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Press release from CNW Group

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

Wednesday, March 13, 2013

WaterFurnace Renewable Energy, Inc. Fiscal Year & 4th Quarter Results18:07 EDT Wednesday, March 13, 2013Increased margins, strong cash position and renewed optimism for residential new construction. (U.S. $)FORT WAYNE, IN, March 13, 2013 /CNW/ - WaterFurnace Renewable Energy, Inc. [WFI:TSX] today released the Company's fiscal year 2012 and fourth quarter results. Net income and total comprehensive income for 2012 was $10.1 million versus $13.9 million in 2011.  Sales for 2012 were lower by 13%, nevertheless, gross margin percent rose from 34.8% in 2011 to 35.7% in 2012.  Earnings per share for 2012 were $ .82 versus $1.14 in 2011.  While the geothermal HVAC industry continued to see slow sales in 2012, the Company increased its market share in the residential sector. Cash and short-term investments increased $3.6 million excluding the Company's capital investment in its Chinese joint venture of $2.9 million and start up costs of $422 thousand.Net income and total comprehensive income for the fourth quarter were down 23.7% from the same period in 2011.  Sales for the fourth quarter were lower by 12.2% than in 2011.  Gross margin percent for the fourth quarter was down from 39.0% in 2011 to 38.7% in 2012. Earnings per share in the fourth quarter were $.33 versus $.44 in 2011.The Company's Chairman of the Board, Tim Shields stated, "While sales and earnings per share were severely impacted by a continued slow economy and low natural gas prices, the Board of Directors is pleased with strategic achievements that were accomplished in 2012 that will diversify and increase our revenues in the future.  Management did an outstanding job of increasing gross margin percent and residential market share in a soft geothermal market."Tom Huntington, President and CEO, said, "The Company faced some tough challenges in 2012.  I am very pleased with the personal commitment that our employees and customers displayed in a difficult business environment.  The expansion of our business foundation in 2012, that included new products, re-designed products, a joint venture in China and other developmental efforts have the Company positioned for success as the residential housing market improves and commercial project activity increases.  We enter 2013 with a strong business foundation and renewed optimism for residential new construction."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 Thursday, March 14, 2013. Those interested can listen live or to the recorded version at http://www.newswire.ca/en/webcast/detail/1098641/1197065 or 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, 2012  2011  2012  2011            Sales $34,375 $39,141 $119,697 $137,590 Cost of sales  21,075   23,881   76,967   89,719            Gross profit 13,300   15,260  42,730  47,871 Operating expenses  6,104   6,500   24,164   24,037 Research and development        expenses  391   564   2,070   2,063            Income before interest and   income taxes  6,805   8,196  16,496   21,771 Joint venture (loss)  (28)   --   (28)   -- Finance income  21   49   132   158 Finance expense  (244)   (55)  (1,025)   (210)            Income before income taxes  6,554   8,190  15,575  21,719 Income tax expense  2,435   2,794   5,515  7,815            Net income   4,119   5,396  10,060  13,904 Unrealized gain on translationof foreign operations (net of tax)  11   15  31   6            Other comprehensive income  11  15   31   6Net income and total    comprehensive income$4,130 $5,411 $10,091 $13,910            Earnings per share U.S.$0.33 $0.44 $.82 $1.14WaterFurnace Renewable Energy, Inc.Consolidated Statements of Financial PositionPrepared using International Financial Reporting Standards(Audited—Thousands of U.S. $)  December 31,  December 31,   2012  2011        Assets      Current assets           Cash and cash equivalents $11,928 $11,646 Short-term investments  10,232  10,181 Receivables  16,045  20,126 Inventory  10,539  9,188 Prepaids and deposits    513  1,264       Total current assets  49,257  52,405Property, plant and equipment  6,536  6,762Deferred tax assets  9,845  7,686Intangible assets  1,519  1,713Long-term investments  285   --Investment in joint venture  2,923   --       Total Assets $70,365 $68,566       Liabilities      Current liabilities       Payables and accruals $ 6,053 $7,041 Income taxes payable    377  652 Provision for warranty claims - current portion  3,884  3,274       Total current liabilities  10,314  10,967Finance leases    38  76Deferred compensation    280  749Provision for warranty claims  18,938  15,104       Total Liabilities  29,570  26,896       Shareholders' Equity       Share capital   18,999  17,505 Foreign exchange translation adjustment    37  6 Retained earnings  21,759  24,159       Total Shareholders' Equity   40,795  41,670       Total Liabilities and            Shareholders' Equity   $70,365 $68,566Forward-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.  SOURCE: WaterFurnace Renewable Energy, Inc.For further information: 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. WaterFurnace Renewable Energy, Inc. 9000 Conservation Way Fort Wayne, Indiana  46809-9794 (260) 478-5667