Eurocontrol Reports Year End 2016 Results
Test and Measurement Innovators
Focused on Key Growth Markets
Eurocontrol ranked
on Profit500 in three
consecutive years
365 Bay Street, Suite 400
Toronto, Ontario, Canada M5H 2V1
T 416 361 2808 | F 416 361 2519
eurocontrol.ca
Eurocontrol Reports Year End 2016 Results
- 31% Increase in Fiscal Year Revenue and 78% Increase in Fourth Quarter Revenue -
Toronto, CANADA, May 1 , 2017 - Eurocontrol Technics Group Inc. (TSX Venture: EUO; OTCQB: EUCTF)
(“Eurocontrol” or the “Company”), a Canadian public company specializing in the acquisition, development and
commercialization of innovative test and measurement technologies for industry with application systems focused on
the energy security, semiconductor and precision farming sectors , announces that it has filed its audited financial
statements and Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2016.
The year end results reflect a 31% increase in fiscal year revenue to $1,664,737 compared to $1,271,111 for the year
ended December 31, 2015 from continuing operations. The Company recognized EBITDA of $13,188,544 ($161,790
in 2015) resulting in net income of $ 11,533,824 for the year compared to $1,627,042 for the year ended December
31, 2015. Included below is a summary table outlining earnings for the fiscal year and for the three month period
compared to the corresponding 2015 period which is followed by a description of recent developments.
Included in the financial statements are discontinued operations relating to the Company’s sale of its former wholly
owned subsidiary, Global Fluids International (GFI) S.A. (GFI) , to SICPA S.A. (“SICPA”), a private Swiss company
that is a global leader in the provision of secured identification, traceability and authentication solutions and services,
on January 4, 2016 in exchange for $16 million in cash (less transaction payments) and post closing earn -out
payments equal to 5% of the net revenues earned by SICPA GFI from contracts entered into (between January 4,
2016 ending January 4, 2022 ), with a minimum guaranteed of $1.5 million per year for the six year earn -out period
(total payment of at least $9,000,000) . The Company, through its wholly owned subsidiary, Xenemetrix, entered into
a strategic exclusive long term supply, maintenance and support agreement, pursuant to which Xenemetrix will
continue to supply to SICPA GFI, Xenemetrix products and services for the oil and gas marking and monitoring field.
Further details relating to this sale transaction can be obtained from the Company’s continuous disclosure documents
including the MD&A for the year ended December 31, 2016.
Bruce Rowlands, Chairman and Chief Executive Officer stated: “We are pleased with the year over year increase in
revenues of close to 31% from our operating subsidiary Xenemetrix which was achieved as a direct result of the
investment in R&D that we made to update the Xenemetrix ED-XRF product line. R&D investment was also made to
refine the development of our semiconductor metrology inspection systems developed by XwinSys and in
investigating new ways to utilize ED -XRF technology to develop new markets. Our introduction of state of the art,
disruptive technology across all three subsidiaries , Xenemetrix, XwinSys and Croptimal , is a testament to our strong
innovation team in Israel and we look forward in 2017 to our technology advances being recognized through
commercialization.”
