BALLERUP, Denmark, March 25, 2015 /PRNewswire/ -- LiqTech International, Inc. (NYSE MKT: LIQT), a clean technology company that manufactures and markets highly specialized filtration technologies, announced today its financial and operational results for fiscal 2014.
Financial highlights for the year ended December 31, 2014
- Net sales for the year ended December 31, 2014 were $14.56 million compared to $12.83 million for the year ended December 31, 2013, representing an increase of $1.73 million or 13.5 percent.
- Gross profit for the year ended December 31, 2014 was $2.10 million compared to $1.31 million for the year ended December 31, 2013, representing an increase of $0.79 million or 60.3 percent.
- Net loss attributable to the Company for the year ended December 31, 2014 was a loss of $3.07 million compared to a loss of $4.83 million for the year ended December 31, 2013, representing an improvement of $1.76 million or 36.4 percent.
- Cash on hand and restricted cash for the year ended December 31, 2014 was $6.07 million compared to $4.88 million for the year ended December 31, 2013, representing an increase of $1.19 million or 24.4 percent.
- Working capital for the year ended December 31, 2014 was $10.57 million compared to $7.69 million for the year ended December 31, 2013, an increase of $2.88 million or 37.5 percent.
- Total net loss for 2014 includes non-cash charges for depreciation and amortization, bad debt expense, stock compensation expense and other one-time charges for a total of approx. $2.65 million.
Company highlights for 2014
- In July 2014, the Company completed the acquisition of Provital Solutions A/S, a Danish company that provides high-quality water solutions for the pool market and systems integration capabilities for other fluid related applications.
- In July 2014, the Company raised net proceeds of approximately USD $10.8 million from a registered firm commitment underwritten public offering of 8,000,000 shares at $1.50 per share.
Operational highlights for 2014
- In March 2014, the Company announced that based on new developments in their membrane, the Company had received a purchase order for approximately USD $300,000 for a prototype system technology to concentrate an algae stream as part of the harvesting process.
- In March 2014, the Company received a new order for Diesel Particulate Filters ("DPF") in the amount of USD $450,000 from Emigreen B.V., a firm with expertise in the emission control of industrial combustion engines.
- In May 2014, the Company announced the appointment of Michael Barish, a highly qualified investment professional, to the Board of Directors.
- In May 2014, the Company announced the development of a small and compact Flat Sheet Membrane filtration unit for pre-Reverse Osmosis and drinking water purposes.
- In June 2014, the Company received a USD $275,000 order from a Middle East customer for various upstream Produced Water applications.
- In July 2014, a European customer placed a USD $200,000 order for the removal of heavy metals from the flue gas effluent at a German power plant.
- In July 2014, a Danish customer placed a USD $350,000 Silicon Carbide (SiC) membrane system order to filter sea water from a Danish fish farm for its recirculated aquaculture system.
- In October 2014, the joint efforts of LiqTech and Provital Solutions resulted in a USD $200,000 order from a Danish power plant customer to remove heavy metals from a heat recovery process.
- In October, 2014 the Company had the honor of ringing the bell for the opening of the New York Stock Exchange.
- In November, 2014 Provital Solutions, the Company's subsidiary, announced that it had developed a new LED-based Deep UV water disinfection system.
2015 highlights to date
- In January, 2015, the Company announced that it had received a USD $2.4 million purchase order for a system based on the Company's SiC membrane technology which is expected to be delivered this year. The order, from LiqTech's preferred partner, Nakasawa Mining and Energy Limited, is part of an enhanced oil recovery (EOR) project.
- In the first quarter of 2015 additional orders were received for various SiC membrane applications including a USD $350,000 order for the removal of heavy metals from a marine scrubber water application and followed by a $660,000 follow-on order from the same customer; a follow-on order for USD $130,000 from a European customer that first installed a system in the fall of 2014 and; a recent pilot order from a leading pump manufacturer, Grundfos, for a newly developed in-well situated ground water treatment system.
In discussing the 2014 results, Mr. Sune Mathiesen, CEO, remarked:
"Our revenue and net earnings for the fourth quarter 2014 were less than anticipated and not in line with the progress we made in the third quarter. The shortfall was primarily a result of the delayed implementation of several significant projects in the swimming pool and oil markets, which we expected to realize in the fourth quarter - 2014 but were delayed for reasons beyond our control.
