FSI Announce 2014 First Quarter Results

FSI Announce 2014 First Quarter Results
  
 

CALGARY, ALBERTA--(Marketwired - May 30, 2014) - Richard Ball, Chief Executive Officer of FSI Energy Group Inc. ("FSI" or the "Company") (TSX-VENTURE:FSI), is pleased to announce financial results for the three months ended March 31, 2014.

Financial Highlights:	Three months ended March 31:
	2014	2013
Cash flow used in operating activities	(94,058)	(3,034,644)
Revenue	469,586	2,949,922
Comprehensive income (loss)	(137,197)	46,840
EBITDA1	(137,363)	121,721

Total revenue for the first quarter was $469,586 down 84% from the same quarter last year. The decrease reflected FSI's focus on contract negotiation on a major brine plant for the Russian market, and as a result no revenue was generated from the foreign segment for this period of pre-contract activity. First quarter last year included foreign segment revenue of $2,585,211 with the delivery of a major brine plant to its first client in Kazakhstan. Revenue from the domestic segment of $469,586 was up 29% from the same quarter last year; however with the absence of brine plant activity experienced last year, the comprehensive loss for the quarter was $137,197 compared to comprehensive income of $46,840 the same quarter last year.

Although the low activity generated a loss for the quarter, the Company anticipates that its efforts on current contract negotiations will produce significant future brine plant revenues and the Company's liquidity remains firm as:

• Current assets of $1.2 million, is more than sufficient to service the Company's short term monetary liabilities of $0.8 million (excluding loan from bank which is payable only upon demand).

• The Company is in compliance with its financial covenants and has $0.5 million of unused loan facilities to fund future operations

Further detail may be found in the Company's Management Discussion and Analysis - which is available on SEDAR.

About FSI

Through its wholly owned subsidiary FSI International Services Ltd., FSI Energy Group Inc. is a Calgary-based manufacturing and service company specializing in customized filtration, filtration-related technologies and Brine Plants for the energy, chemical, and water treatment industries.

Non-GAAP Financial Measures

EBITDA does not have a standard definition prescribed by GAAP and therefore may not be comparable to similar measures disclosed by other companies. The Company utilizes these measures in making operating decisions and assessing the Company's financial performance and as an indicator of its ability to service its liabilities. This non-GAAP measure has not been presented as an alternative to comprehensive income (loss) or any other measure of performance or liquidity prescribed by GAAP. EBITDA is calculated as follows:

Financial Highlights:	Twelve months ended March 31:
	2014	2013
Comprehensive income (loss)	(137,197)	46,840
Addback (subtract):
Deferred income tax expense (recovery)	(43,000)	29,000
Finance costs	12,396	12,181
Depreciation included in cost of sales	25,720	28,807
Depreciation	4,718	4,893
EBITDA1	(137,363)	121,721

Forward-looking Information Cautionary Statement

Certain information contained in this press release, including information and statements which may contain words such as "could", "plans", \"should", "anticipates", "expect", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking information. In particular, this press release contains forward-looking information about the completion of the Brine Plant export contracts and the revenues associated therewith. Forward-looking statements are based on the opinions and estimates of management relying on their experience at the date the statements are made, and are subject to a variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to, the risk factors discussed in FSI's MD&A and other continuous disclosure documents. All of the forward-looking information contained in this press release is qualified by this cautionary statement. There can be no assurance that the actual results or developments anticipated by FSI, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on FSI or its business operations. FSI disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events. Readers should not place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FSI Energy Group Inc.Richard BallPresident and CEO(403) 571-4230(403) 230-3106www.fsigroup.ca