Record revenues and gross margin drives solid return to profitability
Trojan Technologies announced its operating and financial results for the fiscal year ended August 31, 2002.
"I am delighted to tell you that we have made solid progress in achieving and, in some cases, exceeding the objectives I presented to you one year ago." said Allan Bulckaert, Trojan's President and CEO. "I am thrilled that we have turned the corner by delivering profits of $3.7 million or $0.19 per share and exceeding our revenue objective. In addition, our balance sheet has never been stronger due to the return to profitability and the successful completion of two equity issues."
Financial highlights include
- For the year ended August 31, 2002, revenues grew 26.5% to $92.7 million from $73.3 million in the prior year. Revenue for the quarter was $26.2 million, an increase of 37.9% compared to $19.0 million in the fourth quarter of fiscal 2001.
- Consolidated gross margin for the year increased to 44.2% or $40.9 million, compared to 37.3% or $27.3 million in the prior year. Consolidated gross margin for the quarter increased to 48.1% or $12.6 million from 36.8% or $7.0 million, in comparison to the same quarter last year.
- On a year-to-date basis, income (loss) before other expenses (income) amounted to $5.4 million compared to a loss of $1.5 million in fiscal 2001. For the quarter, the earnings amounted to $1.2 million compared to a loss of $0.7 million in the same quarter last year.
- For the year, the net income after tax was $3.7 million, compared to a loss of $5.1 million in the prior year. On a per share basis, the Company reported basic earnings per share of $0.19 compared to a loss of $0.30 per share in the last fiscal year. For the fourth quarter, Trojan reported net income after tax of $1.7 million, compared to a loss of $3.4 million in the same quarter last year. On a per share basis, the Company reported basic net earnings of $0.08, compared to a loss of $0.20 per share last year.
- Shareholders' equity has grown to $84.3 million from $41.4 million at August 31, 2001. Proceeds from equity issues completed in December 2001 and April 2002 have allowed the Company to repay all of its short-term indebtedness. Cash on hand and marketable securities at August 31, 2002 total $13.9 million.
During 2002, marketplace highlights included:
- Municipal wastewater disinfection market -- Revenues in 2002, which increased 18% to $72.3 million, were impacted very positively by production of the two largest orders in the Company's history. Revenue of $17.9 million was recognized on these projects in 2002 in addition to $10.8 million recognized in 2001. The first project was shipped in June 2002 and the second project was shipped after the year-end in September 2002.
Trojan was also selected to supply and install wastewater disinfection systems to four municipalities in China - the Company's first municipal contracts in China.
Bid activity in this market arena continued to grow. Total order backlog in municipal wastewater was $31.1 million compared to $38.0 million at the beginning of the year. Excluding the impact of the two large projects discussed above, backlog at the end of 2002 was $ 30.0 million compared to $19.4 million, one year earlier, indicating an encouraging growth in anticipated revenue from "regular" system sales.
- Municipal drinking water market -- Revenues in this new market arena increased to $3.1 million compared to $3.0 million in 2001. Revenues
in North America increased to $2.4 million from $0.1 million last year reflecting the rapid initial development of the market, but revenues in Europe were adversely impacted by delays in the introduction of validated or certified product. Validation was received late in the fiscal year. Including large contract wins in Seattle, Washington, Lethbridge, Alberta and Victoria, British Columbia, order backlog at August 31, 2002 was $9.9 million. Subsequent to the end of the year, the Company was awarded the contract to deliver municipal disinfection systems to the City of Rotterdam, The Netherlands valued at over $5 million. The Company now has orders from coast to coast in Canada, from Victoria to St. John's, as well as the largest orders ever placed in each of the United States, Canada and Europe.
- Environmental contaminant treatment (ECT)--Revenues in 2002 were approximately $4.4 million compared to $1.3 million in the prior year. The acquisition of Advanced UV Solutions in May 2001 was intended to provide Trojan with "first mover" advantage in this market place. In 2002, the Company was successful in winning projects valued at $21.7 million. Because of the superior performance and efficiency of its processes, Trojan has been able to translate its technology leadership into an effective customer solution and, at the same time, earn attractive returns on its products. Significant contract wins including Orange County, California, valued at over $15 million, contributed to an order backlog of $19.1 million at August 31, 2002. In addition, Orange County will become a very important reference site to generate future business in this market.
- Industrial and commercial process water treatment -- Revenues for the year increased dramatically to $7.4 million from approximately $3.1 million in 2001. The industrial and commercial market has been identified as an attractive growth opportunity. During the year, the Company completed the acquisition of Pureflow Ultraviolet Inc. in Atlanta, Georgia, an established distributor of ultraviolet systems to the industrial market, and Ueberall GmbH, a German company which specializes in providing ultraviolet technology to the marine drinking water sector. The Company also entered into a distribution alliance with Ecolab Inc., specifically the North American Food and Beverage Division to market Trojan's UV products for the industrial and commercial sector.
- Residential drinking water market -- Revenue for the residential market increased to $5.5 million from $4.3 million, an increase of 28%. During the year efforts continued to broaden the distribution reach with specific initiatives to increase retail sales as well as establishing an increased presence in the United States market.
Visit www.trojanuv.com for the full release.
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