IWG Technologies Inc. Reports Sales and Profits for Fiscal Year 2016

BURNABY, BC, Dec. 2, 2016 /CNW/ - IWG Technologies Inc. (TSX-V: IWG) ("the Company" or "IWG") today announced results for the fiscal year ended September 30, 2016, which include an 18% increase in net income and 2% growth in revenue. All amounts are expressed in Canadian dollars unless otherwise indicated.

The annual results include fourth quarter revenues of $2,728,268, on par with the prior year's fourth quarter, and net income of $607,213, a 52% increase from the prior year's fourth quarter.  The fourth quarter net income includes the recognition of a Scientific Research and Development Expenditures credit recorded, and a positive impact from foreign exchange fluctuation.

This year's results provided net earnings of 3.8 cents per share compared to 3.3 cents in the prior year.  Detailed financial statements and MD&A will be available on www.sedar.com and the Company's website at www.iwgtech.com.

The results are summarized as follows:

		Three month period ended					Year ended
		September 30					September 30
Expressed in thousands of dollars		2016		2015	Change		2016		2015	Change
(except per share amounts)
Revenue	$	2,728	$	2,731	0%	$	9,732	$	9,514	2%
Gross profit		1,564		1,341	17%		5,346		4,543	18%
Income before tax		850		506	68%		2,090		1,754	19%
Net income		607		400	52%		1,512		1,282	18%
Net income per share		1.5¢		1.0¢			3.8¢		3.3¢
EBITDA	$	1,023	$	671		$	2,710	$	2,326
EBITDA per share		2.6¢		1.7¢			6.8¢		5.9¢

 

"Fiscal 2016 results were in line with the Company's expectations, given the challenging year, with business aircraft OEMs seeing a decrease in production numbers. This adjustment in build rates contributed to flattened sales growth for the business this past year. The Company's efforts in continued operational improvements contributed to an increased bottom line," says Bruce Gowan, IWG Chairman.

The Company announced on November 28, 2016, that it had entered into an Arrangement Agreement with 1096777 B.C. Ltd. (the "Purchaser") and WM Capital Management, Inc., as guarantor, pursuant to which the Purchaser has agreed, subject to the conditions set out in such agreement, to acquire all of the issued and outstanding shares of the Company at a price of $0.43 per share.  Further details are included in the MD&A and Financial Statements for the year ended September 30, 2016.  A Management Information Circular is expected to be mailed to shareholders in mid-December, for a planned shareholders' meeting in January 2017.

IWG Technologies Inc. is the public holding company for International Water-Guard Industries Inc., a Canadian aerospace company focused on aircraft potable water treatment, water systems, water heaters and components. IWG has expertise in all aspects of water treatment, has the products and know-how to provide high quality water for passengers and crew, and lightweight, space-saving solutions for the aircraft operator.

On behalf of the Board of Directors

Bruce Gowan
Chairman of the Board

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.

This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things: the anticipated timing of the mailing of the Management Information Circular and the anticipated timing of the special meeting of the Company's shareholders.

These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant uncertainties and contingencies. Many factors, both known and unknown could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the receipt of all necessary court and regulatory approvals or consents and lack of material changes with respect to IWG and its business, all as more particularly set forth in the Arrangement Agreement. The Company has made certain assumptions that management believes are reasonable at this time, including assumptions as to the time required to prepare and mail shareholder meeting materials. The dates set out in this press release for mailing of the Management Information Circular and holding a shareholder meeting may change for a number of reasons, including unforeseen delays in preparing meeting material and inability to secure necessary court and regulatory approvals in the time anticipated. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times.

Readers are cautioned against attributing undue certainty to forward-looking statements or information. Although IWG has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

TSX VENTURE: IWG

SOURCE IWG Technologies Inc.

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