Fundamental Research – Fair Value Suggests A Near Double For IWG Stock

IWG.TSX.V

A recent report from Fundamental Research analyst Siddharth Rajeev calls IWG Technologies a BUY with a fair value of $0.40, almost double its current price share price.

In his report titled, “IWG Technologies Inc. – Q1 revenues up 10% YOY; in line with expectations”, Mr. Siddharth raises IWG’s FY2014 revenue and EPS estimates due to the stronger US$, industry wide growth, and the launch of a new product in Q2-2014. He highlights that with $1.19 million in cash, $2.88 million in working capital, and a low debt to capital of 6.9%, IWG’s balance sheet continues to be strong and healthy.

Several other key highlights in the report include:

Revenue forecasts rose for FY2014 (Sept.30) from $7.21 million to $7.50 million, while Fundamental estimates FY2015 coming in at $8.16 million.

Gross margins in the first quarter of 2014 improved to 51%, up from 49% in Q1 2013. Fundamental anticipates further margin increase in the second half of the year, as revenues are typically higher in the second half. FY2014 estimates have been projected at 54%.

Net income forecasts for FY2014 have been raised from $1.02 million to $1.18 million. This is largely due to higher revenue, and a slight drop in R&D expense forecasts. FY2015 estimates have also been revised to $1.24 million versus the previous estimate of $1.18 million.

Mr. Siddharth further notes that IWG is highly dependent on the overall health of the aerospace industry. With approximately 9,000-10,000 business aircrafts being delivered until 2022, he believes that IWG will demonstrate strong growth over the next 8 to 10 years and explains that with approximately 75% of sales being done in US$, IWG will continue to benefit from the strong US$ and will continue to see growth in FY2014/2015.

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Shares Outstanding: 37.7 million
Shares Fully Diluted: 39.7 million

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IWG Technologies – Margins On The Rise

IWG: TSX.V

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.

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Shares Outstanding: 37.7 million
Shares Fully Diluted: 39.7 million

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IWG Lands New President

IWG:TSX-V

IWG has just announced that it will be placing Mr. Darryl Jacobs in the pilot’s seat as its new President.

The company has been steadily growing in both sales and profitability over the past years and Mr. Jacobs intends to continue that trend, bringing over 20 years experience in the aviation industry to IWG.

The Howard Group has history with Mr. Jacobs, as he was a co-founder and past President of AeroMechanical Services (now FLYHT Aerospace) with which we have been deeply involved and invested in since late 2005.

The market has been appreciative of IWG’s years of consistent results and the stock price reflects that, as it is has increased more than 400% over the past 14 months.  Today’s news sparked a further increase and as of this writing it is up over 8%.

To view news release, please click here...

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Basic Shares: 37.7 million
Fully Diluted: 39.7 million

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International Water-Guard Attends Dubai Airshow 2013

IWG Technologies (TSX-V: IWG)
Basic Shares: 37.7 million
Fully Diluted: 39.7 million
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International Water-Guard (IWG) attended the Dubai Airshow held from November 17th – 21st, which is the Middle East's leading aerospace event.

"It’s important for IWG to explore new markets in the aviation industry and the Middle East is a market that’s doing extremely well,” says Giles Lapierre, Director, Sales and Marketing. “Being at the Dubai Airshow was a great way to introduce IWG’s latest products to new customers and discover new business opportunities."

For IWG, this was their first time attending the Dubai Airshow.  Last year, Lapierre went to the Middle East Business Aviation (MEBA) conference, and due to its success he knew he had to return to the region. Throughout the Dubai Airshow, Lapierre met with existing and new customers to promote the on-demand water heaters, UV water treatment units, and the new compact water module.

According to Speed News, a key aviation publication, 580 aircraft were sold at the Dubai show this year.  Mr. Lapierre believes there are substantial new business opportunities for IWG in the Middle East, and an important lesson has been learned through recent travel to the region.  If you are serious about doing business there, you need a consistent presence at important trade shows like MEBA and the Dubai Airshow. Persistence is key to building relationships and an annual presence will be conducive to developing the business opportunities IWG is looking to secure.

Mr. Lapierre is confidant that new revenues are just around the corner for IWG in this massive new market, and believes the company’s award winning customer service will prevail in the long term.

IWG Has Record Year – Earnings Soar

IWG Technologies (TSX-V: IWG)
Basic Shares: 37.7 million
Fully Diluted: 39.7 million
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Today, IWG announced its yearend financial results ending fiscal 2013 with both record revenues and earnings.

Revenue was up 10% to $6.6 million from $6 million last year, with net earnings increasing 84% to $969,996 from $526,310.

In today’s news, IWG attributes the growth across the board from its water treatment products, water heaters and water pumps, sales of the new M-1 water module, and parts and repairs.

The year’s results provided IWG with net earnings of 2.6 cents per share compared to 1.4 cents one year ago.  IWG has roughly 37.7 million shares outstanding and trades roughly between a $6 million and $7 million market cap, or six to seven times earnings.

To view the news release...please click here.

