NPT.C - Plaintree Systems Inc.

Posted by ProfitableStocksOnly at Jul 4, 2018 2:48 PM | Report Abuse

NPT.C (Plaintree Systems Inc) Due Diligence Report
Most Recent Financials + Management Discussion Highlights. Found On www.Sedar.com
Year End Results Will Be Released August 2018
Symbols: Canada – NPT / USA - PTEEF
Price: $0.165 CAD / $0.14 US
Common Shares: 12,925,253
Options/Warrants: 0
Insider/Institutional Holdings: 6,024,676 or 46.6%

Important Announcements From MD&A and Most Recent News Release:

Last News Release: David Watson, the company's president and chief executive officer, commented by stating: "Plaintree's biggest product line, our mining domes, posted strong revenues this fiscal year and leave us with a substantial backlog for next year due to buoyancy in several mining sectors. In addition to this, the product lines for all of Plaintree's aerospace divisions have increased in profitability over the course of this year. I would be remiss if I didn't comment on the strong growth of our foundations for unstable soils and flood zones. After three years of investment in marketing and sales for this product line, it is expected that we may almost triple our previous year's sales."
Q3 MD&A (Page 10): These consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As at December 31, 2017, the Company had an accumulated deficit of $3,458,891 and, for the period then ended, the Company had comprehensive earnings of $1,746,353. As at December 31, 2017, the Company had working capital of $10,290 and $NIL cash on hand. These material uncertainties may cast doubt upon the Company’s ability to continue as a going concern. However, due to the recent improvement in the financial performance of the Company, management is reviewing whether the going concern note remains appropriate and whether it should be removed from future statements. In assessing whether the going concern assumption was appropriate, management took into account all relevant information available about the future, which was at least, but not limited to, the next twelve month period following December 31, 2017

Financials (CAD)

ASSETS
Trade Receivables: $4,909,029
Unbilled Revenue: $184,431
Inventory: $1,772,214
Prepaid Expenses: $72,344
Property, Plant & Equipment: $4,696,703
Intangible Asset: $561,359
Total Assets: December 2017 - $12,196,080 (March 2017 - $10,342,103)
LIABILITIES
Cash Deficit - $1,119,642
Trade Payables: $1,647,113
Deferred Revenue: $2,215,186
Current Bank Note Payment: $1,148,831
Portion Of Long Term Debt: $45,000
Due To Related Parties: $554,447
Deferred Government Assistance: $146,000
Obligation Under Lease Capital: $455,519
Long Term Debt: $92,925
Due To Related Parties: $5,565,044
Total Liabilities: December 2017 - $13,564,220 (March 2017 - $13,456,597)

Nine Month Sales Performance

Revenue: $12,488,416 (2016 - $10,033,364)
Cost Of Sales: $8,672,752 (2016 - $8,352,694)
Gross Margin: $3,815,664 (2016 - $1,680,670)
Net Income: $1,746,354 (2016 - -$1,039,871)
Earnings Per Share - $1,746,354 / 12,925,253 = $0.135 Trading at less than two times earnings

Management Discussion From Q3 2017
Overview Plaintree Systems Inc. (“Plaintree” or the “Company”) was incorporated in Canada under the Canada Business Corporation Act and is publicly traded on the Canadian Securities Exchange (“CSE”) under “NPT”. The Company operates an Electronics division [the Hypernetics business, Summit Aerospace USA Inc. (“Summit Aerospace”)] and a Specialty Structures division (the Triodetic business), Spotton Corp. and 9366920 Canada Inc. (operating as Madawaska Doors). Plaintree is a diversified company with proprietary technologies and manufacturing capabilities in structural design, aerospace and telecommunications. The Hypernetics business manufactures avionic components for various applications including aircraft antiskid braking, aircraft instrument indicators, solenoids, and permanent magnet alternators. The Triodetic business is a design/build manufacturer of steel, aluminum, and stainless steel specialty structures such as commercial domes, free form structures, barrel vaults, space frames, and industrial dome coverings. Summit Aerospace specializes in the high-end machining of super-alloys for the aircraft and helicopter markets. Spotton’s business involves the design and manufacture of high-end custom hydraulic and pneumatic valves and cylinders for the industrial, oil and gas markets. Madawaska Doors Inc., through its wholly-owned subsidiary, 9366920 Canada Inc. involves the manufacturing and selling of high quality, 100% natural solid wood custom doors and related parts and materials. Until June 2017 the Speciality Structures division included Arnprior Fire Trucks Corp. (“AFTC”). On June 6, 2017, the Company announced that it had completed the sale of assets and business of AFTC. The address of the Company’s registered office and principal place of business is 10 Didak Drive, Arnprior, Ontario.