Carmanah Technologies Corporation (TSX: CMH) today announces its first quarter financial results for the three-month period ending March 2009. Sales for Q1 2009 were $10.4 million, down approximately $4.7 million from the same period last year, due mainly to exiting/divesting several tactical business units during this period. Despite challenging global economic conditions, strategic sales for Q1 2009 ended at approximately the same levels as in the same period of 2008, showcasing the resilient nature of Carmanah's strategic markets, and the ongoing demand for its core renewable-energy technology products.

 

Highlights for the Quarter

  • Sales: $10.4 million, down from $15.1 million for the same period in 2008
  • Gross margin: 36.1%, up from 33.6% in 2008
  • Operating costs: $5.3 million, up from $5.0 in 2008
  • Net (loss)/income: $(0.3) million, down from $0.1 million in 2008
  • Adjusted EBITDA: Adjusted EBITDA of $0.3 million, down from $0.7 million in 2008
  • Cash flow from operations: $1.3 million, up from $0.1 million in 2008
  • Cash balance: $9.2 million as at March 31, 2009, up from $7.9 million in 2008
  • Nil debt: Continued debt-free operation

 

Summary of Results
While reflecting the challenges facing the global economy, the first quarter of 2009 highlights a reassuring continuity across Carmanah's primary markets, and reaffirms the company's strategic direction, according to Ted Lattimore, Carmanah CEO. "During this quarter, we've made great strides towards our goals, divesting of our road-signs obligations to better focus on our strategic business opportunities, signing a strategic partnership with Shine Micro, and introducing an exciting new benchmark in general illumination – the powerful EverGEN™ 1500 street-and-parking-lot light," said Lattimore. "Our transition to outsourced manufacturing is already delivering greater flexibility and efficiency, our worldwide distributor network is growing, and our strategic markets are as strong as ever. Even during a recession, security and safety remain paramount – industries require reliable and affordable lights and power, and as a trusted supplier with a long history in delivering solar LED technology, we're well positioned to continue filling this need."

 

According to Roland Sartorius, Carmanah CFO, the company's conservative financial approach and consistent focus on a strong balance sheet continues to guide the company through the uncertainty in today's macroeconomic environment. "As a result of strong working capital management and positive cash flow from operations, our cash balance has grown to over $9 million in the bank, with no debt," said Sartorius. "Q1 2009 represents our fifth straight quarter of positive Adjusted EBITDA and cash flow results, which to me, seems to be a pretty strong indicator that we're heading in the right direction."

 

Sales
Sales for the first quarter of 2009 were $10.4 million, down approximately $4.7 million from 2008. This decline is primarily due to lower tactical sales during this period, caused by the closure and sale of Carmanah's lower margin distribution business/product lines.

 

Despite challenging global economic conditions, Carmanah's strategic sales during Q1 2009 were at approximately the same levels during this period than during Q1 2008, underscoring the resilient nature of Carmanah's strategic markets, and the ongoing demand for renewal energy technologies.