Energy Composites Corporation Reports Fiscal
Year 2009 Results
April 01, 2010 01:06 PM Eastern Daylight Time
WISCONSIN RAPIDS, Wis.--(EON: Enhanced Online News)--Energy Composites Corporation (“ECC”)
(OTCBB: ENCC) a leading provider of composites-based solutions to the clean-tech sector, today announced
results for its fiscal year ended December 31, 2009. ECC announced full year revenues of $8.3 million, down from
$8.7 million ($9.2 million on a consolidated basis) in 2008.
During 2008, ECC enjoyed a beneficiary relationship with Fiberglass Piping & Fitting Company (“FPF”), a piping
distribution company owned by ECC’s largest shareholder, and M&W Fiberglass, LLC (“M&W”), a predecessor
company to ECC. Both FPF and M&W were considered variable interest entities in 2008, thus requiring that ECC
report financial performance on a consolidated basis with these entities for 2008. On December 30, 2008, ECC
terminated that beneficial relationship with both entities. The figures used in the remainder of this release reflect
ECC’s results on a stand-alone basis by removing the results of M&W and FPF.
The 3.9% decline in revenues year over year reflected a $531,000 increase in revenue from product sales and a
$874,000 decrease in revenue in field services, largely attributable to postponement and downsizing of outage-
related projects driven by poor economic conditions. During the period, ECC reported a 3.7% improvement in
gross margin, indicating strong progress in reducing manufacturing overheads, improving labor and asset utilization,
and migrating towards higher margin business. The Company reported a 6.6% increase in selling, general and
administrative expenses, derived primarily from the ramp up of its investment in the launch of the WindFiber™ wind
blade production strategy.
Sam Fairchild, ECC’s CEO, stated that, “Given the unprecedented weakening of the U.S. economy during 2009, I
am relatively happy with our performance. Several of the strategic initiatives we started in late 2008 – le