Synex International Inc. second quarter of fiscal 2009
TSE : SXI
VANCOUVER, Feb. 10 – For the six months ended December 31, 2008, revenue increased by 14% to $1,400,176 from $1,233,627 in the corresponding period in the previous year. The primary revenue sources were the Mears Creek Hydro Plant (the “Mears Plant”), the Kyuquot Utility and the Engineering Division. Revenue for the six months ended December 31, 2008 was slightly higher at the Mears Plant and Engineering Division and slightly lower at the Kyuquot Utility as compared to that for the corresponding period in the previous year.Net income for the six months ended December 31, 2008 decreased to $202,582 from $319,768 for the corresponding period in the previous year. Net income before other items for the six months ended December 31, 2008 increased to $239,231 from $73,957 for the corresponding period in the previous year. Earnings per share for the six months ended December 31, 2008 was $0.01, unchanged from the corresponding period in the previous year.
The 2.8MW Cypress Creek Hydro Plant was considered by the Company to be available for operations at December 31, 2008. The Company had previously applied for an electricity purchase agreement under the BC Hydro Standing Offer Program (the “EPA”) and on January 28, 2008, the Company announced that the Power Division had executed the EPA, but that the EPA still requires acceptance of the British Columbia Utilities Commission. The Company anticipates that the Cypress Creek Hydro plant will be the first applicant under the Standing Offer Program to reach commercial operation. On October 22, 2007, the Company announced that the Power Division had entered into a loan agreement with the Canadian Western Bank for the Cypress Creek Plant. The amount advanced under the loan as at December 31, 2008 was $2,950,000 with a maximum lending of $3,529,945 available.
During the second quarter of fiscal 2009, the Company received a second payment of $1 million from the Ka:’yu:’k’t’h’/Che:k:tles7et’h’ First Nation (the “KCFN”). The $1 million has been allocated as $850,000 being a contribution towards the capital cost of the Kyuquot powerline and $150,000 being revenue to the Company. The KCFN has committed to advancing a further $1 million over the next year (the third payment). The KCFN receive a reduction in electricity rates for the capital contributions.
The Company has over 25 water licence applications, mostly on Vancouver Island and Prince Rupert/Terrace area in British Columbia. The Company is actively advancing three other hydro opportunities on Vancouver Island, being the 5MW McKelvie Creek Project, the 4.4MW Barr Creek Project and the 10MW Victoria Lake Project. The Barr Creek and Victoria Lake projects have existing electricity purchase agreements in place from the BC Hydro 2006 Call for Proposals and it is expected that the McKelvie Project will apply for an electricity purchase agreement under the Standing Offer Program. Construction of some of the early components of the McKelvie Creek project has been initiated and construction of part of the Barr Creek project may be initiated late in Fiscal 2009, subject to an early issuance of the land tenure and conditional water licence.
Synex International Inc. is a public company trading on the Toronto Stock Exchange (TSX) with businesses involved with the development, ownership and operation of electrical generation facilities, as well as the provision of consulting engineering services in water resources, particularly for hydroelectric and other power facilities.
Greg Sunell, President
This press release contains forward-looking statements that involve risks and uncertainties. These statements reflect our current expectations and are subject to change. They are subject to a number of risks and uncertainties including, but not limited to, changes in economic conditions, risks associated with the construction and operation of hydroelectric facilities and changes in government policies.
For further information: 400 – 1444 Alberni Street, Vancouver, BC, V6G 2Z4, Phone (604) 688-8271 Ext. 372, Fax (604) 688-1286, E-mail: firstname.lastname@example.org, Web Site: www.synex.com