|
|
EBITDA per
share
|
|
2.6¢
|
|
1.7¢
|
|
|
6.8¢
|
|
5.9¢
|
|
"Fiscal 2016 results were in line with the Company's
expectations, given the challenging year, with business aircraft
OEMs seeing a decrease in production numbers. This adjustment in
build rates contributed to flattened sales growth for the business
this past year. The Company's efforts in continued operational
improvements contributed to an increased bottom line," says
Bruce Gowan, IWG Chairman.
The Company announced on November 28,
2016, that it had entered into an Arrangement Agreement with
1096777 B.C. Ltd. (the "Purchaser") and WM Capital Management,
Inc., as guarantor, pursuant to which the Purchaser has agreed,
subject to the conditions set out in such agreement, to acquire all
of the issued and outstanding shares of the Company at a price of
$0.43 per share. Further
details are included in the MD&A and Financial Statements for
the year ended September 30,
2016. A Management Information Circular is expected to be
mailed to shareholders in mid-December, for a planned shareholders'
meeting in January 2017.
IWG Technologies Inc. is the public holding company for
International Water-Guard Industries Inc., a Canadian aerospace
company focused on aircraft potable water treatment, water systems,
water heaters and components. IWG has expertise in all aspects of
water treatment, has the products and know-how to provide high
quality water for passengers and crew, and lightweight,
space-saving solutions for the aircraft operator.
On behalf of the Board of Directors
Bruce Gowan
Chairman of the Board
NEITHER THE 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 news release includes certain "Forward-Looking
Statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and "forward-looking
information" under applicable Canadian securities laws. When used
in this news release, the words "anticipate", "believe",
"estimate", "expect", "target", "plan", "forecast", "may",
"schedule" and similar words or expressions, identify
forward-looking statements or information. These forward-looking
statements or information relate to, among other things: the
anticipated timing of the mailing of the Management Information
Circular and the anticipated timing of the special meeting of the
Company's shareholders.
These statements reflect the Company's current views with
respect to future events and are necessarily based upon a number of
assumptions and estimates that, while considered reasonable by the
Company, are inherently subject to significant uncertainties and
contingencies. Many factors, both known and unknown could cause
actual results, performance or achievements to be materially
different from the results, performance or achievements that are or
may be expressed or implied by such forward-looking statements or
information and the Company has made assumptions and estimates
based on or related to many of these factors. Such factors include,
without limitation: the receipt of all necessary court and
regulatory approvals or consents and lack of material changes with
respect to IWG and its business, all as more particularly set forth
in the Arrangement Agreement. The Company has made certain
assumptions that management believes are reasonable at this time,
including assumptions as to the time required to prepare and mail
shareholder meeting materials. The dates set out in this press
release for mailing of the Management Information Circular and
holding a shareholder meeting may change for a number of reasons,
including unforeseen delays in preparing meeting material and
inability to secure necessary court and regulatory approvals in the
time anticipated. Accordingly, readers should not place undue
reliance on the forward-looking statements and information
contained in this news release concerning these times.
Readers are cautioned against attributing undue certainty to
forward-looking statements or information. Although IWG has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be anticipated, estimated or intended. The Company
does not intend, and does not assume any obligation, to update
these forward-looking statements or information to reflect changes
in assumptions or changes in circumstances or any other events
affecting such statements or information, other than as required by
applicable law.
TSX VENTURE: IWG
SOURCE IWG Technologies Inc.