Can this dog still hunt?

I don't want to call this company a dog because its not but at first glance its not looking so good financially.Its 2011 Third Quarter Financial Results were released and once you skim past the highlights you look at where they expect to be in 2012 and thats how I like to look at things.
http://www.prosep.com/news-and-investor-center/presentations-and-fact-sheets.html

ProSep Reports 2011 Third Quarter Financial Results

MONTREAL, QUEBEC--(Marketwire - Nov. 10, 2011) - ProSep Inc. (TSX:PRP) ("ProSep" or the "Company"), dedicated to providing process solutions to the oil and gas industry, today announced its financial results for the three and nine-month periods ended September 30, 2011. All amounts are reported in Canadian dollars unless otherwise stated.
Selected highlights of the quarter and important subsequent events:
Financial(1)

• Revenues during the third quarter were $6.9 million, a decrease of 16% when compared to $8.1 million recognized during the corresponding period of 2010, resulting from lower order intake in the last two quarters.
  
• Gross margin stood at $2.2 million (32% of revenues) compared to $2.0 million (24% of revenues) for the corresponding period of 2010. Improved gross margins result mainly from efficient project execution.
  
• EBITDA was negative $2.3 million compared to negative $0.8 million for the corresponding period of 2010, on lower order intake and investments in hiring and supporting additional human resources to benefit from positive market conditions, and support our growth strategy.
  
• Loss for the period amounted to $2.5 million compared with a loss of $1.5 million for the corresponding period of 2010.
  
• At quarter end, backlog stood at $9.5 million, up 22% from $7.8 million at beginning of the year. Including recent contract announcements, current backlog stands at approximately $19 million.
  
• The Company closed on October 14, 2011 a tranche of $11.1 million from a non-brokered private placement of up to $15 million to provide additional working capital.
  

Commercial

• Concluded $2.8 million in new signings in the third quarter and $11.7 million during the first weeks of the fourth quarter of 2011. Including these recent contract awards, total signings year-to-date stand at $40 million, compared to $23 million for the entire twelve month period of last year.
  
• Concluded an important distribution agreement with Flint Energy Services Ltd., a leading Canadian-based unconventional oil and gas service and equipment supplier.
  
• Concluded the Company's first contract for its newly introduced seawater treatment and water injection system, valued at $2.7 million.
  
• Sold the Company's largest offshore produced water treatment system, valued at $6.5 million, for installation in South-East Asia.
  
• Sold its proprietary desalting technology to a leading Latin American Oil and Gas producer by demonstrating significant process improvements, reduced water consumption and improved oil quality at the customer's installation.
  
• Concluded a contract to test ProSep's novel injection and mixing technology at a leading Saudi Arabian producer with the objective of demonstrating superior performance compared with processes currently used at all its production and gathering facilities.
  
• Initiated the development of field tests at various customer locations for ProSep's proprietary gas dehydration system and produced water treatment systems.

(1) The Company adopted IFRS at January 1, 2011.
Operations

• Hired Michael M. Browne, P.Eng., as President and General Manager of ProSep (USA) Inc., the Company's business unit located in Houston, Texas.
  
• Hired additional resources to support expected growth at the South-East Asian business unit and South Korean joint venture ProSep Kolon.
  
• Maintained exceptional Health Safety and Environment ("HS&E") track record and zero Total Recordable Incident Rate ("TRIR") for two years.
  
• Completed ISO 9001 : 2008 certification of all business units around the world.
  

"ProSep achieved significant milestones during the quarter. We've completed our organizational changes, expanded our offering and strengthened our market reach. With the conclusion of an important equity financing, we now have all elements in place to deliver stronger results and achieve profitability", said Jacques L. Drouin, President & CEO. "In recent weeks, we've announced a number of significant awards. These are the first tangible results of our new strategy. As we focus on accelerating commercialization of our proprietary technologies and continue building strong references, we expect to see significant backlog growth in the current quarter and into 2012."

