Thursday, 13 February 2014

IWG Technologies – Margins On The Rise


Clearly, the rise in the U.S. dollar versus the Loonie is having a positive impact on IWG as the company saw margins and operating income increase with the release of its financial results for the first quarter of Fiscal 2014 (Dec. 31).

In reading the Management Discussion & Analysis, IWG’s gross margin on sales climbed to 51% from 49% for the same quarter of F2013. Canada accounts for 26% of sales with the remaining 74% primarily exported to the United States. IWG’s subsidiary designs and manufactures what are recognized as top of the line water treatment and heating systems for aviation customers.

Revenues in Q1/F14 did climb 10% over Q1/F13 to $1.48 million from $1.35 million while the gross margin was up 13% and operating income jumped 30% to $229 thousand.

IWG is in a comfortable position as it is sitting on almost $1.2 million in cash and equivalents and has a $500 thousand operating line, which it has not had to utilize.

As of this writing, it’s market cap was $8.4 million based on a $0.22 stock price and 38.1 million shares issued.

To read the news release, click here.

Shares Outstanding: 37.7 million
Shares Fully Diluted: 39.7 million