IWG Provides HG With Update Following Successful Show At NBAA 2013

IWG Technologies (TSX-V: IWG)
Basic Shares: 37.7 million
Fully Diluted: 39.7 million
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International Water-Guard (IWG) attended the National Business Aviation Association conference held in Las Vegas from October 22nd to October 24th. The NBAA is the premier annual meeting place for the business jet aviation community, bringing together business leaders, government officials, aircraft manufacturers and suppliers, completion centers and key aviation decision makers. For IWG, the NBAA is the best opportunity of the year to be able to interface with the executive jet community in one place over a short period of time.

We spoke with Giles Lapierre, IWG’s Director of Sales and Marketing, who said, “Attending the NBAA this year was superb for IWG, as we were able to further solidify relationships with our existing and new Original Equipment Manufacture customers, and find new opportunities and future projects to take on. Being at the show also maintains our presence in the business aviation industry.”

IWG met with Business Jet Completion Centers to discuss plans for next year, as well as opportunities for IWG to improve its products. “Being present at the NBAA gave us an opportunity to meet face to face with customers and understand how we could improve our support to them,” said Brian Ulrich, VP Business Development and Engineering.

IWG also utilized the conference to showcase its new products, including the IWG-M1 compact water module. The IWG-M1 was promoted in advertisements, editorials and at meetings with completion centers and aircraft manufactures. Additionally, the on-demand water heaters and IWG’s water treatment units were the topic of discussion with many existing and new customers.

President of IWG, Bruce MacCoubrey summarized the event, saying, “Overall, the IWG team is pleased with the results of the conference and we met our objectives for the show. We expect to see positive sales opportunities as a result of our efforts.”

For more information about the National Business Aviation Association, please click here….

IWG Technologies Notches Large Earnings Gain

IWG Technologies (TSX-V: IWG)
Basic Shares: 37.7 million
Fully Diluted: 39.7 million

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IWG saw its numbers for the first nine months of the current fiscal year jump a healthy 12%, or $532 thousand, for the period to the end of June versus Fiscal 2012. Revenues grew to $4.88 million from $4.35 million.

Q3 sales increased to $1.70 million from $1.62 million in F/12.
 

Of special note was the fact that earnings for the nine months of F/13 climbed 167% to $555 thousand from $208 thousand during the same period last fiscal year and $181 thousand for Q3 versus a loss of $11 thousand in Q3/F12.
 

Earnings per share for the first three quarters of this fiscal year were 1.5 cents compared to six-tenths of a cent last fiscal year. As such, the stock is trading at about ten times nine-month EPS. 

What should be noted is that EBITDA/share more than doubled to 2.5 cents from 1.2 cents on the respective nine-month periods, meaning the stock is trading at a multiple of only six times as of this writing.

The company has been gaining ongoing traction with its high-quality, lightweight water treatment systems for aircraft.
 

Read full news release here...

Analyst Says IWG Technologies Trading At One-Third Of Its “Fair Value”

IWG Technologies (TSX-V: IWG)
Basic Shares: 37.6 million
Fully Diluted: 39.7 million

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An analyst from Vancouver based Fundamental Research Corp. (FRC) has released an updated report on IWG and rate the Company a Top Pick based on strong ongoing sales and a 25% year-over-year rise in Q2/F13 revenues.

Analyst Siddharth Rajeev pleads a convincing case that fair value of the stock is $0.40 based on projected sales and high margins. It’s currently trading in the range of $0.12 to $0.14.

We can't post the report but it is available for free on the FRC website through registration here... 

The report calls for IWG to increase sales to $7.3 million in F2014 (Sept. 30) with a gross profit of just over $4 million and EBITDA of $1.78 million.  This would equate to 3.3 cents Earnings Per Share (EPS). 

Highlights include:

• Q2-FY2013 revenues increased 25% YOY, from $1.46 million to $1.84 million. Revenues in the first six months of FY2013 were $3.19 million, up 17% YOY. The strong growth in revenue was due to growth in unit sales and service revenues.
• Gross margins in Q2-2013 were 54%, an increase over Q2-2012’s 50%.
• G&A expenses continued to drop YOY in Q2-2013.
• Net income in Q2-2013 was $0.27 million (EPS: $0.01), up from Q2-2012 of $0.05 million (EPS: 0.001).
• IWG’s balance sheet ratios continue to be significantly stronger than the Aircraft systems, components and equipment industry averages.
• IWG shares are up 117% YOY versus TSX Venture’s negative 27%.
• We have raised our earnings estimate for FY2013 to $0.93 million (EPS: $0.025), from our previous forecast of $0.85 million (EPS: $0.022).

FRC analysts will be discussing the report in an investor Q&A session:   

May 28, 2013, at 10:00 AM Pacific Daylight Time. To join the call:

Step 1: 5 Minutes before the call, please click: https://www4.gotomeeting.com/join/158146447
Step 2: Join the conference call:
Canada +1 (514) 907-7491
USA +1 (213) 289-0155
or
Canada +1 (888) 350-3035
USA 1 (877) 273-4202
Step 3: Enter the conference room/access code 5829680 

IWG’s Growth Gaining Momentum

IWG Technologies (TSX-V: IWG)

Basic Shares: 37.6 million

Fully Diluted: 39.7 million

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IWG released its second quarter financials for fiscal 2013 showing that management’s solid focus on earnings and growth are paying off.

