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SSA.V - Spectra Inc.

Discussion in 'Canadian Stocks' started by Theoilguy55, Aug 26, 2015.

  1. Theoilguy55

    Theoilguy55 New Member

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    Company: Spectra Inc.
    Symbol: SSA.V
    Price: $0.01
    Common Shares: 60,514,837
    Insider Holdings: 11,542,143(19% as per SEDI)
    Main Website: http://www.spectrainc.ca/
    Product Website: http://www.spectraproducts.ca/

    Company Description
    Spectra Inc., (the “Company”), through its wholly owned subsidiary, Spectra Products Inc., supplies products to the transportation industry. The current product line includes a visual brake stroke indicator, Brake Safe®, that permits vehicle drivers and maintenance personnel to visually determine the brake adjustment condition of a truck, trailer or bus equipped with an air activated brake system. The Company’s electronic version of Brake Safe® is an air brake diagnostic system called Brake Inspector® . This product provides an in-cab display of air brake status and permits diagnosis of various existing and potential brake problems with the foundation brakes of trucks, trailers and buses. The Company also supplies an anticorrosion lubricant called Termin-8r® to the transportation industry and Zafety Lug Lock® a product that prevents wheel-end lug nuts from loosening leading to wheel damage or wheel loss.

    Spectra Inc. Financial Statements and MD&A Highlights(Ending June 30th 2015)

    The company has had six quarters of profitable revenue growth as shown below. This current quarter there was a significant rise in sales which should keep trending upward as Spectra gains more exposure across North America and overseas.

    Current Quarter Sales(Ending June 30th)
    Revenue: $529,252
    Net Income: $91,421

    Last Six Quarters (Breakdown)

    Q1 March 31, 2014
    Revenue: $357,447
    Net Income: $5,939

    Q2 June 30, 2014
    Revenue: $332,726
    Net Income: $13,663

    Q3 September 30, 2014
    Revenue: $394,364
    Net Income: $15,788

    Q4 December 31, 2014
    Revenue: 349,020
    Net Income: $10,210

    Q1 March 31,2015
    Revenue: $352,031
    Net Income: $18,049

    Q2 June 30, 2015
    Revenue: $529,252
    Net Income: $91,421

    ASSETS
    Cash: $74,256
    Accounts Receivable: $233,079
    Inventories: $99,932
    Loan Receivable: $ 25,000
    Prepaid Expenses: $14,055
    Investment in Cotter Pin Solutions Inc: $49
    Equipment: $27,809
    Intangible Assets: $4,951

    LIABILITIES
    Accounts Payable: $250,042
    Loans Payable: $350,000
    Royalty Debenture: $658,828 (Not due until 2019)
    Convertible Debenture: $937,500 (6% Dividend waived in 2014 and 2015)

    MD&A Highlights
    Results of Operations
    Revenue: Three months ended June 30, 2015 Revenue for the three months ended June 30, 2015 increased by 59 percent to $529,252 compared to revenue of $332,726 for the three-month period ended June 30, 2014. The quarterly increase in revenue is mostly attributable to increases in sales in of Brake Safe® of $97,002 from the same period in 2014 to $255,559, Termin-8r® of $11,370 from the same 2014 period to $108,804, sales of Zafety Lug Lock® which increased by $53,833 to $109,844, sales of Hub Alert® of $823 from the same period in 2014 to $7,318 and sales of Arrow Logger™ our new product of $2,212. These increases were offset by decreases in sales of Brake Inspector® which had sales of $6,096 in 2015, compared to sales in 2014 of $8,298.

    Net income
    Three months ended June 30, 2015
    The net income for the three months ended June 30, 2015 was $91,421 or $0.00 per share basic and fully diluted compared to net income of $13,663 or $0.00 per share basic and fully diluted for the three months ended June 30, 2014.

    Six months ended June 30, 2015
    The net income for the six months ended June 30, 2015 was $109,470 or $0.00 per share basic and fully diluted compared to net income of $19,602 or $0.00 per share basic and fully diluted for the six months ended June 30, 2014.

    Balance Sheet:
    Total Assets
    Total assets as at June 30, 2015 were $479,131 an increase of 40 percent from $342,678 as at December 31, 2014.

