Eurocontrol Reports Year End 2017 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 2017 Results
Toronto, CANADA, April 2 4, 2018 - 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 growing precision agriculture and semiconductor sectors, announces that it has filed its audited
financial statements and Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2017.
The year end results reflect a 62% increase in fiscal year revenue to $2,701,010 compared to $1,664,737 for the year
ended December 31, 201 6 from continuing operations . The Company recognized EBITDA of ( $5,999,106)
($13,188,544 in 2016) resulting in a net loss of $5,423,582 for the year compared to income of $11,533,824 for the
year ended December 31, 201 6 which included the proceeds from the sale of the Company’s former wholly -owned
subsidiary, Global Fluids International (GFI) S.A. (“GFI”). Included in this press release is a summary table outlining
earnings for the fiscal year and for the three month period compared to the corresponding 2016 period.
Included in the financial statements are discontinued operations relating to the Company’s sale of 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). T he Company, through its wholly owned
subsidiary, Xenemetrix, entered into a long term supply, maintenance and support agreement 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, 2017.
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, measurement and authentication technologies for industry with applications in
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. Xenemetrix is a leading designer, manufacturer and mark eter 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. XwinSys has developed a patented, 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 the precision
agriculture industry that could dramatically change agricultural testing methodology and increase crop yields.
-2-
Three Months Ended
December 31,
Year Ended
December 31,
2017 2016 2017 2016
$ $ $ $
Revenue
940,005
717,253
2,701,010
1,664,737
Cost of sales
Cost of sales - direct production costs (516,873) (390,173) (1,285,247) (842,041)
Cost of sales - amortization and other non cash items (44,347) (44,348) (177,392) (177,393)
(561,220) (434,521) (1,462,639) (1,019,434)
Gross profit 378,785 282,732 1,238,371 645,303
Expenses (2,205,397)
(1,487,348) (7,463,443) (6,854,628)
Other (expense) income 149,256 196,381 706,490 950,977
Income tax recovery - - 95,000 308,000
Gain on sale of subsidiary - discontinued operations - - - 16,484,172
Net loss - continuing operations (1,677,356) (1,008,235) (5,423,582) (4,950,348)
Net income - discontinued operations - - - 16,484,172
Net income (loss)
(1,677,356)
(1,008,235)
(5,423,582)
11,533,824
Basic loss per share
- from continuing operations (0.03) (0.01) (0.06) (0.05)
- from discontinued operations 0.00 0.00 0.00 0.18
- net income (loss) (0.03) (0.01) (0.06) 0.13
Diluted loss per share
- from continuing operations (0.03) (0.01) (0.06) (0.05)
- from discontinued operations - 0.01 0.00 0.18
- net income (loss) (0.03) (0.01) (0.06) 0.12
EBITDA (1,750,199) (1,146,971) (5,999,106) 13,188,544
EBIT (1,823,495) (1,205,722) (6,263,177)
12,957,819
For further information on Eurocontrol, please visit the Company's website at www.eurocontrol.ca or contact Paul Wood
at (416) 361-2808 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.