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Synex International Inc Annual Report for Fiscal 2011

^{Published on 2011-09-13 10:40:48 - Market Wire}
 

TSX : SXI

VANCOUVER, Sept. 13, 2011 /CNW/ - Net income for the fiscal year ended June 30, 2011 was $108,221 as compared to a net loss of $764,967 for the fiscal year ended June 30, 2010.  The increase in net income is primarily due to the proceeds in fiscal 2011 of $300,000 for an option by a third party for the purchase of some water licence applications of the Company as compared to the write off of an account receivable from Hawkeye Energy Corporation in fiscal 2010 in the amount of $477,585.  Income per share for fiscal 2011 was $0.00 as compared to a loss per share of $0.03 in fiscal 2010.

Electricity sales and consulting revenue increased to $3,507,445 in fiscal 2011 as compared to $2,924,901 in fiscal 2010.  The increase in revenue in fiscal 2011 is mainly a result of higher engineering consulting revenue and increased generation at the operating plants.  The Shareholders Equity at June 30, 2011 was $14,261,063.

The Barr Creek Limited Partnership ("BCLP") and its general partner, Barr Creek Hydro Ltd. ("BCHL") continue to advance the 4.4 MW Barr Creek Hydro Project (the "Barr Project").  BCLP and BCHL are each owned 80% by the Company and 20% by the Ehattesaht First Nation.  The total subscribed units of BCLP were $4.4 million, all of which were subscribed in fiscal 2011.  In May 2011, the Company announced the execution of a Credit Agreement with the Canadian Western Bank in the maximum amount of $9.1 million for the Project with the first draw occurring in mid-June 2011.

The Barr Project is under construction and was about 35% complete as of June 30, 2011.  The target date for substantial completion is late 2011.

On August 19, 2010, the Company announced that the Engineering Division had entered into an Option Agreement dated July 23, 2010 with an unrelated third party.  The Option Agreement provides the third party with the right to purchase a number of applications for water licences and land tenures held by the Engineering Division as well as other related rights.  The Option Agreement has a latest exercise date of December 31, 2011.  The Option Payment was $300,000 and has been included as other income in the financial statements of the Company.

At June 30, 2011, the Company had loan agreements with Canadian Western Bank with total indebtedness of $11,548,093 as compared to total indebtedness of $10,731,448 at June 30, 2010.  The increase in indebtedness is a result of advances of $700,000 under the Credit Agreement for the Barr Project and advances of $500,000 under a Revolving Credit Line with the Canadian Western Bank, offset by principal payments of $383,355 during fiscal 2011.

The Company owns and operates two hydroelectric plants totaling 6.6 MW, has a minority interest in two operating hydroelectric plants totaling 10.0 MW, has under construction a 4.4 MW hydroelectric plant and owns an electrical distribution utility.  All of the facilities are located on Vancouver Island, British Columbia except for the minority interest in a 3.3 MW hydroelectric plant located in east-central British Columbia.

The provincial government in British Columbia has endorsed the development by private industry of environmentally sound hydroelectric plants and in July 2010, BC Hydro announced new terms and pricing under the Standing Offer Program.  The McKelvie Creek Project is being advanced by the Company towards a submission under the Standing Offer Program.  The Company has over 70 water licence applications in early stages of development, including those under the Option Agreement dated July 23, 2010.  The Company is also pursuing other opportunities in respect of power developments.

"signed"

______________________________________
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.