Stock Name: WFI
Amount: US$ 0.24
Announcement Date: 08/11/2011
Record Date: 18/11/2011
Dividend Detail:
(U.S.$)
FORT WAYNE, IN, Nov. 8, 2011 /CNW/ - WaterFurnace Renewable Energy, Inc.
[WFI:TSX] today released the Company's third quarter 2011 results. In
the third quarter of 2011, total comprehensive income increased by 6.0%
over the third quarter of 2010. This follows a 6.1% year over year
increase in comprehensive income for the second quarter of 2011. Sales
for the quarter were down 4.3% from the same period in 2010. Direct to
dealer residential sales were up slightly for the quarter versus last
year. While Canadian sales remain below last year, the Company saw its
Canadian sales improve in the third quarter versus the first six months
of 2011. The Company's year to date sales revenue is 0.7% above last
year's nine months ended September 30, 2010.
Today the Board of Directors approved a quarterly dividend of $0.24 U.S.
per share for shareholders of record on November 22, 2011, with payment
on December 1, 2011, a 9% increase in the current dividend.
Commercial sales growth remained strong for the quarter while
international sales, other than Canadian, almost tripled albeit on a
small but increasing base of business. The Company expects Commercial
sales to continue to help drive market share growth as it enters 2012.
The Company continued development of its sales channels and new markets.
Operating expenses rose 10.6% in the third quarter of 2011 over the
third quarter of 2010. Continued investment in sales channel
development, new product development and marketing programs drove the
increase in year over year expense. The Company continues to expand
both its geographic footprint and its market share.
Federal tax credits of 30% of the installed cost of a residential Energy
Star rated geothermal system along with state incentives and utility
rebates continued to help support residential sales. The broader HVAC
market is constrained by the slow economic recovery, unemployment and
tight credit markets. The current historically low housing starts have
tended to offset sales gains associated with the tax credits.
The Company met its expectations for inventory turns, accounts
receivable collections, day's sales outstanding and accounts payable
for the period.
Tom Huntington, President and CEO, said, "Channel expansion and new
marketing programs played a critical role in our performance. We do,
however, remain concerned about the elusive U.S. residential new
construction market recovery. We are excited about better than
forecasted Canadian sales and the growth in our international
commercial channel."
Tim Shields, Chairman of the Board, added, "We believe that management
has a firm grasp on the general economic climate and its effects on our
industry. As such, the Company's third quarter results show the
Company's ability to outperform the industry in poor economic times.
The Board recently reviewed the Company's five year strategic plan and
while we face significant uncertainty, we are seeing the fruits of our
strategic efforts paying off in the short-term."
The third quarter report to shareholders is available at www.waterfurnace.com and filed on SEDAR at www.sedar.com. Management will conduct a webcast covering the results of the quarter
at 11:00 AM Eastern Standard Time on Thursday, November 10, 2011.
Interested parties can listen live or to the recorded version at http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3713380 or at the Company's website: www.waterfurnace.com.
WaterFurnace Renewable Energy, Inc.
Consolidated Statements of Comprehensive Income
Prepared using International Financial Reporting Standards
(UnauditedThousands of U.S.$ except per share data)
| Three months ended September 30, | | Nine months ended September 30, | |||||
| 2011 | | 2010 | | 2011 | | 2010 | |
| | | | | | | | |
Sales | $ 35,957 | | $ 37,581 | | $ 98,449 | | $ 97,759 | |
| Cost of sales | 22,406 | | 24,671 | | 65,980 | | 66,565 |
| | | | | | | | |
Gross profit | 13,551 | | 12,910 | | 32,469 | | 31,194 | |
| Operating expenses | 5,789 | | 5,236 | | 17,537 | | 16,440 |
| Research and development expenses | 514 | | 789 | | 1,499 | | 1,979 |
| | | | | | | | |
Income before interest and income taxes | 7,248 | | 6,885 | | 13,433 | | 12,775 | |
| Finance income | 50 | | 33 | | 109 | | 54 |
| Finance expense | (3) | | (19) | | (13) | | (47) |
| | | | | | | | |
Income before income taxes | 7,295 | | 6,899 | | 13,529 | | 12,782 | |
| Income tax expense | 2,665 | | 2,530 | | 5,021 | | 4,672 |
| | | | | | | | |
Net income and total comprehensive income | $ 4,630 | | $ 4,369 | | $ 8,508 | | $ 8,110 | |
| | | | | | | | |
Earnings per share U.S.$ | $ 0.38 | | $ 0.36 | | $ 0.70 | | $ 0.67 | |
WaterFurnace Renewable Energy, Inc.