    OUTLOOK

    The Company continues to focus its efforts on expanding the present market for its products while introducing those products into new markets as well as seeking out new products to complement our other offerings.

    The Company’s Brake Safe® product is well established in the Canadian market and inroads are now being made into the lucrative American market. With the implementation of its new, aggressive, safety enforcement and monitoring program, CSA (Compliance, Safety, Accountability), the Federal Motor Carrier Safety Administration is bringing the focus onto unsafe Carriers and unsafe Drivers in the US transportation industry. A significant increase in roadside enforcement, citations and fines for all driver and vehicle violations will impact positively on the sales growth of Brake Safe® and Zafety Lug Lock® products. A program is being developed to educate companies of these enforcement changes and the resulting increased intervention by regulatory agencies in order to capitalize on sales opportunities for Brake Safe® and Zafety Lug Lock® .

    The Company introduced in the first quarter of 2015 a “buy direct from the manufacturer” program for U.S. fleets and owner operators to increase the awareness of Brake Safe® in the U.S. market. This program is being supported by sustained advertising in select U.S. media and the addition of e-commerce capability on the Company’s website. The Company has entered into a sponsorship arrangement with Kevin Rutherford a radio personality and author of several books for the professional truck driver. Sponsorship is providing widespread exposure to the independent owner/operator trucking segment. Exposure includes prominence on the Let’s Truck website and access to its 30,000 members, frequent blogs featuring the Company’s products as well as interviews with Mr. Rutherford over Sirius XM Satellite radio. The Company will continue to sell Brake Safe® through its existing U.S. distributors.

    The Company’s Termin-8R® product continues to receive strong industry acceptance with a corresponding growth in sales to the transportation segment. The second private label arrangement, introduced in 2010 and made for a major supplier to the commercial transport industry, is proving to be a strong performer with 2014 private label sales now being more than 10% ahead of the same period in 2014. The company believes that developing new private label arrangements will be a key to the ongoing growth in the sales of this product.

    Zafety Lug Lock® continues to make good inroads into the marketplace with new interest from overseas.
    The Company’s newly introduced product, Arrow Logger™, has been designed to complement the Brake Safe® product line with enhanced brake adjustment monitoring. The system allows drivers to inspect brake adjustment during roadside operation without the need to apply the service brake, usually a 2 person operation. The Company anticipates a very positive response to the Arrow Logger™ from existing and potential Brake Safe® customers. While initial sales have been slow, these are expected to grow as the market becomes more aware of the product.

    Initial interest in Hub Alert® and new marketing efforts have been introduced to try to stimulate sales.
    At the end of the second quarter, the Company made an investment in Cotter Pin Solutions Inc. This company has been established to manufacture and sell an innovative new product, the Anti-Seize Cotter Pin. This product solves a major maintenance issue plaguing the industry, the seizing of slack adjuster clevis pins and the resulting time consuming and costly process of their free-up or removal . Seized or binding clevis pins can affect brake performance. The Company has a 49% equity position in Cotter Pin Solutions with the product’s inventor, Jorge Goncalves, retaining 51% equity.

    The Company will continue to form strategic distribution alliances to accelerate its sales outside the Canadian marketplace.

    The Company may seek sufficient additional funds to provide working capital, inventory and capital equipment as needs arise, but at the moment, cash flow from operations is sufficient to support current needs. Until such time as present market conditions improve, the Company will continue the cost-saving measures introduced in 2009 to reduce overhead and improve cash flow.
     
  2. Theoilguy55

    Theoilguy55 New Member

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    Spectra enables Brake Safe, Arrow Logger on-line orders

    2015-10-08 12:00 MT - News Release


    Mr. Michael Faye reports

    SPECTRA INC. INTRODUCES E-COMMERCE TO WEBSITE

    Spectra Inc.'s subsidiary, Spectra Products Inc., has included e-commerce capability on its website.

    The company's website strategy is to focus on the Brake Safe and Arrow Logger products, and attract hundreds of thousands of owner/operators throughout North America by providing a one-stop shopping opportunity for these products. The product presentation format has been updated to provide easy navigation and concise product information supported by video material. A highly visual ordering system has been designed to simplify both product selection and the payment/checkout process.