Revenue was up 25% over last year’s Q2 at $1.84 million while income was up 400% at just over $450 thousand. This year’s second quarter results provided net earnings of 0.7 cents per share compared to 0.3 cents per share the previous year, or 1.0 cents compared to 0.6 cents on a year-to-date basis.

“Revenue has shown steady growth in existing contracts, new products and new customers,” said Bruce MacCoubrey, President and CEO of IWG. “With the completion of the development phase of the FACC contract during the third quarter, the Company will soon be making initial deliveries of its Compact Water Systems.”

To view the news release, please click here...

IWG Grows Revenues And Income In Q1

IWG Technologies (TSX-V: IWG)
Basic Shares: 37.6 million
Fully Diluted: 39.7 million 
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IWG is strong out of the gate starting its Fiscal 2013 with Q1 revenues of $1.35 million, a 6% increase over last year’s Q1 of $1.27 million.  Net earnings were down slightly, as the company had benefited from a foreign exchange gain last year off the US$.

"Revenue growth is continuing in 2013 as IWG delivers to existing contracts, the new Gulfstream 650 contract and introduces new products,” says Bruce MacCoubrey, President and CEO of International Water-Guard Industries Inc.

Read the full news release here...

IWG - Top Pick Of FRC Analyst

IWG Technologies (TSX-V: IWG)
Basic Shares: 37.6 million
Fully Diluted: 39.7 million
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On November 29th, IWG announced record revenues and earnings for its fiscal 2012 (FYE September 30) which subsequently sparked some market interest taking the company's share price to a 52 week high of $0.13.

Fundamental Research Corp's Siddharth Rajeev has been covering IWG for some time now and has recently updated his report dated December 12th rating IWG as a Buy with a Fair Value of $0.40 per share.

Mr. Rajeev has expects 2013 to be another banner year and estimates Earnings Per Share (EPS) to increase to $0.03 from this year’s $0.01.

Highlights of the report include:

• Revenues in FY2012 increased by 36% over FY2011. This is the largest revenue increase in the history of the company.

• The company continues to maintain strong margins with the new product mix.

• The company reported a profit of $0.53 million (EPS: $0.01) for the year.

• IWG’s balance sheet ratios continue to be significantly stronger than the industry averages.

• Improving outlook on the Business and VIP jet aircraft industry.

• Well capitalized to develop and market new products.

• IWG’s shares are up 43% YOY versus negative 21% for the TSX Venture.

• We have raised our EPS forecasts for FY2013 and FY2014. Our fair value increased from  $0.35 to$0.40 per share.

The full Fundamental Research Report can be read by clicking here...

IWG Shares Surge On News Of Record Revenue And Earnings

IWG Technologies (TSX-V: IWG)

Basic Shares: 37.6 million
Fully Diluted: 39.7 million

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This morning shareholders saw shares of IWG jump 30% on good volume of over 136 thousand as of this writing. The last time the share price reached $0.13 was early 2008. The positive move has been driven by news that IWG has achieved record revenue and earnings for fiscal 2012 (FYE September 30). 

Highlights include:

• Revenue = $6.01 million, a 36% increase over last year
• Net earnings = $526 thousand, a 63% jump from last year
• Earnings per share = 1.4₵ compared to 0.8₵ last year
• EBITDA = up 118% to $884 thousand from $405 thousand in F/11
• EBITDA/share = up 130% to $0.023 from $0.01. 

In the news release Bruce MacCoubrey, President and CEO of IWG Technologies said, "Fiscal 2012 proved to be a record year as IWG experienced sales growth in all product lines. The water treatment products experienced strong growth in core products and in the new IWG-A6 product that began deliveries to Gulfstream for their new 650 aircraft. The new ES On-Demand Water Heater product, introduced in the fall of 2011, resulted in higher than expected sales levels for the year. Product repairs and parts sales set a new high in annual revenue."

To view the full news release please click here.

IWG Technologies - 47% Increase In Q3 Results

IWG Technologies (TSX-V: IWG)

Basic Shares: 37.6 million
Fully Diluted: 39.7 million 

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This morning, IWG Technologies released its third quarter and nine month results for Fiscal 2012, ended June 30th.

Highlights of the reporting periods are as follows:

• A quarterly sales record at $1.62M up 47% from the same quarter a year ago.
  
• Nine month sales of $4.35M up 34% from the same period FY2011.
  
• Quarterly net loss of $11K, vs. net earnings of $14K the same quarter a year ago.
  
• Nine month net earnings of $208K up 32% from FY2011.
  
• Earnings before taxes and an exceptional item for the third quarter were $280K vs. $112K a year earlier.

According to the news release, “Current results reflect the continued impact of new programs entering early production phase and customer acceptance of our newly acquired on-demand water heater products. Also reflected in this quarter is the contract settlement cost impact as a result of the departure of the Company's President and CEO. Income from operations before contract settlement impact was $279,963, a 150% increase over the prior period.”

Click here to view today’s news release