Engineering Power Systems Group, Inc.
March 2, 1999
To OTC Journal
Members:
Dear Members:
Today, Engineering
Power Systems Limited (OTC BB: EGPDF),Ê our current
profile,Ê issued a press release with their sales
and earnings figures for the six month period ending
December 31, 1998.
Sales were
up substantially, shareholders equity was up substantially,
and losses were down substantially.Ê All in all, an
excellent financial statement reflecting a company
that is doing all the right things to move forward.
The stock
traded very well through the first half of last week,
and since that time has been dropping on much lighter
volume.Ê Today, the stock closed at $2.00.Ê The stock
is trading as if investors were expecting an instant
explosion to the $4 level, and are started looking
for the exit as soon as the stock stopped going straight
up.
If you take
the time to look at the company's current growth,
and combine that with the growth potential once the
Power Barge Project gets underway, you have a situation
that lends itself to much higher returns than the
minimal $.50 people try to grab in a couple of days.Ê
Have a little patience and allow this Company to mature.
Financial
Highlights (Canadian Dollars)
- Sales increased
from $11 million to $23.6 million for the same period
the previous year.Ê This is a 100% plus growth rate.
- Losses
decreased from $2 million down to $1.3 million.Ê
Of the $1.3 million in losses, $771,000 were directly
attributable to the Power Barge development costs.
- Shareholders
equity increased from $7.4 million to $14.2 million.Ê
This translates to roughly $1 per share in book
value in US Dollars.Ê Most companies with this type
of growth rate and decreasing losses will trade
at five times book value or more.Ê This formula
would put the stock at $5 or better.
Here is a
link to the financial statement if you wish to review
the entire document: Click
Here.
Here is the
complete press release issued by the Company today:
Ê
Press ReleaseÊ
EPS
announces that it has issued its unaudited interim
consolidated financial statements for the six months
ended December 31, 1998Ê Toronto, March 2nd, 1999...ENGINEERING
POWER SYSTEMS LIMITED, ("EPS" or the Company) (CDN:
EPSL) (NASD Bulletin Board: EGPDF) announces that
it has issued its unaudited interim consolidated financial
statements for the six months ended December 31, 1998.
These statements reflect the following activities
of EPS and its subsidiaries:Ê
- Consolidated
revenues of $23.6 million for the period, compared
to consolidated revenues of $11 million for the
same period in the previous year;Ê - Consolidated
gross profits of $3.3 million for the period ($2
million - 1997);Ê - Consolidated administrative
and development expenditures totaling $4 million
for the period ($3.8 million - 1997); andÊ - a consolidated
loss of $1.3 million for the period ($2 million
- 1997).Ê
M&M
Engineering Limited, ("M&M") the company's 51% owned
and most active subsidiary, on a non-consolidated
basis posted revenues of $17.8 million and gross
profits of $2.586 million for the six month period
compared to revenues of $11 million and gross profits
of $2.076 million for the six month period in the
previous year, representing a 61.82% increase in
revenue over the same period last year.Ê
Merlin
Engineering AS, ("Merlin") the company's 51% owned
Norwegian subsidiary, recorded revenue of $5.8 million
and gross profits of $789,000 for the six month
period ended December 31, 1998. Merlin was acquired
effective January 1, 1998 and as such comparative
numbers are not included. Merlin is primarily involved
with design engineering in the North Sea and is
actively involved in the maritime engineering and
design of EPS's Barge Mounted Power Plants ("BMPP"s).Ê
EPS
and it's non-operating subsidiaries, EPS Oakwell
Power Limited and Atlantic Seaboard Industries Limited
have been active with pre-engineering, maritime
design, power island selection and configuration
of its BMPPs and further involved with obtaining
necessary approvals for the power plants, environmental
assessments and financial closure. These development
costs, which are generally expensed as incurred,
total $771,000 for the period.Ê
Number
of shares issued: 9,526,770 - 30 -Ê
For
further information contact: James C. Cassina, Director,
Telephone: (416) 861-1484Ê
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