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


 
Press spacebar to pause and continue. Press esc to stop.