    "We have introduced Brake Safe in a new, universal format that will outfit all air-brake-equipped vehicles and equipment," stated Michael Faye, Spectra Products president. "The current 10-part numbers available through our distribution network have been reduced to three numbers when ordering from the website. This simplification eliminates confusion and reluctance to purchase products while visiting the website, and our pricing includes shipping and handling to anywhere in the United States or Canada, so owner/operators know their final cost when ordering the Brake Safe kits."

    E-commerce customers can purchase both Brake Safe and the new Arrow Logger separately or in a new, combined kit format. The introduction of on-line purchasing supports the company's strategy to grow its product sales in the United States. Other products will be offered for sale through the website, as the revamping of product layouts and product information continues.

    We seek Safe Harbor.

    © 2015 Canjex Publishing Ltd. All rights reserved.
     
  3. Theoilguy55

    Theoilguy55 New Member

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    SSA.V Q3 Results Ending September 30th 2015


    Price: $0.025
    Common Shares: 60,514,837
    Insider Holdings: 11,542,143(19% as per SEDI)

    Institutional Holdings: 18 million shares(confirmed by Spectra)


    Financial Results:


    Cash: $120,187

    Accounts Receivable: $197,186

    Inventories: $87,646

    Loan receivable: $25,000

    Prepaid expenses: $6,386

    Investment in Cotter Pin: $49

    Equipment: $25,578

    Intangible Assets: $468,600


    Accounts Payable: $137,712

    Loans Payable(Note9): $350,000 (see MD&A)

    Royalty Debenture(Note 10): $664,076 (not due until 2019, see MD&A)

    Convertible Pref Shares(Note 11): $937,500 (6% interest waived in 2014/2015)


    Q3 Revenue

    Sales: $486,953

    Cost: $196,396

    Gross Profit: $290,557

    Net Income: $77,801


    9 Month Revenue

    Sales: $1,368,236

    Net Income: $187,271



    Last Seven Quarters (Sales and net income are increasing while costs remain the same)


    Q3 September 30, 2015

    Revenue: $486,953

    Net Income: $77,801


    Q2 June 30, 2015
    Revenue: $529,252
    Net Income: $91,421

    Q1 March 31,2015
    Revenue: $352,031
    Net Income: $18,049


    Q4 December 31, 2014
    Revenue: 349,020
    Net Income: $10,210


    Q3 September 30, 2014
    Revenue: $394,364
    Net Income: $15,788


    Q2 June 30, 2014
    Revenue: $332,726
    Net Income: $13,663


    Q1 March 31, 2014
    Revenue: $357,447
    Net Income: $5,939


    MD&A Highlights


    Results of Operations


    Revenue:

    Three months ended September 30, 2015 Revenue for the three months ended September 30, 2015 increased by 23 percent to $486,953 compared to revenue of $394,364 for the three-month period ended September 30, 2014. The quarterly increase in revenue is mostly attributable to increases in sales in of Brake Safe® of $56,925 from the same period in 2014 to $232,904, Termin-8r® of $18,090 from the same 2014 period to $107,520, Hub Alert® of $5,434 from the same period in 2014 to $8,048 and sales of Arrow Logger™ our new product of $695. These increases were offset by decreases in sales of Zafety Lug Lock® which decreased by $26,375 to $78,834 and Brake Inspector® which had sales of $4,357 in 2015, compared to sales in 2014 of $12,516.


    Nine months ended September 30, 2015 Revenue for the nine months ended September 30, 2015 increased by 26 percent to $1,368,236 compared to revenue of $1,084,537 for the nine-month period ended September 30, 2014. The increase in revenue is attributable to increases in sales in most product categories; Brake Safe® from $477,847 to $622,719; Termin-8r® from $290,568 to $325,705; Hub Alert® from $17,578 to $28,390; Arrow Logger™ from nil to $2,907 and increases in sundry income from $30,815 to $127,756, less declines in sales of Zafety Lug Lock® from $247,926 to $243,886 and Brake Inspector® from $19,803 to $16,873;


