Questor Technology Inc. Announces Record 2013 Financial Results

NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Questor Technology Inc. 
TSX VENTURE SYMBOL:  QST 
APRIL 16, 2014 
Questor Technology Inc. Announces Record 2013 Financial Results 
CALGARY, ALBERTA--(Marketwired - April 16, 2014) -  
THIS DOCUMENT IS NOT INTENDED FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED
STATES. 
Questor Technology Inc. ("Questor" or the "Company") (TSX
VENTURE:QST) announced today its financial and operating results for the year
ended December 31, 2013. The Company's audited annual financial statements
have been prepared in accordance with International Financial Reporting
Standards ("IFRS").  
The Company reported the highest profit in its history of $2,544,049 ($0.101
per basic share) 145 percent higher than profit of $1,040,356 ($0.042 per basic
share) for the year ended December 31, 2012. The increase in profit was due to
increased incinerator sales during the year, partially offset by lower rental
and combustion services revenues and increased administration costs. 
FINANCIAL HIGHLIGHTS SUMMARY 
(Stated in Canadian dollars except shares outstanding) 
/T/ 
Increase  
For the years ended December 31          2013           2012     (decrease) 
---------------------------------------------------------------------------- 
Revenue                             9,574,950      6,684,475     2,890,475  
Gross profit(1)                     4,725,576      3,078,180     1,647,396  
EBITDA(1)                           3,454,374      1,723,363     1,731,011  
Profit and total comprehensive                                              
 income                             2,544,049      1,040,356     1,503,693  
Cost of sales as a percent of                                               
 revenue(1)                              50.6%          53.9%         (3.3%) 
Funds flow from operations                                                  
 before movements in non-cash                                               
 working capital(1)                 3,543,893      1,826,443     1,717,450  
---------------------------------------------------------------------------- 
As at December 31                                                 Increase   
2013           2012     (decrease) 
---------------------------------------------------------------------------- 
Total assets                       14,029,829      9,798,449     4,231,380  
Non-current liabilities               175,130        223,295       (48,165)  
Shares outstanding(2)                                                       
  Basic                            25,102,165     24,869,255       232,910  
  Diluted                          25,939,888     25,144,794       795,094  
Earnings per share - Basic              0.101          0.042         0.059  
  - Diluted                             0.098          0.041         0.057  
---------------------------------------------------------------------------- 
(1) Non-IFRS financial measure. Please see discussion in the Non-IFRS        
Financial Measures section of Questor's Management's Discussion and      
Analysis for the year ended December 31, 2013.                          
(2) Weighted average.                                                        
/T/ 
"We continued to penetrate the U.S. market moving from 47% of total unit
sales revenue last year to 52% this year. In addition, with a second unit going
to Russia in 2013 and two into Europe our exposure in those markets continues
to grow. While the number of units we sold in 2013 was more than double the
prior year, current year sales were muted by the deferral of the anticipated
fourth quarter delivery of eight units to a Canadian oilsands operator. Those
units were delivered in the first quarter of 2014" said Audrey
Mascarenhas, President and Chief Executive Officer. "In 2013 we sold five
units from our rental fleet to customers with short delivery times frames and
have more units in fabrication than we have ever had in the past to meet
upcoming sale and rental commitments, using cash generated from operations. We
expect demand for our incinerators to intensify, particularly in the U.S. as
the effective date for the new EPA regulations draws nearer."  
"Questor's product quality and combustion expertise are becoming more
recognized on a daily basis globally" she continued. "Our
incineration technology is unique in its ability to allay public concerns
regarding air quality and is capable of meeting emissions standards across a
wide range of applications. Emissions legislation introduced in the United
States and Europe are expected to continue to increase interest in our
incinerators as companies look for solutions to flaring and emissions
control."  
"We are well positioned to pursue growth opportunities in North America
and Europe in the coming year," concluded Ms. Mascarenhas.  
2013 OPERATIONAL HIGHLIGHTS  
Relative to the Company's strategic priorities, the following selected
events and achievements demonstrate Questor's progression in 2013: 
/T/ 
--  Generated revenue of $9,574,950, the highest in the Company's history, 
up 43% from the prior year. 
--  Demonstrated the Company's technical expertise and competence in the 
destruction of low heat content gases through the deployment of 
incineration equipment and related technology to shale gas and oil sands 
developments and to amine, dehydration and other crude oil and natural 
gas processing applications. As a result, certain customers have 
identified Questor's technology as best practice and specify the use of 
the Company's solutions in their tenders to third parties for field 
equipment. 
