CRS Electronics Reports 2011 Second Quarter Financial Results
Sep 02, 2011
OTC Disclosure News Service
Welland, ONT, Canada –
August 25, 2011, Welland, ON – CRS Electronics Inc. (“CRS” or the “Company”), (TSX-V:LED) (OTCQX:LEDCF), a developer and manufacturer of LED lighting, today reported financial results for the three and six month period ended June 30, 2011.
For the three months ended June 30, 2011, the Company reported sales of $614,900 and a net loss of $568,300 or $0.01 per share. For the six months ended June 30, 2011, the Company reported a sales decrease of 22% to $1.15 million and a net loss of $1.08 million or $0.03 per share. This compares to sales of $1.48 million and a net loss of $514,300 or $0.02 per share for the same six-month period last year. Working capital at June 30, 2011 was $4.56 million, including $3.82 million in cash. Expected sales from previously announced US-based rebate programs will begin to be shipped in the third quarter. Best Buy recently issued purchase orders to continue their nationwide rollout and several new customers have also ordered lights for delivery in the third quarter. Order backlog into the fourth quarter is strong as a result of the commercial rollout of the Energizer program.
“Sales in the commercial sector for our MR16 during the second quarter were in line with our expectations, utility and government rebate programs are driving customer buying decisions which have delayed purchase order submissions,” said Scott Riesebosch, President of CRS Electronics. “We are excited by our recently announced agreement with a national retailer and look forward to further announcements in the retail sector in the coming months.”
On April 28, 2011, the Company closed a brokered private placement equity financing issuing 9,379,156 units at a price of CAD $0.55 per unit for gross proceeds of CAD $5,158,535. Proceeds will be used to support the Company’s ramp up for the Energizer licensing agreement which was announced in February 2011, and provides CRS products to be sold on retail shelves under the Energizer brand name.
CRS introduced a new, high output, MR16 (470+ lumens) at Lightfair, North American’s largest lighting trade show, in May this year. The new LED is specified to replace 50W halogen lamps in fixtures.
On August 24, 2011, the board of directors approved the issuance of 442,500 options to Directors, Officers, and employees of the Company (285,000 to Directors and Officers) pursuant to its stock option plan. The stock options vest over three years and will be issued with an exercise price equal to the closing price of the stock on Friday, August 26, 2011. The options will expire 5 years from the date of grant. The stock option grant is subject to regulatory approval.
For ongoing financial reporting, the Company has successfully transitioned to International Financial Reporting Standards (“IFRS”). As such, all figures from January 1, 2011 onwards will be expressed in US dollars, unless otherwise specified, and will incorporate IFRS. Comparative information for 2010 has been restated in US dollars and in accordance with IFRS.
The unaudited condensed interim financial statements and related MDA can be found on SEDAR at www.sedar.com.
CRS Electronics Inc., a Lighting Facts partner, is a leader in the emerging, rapidly-growing market of high efficiency light-emitting-diode (“LED”), or, solid state lighting (“SSL”). The principal activities of CRS include the development, manufacture and sale, primarily in North America, of indoor lighting such as LED replacement lamps, exterior LED warning lights on school buses, child safety systems for school buses and contract manufacturing of LED circuit boards. CRS plans to be a major supplier of LED light engines for a variety of applications to be developed by CRS on its own and in conjunction with its customers. CRS recently signed a license agreement with Eveready Battery Company Inc., a subsidiary of Energizer Holdings Inc., for CRS to manufacture a suite of LED lighting products under the brand name Energizer. The initial LED suite of products includes the MR16, PAR 20, PAR 30 and PAR 38. Future products developed by CRS may also be considered by Energizer.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws which can be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other CRS filings, and include availability of sufficient working capital for development and operations, availability of a qualified work force, availability of manufacturing equipment and the ultimate ability execute its business plan on economically favourable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other CRS filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, CRS does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.
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