CALGARY, ALBERTA--(CCNMatthews - Feb. 15, 2007) - EcoMax Energy Services Ltd. (TSX VENTURE:EES) ("EcoMax") announces that it will release its results for the year ended December 31, 2006 on April 5, 2007.
The Company's third quarter results, which were posted on SEDAR in late November, saw continued good performance from the Company's base business, however challenges persist in achieving sales success with the EcoMax Pump. Overall the Company recorded a 3rd quarter loss of $42,000 compared to earnings of $117,000 in the same period of 2005. Earnings for the nine months ended September 30, 2006 of $111,000 were down from the $245,000 for the same period in 2005.
At that time, Mark Hopkins, the Company's President and CEO, noted:
"Base business earnings (excluding interest) for the quarter ended September 30, 2006 were $250,000 (Q3 - 2005 earnings of $359,000) and for the nine months ended September 30, 2006 were $999,000 (nine months 2005 - $834,000). The Company has a backlog of BOP sales of $4.7 million, which will help allow us to continue this strong performance. While base business activity may decrease over the next 2 quarters, the outlook is that this activity will recover by the second quarter of 2007. The Company is actively pursuing opportunities to expand the valve and BOP business.
The Company has still not achieved a breakthrough in the sales of the EcoMax Pump. Sales for the third quarter of $42,000 and for the year to date of $285,000 have resulted in the EcoMax Pump division losing $261,000 in the third quarter and $792,000 for the year to date.
We believe that past technical issues with the pump have been overcome and that our customers have not experienced performance issues with the Pump in the past year. The Pump's performance and reliability have been proven and our three-year warranty reflects our confidence in that performance.
The Company has made changes in the past two quarters to increase sales and sales growth. These include changing the sales leadership of the Pump division, changing the pricing structure and establishing an enhanced warranty program for the Pump in the second quarter. We have since introduced a rental program to allow an option for customers in the field to utilize the Pump without making a significant outlay of capital. The Company has engaged the services of one of our directors with significant sales and marketing experience to assist the sales force in identifying and overcoming roadblocks in the sales process.
We are exploring other options as well to ensure that these losses do not continue. While we are working to significantly change the Pump's contribution, we are pursuing some of the many opportunities available to improve and grow the Company, improve communication to our shareholders and potential investors and deliver significantly improved financial results in the next year."
To review the Company's financials, please go to SEDAR's web-site at www.sedar.com
About EcoMax Energy Services Ltd.
EcoMax Energy Services Ltd. is an oilfield services company whose product offering includes BOP and valve sales and service solutions to the oil and gas and other industries in Western Canada and the patented EcoMax Chemical Pump.
FOR FURTHER INFORMATION PLEASE CONTACT:
EcoMax Energy Services Ltd. Mark Hopkins President & CEO (403) 319-2026 Email mhopkins@ecomax.ca Website: www.ecomax.ca
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