--  Exploited the growing demand arising from the industry's focus on shale 
gas opportunities investing $4.4 million in 2013 in the fabrication of 
units for rental fleet additions or for sale to customers with short 
lead times. 
--  Delivered in second quarter 2013 the second of the Company's 
incineration units into Russia. The Russian market holds strong 
potential for Questor as that country focuses on opportunities to reduce 
waste gas flaring. Additional orders for sale or rental units in Russia 
are expected to be received in 2014. 
--  Advanced the development and commercialization of a process to recover 
waste heat from incineration and convert the heat to power, purchasing 
in early 2014 all of the outstanding shares of ClearPower Systems Inc., 
which has prototype technology to deliver 50kW of power from waste heat.
--  Engaged in discussions with fabricators in Europe with respect to the 
potential to have incinerators for sale or rent in European markets 
fabricated in closer proximity to the customer. 
--  Built market awareness and recognition for Questor's expertise in 
matters relating to air quality through presentations made by invitation 
at several events worldwide including:  
--  Ms. Mascarenhas made a presentation called "Clearing the Air" in 
February 2013 as part of an Alberta Oil and Gas Mission to Poland 
and again in mid-May at the ACI Tight and Shale Gas Summit in 
Istanbul, Turkey.  
--  She also presented, along with the Company's Chief Operating Officer 
to senior executives at several major U.S. oil and gas companies in 
Houston in late April of 2013 regarding capabilities of the 
Company's incinerators/thermal oxidizers.  
--  On May 10th, 2013 Ms Mascarenhas made a presentation at the Western 
Energy Summit entitled "Climbing to New Heights with Clean Air 
Solutions".  
--  A further mission took Ms. Mascarenhas in late May of 2013 to 
Bahrain, Abu Dhabi and Oman, where she participated in the latter 
country in workshops focused on clean air solutions and attended 
meetings with corporate and government individuals who had expressed 
interest in Questor's technology.  
--  Ms. Mascarenhas attended at the SelectUSA Investment Summit in 
Washington, DC on October 31, 2013  
--  She was keynote speaker at the Society of Petroleum Engineers 
("SPE") luncheon on the 21st of November in Oklahoma City.  
--  She travelled to Mexico at the end of November to present at the 
Pemex Technology Exchange Forum. 
--  Copies of these presentations are available on the Company's website.  
/T/ 
SUBSEQUENT TO DECEMBER 31, 2013  
At December 31, 2013, the Company had confirmed incinerator sales orders of
$4.0 million. Since the beginning of 2014, confirmed incinerator sales orders
for an additional $2.6 million have been received. Of the $6.6 million of
associated revenue to be recorded in relation to these orders, $2.8 million is
expected to be recognized in first quarter 2014 based on customer delivery
schedules and $3.8 million in second quarter 2014. In addition, long term
rental contracts have been signed with four new customers, three of which will
be using the Company's larger units for extended periods.  
Questor Technology Inc. was selected to the 2014 TSX Venture 50, first out of
10 in its category of Clean Technology. This is the second year in a row the
Company has earned the honor which is a ranking of strong performers on TSX
Venture Exchange. It is comprised of ten companies from each of the following
five sectors: Mining, Oil & Gas, Diversified Industries, Clean Technology
and Technology & Life Sciences.  
Shareholders are invited to attend the Company's Annual General Meeting to
be held on Tuesday, June 24, 2014 at 3:00 p.m. MDT in the Company's
Corporate Offices at 1121, 940 - 6th Avenue S.W, Calgary, Alberta. In addition
to the formal business items, management will be presenting an overview of
Questor's results for the financial year ended December 31, 2013 and first
quarter ended March 31, 2014 and discussing the Company's strategic
initiatives for 2014.  
Questor's audited financial statements and notes thereto and
management's discussion and analysis for the year ended December 31, 2013
will be available shortly on the Company's website at www.questortech.com
and through SEDAR at www.sedar.com. 
ABOUT QUESTOR TECHNOLOGY INC.  
Questor is an international environmental oilfield service company founded in
late 1994 and headquartered in Calgary, Alberta, Canada with a field office
located in Grande Prairie, Alberta, Canada. The Company is focused on clean air
technologies with activities in Canada, the United States, Europe and Asia.
Questor designs and manufactures high efficiency waste gas incinerators for
sale or for use on a rental basis and also provides combustion-related oilfield
services. The Company's proprietary incinerator technology destroys
noxious or toxic hydrocarbon gases enabling regulatory compliance,
environmental protection, public confidence and reduced operating costs for
customers. Questor is recognized for its particular expertise in the combustion
of sour gas (H2S). While the Company's current customer base is primarily
in the crude oil and natural gas industry, this technology is applicable to
other industries such as landfills, water and sewage treatment, tire recycling
and agriculture.  
