Orbite announces fourth quarter and annual 2014 results

Orbite Aluminae Inc. announced today the filing of its Consolidated Financial Statements for the year ended December 31, 2014. The Company reported a net loss of $3.5 million (or $0.01 per share) and $12.4 million ($0.04 per share) for the fourth quarter and the year ended December 31, 2014, respectively, as compared to a net loss of $9.0 million ($0.05 per share) and $15.0 million ($0.08 per share) for the same periods in 2013, representing a decrease of $5.5 million, or 61.1% and $2.6 million, or 17.3%, for the quarter and full-year, respectively. All dollar amounts are in Canadian dollars unless stated otherwise.

Summary of Q4 and FY 2014 Financial Results

Net loss for Q4 2014 decreased by $5.5 million to $3.5 million, or from $0.05 per share to $0.01 per share. For the quarter ended December 31, 2014, the net loss increase compared to the third quarter of 2014 was attributable mainly to a $1.8 million write-off following the redesign of the plant, and a lower amount recognized in the change in fair value of the derivative financial instruments relating to the series X convertible debentures.

The net loss for FY2014 came in at $12.4 million, as compared to a $15.0 million net loss for FY 2013. The decrease was due predominantly to a $3.4 favourable difference in net finance income (expense) compared to FY2013, a $1.7 million reduction in general and administrative charges, offset partially by a $1.8 million write-off following the redesign of the plant, an increase of $0.8 million in HPA plant operations and a $0.3 million increase in R&D expenses.

Research and development charges increased by $0.2 million during the quarter ended December 31, 2014, as compared to the same period in 2013. The increase was due to an increase in salaries, lab consumables, external lab analysis as well as an R&D tax credit provision adjustment, partially offset by a decrease in consulting fees and share-based payments.

For FY 2014, research and development charges increased by $0.3 million, as compared to the prior year, due to an increase in salaries, lab consumables as well as an R&D tax credit provision adjustment, partially offset by a decrease in consulting fees and share-based payments.

General and administration charges increased by $0.4 million for the fourth quarter, compared to the same period in 2013. General and administrative costs decreased by $1.7 million for FY2014, as compared to 2013. The increase during the quarter was due to share-based payments and a write-off of some claims in the Rimouski Cap-Chat region, partially offset by a decrease in salaries, professional fees, as well as a general reduction in expenses. The decrease during the year ended December 31, 2014 compared to 2013, was attributable mainly to a decrease in salaries, professional fees, as well as a general reduction in expenses resulting from the cost reduction program in place since mid-2013, partially offset by an increase in share-based payments and a write-off of some claims in the Rimouski Cap-Chat region.

HPA plant operation expenses decreased by $0.1 million during the fourth quarter, 2014, and increased by $0.8 million for FY 2014, as compared to the same prior year periods. The increase for the full year 2014, as compared to 2013, is due mainly to the costs associated with the incident at the Cap-Chat facility in Q1, 2014, and as HPA related costs in the first quarter of 2013 were mostly capitalized compared to 2014, partially offset by disassembly and handling costs of certain equipment incurred in 2013. Costs incurred at the HPA plant that directly relate to the installation of the equipment and the commissioning of the plant, and meet the IFRS criteria for capitalization, are capitalized in property, plant and equipment (PP&E).

For complete and detailed results, please visit Orbite Aluminae’s website.