Hemiwedge Industries, Inc. (OTCPK: HWEG) Marketing and Operations Update
First quarter 2010 revenues anticipated at $1 million outpacing all of 2009 as product acceptance accelerates in marketplace
CONROE, Texas - March 30, 2010 (Investorideas.com energy newswire) - Hemiwedge Industries, Inc. (Pink Sheets: HWEG), a global supplier of engineered valves, issued the following marketing and operations update today of the Company's progress on behalf of its shareholders.
Since the Company's September 22, 2009 press release, the Company's Board has continued to grow organically and improve sales and operations.
Icreased revenues year over year and estimates
Sales for our Hemiwedge® Cartridge valves increased from $150,000 in 2007, to $255,000 in 2008 (before licensing revenues). Unaudited 2009 revenues were approximately $1,052,000, a 311% increase over 2008. The current estimated revenues for the first quarter ending March 31, 2010 are $1,010,000. Based on first quarter trends, activity levels in the market and customer indications, the Company currently estimates the fiscal revenue 2010 revenues at $3.5 to $4 million, or more than 250 -300% growth over last year. The Company currently believes it will be EBITDA positive in the fiscal year 2010. EBITDA is a non-GAAP measure that illustrates earnings before interest, taxes, depreciation and amortization.
Recent marketplace activity has shown that the industrial valve market is improving from its 2009 lows and management believes this positive trend will continue through the next few years with some larger projects and customer capital expenditure awards starting later this fiscal year. Maintenance replacement valve sales continue to represent more than half of our market.
Backlog, repeat orders, new customers and additional manufacturers sales reps
The marketplace acceptance of the Company's patented Hemiwedge® Cartridge valve product line continues to be confirmed. Current backlog of purchase orders received, not yet shipped, totals approximately $1,065,000 at the end of February 2010. The customers associated with this backlog include overseas and domestic refineries, products pipeline companies, process, chemical and petrochemical plants. Outstanding quotes for potential orders have continued at a good pace and totaled $7,204,716 at the end of February 2010.
Repeat orders since the September 2009 press release have been in several applications including chemical processing, pipeline, mining, and drilling mud diverter service applications.
Recently, the Company engaged a new sales representative firm in Houston which is owned by a large multi-national company. Key to this new relationship is their firm's expertise in representing engineered products, like the proprietary Hemiwedge® Cartridge valve, leveraging their customers in power, refining and process applications. They are particularly interested in our metal-seated technology used in severe service applications. We received initial orders through their efforts last month. Several overseas relationships have been established in the last six months furthering our international sales efforts.
New Applications for Hemiwedge® Cartridge valve.
Other new customers that have now placed repeat orders include an industrial gas company for nitrogen dryer service, a process plant for 650 degrees F pitch service, and DB&B valves for liquid and gas service with a mid-stream and a products pipeline company.
The Company has recently quoted several large projects in Asia and parts of Russia to complement current international orders from a major refinery in northern Africa and a Southeast Asia-based energy company.
Public filing status
The Company is currently trading on the OTC Pink Sheets and will apply for listing on the OTC bulletin board after its public filings are brought current. Management believes this will be concluded by the summer 2010 and is already working on bringing its filings current.
About Hemiwedge Industries, Inc.
Hemiwedge Valve Corporation ("HVC"), a wholly-owned subsidiary of Hemiwedge Industries, operates as a global supplier of engineered valve products. In its 60,000 square foot ISO 9001 and API Q1 approved facility in Conroe, Texas, the Company manufactures and markets worldwide a patented proprietary new valve technology known as the Hemiwedge® Cartridge valve product line. The Hemiwedge® Cartridge valve is an innovative design that incorporates the positive features of ball, gate, plug, and high performance valves resulting in a mechanically sealing, tight shutoff valve with a simple quarter-turn operation that provides outstanding longevity and performance in a broad range of applications. The "Cartridge" feature mitigates expensive downtime during valve maintenance as all of the internal parts of the valve are affixed to the bonnet, where a quick exchange Cartridge can be performed while in-line service, especially relevant in weld-in line valve bodies. The product line currently ranges in sizes from two inch to twenty inches, ANSI class 150 through 1500 and API 6D applications such as refining, mining, process, pipeline, power, mid-stream and petro-chemical markets. For additional information on the Company and its products, please visit http://www.hemiwedge.com/.
Forward-Looking Statements
This document contains discussion of items that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include, but are not limited to, customer concentration risk, difficulties in refinancing or restructuring its debt, difficulties in accelerating internal sales growth, volatility of the energy business and its effects on the Company's business, difficulties in new technology acceptance within the energy and process industries, restrictive covenants in our existing credit facilities, fluctuations in metals prices, an inability to perform customer ontracts at anticipated cost levels, political and economic global supply chain risk, general economic conditions in markets in which we do business, extensive environmental and workplace regulation by federal and state agencies, and other general risks related to its common stock, and other uncertainties and business issues that are detailed in its filings with the Securities and Exchange Commission. All information provided in this release and in the attachments is as of March 30, 2010 and the Company undertakes no duty to update this information.
CONTACT: Matt Flemming, CFO of Hemiwedge Industries, Inc., +1-936-539-5770.
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