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Day4 Energy Reports Second-Quarter 2010 Results

^{Published on 2010-08-10 04:45:23 - Market Wire}
 

 - Surpassed previous high set in the fourth quarter of 2009 and diversified revenues with almost 20% of total revenues generated outside of our core market in Germany; - Completed the expansion of our production capacity at Jabil to 10MW per month or 120MW annualized and transitioned most of our production output to the next generation Day4 Guardian Technology(TM) 60MC-I modules with intelligent shade protection; - Worked closely with our manufacturing partners and material suppliers to qualify and certify new production materials. We expect these changes that will be introduced gradually through the third quarter, to result in as much as a 19% reduction in our encapsulation material costs. These costs represent approximately 30% of our module cost; - Completed construction of two power projects for a total of 2.5MW and $7.6 million in revenues in record time of less than six weeks, expanding our turnkey power project business and contributing positively to our profit margins; and - Signed two manufacturing and licensing agreements that are expected to come on-line in 2011 and would provide approximately 1.9 million Euros per year in royalty revenue to Day4. 

 Day4 Energy Inc. Consolidated Balance Sheets As at June 30, 2010 and December 31, 2009 ------------------------------------------------------------------------- June 30 December 31 2010 2009 $ $ (unaudited) ---------------------------- Assets Current assets Cash and cash equivalents 15,327,241 17,804,941 Restricted cash 185,000 335,000 Short-term investments 5,510,494 9,067,397 Accounts receivable 11,747,244 3,598,384 Investment tax credits receivable 658,174 600,000 Other receivables 2,406,406 8,447,806 Inventory 10,877,325 11,078,173 Prepaid expenses 923,288 564,336 --------------------------- 47,635,172 51,496,037 Property, plant and equipment 18,694,881 21,679,300 ---------------------------- 66,330,053 73,175,337 ---------------------------- ---------------------------- Liabilities Current liabilities Accounts payable and accrued liabilities 19,392,949 13,321,691 Taxes payable 830,000 830,000 Short-term debt 1,162,947 1,143,521 Deferred revenue 554,744 322,331 ---------------------------- 21,940,640 15,617,543 Shareholders' Equity Share capital Authorized Unlimited number of common shares Unlimited number of preferred shares Issued and outstanding 37,059,366 (2009 - 36,739,366) common shares 131,075,529 130,972,498 Contributed surplus 2,791,929 2,581,508 Warrants 2,279,890 2,279,890 Accumulated other comprehensive income (10,573,267) (3,201,330) Deficit (81,184,668) (75,074,772) ---------------------------- 44,389,413 57,557,794 ---------------------------- 66,330,053 73,175,337 ---------------------------- ---------------------------- Day4 Energy Inc. Consolidated Statements of Operations and Deficit For the three and six months ended June 30, 2010 and 2009 (unaudited) ------------------------------------------------------------------------- Three-months ended Six-months ended June 30, June 30, ------------------------------------------------------ 2010 2009 2010 2009 $ $ $ $ Revenues 44,811,143 5,729,904 67,735,291 10,074,449 Cost of revenues 43,914,378 16,506,946 65,153,257 21,315,103 ------------------------------------------------------ Gross margin (loss) 896,765 (10,777,042) 2,582,034 (11,240,654) ------------------------------------------------------ Expenses General and administrative 2,778,288 1,980,493 5,298,361 4,985,194 Research and development 585,194 522,684 1,435,908 1,038,391 Less: Government assistance (94,130) - (171,149) - Selling and marketing 1,245,418 970,691 1,996,489 1,621,549 Depreciation 443,904 209,408 923,263 212,825 ------------------------------------------------------ 4,958,674 3,683,276 9,482,872 7,857,959 ------------------------------------------------------ Loss before undernoted 4,061,909 14,460,318 6,900,838 19,098,613 ------------------------------------------------------ Foreign exchange gain (loss) (223,317) 355,396 723,951 2,278,430 Interest and other income 62,191 48,783 110,190 114,504 Interest expense (21,733) (24,517) (43,199) (55,649) Gain (loss) on disposal of property, plant and equipment - - - 26,730 Gain on disposition of subsidiary - - - 24,677 Accretion expense - (6,656) - (12,990) ------------------------------------------------------ (182,859) 373,006 790,942 2,375,702 ------------------------------------------------------ Loss before non- controlling interest 4,244,768 14,087,312 6,109,896 16,722,911 Non-controlling interest - - - (11,323) ------------------------------------------------------ Loss for the period 4,244,768 14,087,312 6,109,896 16,711,588 Deficit - Beginning of period 76,939,900 57,315,661 75,074,772 54,691,384 ------------------------------------------------------ Deficit - End of period 81,184,668 71,402,973 