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Three Months Ended
December 31,
Year Ended
December 31,
2016 2015 2016 2015
$ $ $ $
Revenue:
- from continuing operations 717,253 402,312 1,664,737 1,271,111
- from discontinued operations - 1,848,245 - 6,638,331
Total revenue 717,253 2,250,557 1,664,737 7,909,442
Cost of sales:
- from continuing operations
Cost of sales - direct production costs (390,173) (273,456) (842,041) (657,012)
Cost of sales - amortization and other non cash items (44,348) (44,348) (177,393) (177,393)
(434,521) (317,804) (1,019,434) (834,405)
- from discontinued operations
Cost of sales - direct production costs - (727,813) - (2,272,288)
Cost of sales - amortization and other non cash items - (68,951) - (275,809)
- (796,764) - (2,548,097)
Gross profit - continuing operations 282,732 84,508 645,303 436,706
Gross profit - discontinued operations - 1,051,481 - 4,090,234
Expenses - continuing operations (1,487,348) (1,568,736) (6,854,628) (4,267,901)
Expenses - discontinued operations - (182,458) - (869,820)
Other (expense) income - continuing operations 196,381 (90,631) 950,977 98,172
Other (expense) income - discontinued operations - 9,341 - 58,554
Income tax recovery - continuing operations - 2,109,000 308,000 2,109,000
Income tax expense - discontinued operations - (9,212) - (27,903)
Gain on sale of subsidiary - discontinued operations - - 16,484,172 -
Net income (loss) - continuing operations
(1,008,235) 534,141 (4,950,348) (1,624,023)
Net income (loss) - discontinued operations - 869,152 16,484,172 3,251,065
Net income (loss)
(1,008,235) 1,403,293 11,533,824 1,627,042
Basic loss per share
- from continuing operations (0.01) - (0.05) (0.02)
- from discontinued operations 0.00 0.01 0.18 0.04
- net income (loss) (0.01) 0.02 0.13 0.02
Diluted loss per share
- from continuing operations (0.01) - (0.05) (0.02)
- from discontinued operations 0.01 0.01 0.18 0.04
- net income (loss) (0.01) 0.02 0.12 0.02
EBITDA
(1,146,971) (540,772) 13,188,544 161,790
EBIT (1,205,722) (679,372) 12,957,819 (386,756)
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Financial and Operating Highlights *
Achieved annual revenue of $1, 664,737 from continuing operations , a 31% increase from year end 2015
revenue of $1,271,111
Achieved fourth quarter revenue from continuing operations of $717,253 compared to $402,312, a 78% increase
Recognized annual EBITDA of $13,188,544 compared to $161,790 in 2015
Recognized annual income of $11,533,824 compared to $1,627,042 for the 2015 fiscal year
2016 investment in R&D increased by approximately 81% to $2,958,595 towards finalizing the integration of our
ED-XRF technology with automated 2D and 3D image processing technologies for the semiconductor and
related microelectronics industries and updating the ED-XRF product line.
* Certain comparative figures have been reclassified to conform to the current year’s presentation. These
reclassifications did not affect prior years’ net losses.
About Eurocontrol Technics Group Inc.
Eurocontrol is a TSX Venture and OTCQB traded company that specializes in the acquisition, development and
commercialization of innovative test and measurement technologies for industry with application technologies
focused on th e energy security, semiconductor and precision farming sectors based on Xenemetrix’s core
technological platform of ED -XRF. Eurocontrol has three wholly owned subsidiaries, Xenemetrix Ltd., XwinSys
Technology Development Ltd. and Croptimal Ltd. and an agreement with SICPA S.A. for semi -annual earn -out
payments of 5% (minimum $9 million over six years) on revenues generated from the oil and gas marking and
monitoring field relating to the sale of its former subsidiary Global Fluids Internati onal (GFI) S.A. Xenemetrix is a
leading designer, manufacturer and marketer of ED -XRF systems, a technology that is the most accurate and
economic method for determining the chemical composition of many types of materials, including the analysis of
petroleum oils and fuel. Xenemetrix has an exclusive long -term supply, maintenance and support agreement with
SICPA/GFI to supply SICPA/GFI with Xenemetrix products and services related to the oil and gas marking and
monitoring field. XwinSys has developed a pa tented, fully automated metrology system for the semiconductor
industry that combines 2D and 3D image processing technology with Xenemetrix’s ED -XRF technology. Croptimal,
is introducing a new mobile ED -XRF spectroscopic material analysis laboratory for t he precision agriculture industry
that could dramatically change agricultural testing methodology and increase crop yields.
For further information on Eurocontrol, please visit the Company's website at www.eurocontrol.ca or contact Bruce
Rowlands, Chairman and CEO at (416) 361-2809 or [email protected].
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange,
securities commission or other regulatory authority has approved or disapproved the information contained herein.
Forward-Looking Statements:
This press release contains forward -looking statements. More particularly, this press release contains statements.
Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend",
"believe", anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements
that certain events or conditions "may" or "wil l" occur. The forward -looking statements are based on certain key
expectations and assumptions made by Eurocontrol. Although Eurocontrol believes that the expectations and
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assumptions on which the forward -looking statements are based are reasonable, undue reliance should not be
placed on the forward -looking statements because Eurocontrol can give no assurance that they will prove to be
correct. Since forward -looking statements address future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a
number of factors and risks. In addition to other risks that may affect the forward -looking statements in this press
release are those set out in Eur ocontrol’s management discussion and analysis of the financial condition and results
of operations for the year ended December 31, 2016 which is available on the Corporation’s profile at
www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and
Eurocontrol undertakes no obligation to update publicly or revise any forward -looking statements or information,
whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.