Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. ITP Energy Corp (1307345) 10-Q published on Nov 21, 2011 at 4:01 pm
Reporting Period: Sep 29, 2011
In October the Company has entered into a cooperation commercial agreement with Akkord Industry Construction Corporation in Baku and according to this agreement two new letters of intent are in process of being formalized. One related to design and supply of equipment for carpentry and pressure vessels in Baku (total amount of approximately Euro 25 million) and another for the completion of a cement plant in Gazic (total amount of approximately Euro 60 million). Study and planning activities have been already started on October 17 and the customer is requiring that both operations are completed by 2012.
In the projects we may become involved, typically there is an approximately eight to twelve months period between the starting date of an engineering procurement and construction project and the time when our services become relevant. Therefore, the increase in the volume of new orders experienced in the second semester of 2010 and increases registered in the first semester 2011 will be reflected in engineering procurement and construction activity during the second semester of 2011 and throughout 2012. Total revenues during December 31, 2010 amounted to $63.6 million. During the first semester 2011 we entered into twenty new orders for our products and services, having an aggregate value in excess of $40 million not including our entering into two new and significant contracts for our products and services jointly valued in excess of $200 million. These new contracts require adequate financing in order for us to be able to comply with the required contractual guarantees that we must provide as part of our obligations to our customers under such agreements.
In terms of revenues by country, during the quarter ended September 30, 2011, the results were consistent with those of the similar quarter in 2010 with an increase in Belaurus & Kasakhstan and in the Rest of Europe which were offset by a decrease in Italy and in other remaining area. A comparison of revenues by country during the nine-month periods ended September 30, 2011 and 2010 is highlighted by a decrease in Italy of $5,245 thousand or 47% from $11,151 thousand to $5,906 thousand offset by the increase of $13,290 thousand in new revenues from Belarus. The decrease in revenues from Italy and the United States is explained by the slow down of investment in Italy and the United States, whereas the Belarus revenues are tied to the new contract with JSC Grodno Azot for the cycloexanone unit in the Grodno Azot industrial complex.The increase in the “Rest of Europe” is mainly due to new orders awarded in the second half of 2010. JSC Grodno Azot is a mayor customer that accounted for 11% of our revenues during the nine-month period ended September 30, 2011.
As of September 30, 2011, our management, under the supervision of and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as required by Rules 13a-15(b) and 15d- 15(b) under the Exchange Act and using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon this evaluation (with the participation of our Chief Executive Officer and our Chief Financial Officer (Principal Accounting Officer)), as of the end of the period covered by this Report, our Chief Executive Officer and our Principal Accounting Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)), are effective as of the end of the period covered by this Report to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Prior to commencing his employment with ITP, Mr. Barbieri, age 43, worked with Deloitte & Touche S.p.A. (a member firm of Deloitte Touche Tohmatsu Limited), independent accountants for over 15 years, where he most recently served as Audit Senior Manager, and was responsible for the financial statement, reporting packages and internal controls audits of various Italian companies and of Italian subsidiaries of U.S. multinational corporations. From 2000-2002, Mr. Barbieri was assigned to the New York office of Deloitte & Touche where he performed audit services to various U.S. corporations. Mr. Barbieri is a certified public accountant and chartered accountant in Italy and received a business degree from the University of Rome—La Sapienza.