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Press release from CNW Group

WaterFurnace Renewable Energy, Inc. Fiscal Year & 4th Quarter Results

Thursday, March 08, 2012

WaterFurnace Renewable Energy, Inc. Fiscal Year & 4th Quarter Results18:55 EST Thursday, March 08, 2012(U.S.$)FORT WAYNE, IN, March 8, 2012 /CNW/ - WaterFurnace Renewable Energy, Inc. (TSX: WFI) today released the Company's fiscal year 2011 and fourth quarter results. Net income for 2011 was flat with 2010. Sales for 2011 were lower by 0.5%, $695 thousand, than in 2010. Gross margin dollars increased year over year by $1,346 thousand. Gross profit percent rose from 33.5% in 2010 to 34.7% in 2011 despite a high mix of commercial products that carry lower margins. Earnings per share for 2011 was $1.14 versus $1.15 in 2010. Issuance of additional shares for the acquisition of Hyper Engineering and to satisfy deferred compensation liabilities had the effect of reducing earnings per share by $0.01 year over year.Net income for the fourth quarter was down 7.1% from the same period in 2010. Sales for the fourth quarter were lower by 3.4% than in 2010. Gross profit dollars increased year over year by $71 thousand. Gross profit percent for the fourth quarter rose from 37.3% in 2010 to 38.8% in 2011 despite a continued high mix of commercial products that carry lower margins. The quarter was also impacted year over year by the price increase effective December 6, 2010 that resulted in customers buying product ahead in the fourth quarter of 2010 that resulted in higher than normal sales in the fourth quarter of 2010. Earnings per share in the fourth quarter were $0.44 versus $0.48 in 2010.The Company's Chairman of the Board, Tim Shields stated, "We're very pleased with management's continuing ability to add to shareholder value during this slow economic recovery period. Their ability to grow sales channels, increase market share and reduce costs bodes well for our future."Throughout 2011, but especially in the fourth quarter, the Company was able to offset increased metal and energy prices with successful cost reduction initiatives and product redesign. This allowed the Company to avoid a late year price increase and expand its margin, while the Company's main competitor announced a significant price increase in the fourth quarter. The cost reductions will help the Company's competitive position and aid in increasing market share.Tom Huntington, President and CEO, said, "While we maneuver through the continuing sluggish economy, it is very gratifying to see my team reduce costs, develop existing sales channels, open new sales channels and develop new products to ensure WaterFurnace is positioned well to take advantage of an upturn in the economy. We also continue to work on business development efforts that will increase our core competency footprint and ensure future growth from outside our current operating environment."The annual report to shareholders is available at www.waterfurnace.com and filed on SEDAR at www.sedar.com. The CEO and CFO will conduct a webcast covering the results of the year and quarter at 11:00 AM Eastern Standard Time on Monday, March 12, 2012. Those interested can listen live or to the recorded version at http://www.newswire.ca/en/webcast/detail/910959/972131or at the Company's website: www.waterfurnace.com.WaterFurnace Renewable Energy, Inc.Consolidated Statements of Comprehensive IncomePrepared using International Financial Reporting Standards(Thousands of U.S. $ except per share data) Unaudited  Audited Three months ended December 31,  Year ended December 31, 2011 2010 2011 2010         Sales $ 39,141 $ 40,526 $ 137,590 $ 138,285 Cost of sales 23,935 25,391 89,915 91,956        Gross profit 15,206 15,135 47,675 46,329 Operating expenses 6,500 6,160 24,037 22,600 Research and development expenses 564 234 2,063 2,213        Income before interest and        income taxes 8,142 8,741 21,575 21,516 Finance income 49 25 158 79 Finance expense (1) (3) (14) (50)        Income before income taxes 8,190 8,763 21,719 21,545 Income tax expense 2,794 2,954 7,815 7,626        Net income and total comprehensive income $   5,396 $   5,809 $   13,904 $  13,919        Earnings per share U.S.$ $    0.44 $    0.48 $      1.14 $      1.15        WaterFurnace Renewable Energy, Inc.Consolidated Statements of Financial PositionPrepared using International Financial Reporting Standards(Audited—Thousands of U.S.$) December 31, December 31, January 1, 2011 2010 2010      Assets     Current assets          Cash and cash equivalents $ 11,646 $   7,222 $   4,785 Short-term investments 10,181 10,078 13,368 Receivables 20,126 21,255 16,794 Inventory 9,188  8,570  5,653 Prepaids and deposits 1,264  492  369      Total current assets 52,405  47,617  40,969      Property, plant and equipment 6,762  7,309  6,962Deferred tax assets 7,686  6,212  4,852Intangible assets 1,713  --  --      Total Assets $ 68,566  $ 61,138  $ 52,783      Liabilities     Current liabilities      Payables and accruals $   7,041  $   8,061 $   7,398 Income taxes payable 652  1,124  880 Provision for warranty claims               - current portion 3,274 2,724 2,215      Total current liabilities 10,967  11,909  10,493      Finance leases 76  111  146Deferred compensation 749  540  264Provision for warranty claims 15,104  11,760  8,280      Total Liabilities 26,896  24,320  19,183      Shareholders' Equity      Share capital 17,505  14,948 14,865 Foreign exchange translation adjustment 6  --  -- Retained earnings 24,159  21,870 18,735      Total Shareholders' Equity 41,670  36,818  33,600      Total Liabilities and Shareholders' Equity $ 68,566  $ 61,138  $ 52,783      Forward-Looking Information Cautionary NoticeCertain statements in this release constitute forward-looking statements within the meaning of applicable Canadian securities laws. Readers are cautioned not to place undue reliance on such statements. Investors should not rely solely on this information to make investment decisions. These statements are subject to certain assumptions, risks and uncertainties. In addition, WaterFurnace's sales are related to the cost and stability of electricity, fuel oil, propane and natural gas. Federal, state and provincial building codes and energy incentives can also impact sales. WaterFurnace is subject to standard risks associated with most companies, such as normal competitive pressures. These and other risks could cause WaterFurnace's actual results, performance, achievements and developments to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Other risk factors can be found in WaterFurnace's Annual Information Form and other public documents filed by WaterFurnace with Canadian securities regulatory authorities. WaterFurnace assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.More InformationWaterFurnace Renewable Energy, Inc. is traded in both Canadian dollars and U.S. dollars on the Toronto Stock Exchange under the symbol WFI for Canadian dollars and WFI.U for U.S. dollars.WaterFurnace designs, manufactures and distributes geothermal heat pumps. The geothermal units use the renewable solar energy stored just below the surface of the earth to dramatically reduce the energy consumed by buildings for heating, cooling and hot water.Additional information about the Company and its products is available on the Company's website: www.waterfurnace.com. Or call (260) 478-5667 and ask for investor relations. For further information: WaterFurnace Renewable Energy, Inc. 9000 Conservation Way Fort Wayne, Indiana  46809-9794 (260) 478-5667