Synex International Inc. First Quarter of Fiscal 2013
TSX : SXI
VANCOUVER, Nov. 6, 2012 /CNW/ - For the three months ended
September 30, 2012 ("Q1 2013"),
revenue decreased to $825,956 as
compared to $894,114 in the
corresponding period in fiscal 2012 ("Q1 2012"). Revenue decreased
from each of the Mears Plant, Cypress Plant and Kyuquot Utility in Q1 2013 over Q1 2012 and
consulting revenue increased slightly in Q1 2013 over Q1 2012. The
Barr Plant was not in operation in Q1 2012.
The net loss for Q1 2013 was $436,869 as compared to a net loss of
$89,790 in Q1 2013. A net loss in the
first quarter is expected as the generation from hydro plants in
the first quarter normally represents less than 10% of annual
forecast generation. The increase in net loss reflects the addition
of Barr Creek operations as well as
reduced generation from the Mears and Cypress Plants due to near
record dry conditions in August 2012
and September 2012. Total generation
in Q1 2013 at the Mears and Cypress Plants was 1,595MWh, which is
42% of the generation at the plants in Q1 2012. The loss per share
in Q1 2013 was $0.02 as compared to a
loss per share of $0.00 in Q1
2012.
During Fiscal 2010, Hawkeye Energy Corporation ("HEC"), a
creditor of the Company, entered into receivership and its assets
were conditionally sold by the Receiver on behalf of the creditors
to the Engineering Division under a bidding process. Prior to
closing the sale to the Engineering Division, Hawkeye Power
Corporation ("HPC") advanced a claim of an unregistered prior right
to the HEC assets. On November 21,
2011, a court dismissed the HPC claim. Subsequently, on
December 20, 2011, HPC filed for
Notice of Appeal of the court decision. Subsequent to the end of Q1
2012, on October 18, 2012, the BC
Court of Appeal upheld the appeal of HPC and ordered that a new
trial be held. The date of for the new trial is expected to be in
early 2014. HPC has advised that they may pursue further legal
action after the new trial.
During Q1 2012, the Power Division had capital expenditures of
$74,224 in respect of the development
of three separate hydroelectric projects, namely the 5MW McKelvie
Creek Project, the 8MW (in total) Newcastle and Montague Creek
Projects and the 9.9MW Victoria Lake Project. The Victoria Lake
Project has an electricity purchase agreement dated August 2006 whereas the two other projects are
expected to make application for electricity purchase agreements
under the BC Hydro Standing Offer Program.
At September 30, 2012, the Company
had a cash balance of $938,086 which
includes $249,806 of cash held within
Barr Creek Limited Partnership and Barr Creek Hydro Ltd. The
Company is continuing to utilize much of its free cash flow to
advance the development of hydroelectric opportunities on Vancouver
Island in British Columbia.
Synex International Inc. is a public company, trading on the TSX
since 1987, with business interests that cover the development,
ownership and operation of electrical generation facilities and the
provision of consulting engineering services in water resources,
particularly hydroelectric facilities.
"signed"
______________________________________
Greg Sunell, President
This press release contains forward-looking statements that
involve risks and uncertainties. These statements reflect our
current expectations and are subject to change. They are subject to
a number of risks and uncertainties including, but not limited to,
changes in economic conditions, risks associated with the
construction and operation of hydroelectric facilities and changes
in government policies.
SOURCE Synex International Inc.