Nanotechnology Now

Our NanoNews Digest Sponsors

Home > Press > LiqTech International, Inc. Reports Results of Third Quarter of 2011; Sales Grow by 62 Percent, Net Income Grows 497 Percent

Abstract:
LiqTech International, Inc. (OTCBB: LIQT) announced today its financial and operational results for the three months ended September 30, 2011.

LiqTech International, Inc. Reports Results of Third Quarter of 2011; Sales Grow by 62 Percent, Net Income Grows 497 Percent

Gentofte, Denmark | Posted on November 14th, 2011

Lasse Andreassen, CEO of LiqTech, stated, "We are very pleased with the Company's third quarter results. Our third quarter results represent an improved quarter relative to the same quarter in 2010."

Financial highlights for the three months ended September 30, 2011:

Net sales for the three month period ended September 30, 2011 were $6,829,535 compared to $4,208,137 for the same period in 2010, representing an increase of $2,621,398 or 62.3 percent.
Gross profit for the three month period ended September 30, 2011 was $1,460,369 compared to $981,850 for the same period in 2010, representing an increase of $478,519 or 48.7 percent.
Net income attributable to the Company for the three month period ended September 30, 2011 was $484,206 compared to a profit of $81,112 for the comparable period in 2010, representing an increase of $403,094 or 497 percent.
Total operating expenses for the three month period ended September, 2011 was $792,571, an increase of $181,930, or 29.8 percent compared to $610,641 for the same period in 2010.

Financial highlights for the nine months ended September 30, 2011:

Net sales for the nine month period ended September 30, 2011 were $13,552,746 compared to $12,461,177 for the same period in 2010, representing an increase of $1,091,569 or 8.8 percent.
Gross profit for the nine month period ended September 30, 2011 was $3,315,252 compared to $3,066,754 for the same period in 2010, representing an increase of $248,498, or 8.1 percent.
Net income attributable to the Company for the nine month period ended September 30, 2011 was a profit of $378,243 compared to a profit of $262,881 for the comparable period in 2010, representing an increase of $115,362, or 43.9 percent.
Total operating expenses for the nine month period ended September, 2011 was $2,551,436 a decrease of $33,859, or 1.3 percent, compared to $2,585,295 for the same period in 2010.

"The fact that we listed our company in the United States has improved our acceptance in the market. We now have the capital to continue growing the Company and we are focused on increasing shareholder value as we execute our business plan. We have successfully grown our Diesel Particulate Filter and Membrane businesses in the third quarter, while continuing to improve our quality and product offerings. We continue to position the Company for growth in the Water and Oil filtration markets, so that we are in a better position to take advantage of the growing demand for our products. We look forward to keeping shareholders up to date with new developments at LiqTech as they happen," concluded Mr. Andreassen.

####

About LiqTech International, Inc.
LiqTech International, Inc., a Nevada corporation ("LiqTech"), is an award winning cleantech company that for more than a decade has developed and provided state-of-the-art technologies for gas and liquid purification using ceramic silicon carbide filters, particularly, highly specialized filters for the control of soot exhaust particles from diesel engines and for liquid filtration. It also manufactures kiln furniture. Using nanotechnology, LiqTech develops proprietary products using patented silicon carbide technology. LiqTech's products are based on unique silicon carbide membranes which facilitate new applications and improve existing technologies. For more information, please visit www.LiqTech.com.

-Financial charts follow-

LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
					Unaudited As of September 30,			As of December 31,
					2011			2010
CURRENT ASSETS:
	Cash				$	397,881		$	559,259
	Accounts Receivable, net					5,668,120			3,029,075
	Other Receivables					957,280			517,296
	Inventories					2,447,198			1,885,681
	Prepaid Expenses					235,435			110,552
	Current Deferred Tax Asset					-			7,000
			Total Current Assets			9,705,914			6,108,863
PROPERTY AND EQUIPMENT, net accumulated depreciation						6,321,836			6,423,027
OTHER ASSETS:
	Other Intangible Assets					46,455			81,554
	Other Investments					6,759			-
	Deposits					44,093			43,537
			Total Other Assets			97,307			125,091
		Total Assets			$	16,125,057		$	12,656,981

LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
					Unaudited As of September 30,				As of December 31,
					2011				2010
CURRENT LIABILITIES:
		Lines of Credit			$	517,223			$	1,033,088
		Current portion of notes payable				449,505				100,000
		Current portion of notes payable - related party, net of discount of $98,936 and $0				3,666,415				-
		Current Portion of capital lease obligation				209,675				156,204
		Accounts Payable - Trade				2,926,152				1,065,567
		Accrued Expenses				757,485				718,712
	Accrued Income Taxes Payable					164,966				-
	Other Accrued Liabilities					7,387				7,155
			Total Current Liabilities			8,698,808				3,080,726
Notes Payable and Long-Term Debt						-				400,000
Long-Term Capital Lease Obligations						1,036,595				925,749
Deferred Tax Liability						394,698				480,040
			Total Long-Term Liabilities			1,431,293				1,805,789
			Total Liabilities			10,130,101				4,886,515
STOCKHOLDERS' EQUITY:
Common Stock; par value $0,001, 100,000,000 and 10,000,000 shares authorized, 21,600,000 and 9,308,333 shares issued and outstanding at September 30, 2011, and December 31, 2010						21,600				9,309
		Additional Paid-in Capital				5,212,297				2,532,776
Treasury Stock, at cost, 0 and 46,070 shares held at September 30, 2011 and December 31, 2010						-				(25,019	)
		Retained Earnings				4,765,229				4,367,372
		Other Comprehensive Income, net				(310,520	)			(256,123	)
		Note Receivable from a Shareholder, net of discount of $98,936 and $0, respectively				(3,719,327	)			(80,000	)
		Non-controlling Interest				25,677				1,222,151
			Total Stockholders' Equity			5,994,956				7,770,466
		Total Liabilities and Stockholders' Equity			$	16,125,057			$	12,656,981

LIQTECH INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
				Unaudited For the Three Months Ended								Unaudited For the Nine Months Ended
				September 30								September 30
				2011				2010				2011				2010
NET SALES				$	6,829,535			$	4,208,137			$	13,552,746			$	12,461,177
COST OF GOODS SOLD					5,369,166				3,226,287				10,237,494				9,394,423
GROSS PROFIT					1,460,369				981,850				3,315,252				3,066,754
OPERATING EXPENSES:
	Selling Expense				402,648				343,053				1,037,853				1,003,844
	General and Administrative Expenses				263,243				214,614				1,139,078				1,219,112
	Research and Development				126,680				52,974				374,505				362,339
		Total Operating Expense			792,571				610,641				2,551,436				2,585,295
INCOME FROM OPERATIONS					667,798				371,209				763,816				481,459
OTHER INCOME (EXPENSE)
	Interest and Other Income				31,417				12,764				50,189				93,905
	Interest (Expense)				(59,923	)			(27,916	)			(139,166	)			(92,936	)
	Gain (Loss) on unconsolidated investments				-				50				-				(7,055	)
	Gain (Loss) on Currency Transactions				8,658				(14,493	)			(25,832	)			60,203
		Total Other Income (Expense)			(19,848	)			(29,595	)			(114,809	)			54,117
INCOME BEFORE INCOME TAXES					647,950				341,614				649,007				535,576
INCOME TAX EXPENSE					91,347				206,303				188,557				358,795
NET INCOME					556,603				135,311				460,450				176,781
NET INCOME ATTRIBUTABLE TO NON CONTROLLING INTEREST					72,397				54,199				82,207				(86,100	)
NET INCOME ATTRIBUTABLE TO LIQTECH INTERNATIONAL, INC.				$	484,206			$	81,112			$	378,243			$	262,881

		For the Three Months Ended						For the Nine Months Ended
		September 30						September 30
		2011			2010			2011			2010
BASIC EARNINGS PER SHARE		$	0.03		$	0.01		$	0.03		$	0.03
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING			14,251,721			9,308,333			10,974,237			9,308,333
DILUTED EARNINGS PER SHARE		$	0.03		$	0.01		$	0.03		$	0.03
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
ASSUMING DILUTION			15,761,847			9,308,333			11,477,612			9,308,333

Forward-Looking Statements
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.