- Revenue ramp up exceeding management expectations -
TORONTO,
Feb. 1, 2012 /PRNewswire/ -
Innovative Composites International Inc. (TSXV: IC) (OTCQX: ICIZF),
("ICI" or the "Company"), a producer of patented protected
composite products targeting the multi-billion dollar prefabricated
modular housing and transportation markets, reported today that the
revenue growth in its non-housing side of the business is
progressing faster than originally anticipated.
"The speed in which our non-housing programs are
ramping up and generating significant revenues is indicative of the
demand for our products in the marketplace," said Terry Ball, President and CEO of ICI. "Most of
these products require little of our engineering resources which
allow us to focus on the housing market and the South Carolina facility, while making a
positive contribution to our bottom line."
Automotive Aftermarket
In June 2011, ICI announced its first
purchase orders for the supply of composite panels to a leading
North American automotive aftermarket company. The program was
expected to achieve approximately $5
million in revenue annually within nine months.
As of today, sales of composite panels to this
customer have already reached $4.2
million on an annualized basis and continue to grow each
month. Once at full capacity, the Company expects the program to
have a five to six year life span. ICI panels replace a
conventional material previously used by the customer and offer
superior strength to weight ratio, are impervious to weathering,
rot and corrosion and are completely recyclable.
Tractor Trailer Market
Through the acquisition of Eleison, LLC, ICI now has the equipment
and patents to produce fiber reinforced thermoplastic skin material
at one of the lowest cost points in the industry. The purchase of
Eleison also created relationships with several new customers in
the transportation industry located in the USA and in Europe. The product is being used to reinforce
interior headliner and load floor applications. ICI has completed
shipments to all of the new customers and is currently in the
quoting process on several additional programs for the same
material. ICI believes there is significant potential to grow
revenue for this product from the $2
million annually, previously recorded by Eleison.
Management believes the product with the highest
volume potential is likely a program to supply ICI's composite
panels to a manufacturer of exterior aerodynamic package for
trucks, known in the industry as "trailer tails". According
to ICI's customer, the product provides fuel savings of up to six
percent compared to tractor trailers without an aerodynamic
package. The product is approved by the US Department of
Transportation and is quickly gaining acceptance in the
marketplace. High fuel prices and new legislation in the US and
Europe are significant drivers of
demand for transportation efficiency offerings and ICI believes its
products are well suited for this market because of the superior
strength to weight ratios.
About Innovative Composites International Inc.
Headquartered in Toronto,
Canada, Innovative Composite International Inc. (TSXV:
IC) (OTCQX: ICIZF) is a high-tech engineering and manufacturing
company that is successfully commercializing a patent protected
line of state-of-the-art composite products targeted at the
multi-billion dollar transportation and prefabricated modular
housing markets.
Led by a team of commercialization experts ICI
has adopted a tier two business model: It designs and
manufactures game-changing products and partners with established
companies in its target markets to utilize their sales channels for
faster product roll-out.
This strategy and the superior characteristics
of the products have resulted in rapidly growing sales in both
markets and opened up opportunities that could lead to large scale
contracts on an ongoing basis.
To find out more about ICI please visit our
website at: www.innovativecompositesinc.com.
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Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
"Statements made in this press release
include forward-looking statements that involve a number of risks
and uncertainties. These statements relate to future events or
future performance and reflect management's current expectations
and assumptions. A number of factors could cause actual events,
performance or results to differ materially from the events,
performance and results discussed in the forward-looking
statements, such as the economy, generally, competition in its
target markets, the demand for ICI's products and the availability
of funding. These forward-looking statements are made as of the
date hereof and ICI does not assume any obligation to update or
revise them to reflect new events or circumstances. Actual events
or results could differ materially from ICI's expectations and
projections."
SOURCE Innovative Composites International Inc.