"The shortfall was also the result of decreasing prices in the oil market which led us to re-evaluate our marketing strategy and diversify our sales efforts into other end markets, as discussed in previous earnings calls.
"In the first quarter of 2015 additional orders were received for various SiC membrane applications including a USD $2.4 million purchase order for a system based on the Company's SiC membrane technology, a USD $350,000 order for the removal of heavy metals from a marine scrubber water application and followed by a $660,000 follow-on order from the same customer; a follow-on order for USD $130,000 from a European customer that first installed a system in the fall of 2014 and; a recent pilot order from a leading pump manufacturer, Grundfos, for a newly developed in-well situated ground water treatment system. These orders are not expected to materially benefit Q1 2015 revenues."
LiqTech's management team will conduct a conference call and WEBCAST presentation at 11:00 a.m. EDT to discuss the financial results and will be followed by an open Q&A session.
Conference Call Details:
Interested parties may participate in the call by dialing (877) 407-8029 or (201) 689-8029. It is recommended to dial in approximately 10 to 15 minutes prior to the scheduled start time. The conference call will also be available on replay starting at 3:00 p.m. EDT on March 25, 2015 and ending on April 8, 2015. To access the replay, please dial (877) 660-6853 and enter the conference id# 13604621. The access number for the replay for international callers is (201) 612-7415 (conference id# 13604621). To join the WEBCAST presentation, please click on the following link:
http://www.investorcalendar.com/IC/CEPage.asp?ID=173751
ABOUT LIQTECH INTERNATIONAL, INC.
LiqTech International, Inc., a Nevada corporation, is a clean technology company that for more than a decade has developed and provided state-of-the-art technologies for gas and liquid purification using ceramic silicon carbide filters, particularly highly specialized filters for the control of soot exhaust particles from diesel engines and for liquid filtration. Using nanotechnology, LiqTech develops products using proprietary silicon carbide technology. LiqTech's products are based on unique silicon carbide membranes which facilitate new applications and improve existing technologies. In particular, Provital Solutions A/S (www.provital.dk/), the Company's subsidiary, has developed a new standard of water filtration technology to meet the ever increasing demand for higher water quality. By incorporating LiqTech's SiC liquid membrane technology with its longstanding systems design experience and capabilities it offers solutions to the most difficult water pollution problem.
For more information, please visit: www.liqtech.com
Follow LiqTech on LinkedIn: http://www.linkedin.com/company/liqtech-international
Follow LiqTech on Twitter: https://twitter.com/LiqTech
Forward-Looking Statements
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
CONTACT:
Wolfe Axelrod Weinberger Associates, LLC
Stephen D. Axelrod, CFA/Don Weinberger
(212) 370-4500, (212) 370-4505 fax
steve@wolfeaxelrod.com
don@wolfeaxelrod.com
-Financial charts follow-
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
As of | As of | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Current Assets: | ||||||||
Cash | $ | 5,853,752 | $ | 4,884,275 | ||||
Restricted cash balances | 218,879 | - | ||||||
Accounts receivable, net | 1,992,206 | 2,341,070 | ||||||
Other receivables | 344,331 | 231,998 | ||||||
Cost in excess of billing | 1,172,658 | 406,997 | ||||||
Inventories | 4,914,866 | 4,258,606 | ||||||
Prepaid expenses | 55,990 | 12,021 | ||||||
Current deferred tax asset | 109,637 | 104,143 | ||||||
Total Current Assets | 14,662,319 | 12,239,110 | ||||||
Property and Equipment, net accumulated depreciation | 4,524,386 | 5,829,404 | ||||||
Other Assets: | ||||||||