Consolidated Statements of Financial Position
Prepared using International Financial Reporting Standards
(UnauditedThousands of U.S.$)
| September 30, | | December 31, | | January 1, | ||
| 2011 | | 2010 | | 2010 | ||
| | | | | | ||
Assets | | | | | | ||
Current assets | | | | | | ||
| Cash and cash equivalents | $ 10,264 | | $ 7,222 | | $ 4,785 | |
| Short-term investments | 10,156 | | 10,078 | | 13,368 | |
| Receivables | 18,815 | | 21,255 | | 16,794 | |
| Inventory | 10,036 | | 8,570 | | 5,653 | |
| Prepaids and deposits | 462 | | 492 | | 369 | |
Total current assets | 49,733 | | 47,617 | | 40,969 | ||
| | | | | | ||
Property, plant and equipment | 7,061 | | 7,309 | | 6,962 | ||
Deferred tax assets | 7,290 | | 6,212 | | 4,852 | ||
Intangible assets | 1,739 | | -- | | -- | ||
Total Assets | $ 65,823 | | $ 61,138 | | $ 52,783 | ||
| | | | | | ||
Liabilities | | | | | | ||
Current liabilities | | | | | | ||
| Payables and accruals | $ 7,606 | | $ 8,061 | | $ 7,398 | |
| Income taxes payable | 435 | | 1,124 | | 880 | |
| Provision for warranty claims - current portion | 3,173 | | 2,724 | | 2,215 | |
Total current liabilities | 11,214 | | 11,909 | | 10,493 | ||
| | | | | | ||
Finance leases | 84 | | 111 | | 146 | ||
Deferred compensation | 493 | | 540 | | 264 | ||
Provision for warranty claims | 14,631 | | 11,760 | | 8,280 | ||
Total Liabilities | 26,422 | | 24,320 | | 19,183 | ||
| | | | | | ||
Shareholders' Equity | | | | | | ||
| Share capital | 17,505 | | 14,948 | | 14,865 | |
| Foreign exchange translation adjustment | (9) | | -- | | -- | |
| Retained earnings | 21,905 | | 21,870 | | 18,735 | |
| | | | | | ||
Total Shareholders' Equity | 39,401 | | 36,818 | | 33,600 | ||
| | | | | | ||
Total Liabilities and Shareholders' Equity | $65,823 | | $ 61,138 | | $ 52,783 | ||
Forward-Looking Information Cautionary Notice
Certain statements in this release constitute forward-looking statements
within the meaning of applicable Canadian securities laws. Readers are
cautioned not to place undue reliance on such statements. Investors
should not rely solely on this information to make investment
decisions. These statements are subject to certain assumptions, risks
and uncertainties. In addition, WaterFurnace's sales are related to the
cost and stability of electricity, fuel oil, propane and natural gas.
Federal, state and provincial building codes and energy incentives can
also impact sales. WaterFurnace is subject to standard risks associated
with most companies, such as normal competitive pressures. These and
other risks could cause WaterFurnace's actual results, performance,
achievements and developments to differ materially from the results,
performance, achievements or developments expressed or implied by such
forward-looking statements. Other risk factors can be found in
WaterFurnace's Annual Information Form and other public documents filed
by WaterFurnace with Canadian securities regulatory authorities.
WaterFurnace assumes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by law.
More Information
WaterFurnace Renewable Energy, Inc. is traded in both Canadian dollars
and U.S. dollars on the Toronto Stock Exchange under the symbol WFI for
Canadian dollars and WFI.U for U.S. dollars.
WaterFurnace designs, manufactures and distributes geothermal heat
pumps. The geothermal units use the renewable solar energy stored just
below the surface of the earth to dramatically reduce the energy
consumed by buildings for heating, cooling and hot water.
Additional information about the Company and its products is available
on the Company's website: www.waterfurnace.com. Or call (260) 478-5667 and ask for investor relations.
For further information:
WaterFurnace Renewable Energy, Inc.
9000 Conservation Way
Fort Wayne, Indiana 46809-9794
(260) 478-5667
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