WaterFurnace Renewable Energy, Inc. 3rd Quarter Results: Announces Quarterly Dividend

 WaterFurnace Renewable Energy, Inc. 3rd Quarter Results: Announces Quarterly  Dividend  (U.S.$)  FORT WAYNE, IN, Nov. 9, 2012 /CNW/ - WaterFurnace Renewable Energy, Inc.  [WFI:TSX], the leading manufacturer of energy efficient heating and cooling  solutions, today reported third quarter financial results. The Company  announced lower-than-projected sales and profits due to sustained pressures  from a struggling economy, weak consumer confidence among affluent homeowners,  and low natural gas and propane prices. The industry segments of residential  and commercial geothermal heat pumps along with boiler/tower products  witnessed contraction. The Company, however, increased its market share in  both residential and commercial sectors while in a very competitive  environment.  Gross profit as a percentage of sales increased from 37.9% in Q3 2011 to 38.0%  in Q3 2012. Continued releases of new products along with effective supply  chain initiatives provided this enhancement in margins despite lower  manufacturing absorption.  On July 27, 2012, the Company signed a joint venture agreement with Chinese  company Ningbo Shenglong Group Co., Ltd. (Shenglong) to form WaterFurnace  Shenglong HVACR Climate Solutions, Ltd. (WFSL), also a Chinese company.  Management believes that the increased global footprint and ability to bring  focus to the Chinese market bodes well for the Company. Not only does this  venture provide new sourcing and distribution opportunities, it also brings  the enormous growth potential of the Chinese market to the Company and its  shareholders. Operations of the joint venture began on November 5, 2012.  Cash and cash equivalents increased for the first nine months of 2012 by $175  thousand after paying $9.4 million in dividends versus an increase of $3.0  million for the first nine months of 2011 after paying $8.5 million in  dividends. Cash disbursements for the first nine months of 2012 included $397  thousand paid in startup costs for the Company's new joint venture in China.  "While the industry continued to weather short-term challenges, WaterFurnace  maintained its focus on business investments, market share and product  innovation," said Tom Huntington, President and CEO of WaterFurnace. "The  successful launch of the 7 Series—the first variable capacity geothermal  heat pump available to homeowners—marked a milestone for the entire industry  and will have an increasingly positive impact on our sales and brand image as  the market recovers."  The Board of Directors approved a quarterly dividend of $0.24 U.S. per share  for shareholders of record on November 21, 2012, with payment on December 3,  2012. Chairman of the Board Tim Shields added, "WaterFurnace is committed to a  long-term strategy and the Board of Directors remains optimistic about the  Company's ability to weather challenging business conditions thanks to the  steps management has taken to strengthen and diversify the overall business."  The third quarter report to shareholders is available at www.waterfurnace.com  and filed on SEDAR at www.sedar.com. The CEO and CFO will conduct a webcast  covering the results of the quarter at 11:00 AM Eastern Daylight Time on  Monday, November 12, 2012. Those interested can listen live or to the recorded  version at http://www.newswire.ca/en/webcast/detail/1053867/1145469 or at the  Company's website: www.waterfurnace.com.  Forward-Looking Information Cautionary Notice  Certain statements in this release constitute forward-looking statements  within the meaning of applicable Canadian securities laws. Readers are  cautioned not to place undue reliance on such statements. Investors should not  rely solely on this information to make investment decisions. These statements  are subject to certain assumptions, risks and uncertainties. In addition,  WaterFurnace's sales are related to the cost and stability of electricity,  fuel oil, propane and natural gas. Federal, state and provincial building  codes and energy incentives can also impact sales. WaterFurnace is subject to  standard risks associated with most companies, such as normal competitive  pressures. These and other risks could cause WaterFurnace's actual results,  performance, achievements and developments to differ materially from the  results, performance, achievements or developments expressed or implied by  such forward-looking statements. Other risk factors can be found in  WaterFurnace's Annual Information Form and other public documents filed by  WaterFurnace with Canadian securities regulatory authorities. WaterFurnace  assumes no obligation to update or revise any forward-looking statements,  whether as a result of new information, future events or otherwise, except as  expressly required by law.  More Information  WaterFurnace Renewable Energy, Inc. is traded in both Canadian dollars and  U.S. dollars on the Toronto Stock Exchange under the symbol WFI for Canadian  dollars and WFI.U for U.S. dollars.  WaterFurnace designs, manufactures and distributes geothermal heat pumps. The  geothermal units use the renewable solar energy stored just below the surface  of the earth to dramatically reduce the energy consumed by buildings for  heating, cooling and hot water.                         WaterFurnace Renewable Energy, Inc.                Consolidated Statements of Comprehensive Income          Prepared using International Financial Reporting Standards             (Unaudited-Thousands of U.S.