    Liquidity and Cash Flow

    Nine months ended September 30, 2015

    During the nine months ended September 30, 2015, the Company earned $98,153 from operating activities compared to earning $39,717 from operations during the same period in 2014. Non-cash items contributed $105,852 for the period compared to $112,117 for the nine months ended September 30, 2014. The Company had no loan repayments in the nine months ended September 30, 2015, compared to net loan repayments of $30,000 in the nine months ended September 30, 2014. In the nine months ended September 30, 2015, the Company made an investment of $49 in a new private company and made a loan advance of $25,000 to that company. The combined result of these factors was a net increase in cash resources of $73,104 and a cash resources balance at the end of the period of $120,187. During the equivalent period in 2014, the Company showed a net increase in cash resources of $9,717 and a cash resources balance of $29,640 at the end of the period.


    OUTLOOK

    The Company continues to focus its efforts on expanding the present market for its products while introducing those products into new markets as well as seeking out new products to complement our other offerings.


    The Company’s Brake Safe® product is well established in the Canadian market and inroads are now being made into the lucrative American market. With the implementation of its new, aggressive, safety enforcement and monitoring program, CSA (Compliance, Safety, Accountability), the Federal Motor Carrier Safety Administration is bringing the focus onto unsafe Carriers and unsafe Drivers in the US transportation industry. A significant increase in roadside enforcement, citations and fines for all driver and vehicle violations will impact positively on the sales growth of Brake Safe® and Zafety Lug Lock® products. A program is being developed to educate companies of these enforcement changes and the resulting increased intervention by regulatory agencies in order to capitalize on sales opportunities for Brake Safe® and Zafety Lug Lock®.


    The Company introduced in the first quarter of 2015 a “buy direct from the manufacturer” program for U.S. fleets and owner operators to increase the awareness of Brake Safe® in the U.S. market. This program is being supported by sustained advertising in select U.S. media and the addition of e-commerce capability on the Company’s website. The Company has entered into a sponsorship arrangement with Kevin Rutherford a radio personality and author of several books for the professional truck driver. Sponsorship is providing widespread exposure to the independent owner/operator trucking segment. Exposure includes prominence on the Let’s Truck website and access to its 30,000 members, frequent blogs featuring the Company’s products as well as interviews with Mr. Rutherford over Sirius XM Satellite radio. The Company will continue to sell Brake Safe® through its existing U.S. distributors.


    The Company’s Termin-8R® product continues to receive strong industry acceptance with a corresponding growth in sales to the transportation segment. The second private label arrangement, introduced in 2010 and made for a major supplier to the commercial transport industry, is proving to be a strong performer with 2014 private label sales now being more than 14% ahead of the same period in 2014. The company believes that developing new private label arrangements will be a key to the ongoing growth in the sales of this product.


    Zafety Lug Lock® continues to make good inroads into the marketplace with new interest from overseas


    The Company’s newly introduced product, Arrow Logger™, has been designed to complement the Brake Safe® product line with enhanced brake adjustment monitoring. The system allows drivers to inspect brake adjustment during roadside operation without the need to apply the service brake, usually a 2 person operation. The Company anticipates a very positive response to the Arrow Logger™ from existing and potential Brake Safe® customers. While initial sales have been slow, these are expected to grow as the market becomes more aware of the product.


    At the end of the second quarter of 2015, the Company made an investment in Cotter Pin Solutions Inc. This company has been established to manufacture and sell an innovative new product, the Anti-Seize Cotter Pin. This product solves a major maintenance issue plaguing the industry, the seizing of slack adjuster clevis pins and the resulting time consuming and costly process of their free-up or removal . Seized or binding clevis pins can affect brake performance. The Company has a 49% equity position in Cotter Pin Solutions with the product’s inventor, Jorge Goncalves, retaining 51% equity. These new products are now on trial with various customers and we look forward to sales starting in the last quarter of this year


    The Company will continue to form strategic distribution alliances to accelerate its sales outside the Canadian marketplace.


    The Company may seek sufficient additional funds to provide working capital, inventory and capital equipment as needs arise, but at the moment, cash flow from operations is sufficient to support current needs.
     

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