Carmanah Technologies Corporation reported its second quarter financial results for the period ended June 30, 2017. Currency amounts are in U.S. dollars unless otherwise noted.
In the second quarter of 2017, the Company generated revenues of USD $12.1 million down approximately 12% from Q2 2016 which had revenues of USD $13.9 million. The decline in revenues was attributable to overall minor revenue reductions in most of the Signals segment except for the Offshore Wind and Traffic verticals which increased year-over-year. Our Illumination segment revenues also had a decrease over the same period in 2016. The Signals segment declines and increases were mostly the result of project timing differences in the current and comparable quarter. Illumination segment revenue reductions resulted from a transition to the Company's new EverGen product offering.
Net income in the second quarter of 2017 was USD $0.5 million down from net income of USD $0.9 million in the second quarter of 2016.
Carmanah management relies on Adjusted EBITDA (a non-IFRS measure) to gauge financial performance. In the second quarter of 2017, the Company generated Adjusted EBITDA of USD $1.8 million, down 18% from USD $2.2 million in the same period in 2016. The variance is largely a result of lower revenues. A table reconciling net income and Adjusted EBITDA is included in this release.
"Several initiatives for Carmanah came to fruition in the second quarter. After more than a year of product development, we completed the first shipments of our new EverGen outdoor lighting products", said John Simmons, CEO. "And just after quarter end, we made significant progress in our overall business strategy with the sale of our Off-Grid Power business (Go Power!) and the acquisition of Vega Industries in New Zealand."
Highlights for the quarter are provided below: Three months ended June 30, Six months ended June 30,
Financial Condition at June 30, 2017 compared to December 31, 2016
- Cash and cash equivalents of USD $23.0 million, up USD $1.1 million from USD $21.9 million
- Working capital of USD $26.4 million, up USD $4.8 million from USD $21.6 million
EBITDA and Adjusted EBITDA