$ except per share data)                                                                                                         Three months ended     Nine months ended                                     September 30,         September 30,                                   2012       2011       2012       2011                                                                          Sales                        $  29,483   $ 35,957   $ 85,322   $ 98,449    Cost of sales                 18,284     22,333     55,892     65,838  Gross profit                    11,199     13,624     29,430     32,611    Operating expenses             5,970      5,789     18,060     17,537    Research and                                                   development expenses             622        514      1,679      1,499  Income before interest                                 9,691 & income taxes                   4,607      7,321                13,575    Finance income                    24         50        111        109    Finance expense                (224)       (76)      (781)      (155)  Income before income                                   9,021 taxes                            4,407      7,295                13,529    Income tax expense             1,529      2,665      3,080      5,021  Net income                       2,878      4,630      5,941      8,508                                                                            Unrealized loss on   translation of   foreign                                                         operations (net   of tax)                           23        (9)         20        (9)  Other comprehensive                                       20 income                              23        (9)                   (9)                                                                       Total comprehensive                                 $  5,961 income                         $ 2,901   $  4,621              $  8,499                                                                             Earnings per share                                  $   0.49 (U.S.$) on net income           $ 0.24   $   0.38              $   0.70                       WaterFurnace Renewable Energy, Inc.                Consolidated Statements of Financial Position          Prepared using International Financial Reporting Standards                        (Unaudited-Thousands of U.S.$)                                                                                                                 September 30,    December 31,                                                   2012            2011  Assets                                                                    Current Assets                                                           Cash and cash equivalents           $       11,821   $      11,646     Short-term investments                      10,226          10,181     Receivables                                 15,058          20,126     Income taxes receivable                        768               -     Inventory                                   11,395           9,188     Prepaids and deposits                          559           1,264    Total current assets                          49,827          52,405                                                                           Property, plant and equipment                  6,758           6,762    Deferred tax assets                            9,404           7,686    Intangible assets                              1,568           1,713    Long-term investments                            285               -  Total Assets                            $       67,842   $      68,566                                                                         Liabilities                                                               Current Liabilities                                                      Payables and accruals               $        5,775   $       7,041     Income taxes payable                             -             652     Provision for warranty claims -                          current portion                              3,754           3,274    Total current liabilities                      9,529          10,967                                                                           Finance leases                                    47              76    Deferred compensation                            866             749    Provision for warranty claims                 18,395          15,104  Total Liabilities                               28,837          26,896                                                                         Shareholders' Equity                                                      Share capital                                 18,236          17,505    Foreign exchange translation                             adjustment                                        26               6    Retained earnings                             20,743          24,159  Total Shareholders' Equity                      39,005          41,670                                                                         Total Liabilities & Shareholders'                        Equity                                  $       67,842   $      68,566    Additional information about the Company and its products is available  on the  Company's website:www.waterfurnace.com. Or call (260) 478-5667 and ask for  investor relations.  WaterFurnace Renewable Energy, Inc. 9000 Conservation Way Fort Wayne,  Indiana 46809-9794 (260) 478-5667  SOURCE: WaterFurnace Renewable Energy, Inc.  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/November2012/09/c6825.html  CO: WaterFurnace Renewable Energy, Inc. ST: Indiana NI: UTI ERN DIV   -0- Nov/09/2012 23:36 GMT    
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