Spectra Inc. (SSA.V) Nine Month Results. All Information Available On SEDAR
Ticker Symbol: SSA.V
Current Price: $0.03
Common Shares: 60,509,971
Insider Holdings: 8.61% - All held by CEO
Institutional Holdings: 30% (Dynamic Venture Opportunities Fund)
Spectra Inc. has recorded 16 straight quarters of profits, with revenue increasing year over year
Most Recent Financial Statements (September 2018)
*Note* - Year End Will be out in March 2019, followed by Q1 2019 results in April
ASSETS
Cash: $353,454
Accounts Receivable: $291,734
Inventories: $196,269
Prepaid Expenses: 4,737
Total Assets: $846,194
LIABILITIES
Accounts Payable : $214,884
Royalty Debenture: $639,940
Preferred Shares: $450,468
Total Liabilities: $1,305,292
9 Month Sales
Revenue: $1,601,377
Cost Of Sales: $672,497
Gross Profit: $928,880
Total G&A Expenses: $541,944
Net Income: $386,936 or $0.0064 cents per share. Fair value at 10 times earnings is 6 cents
Management Discussion Highlights
The Company continues to focus its efforts on expanding the present market for its products while
introducing those products into new markets as well as seeking out new products to complement our
current wheel end safety offerings.
The Company’s Signature Brake Safe® product is well established in the Canadian market and is gaining
sales momentum in the lucrative American market. The Commercial Vehicle Safety Alliance [CVSA] is a
nonprofit association comprised of local, state, provincial, territorial and federal commercial motor vehicle
safety officials and industry representatives. The CVSA holds brake-focused enforcement events
throughout the year to identify and remove commercial vehicles with dangerous brake issues from the
roadways. Brakes out of adjustment continue to be the number ONE out service violation in North America
as evidenced this year during International Roadcheck and Operation Air Brake.
A program has been developed to educate companies of these enforcement changes and the resulting
increased intervention by regulatory agencies in order to capitalize on sales opportunities for Brake Safe.
The Company’s Termin-8R® product continues to receive strong industry acceptance with a corresponding
growth in sales to the transportation segment. The private label arrangement made for a leading supplier to
the commercial transport industry is proving to be an excellent performer.
The Company will continue to form strategic distribution alliances in the United Sates to accelerate its
wheel end safety product sales outside the Canadian marketplace.
The Company may seek sufficient additional funds to provide working capital, inventory and capital
equipment as needs arise, but at the moment, cash flow from operations is sufficient to support current
needs
The Company’s authorized share capital consists of an unlimited number of common shares; an unlimited
amount of first, second, third and fourth preferred shares and 540,000 second preferred shares, Series 1.
As at September 30, 2018, there were 60,509,971 outstanding common shares. As at September 30, 2018,
the following is a description of the outstanding equity securities and convertible securities previously
issued by the Company
During the nine months ended September 30, 2018, the Company earned $423,643 in operating activities
compared to earning $215,721 from operations during the same period in 2017. In 2018 non-cash items
contributed $29,950 for the period compared to $15,035 for the nine months ended September 30, 2017.
The Company made preference share redemptions of $125,000 in the nine months ended September 30,
2018, compared to making loan repayments of $150,000 in the nine months ended September 30, 2017.
These resulted in a net increase in cash resources of $298,643 and a cash resources balance at the end of the
period of $353,454. During the equivalent period in 2017, the Company showed a net increase in cash
resources of $65,721 and a cash resources balance of $145,467 at the end of the period.
Revenue:
Three months ended September 30, 2018
Revenue for the three months ended September 30, 2018 increased by 29 percent to $559,181 compared to
revenue of $432,186 for the three-month period ended September 30, 2017. The increase in revenue is
attributable to increases in sales of Termin-8r® from $138,882 to $163,013; Brake Safe® from $193,172 to
$264,152; Brake Inspector® from $2,244 to $6,899; Hub Alert® from $5,248 to $6,700 and sundry income
from $29,244 to $60,228 offset by decreases in sales of Zafety Lug Lock® from $63,035 to $57,920 and
Arrow Logger® from $361 to $269.
Nine months ended September 30, 2018
Revenue for the nine months ended September 30, 2018 increased by 20 percent to $1,601,377 compared to
revenue of $1,332,592 for the nine-month period ended September 30, 2017. The increase in revenue is
attributable to increases in sales of Termin-8r® from $424,223 to $450,460; Brake Safe® from $583,496 to
$756,570; Brake Inspector® from $19,603 to $21,975; Zafety Lug Lock® from $158,983 to $171,274; Hub
Alert® from $23,253 to $35,725 and sundry income from $121,389 to $164,117 offset by decreases in sales
of Arrow Logger® from $1,645 to $1,256.
Gross Profit:
Three months ended September 30, 2018
Gross profit increased by $99,298 for the three months ended September 30, 2018 to $323,988 or 58
percent of revenue from a comparable $224,690 or 52 percent of revenue for the three months ended
September 30, 2017.
Nine months ended September 30, 2018
Gross profit increased by 24% for the nine months ended September 30, 2018 to $928,880 or 58 percent of
revenue from a comparable $749,297 or 56 percent of revenue for the nine months ended September 30,
2017.
Gross profit margins will vary depending on the mix of product sales within the various product lines. In
addition, the mix of distribution channels may affect margins when sales are generated through distributors,
dealers and direct sales to OEM’s.
