Wednesday, 27 July 2011

Third Quarter Results & More Insider Buying at IWG

International Water-Guard (TSX-V: IWG)
Basic Shares: 38.1 million
Fully Diluted: 45.6million


A firm control on expenses produced a surprising third quarter earnings report from IWG Technologies today.

Before share restructuring costs and taxes, IWG was able to report earnings of $93 thousand for the quarter ending June 30th, compared to a loss of $160 thousand for the same period last year.

That's a roughly $200 thousand gain compared to the third quarter of 2010, in a period where sale revenues were almost flat and the Canadian dollar was annoyingly high for a company that sells most of its technology in U.S. dollars.

To appreciate the challenges IWG management faced, third quarter sales this year were just over $1.1 million, compared to just over $1 million for the same period last year.

Yet net earnings after taxes for this year's third quarter were $1,196 compared to a net loss of $115,080 in the previous year.

Six month sales to June 30th were roughly $3.2 million, just slightly more than the same period last year.
Another positive sign came after IWG's first acquisition was announced earlier this month when IWG president & CEO, David Fox, purchased 60 thousand company shares on the open market.

More recently, IWG board member and aviation industry veteran, Michael J. Piscatella, was reported to have purchased 74 thousand shares.

It's always a good sign to see board members and company executives buying up shares.
On the third quarter results, Mr. Fox said:

"Our third quarter results reflect a solid year, and our related cash position remained stable, notwithstanding our corporate restructuring costs, and the ongoing challenge of a very strong Canadian dollar."
"At the close of the quarter we held $1.1M in cash, against which we have now drawn down funds for the recently announced acquisition of the On-Demand Aircraft Water Heater line of Keltech, Inc.," Mr. Fox added.

"We maintain good cash reserves of the order of $700K for future activities, and a half million dollar operating line of credit. The Keltech transaction will be reflected in our fourth quarter results."
To read the full news release, please click here.