Questor trades on the TSX Venture Exchange under the symbol "QST".  
Certain information in this news release constitutes forward-looking
statements. When used in this news release, the words "may",
"would", "could", "will", "intend",
"plan", "anticipate", "believe",
"seek", "propose", "estimate",
"expect", and similar expressions, as they relate to the Company, are
intended to identify forward-looking statements. In particular, this news
release contains forward-looking statements with respect to, among other
things, business objectives, expected growth, results of operations,
performance, business projects and opportunities and financial results. These
statements involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in such forward-looking statements. Such statements reflect the
Company's current views with respect to future events based on certain
material factors and assumptions and are subject to certain risks and
uncertainties, including without limitation, changes in market, competition,
governmental or regulatory developments, general economic conditions and other
factors set out in the Company's public disclosure documents. Many factors
could cause the Company's actual results, performance or achievements to
vary from those described in this news release, including without limitation
those listed above. These factors should not be construed as exhaustive. Should
one or more of these risks or uncertainties materialize, or should assumptions
underlying forward-looking statements prove incorrect, actual results may vary
materially from those described in this news release and such forward-looking
statements included in, or incorporated by reference in this news release,
should not be unduly relied upon. Such statements speak only as of the date of
this news release. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements. The forward-looking
statements contained in this news release are expressly qualified by this
cautionary statement. 
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.  
/T/ 
QUESTOR TECHNOLOGY INC.                           
STATEMENTS OF FINANCIAL POSITION                       
Stated in Canadian dollars                          
December 31    December 31
As at                                    Notes           2013           2012
---------------------------------------------------------------------------- 
ASSETS                                                                      
Current assets                                                              
  Cash and cash equivalents                       $ 7,323,303    $ 4,405,624
  Trade and other receivables                       2,863,257      2,304,478
  Inventories                                       2,359,276        670,959
  Prepaid expenses and deposits                       124,163         88,378
  Current tax assets                                   77,849         25,158
----------------------------------------------------------------------------
  Total current assets                           $ 12,747,848      7,494,597
---------------------------------------------------------------------------- 
Non-current assets                                                          
  Property and equipment                            1,256,066      2,295,529
  Intangible assets                                    25,915          8,323
----------------------------------------------------------------------------
  Total non-current assets                          1,281,981      2,303,852
---------------------------------------------------------------------------- 
Total assets                                     $ 14,029,829    $ 9,798,449
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
LIABILITIES AND EQUITY                                                      
Current liabilities                                                         
  Trade payables, accrued liabilities                                        
and provisions                                 $ 1,746,259      $ 894,206
  Deferred revenue and deposits                       252,356          2,205
  Current portion of lease inducement                  52,002         26,770
  Current tax liabilities                             638,527        171,907
----------------------------------------------------------------------------
  Total current liabilities                       $ 2,689,143    $ 1,095,088
---------------------------------------------------------------------------- 
Non-current liabilities                                                     
  Deferred tax liabilities                             53,793         97,319
  Lease inducement                                    121,337        125,976
----------------------------------------------------------------------------
  Total non-current liabilities                       175,130        223,295
----------------------------------------------------------------------------
Total liabilities                                   2,864,274      1,318,383
---------------------------------------------------------------------------- 
Capital and reserves                                                        
  Issued capital                                    5,636,119      5,521,001
  Reserves                                            703,156        676,834
  Retained earnings                                 4,826,280      2,282,231
----------------------------------------------------------------------------
  Total equity                                     11,165,555      8,480,066
---------------------------------------------------------------------------- 
Total liabilities and equity                     $ 14,029,829    $ 9,798,449
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Approved by the Board of Directors:                                          
(signed ) "James Inkster"          (signed) "Audrey Mascarenhas"             
James Inkster, Director            Audrey Mascarenhas, Director              
QUESTOR TECHNOLOGY INC.                           