Investments at costs | 6,085 | 6,882 | ||||||
Long term deferred tax asset | 3,496,459 | 1,863,349 | ||||||
Goodwill | 8,460,512 | - | ||||||
Other intangible assets | 16,708 | 24,687 | ||||||
Deposits | 259,070 | 271,916 | ||||||
Total Other Assets | 12,238,834 | 2,166,834 | ||||||
Total Assets | $ | 31,425,539 | $ | 20,235,348 | ||||
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
As of | As of | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Current Liabilities: | ||||||||
Current portion of capital lease obligations | $ | 170,187 | $ | 208,419 | ||||
Accounts payable | 2,336,942 | 1,586,962 | ||||||
Accrued expenses | 1,439,735 | 1,440,522 | ||||||
Billing in excess of cost | - | 96,104 | ||||||
Accrued income taxes payable | 570 | 2,000 | ||||||
Deferred revenue / customers deposits | 144,476 | 1,212,434 | ||||||
Total Current Liabilities | 4,091,910 | 4,546,441 | ||||||
Long-term capital lease obligations, less current portion | 368,614 | 554,360 | ||||||
Total Long-Term Liabilities | 368,614 | 554,360 | ||||||
Total Liabilities | 4,460,524 | 5,100,801 | ||||||
Commitment and Contingencies See Note 10 | - | - | ||||||
Stockholders' Equity: | ||||||||
Common stock; par value $0,001, 100,000,000 shares authorized, 39,404,782 and 27,212,500 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively | 39,405 | 27,213 | ||||||
Additional paid-in capital | 35,632,410 | 18,700,574 | ||||||
Accumulated deficit | (5,382,852) | (2,316,784) | ||||||
Deferred compensation | (504,748) | (1,008,450) | ||||||
Other comprehensive income, net | (2,835,917) | (292,565) | ||||||
Non-controlled interest in subsidiaries | 16,717 | 24,559 | ||||||
Total Stockholders' Equity | 26,965,015 | 15,134,547 | ||||||
Total Liabilities and Stockholders' Equity | $ | 31,425,539 | $ | 20,235,348 | ||||
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Net Sales | $ | 14,561,192 | $ | 12,826,168 | ||||
Cost of Goods Sold | 12,463,949 | 11,514,463 | ||||||
Gross Profit | 2,097,243 | 1,311,705 | ||||||
Operating Expenses: | ||||||||
Selling expenses | 3,360,566 | 2,650,000 | ||||||
General and administrative expenses | 3,019,094 | 3,064,610 | ||||||
Non-cash compensation expenses | 573,029 | 1,316,826 | ||||||
Research and development expenses | 336,066 | 499,972 | ||||||
Total Operating Expense | 7,288,755 | 7,531,408 | ||||||
Loss from Operations | (5,191,512) | (6,219,703) | ||||||
Other Income (Expense) | ||||||||
Interest expense | (53,379) | (50,945) | ||||||
Loss on investments | (815) | (199,811) | ||||||
Gain on currency transactions | 450,147 | 7,638 | ||||||
Other Income (Expense) | 10,511 | 4,671 | ||||||
Total Other Income (Expense) | 406,464 | (238,447) | ||||||
Loss Before Income Taxes | (4,785,048) | (6,458,150) | ||||||
Income Tax Benefit | (1,702,551) | (1,611,561) | ||||||
Net Loss | (3,082,497) | (4,846,589) | ||||||
Less Net Loss Attributable To Non-Controlled Interests in Subsidiaries | (16,429) | (19,112) | ||||||
Net Loss Attributable To LiqTech | $ | (3,066,068) | $ | (4,827,477) | ||||
Basic Loss Per Share | $ | (0.09) | $ | (0.19) | ||||
Weighted Average Common Shares Outstanding | 32,398,941 | 24,989,262 | ||||||
Diluted Loss Per Share | $ | (0.09) | $ | (0.19) | ||||
Weighted Average Common Shares Outstanding Assuming Dilution | 32,398,941 | 24,989,262 | ||||||
LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Net Loss | (3,082,497) | (4,846,589) | ||||||
Currency Translation, Net of Taxes | (2,543,352) | 250,241 | ||||||
Other Comprehensive Loss | $ | (5,625,849) | $ | (4,596,348) | ||||
Comprehensive Income (Loss) Attributable To Non-controlling Interest in Subsidiaries | (2,628) | 1,294 | ||||||
Comprehensive Loss Attributable To LiqTech International Inc. | $ | (5,623,221) | $ | (4,597,642) | ||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/liqtech-international-inc-reports-2014-fiscal-year-end-results-and-future-outlook-300055719.html
SOURCE LiqTech International, Inc.
