Calgary, Alberta - Polyurethanes composites developer RS Technologies Inc. (RS) reports revenues for the six months ended 30 June 2010 (H1) of $6.3 million (2009 - $5.9 million), an increase of 7 percent, consisting entirely of sales of utility poles made of pultruded polyurethanes.
Calgary-based RS develops advanced composite material products for the infrastructure markets, using the company's proprietary polyurethane resins and processes that typically give lighter, more durable and longer-lasting products than competing ones made from traditional wood, steel or concrete materials.
The Canadian company said the sales increase for H1 is the result of an increase in selling prices, offset by a decrease in large-module sales in the second quarter (Q2) and the drop in the US dollar exchange rate to the Canadian dollar.
Negative H1 gross margin was $3.0 million (2009 - $2.8 million), with a decrease in negative gross margin from Q2 offset by an increase in negative gross margin during Q1.
SG&A expenses for the six months ended 30 June 2010 were $5.7 million or 90 percent of revenues (2009 - $5.7 million or 97 percent of revenues). A decrease in Q2 resulting from decreased travel, insurance and discretionary expenses was partially offset by an increase in raw materials and labour related to testing, research and development, and unabsorbed overheads.
Depreciation for H1 was $0.6 million (2009 - $0.7 million), while capital expenditure was $0.5 million (2009 - $2.2 million, $1.7 million for land and building at the Tilbury facility).
Financing charges for H1 were $3.8 million (2009 - $3.4 million), an increase of $0.4 million.
The net loss for H1 ended 30 June 2010 was $12.6 million (2009 - $13.5 million), the decrease primarily resulting from a decrease in stock-based compensation and depreciation, partially offset by the increase in financing charges.
RS's flagship product is its award-winning RStandard composite pole to carry electric grids and as communication structures for various uses including wireless networks and microwave communications systems.