STATEMENTS OF COMPREHENSIVE INCOME                      
Stated in Canadian dollars except per share data               
For the years ended December 31                         2013           2012 
---------------------------------------------------------------------------- 
Revenue                                          $ 9,574,950    $ 6,684,475 
Cost of sales                                     (4,849,374)    (3,606,295)
---------------------------------------------------------------------------- 
Gross profit                                       4,725,576      3,078,180  
Administration expenses                           (1,645,923)    (1,621,055)
Gain/(loss) on disposal of property and                                     
 equipment                                            14,457        (27,865)
Depreciation of property and equipment               (41,261)       (41,316)
Amortization of intangible assets                     (1,218)        (1,218)
Net foreign exchange gains                            91,363         10,603 
Other income                                           9,689         23,997 
---------------------------------------------------------------------------- 
Profit before tax                                  3,152,683      1,421,326 
Income tax expense                                  (608,634)      (380,970)
---------------------------------------------------------------------------- 
Profit and total comprehensive income            $ 2,544,049    $ 1,040,356 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Earnings per share                                                           
Basic                                              $ 0.101        $ 0.042 
  Diluted                                            $ 0.098        $ 0.041 
---------------------------------------------------------------------------- 
QUESTOR TECHNOLOGY INC.                           
STATEMENTS OF CHANGES IN EQUITY                       
Stated in Canadian dollars                          
Issued                  Retained              
capital     Reserves     earnings Total equity
---------------------------------------------------------------------------- 
Balance at January 1,                                                       
 2012                     $ 5,458,215    $ 622,226  $ 1,241,875  $ 7,322,316
Profit and total                                                            
 comprehensive income               -            -    1,040,356    1,040,356
Recognition of share-                                                       
 based payments                     -       79,520            -       79,520
Issue of ordinary shares                                                    
 under employee share                                                       
 option plan                   62,786     (24,912)            -       37,874
---------------------------------------------------------------------------- 
Balance at January 1,                                                       
 2013                     $ 5,521,001    $ 676,834  $ 2,282,231  $ 8,480,066
Profit and total                                                            
 comprehensive income                                 2,544,049    2,544,049
Recognition of share-                                                       
 based payments                             76,814                    76,814
Issue of ordinary shares                                                    
 under employee share                                                       
 option plan                  115,118     (46,492)                    68,626
---------------------------------------------------------------------------- 
Balance at December 31,                                                     
 2013                     $ 5,636,119    $ 703,156  $ 4,826,280 $ 11,165,555
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
QUESTOR TECHNOLOGY INC.                           
STATEMENTS OF CASH FLOWS                           
Stated in Canadian dollars                          
For the years ended December 31                         2013           2012 
---------------------------------------------------------------------------- 
Cash flows from (used in) operating activities                              
  Profit and total comprehensive income for                                  
the year                                      $ 2,544,049    $ 1,040,356 
  Adjustments for:                                                           
Income tax expense                               608,634        380,970  
Loss/(gain) on disposal of property and                                  
equipment                                       (14,457)        27,865  
Depreciation of property and equipment           300,473        300,819  
Amortization of intangible assets                  1,218          1,218  
Net unrealized foreign exchange gains             31,162         (5,775) 
Expense recognized in respect of equity-                                 
settled share-based payments                     72,814         79,520  
Write-downs of inventories to net                                        
realizable value                                      -          1,470 
----------------------------------------------------------------------------
  Funds flow from operations                       3,543,893      1,826,443 
  Movements in non-cash working capital             (391,512)     1,609,381 
----------------------------------------------------------------------------
  Cash generated from operations                   3,152,381      3,435,824 
  Income taxes paid                                 (100,111)      (461,059)
----------------------------------------------------------------------------
Net cash generated from operating activities       3,052,270      2,974,765 
---------------------------------------------------------------------------- 
Cash flows (used in) from investing activities                              
  Payments for property and equipment               (206,491)      (770,781)
  Proceeds from disposal of property and                                     
equipment                                          28,550              - 
  Additions to intangibles                           (18,810)             - 
  Interest paid                                            -              - 
----------------------------------------------------------------------------
Net cash used in investing activities               (196,751)      (770,781)
---------------------------------------------------------------------------- 
Cash flows from financing activities                                        
  Proceeds from issue of ordinary shares under                               
employee share option plan                         68,625         37,874 
----------------------------------------------------------------------------
Net cash from financing activities                    68,625         37,874 
---------------------------------------------------------------------------- 
Net increase in cash                               2,924,144      2,241,858 
Cash at beginning of the year                      4,405,624      2,166,301 
Effects of exchange rate changes on the                                     
 balance of cash held in foreign currencies           (6,465)        (2,535)
----------------------------------------------------------------------------
Cash at end of the year                            7,323,303    $ 4,405,624 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Questor Technology Inc.
Audrey Mascarenhas
President and Chief Executive Officer
(403) 571-1530
(403) 571-1539
amascarenhas@questortech.com 
INDUSTRY:  Energy and Utilities - Equipment, Energy and Utilities - Oil and Gas 
SUBJECT:  ERN 
-0-
-0- Apr/16/2014 13:00 GMT
 
 
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