81,184,668 71,402,973 ------------------------------------------------------ ------------------------------------------------------ Net loss per share - basic and diluted 0.12 0.38 0.17 0.46 ------------------------------------------------------ ------------------------------------------------------ Weighted average number of shares outstanding - basic and diluted 36,767,498 36,679,366 36,753,510 36,679,366 ------------------------------------------------------ ------------------------------------------------------ Day4 Energy Inc. Consolidated Statements of Cash Flows For the three and six months ended June 30, 2010 and 2009 (unaudited) ------------------------------------------------------------------------- Three-months ended Six-months ended June 30, June 30, ------------------------------------------------------ 2010 2009 2010 2009 $ $ $ $ Cash flows from operating activities Loss for the period (4,244,768) (14,087,312) (6,109,896) (16,711,589) Items not affecting cash Stock-based compensation 133,458 118,913 233,451 268,546 Depreciation and amortization 758,477 676,801 1,499,382 1,093,734 Loss (gain) on sale of property, plant and equipment - (26,730) Gain on disposal of subsidiary - (24,677) Unrealized foreign exchange (gain) loss (122,996) 139,212 (877,449) 38,622 Change in value of derivative instruments - (2,157,218) Non-controlling interest - (11,323) Changes in non-cash working capital items Accounts receivable (6,925,154) 2,419,496 (8,977,284) 3,149,510 Investment tax credit receivable (58,174) - (58,174) - Other receivables 4,446,869 846,165 5,242,533 (2,600,414) Inventory 6,610,139 11,504,374 (1,317,416) 4,090,154 Prepaid expenses (481,492) (4,638) (456,235) (10,174) Accounts payable and accrued liabilities 5,499,803 (2,309,702) 7,669,401 1,779,910 Deferred revenue 165,690 25,810 289,457 8,367 ------------------------------------------------------ 5,781,852 (670,881) (2,862,230) (11,113,282) ------------------------------------------------------ Cash flows from investing activities Purchase of short-term investments (1,500,000) (5,000,000) (1,500,000) (9,000,000) Proceeds from sale of short-term investments 5,000,000 - 5,000,000 - Change in restricted cash - 4,667,065 150,000 10,668,745 Purchase of property, plant and equipment (822,097) (920,745) (1,348,694) (2,507,932) Proceeds from sale of property, plant and equipment - - - 8,213,638 Proceeds from sale of subsidiary - net of cash included in sale of 29,098 - - - 9,590 ------------------------------------------------------ 2,677,903 (1,253,680) 2,301,306 7,384,041 ------------------------------------------------------ Cash flows from financing activities Proceeds from exercise of stock options 80,000 - 80,000 ------------------------------------------------------ 80,000 - 80,000 - ------------------------------------------------------ Effect of foreign exchange rate changes on cash (332,914) 334,884 (1,996,776) 364,211 ------------------------------------------------------ Increase (decrease) in cash and cash equivalents 8,206,841 (1,589,677) (2,477,700) (3,365,030) Cash and cash equivalents - Beginning of period 7,120,400 12,954,941 17,804,941 14,730,294 ------------------------------------------------------ Cash and cash equivalents - End of period 15,327,241 11,365,264 15,327,241 11,365,264 ------------------------------------------------------ ------------------------------------------------------ Supplemental cash flow information Cash paid for interest 1,249 1,185 2,426 2,968 Cash received for interest 106,572 3,105 106,616 18,463 Day4 Energy Inc. Consolidated Statements of Comprehensive Loss and Accumulated Other Comprehensive Loss For the three and six months ended June 30, 2010 and 2009 (unaudited) ------------------------------------------------------------------------- Three-months ended Six-months ended June 30, June 30, ------------------------------------------------------ 2010 2009 2010 2009 $ $ $ $ Loss for the period 4,244,768 14,087,312 6,109,896 16,711,589 Unrealized foreign exchange losses on translation of consolidated financial statements to the presentation currency 2,632,214 - 7,371,937 - ------------------------------------------------------ Comprehensive Loss 6,876,982 14,087,312 13,481,833 16,711,589 ------------------------------------------------------ ------------------------------------------------------ Three-months ended Six-months ended June 30, June 30, ------------------------------------------------------ 2010 2009 2010 2009 $ $ $ $ Accumulated Other Comprehensive Loss - Beginning of period 7,941,053 - 3,201,330 - Unrealized foreign exchange losses on translation of consolidated financial statements to the presentation currency 2,632,214 - 7,371,937 - ------------------------------------------------------ Accumulated Other Comprehensive Loss - End of period 10,573,267 - 10,573,267 - ------------------------------------------------------ ------------------------------------------------------