Commercial HVAC maker PowerCold Corporation announced record financial results for 2004. Total revenue for the year ended Dec. 31, 2004 increased 123 percent to U.S. $9.1 million from $4.1 million in 2003.
Gross profit margins decreased in 2004 due to the volume of custom "bid spec projects" installed at retail stores and restaurants. The company said it plans to market directly to corporate national chain stores and restaurants with its proprietary HVAC system and reduce its focus on custom bid spec project marketing that historically has lower profit margins.
PowerCold said gross profit margins for manufactured products improved due to increased sales volume and should improve with more efficient production and engineering design modifications for material cost reduction.
The Company incurred a net loss of $4.3 million, or $0.20 per share compared to a net loss of $2.7 million or $0.13 per share for 2003 -- based on weighted average number of shares of 22,156,331 compared to 20,163,045 for 2003.
"Our plans for 2005 include concentrating on two specific proprietary applications: central HVAC air-condition systems and plastic heat exchange products," Frank Simola, CEO of PowerCold. "We plan to further exploit these engineering development achievements and focus our sales engineering and marketing resources in these product lines on large commercial buildings, concentrating on the growth segments of the hospitality industry."
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