ENERGY POWER SYSTEMS LIMITED
NEWS RELEASE
ENERGY POWER REPORTS FIRST QUARTER EARNINGS
Toronto, November 15, 2001. Energy Power Systems Limited (OTC BB:
EYPSF & Frankfurt EPW) (www.epsx.com) ("Energy Power" or the
"Company") announces that it has issued unaudited consolidated financial
statements for the three-month period ended September 30, 2001. These
statements reflect the following activities of Energy Power
and it's subsidiaries operating as an Engineering & Offshore
Division and an Oil & Gas Division:
- consolidated revenues of $5.5 million for the three-month period ended
September 30, 2001 ($4.5 million -2000);
- consolidated gross profits of $1 million for the three-month period ended
September 30, 2001 ($0.7 million - 2000);
- consolidated EBITDA of $0.6 million for the three-month period ended
September 30, 2001 ($0.1 million EBITDA -2000);
- consolidated income from continuing operations of $0.4 million for the three-
month period ended September 30, 2001 ($(0.1) million - 2000); and
- consolidated basic earnings per share from continuing operations of 7 cents
per share (negative 5 cents per share - 2000).
Energy Power's first quarter 2001 unaudited results showed revenues increasing
22% to $5.5 million for the three month period ending September 30, 2001 versus
$4.5 million for the same period in the previous year. Growth was derived by
revenue gains in the Company's Engineering and Offshore Division further
bolstered by new revenue sources from the Company's Oil and Gas Division.
Consolidated EBITDA of $626,171 for the three month period ending September
30, 2001 was 926% higher versus a consolidated EBITDA of $61,143 reported for
the previous three month period. The substantial increase in EBITDA during the
period was due in part to improved margins by the Company's Engineering and
Offshore Division, additional cash flow from the Company's Oil and Gas
Division and other income from corporate restructuring.
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Consolidated earnings from continuing operations of $410,000 for the three
month period ending September 30, 2001 was significantly higher than
consolidated losses from continuing operations of $147,934 reported for the
previous three month period. The above reported earnings from continuing
operations resulted in earnings per share from continuing operations of
7 cents per share versus losses from continuing operations of 5 cents
per share for the previous three month period.
The Engineering and Offshore Division is currently working on a backlog of
contracts to carry over the next fiscal year and beyond. Further development of
Atlantic Canada's offshore infrastructure could feed further growth for the
Engineering and Offshore Division. In addition the Oil and Gas Division is
adding positive cash flow to fund corporate operations and future development
and growth strategies. At present the Company is expanding its exploration,
drilling and development program to increase oil & gas reserves
and production.
About Energy Power Systems Limited
Energy Power is an integrated energy source and service company operating as an
Engineering and Offshore Division and an Oil & Gas Division.
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For further information contact: Scott T. Hargreaves, CA, CFA
Chief Financial Officer
Telephone: (416) 861-1484
Certain of the statements contained in this news release are
forward-looking statements. While these statements reflect
the Corporation's current beliefs, they are subject to
uncertainties and risks that could cause actual results
to differ materially. These factors include, but are not
limited to, the demand for the Corporation's products and
services, economic and competitive conditions, access to debt
or equity capital on favorable terms, and other risks detailed
in the Corporation's Form 20-F and Annual Report.
Suite 301, 2 Adelaide Street West, Toronto ON M5H 1L6
Telephone: (416) 861-1484, Facsimile: (416) 861-9623
www.epsx.com