Business
Resin Systems announces first quarter 2006 financial and operating results
Resin Systems announces first quarter 2006 financial and operating results.
About this update from Real Estate Split Corp Class A
[{"type":"text","content":"\n\n\n\n\nEDMONTON, May 15 /CNW/ - Resin Systems Inc. (RS - TSX / RSSYF - OTCBB), a\ncomposite products innovation company (\"RS\"), is pleased to announce financial\nand operational results for the three months ended March 31, 2006. RS has\nfiled its unaudited consolidated financial statements for the three months\nended March 31, 2006 and related management's discussion and analysis with\nCanadian securities regulatory authorities. The financial statements and\nmanagement's discussion and analysis have also been filed with the United\nStates Securities and Exchange Commission. Copies of the respective documents\nare available at www.sedar.com, www.sec.gov and RS's website at\nwww.grouprsi.com. RS reports in Canadian dollars and all financial references\nin this news release are in Canadian dollars unless otherwise noted.\nRS's financial and operating highlights for the three months ended\nMarch 31, 2006 included the following:\n\nFinancial Highlights\n\n- RS experienced a nine-fold increase in sales to $815,512 from $82,951\n in the first quarter of 2005;\n- Gross margin was negative, reflecting RS's start-up and early stage of\n production efficiency;\n- During the quarter, RS invested $3.6 million in installing and\n commissioning its state-of-the-art Calgary production facility,\n including $1.6 million capitalized in Property, Plant and Equipment\n and $2.0 million expensed as part of Manufacturing Start-up and\n Product Development;\n- Net loss for the quarter ended March 31, 2006 was $8.1 million\n including the following significant items:\n - costs related to manufacturing start-up of $2.0 million;\n - costs related to product engineering and development of\n $1.0 million;\n - marketing and business development expenses of $0.9 million, an\n increase of $0.4 million over the same period in 2005 resulting\n from the increased focus on market penetration of RS's products;\n and\n - corporate overhead of $3.3 million, an increase of $1.3 million\n over the same period in 2005 due to financing costs from the\n convertible debenture issued in October 2005.\n\n\nOverview\nSince starting our commercialization in 2004, RS has successfully created\nthe RStandard(TM) product line of leading-edge utility poles that have gained\nmarket acceptance with over 30 RStandard customers. RS is now well positioned\nto compete for larger or...