Toronto, CANADA, November 26, 2015 - Eurocontrol Technics Group Inc. (TSX Venture: EUO) (“Eurocontrol” or the “Company”), a Canadian public company specializing in the acquisition, development and commercialization of innovative energy security, authentication, verification and certification technologies, announces that it has filed its financial statements and Management’s Discussion and Analysis (“MD&A”) for its third quarter ending September 30, 2015.
On November 6, 2015, the Company entered into a purchase agreement (the “Purchase Agreement”) to sell 100% of its wholly owned subsidiary, Global Fluids International S.A. (“GFI”) to SICPA Finance SA (“SICPA”), a subsidiary of SICPA SA, each a privately owned company based in Switzerland, in exchange for cash and post-closing earn-out payments and certain additional payments as further described below. The completion of the transactions contemplated by the Purchase Agreement is subject to the prior satisfaction of a number of conditions, including the approval of the sale of GFI by the Company’s shareholders, which approval will be sought at a special meeting of shareholders that has been scheduled for December 18, 2015, and the final approval of the TSX Venture Exchange. However, notwithstanding these conditions, in accordance with International Financial Reporting Standards (“IFRS”), the financial statements and MD&A are presented on an adjusted basis to include discontinued operations. For a reconciliation of discontinued operations, readers should refer to “Adjusted Revenue and Profit from Continuing Operations” and the “Reconciliation of IFRS to Adjusted Results” as presented below and in the MD&A.
Bruce Rowlands, Chairman and Chief Executive Officer of the Company stated: “Our third quarter results are in line with our expectations as we head towards the special meeting of shareholders on December 18, 2015 for the approval of the sale of GFI. The transaction builds on the foundation constructed by Eurocontrol over the past 10 years, and the long term supply and support agreement to be entered into by Xenemetrix and GFI is expected to provide Eurocontrol with the resources necessary to grow the businesses of its remaining subsidiaries and also allow the Company to continue to have significant exposure to the fuel marking market, where we began, through guaranteed minimum earn-out payments.”
Key Financial Highlights for the nine months ended September 30, 2015, including discontinued operations
Adjusted consolidated EBITDA, including discontinued operations, increased by $299,634 or 74% to $702,652;
Adjusted consolidated revenues, including discontinued operations, increased by 25% to $5,658,885 as compared to $4,502,508 in the prior year. This increase is mainly due to increased sales of fuel marker plus the impact of the depreciation of the Canadian dollars versus the US currency;
Adjusted cash flow from operating activities, including discontinued operations, increased to $300,367 from $40,892 in the prior year;
Adjusted cash flow from investing activities, including discontinued operations, increased to $219,108 from $-38,753 in the prior year;
Investment in R&D increased by 128% to $1,076,330 towards developing EDXRF technology and automated 2D and 3D image processing technologies for the Semiconductor and related microelectronics industries.
