DynaMotive Announces 1999 Year End Financial Results
6 April 2000
DynaMotive Announces 1999 Year End Financial Results and Presents Future Prospects
VANCOUVER, April 5 /CNW-PRN/ - DynaMotive Technologies Corporation
(OTCBB: DYMTF) today announced its 1999 year end financial results. President
& CEO Andrew Kingston also outlined the Company's progress over the past year
and presented the future prospects.
The Company's 1999 financial report reflects a consolidation process that
was undertaken last year. Total revenues for the year amounted to $1,284,794.
While this represents a decline of $336,133 relative to 1998 revenues of
$1,620,927, it must be noted that approximately 73% of the revenues in 1998
were generated as a result of a large, one-time order for actuators. The first
half of 1999 was also a restructuring period for the Company during which the
outsourcing of manufacturing of the DynaPower metal cleaning systems resulted
in a temporary slow down in sales. However, this trend was reversed in the
last half of the year during which the wire cleaning division had record
sales. Overall revenues from the DynaPower division increased by 285% for the
year, and the sales momentum has continued in the first months of 2000.
Notwithstanding the above, the Company recorded a net loss which was
significantly lower than the one recorded in 1998, this despite costs incurred
in the process of consolidation and restructuring. The total loss for 1999 was
$2,444,931 as compared with $2,905,651 in 1998. The decrease in operating loss
in 1999 as compared to 1998 is primarily attributable to (i) a decrease in
professional fees; (ii) a decrease in financing costs; and (iii) a decrease in
research and development costs.
The Company financed its operations through equity funding ($2,644,456),
revenues from operations ($1,284,794), long term loans from Technology
Partnership Canada ($291,608), and the use of short term credit facilities
attached to DynaPower wire cleaning sales ($155,000). The main use of funds
were: $1,594,807 repayment of convertible debentures, $978,136 cost of sales
and $2,059,566 in general and administrative expenses. The Company's total
liabilities decreased to $892,850 in 1999 from $2,362,235 in 1998.
Commenting on year end results, Mr. Kingston stated, ``1999 marked a
turning point for DynaMotive. We continued to exploit and expand the market
for our DynaPower metal cleaning systems and successfully completed the
development and testing of our BioOil technology to a point where we are now
ready to move to the commercial exploitation phase.
``During the past year DynaMotive underwent a process of reorganization
and consolidation in which every facet of the Company was reviewed, and
changes were implemented at structural, strategic and management levels. The
Company reaffirmed its objectives, designed and implemented a strategy to
maximize the resources that were available, and communicated these changes to
the market. Positive results are beginning to show. We have made a number of
important technical and financial announcements in the first quarter of 2000
and expect this progress to continue throughout the remainder of the year.
``DynaMotive is now in a position to aggressively market its
technologies. Our BioOil production process has significant competitive
advantages over other pyrolysis technologies and we are currently evaluating
commercial scale projects in our key markets in Europe, the US, Canada, Latin
America and the Far East. The Company is building a larger BioOil
demonstration plant this year and expects to commence construction of its
first commercial plant in 2001. The BioOil Business Unit will derive revenues
from license fees, royalties from BioOil production and patented derivative
products, and technical services.
``The DynaPower metal cleaning division had a record number of orders in
1999. It continues to strengthen its position in the market and is expected to
improve on its sales performance in 2000. The applications for the technology
are expanding, as is our international market reach.''
A detailed analysis of the Company's activities is available within the
Management's Discussion and Analysis section of the 1999 10K financial report
(pages 17 to 24) where progress on each of the Company's divisions is
presented and discussed. A printed copy of the financial report is available
upon request from the Company. It is also posted on the Company's website at
http://www.dynamotive.com.
DynaMotive Technologies is a world leader in the development of
technology to produce BioOil clean fuels for power generation in gas turbines,
diesel engines and boilers. BioOil is produced using a patented technology
that converts low value forest and agricultural wastes into a liquid fuel.
Unlike fossil fuels, BioOil is clean burning, low in SOx and NOx emissions,
greenhouse gas neutral and can be produced economically from renewable biomass
waste materials. The Company's DynaPower division produces industrial metal
cleaning systems that eliminate the need for toxic chemicals traditionally
used by the wire manufacturing industry to clean their products. DynaPower
systems have now been sold in North and South America, Europe and Asia.
Forward Looking Statement
Statements in this news release concerning the company's business outlook
or future economic performance; anticipated profitability, revenues, expenses,
or other financial items; and statements concerning assumptions made or
expectations as to any future events, conditions, performance or other
matters, are ``forward-looking statements'' as that term is defined under the
Federal Securities Laws.
Forward-looking statements are subject to risks, uncertainties and other
factors which could cause actual results to differ materially from those
stored in such statements. Such risks, uncertainties and factors include, but
are not limited to, changes and delays in product development plans and
schedules, customer acceptance of new products, changes in pricing or other
actions by competitors, patents owned by the Company and its competitors, and
general economic conditions, as well as other risks detailed in the Company's
filings with the Securities and Exchange Commission.