Carmanah Announces 2017 Fiscal Q1 Results


Carmanah Technologies Corporation, based in Victoria, BC, released its first quarter financial results for the period ended March 31, 2017.

In the first quarter of 2017, the Company generated revenues of US $11.1 million down approximately 6.0 percent from Q1 2016, which had revenues of USD $11.9 million.

The decline in revenues was attributable to revenue reductions in the company’s signals segment, which was partially offset by an increase in its Illumination segment revenues. According to Carmanah, both the declines and increases were the result of project timing differences in the current and comparable quarter.

Net income in the first quarter of 2017 was US $0.6 million, down from net income of US $0.8 million in the first quarter of 2016.

In the first quarter of 2017, the company generated adjusted EBITDA of US $1.6 million, down 16 percent from US $1.9 million in the same period in 2016. The variance is largely a result of lower revenues.

“Our businesses got off to a good start in the first quarter of 2017 with solid revenues and expected levels of profitability,” says John Simmons, Carmanah’s Chief Executive Officer. “Also in the quarter, we completed the purchase of the EKTA branded assets and business in Estonia, bringing our Sabik Marine subsidiary additional products and technology as well as closer relationships with important customers in the Baltic region.”

Three months ended March 31

(US$ thousands)                                           2017         2016

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Revenue                                                         11,127       11,860

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Gross margin %                                            44.9%       44.4%

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Total operating expenditures                   (4,069)     (4,099)

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Net income                                                     609            781

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Adjusted EBITDA (1)                                  1,645        1,870


EBITDA reconciliations
Three months ended March 31

(US$ in thousands)                                2017                  2016

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Net income                                                609                   781

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Add/(deduct):

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Interest                                                       47                   112

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Income taxes                                            271                   229

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Amortization                                            387                   377

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Non-cash stock based compensation   177                   269

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EBITDA (1)                                              1,491                 1,768

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Merger and acquisition costs                 53                   135

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Foreign exchange (gain)/loss                 (1)                   (38)

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Extraordinary legal costs                         11                     5

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Other non-operating costs                      91                     –

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Adjusted EBITDA(1)                             1,645                 1,870

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Founded in 1996, Carmanah designs, develops and distributes products focused on energy optimized LED solutions for infrastructure.