Conforce International Releases Form 10-Q Conference Call Aug 16

TORONTO--(BUSINESS WIRE)-- Conforce International, Inc. (“Conforce” or “Company”) (OTCBB:CFRI.ob - News), developers of EKO-FLOR™, a composite flooring system for the transportation industry, announced today financial results for its first quarter ended June 30, 2011.

Marino Kulas, CEO of Conforce, observed that, “The first quarter was highlighted by the transfer of technology from our development centre in Concord, Ontario to our new manufacturing facility in Peru, Indiana. The financial results during the quarter reflect the various costs associated with the establishment of a new facility which included hiring and training of production supervisors and staff. A significant portion of the revenue relating to the recent initial order will be recognized in our second quarter.”

First Quarter 2011 Financial Review

* General and administrative expenses for the three months ended June 30, 2011 were $461,218, and includes salaries and wages, professional fees and consultants, office supplies, travel and utilities, compared to $202,008 for the first quarter in 2010. The increase is attributable to the additional expense incurred in the establishment of the Peru facility which included marketing expenditures.
* The Company reported net losses for the first quarter of $661,547, or $0.00 per diluted share based on 160.1 million weighted average diluted shares.
* Amortization of property, plant and equipment for the period ended June 30, 2011 was $38,708 compared to $22,915 for the same period in the previous year. The increase is due to the purchase of additional equipment for the facility. It is expected that the depreciation expenses will also increase significantly in the upcoming quarters as the equipment is used and consequently depreciates.

Cash Flow and Balance Sheet Highlights

* The Company has approximately $5.1 million of available cash for the purposes of ramping up production in the Peru facility and the ongoing business development cost associated with its commercialization strategy. The Company’s net cash outflow from operations for the three month period ended June 30, 2011 was $716,992. The Company considers itself to have sufficient funding to continue operations beyond the next 12 months.
* As of June 30, 2011, the Company had cash and cash equivalents of $5.1 million; working capital of $5.4 million; long term debt of $2.4 million; and shareholder’s equity of $6.0 million.
* The Company received $500,000 in incentive financing for the quarter for the selection of Peru, Indiana as the location of its new manufacturing facility. This incentive payment is in the form of a forgivable loan.

Outlook for Fiscal 2012

In commenting on the Company’s outlook going forward, Mr. Kulas concluded that, “We believe that the Company is on the cusp of redefining advanced flooring systems throughout the shipping container and truck/trailer industries. Our ultimate goal on both fronts is nothing less than complete standardization.”

Conference Call Information
The Company will discuss these results in a conference call at 11:00 a.m. EST on August 16, 2011.
Participant Dial-In Numbers:
(In the United States): (877) 407-8031
(International): (201) 689-8031
Press Release Source: Conforce International, Inc. On Monday August 15, 2011, 5:00 pm