Now lets look at some of the recent buying institutionally as well as who supported the last finance. I am not here to connect the dots for investors. I think this story may have been passed by for some investors because they did not dig very deep. Some investors are lazy and unless the herd is there buying some guys will walk right buy. Don't get into the herd mentality and buy based on the whispers on the boards or you might as well get someone to read your tea leaves. That's about the same result. Hard work, there I said it. It takes hard work, hours of due diligence. Do your own research and find those gems that fell in 2011 or were sold off during those unpleasant selling periods. The markets are always forward looking. Are you?

I think this qualifies to make my "wild card" list for 2012. That means it is higher risk than I am usually after but it does have ingredients that would potentially put this as a 10-bagger if a few more domino's were to fall in place. Will they fall into place or will this just fall? I am rooting for the company on this one and I would suggest Flint is as well IMHO. After all why else would millions be handed over to the company recently?
The outstanding share count may be a bit high but I think the actual float in the hands of traders may surprise you.

ProSep Ranked Among the Fastest Growing Technology Companies in Canada in the Deloitte Technology Fast 50(TM)


MONTREAL, QUEBEC -- (Marketwire) -- 10/19/11 -- ProSep Inc. (TSX:PRP) ("ProSep" or the "Company"), dedicated to providing process solutions to the oil and gas industry, today announced that it ranked for a third consecutive year among the Deloitte Technology Fast 50(TM), a ranking of the 50 fastest growing technology companies in Canada, based on the percentage of revenue growth over five years. ProSep's revenue growth of 972 percent from 2006 to 2010 resulted in its ranking in the Deloitte Technology Fast 50(TM).

For over 14 years, the Deloitte Technology Fast 50(TM) program has tracked the successful growth of Canadian-grown global leaders. Now Canada's pre-eminent technology award program, the Deloitte Technology Fast 50(TM) augments the broader Deloitte North American Technology Fast 500 initiative, with winners automatically eligible for this elite ranking.

"Canadian technology companies have demonstrated some very impressive growth numbers over the past year, amid the challenges of an uncertain global economic recovery," said Richard Lee, National Leader, Technology, Media & Telecommunications Industry Group, Deloitte. "ProSep is an example of the determination, drive and skill that will serve to position them for further growth and success in the years to come."

"ProSep is honoured to be a Deloitte Technology Fast 50(TM) winner for a third consecutive year", said Jacques L. Drouin, President and CEO. "Our solutions are recognized by some of the world's leading oil and gas companies as step-change technologies, improving production while reducing environmental footprint. We believe our dedication to innovation and process improvements sets us apart from our competition. With the conclusion of our recent financing, we now have a stronger platform to achieve our ambitious goal of becoming our industry's leading technology-focused process solutions provider."

To qualify for the Deloitte Technology Fast 50(TM) ranking, companies must have been in business for at least five years, have revenues of at least $5 million, be headquartered in Canada, own proprietary technology, and conduct research and development activities in Canada. A panel of industry experts evaluate and judge companies based on four key criteria: competitive advantage; size, growth, and market attractiveness; management effectiveness and organization; and financial performance.

About the Deloitte Technology Fast 50(TM) Program - The Deloitte Technology Fast 50(TM) program is Canada's pre-eminent technology awards program. Celebrating business growth, innovation and entrepreneurship, the program features four distinct categories including the Technology Fast 50(TM) Ranking, Companies-to-Watch Awards (early-stage Canadian tech companies in business less than five years, with the potential to be a future Deloitte Technology Fast 50(TM) candidate,) Leadership Awards (companies that demonstrate technological leadership in four industry subcategories: hardware/semiconductor, software, telecommunications and emerging technologies) and the Deloitte Technology Green 15(TM) Awards (Canada's leading GreenTech companies that promote a more efficient use and re-use of the earth's resources in industrial production and consumption.) Program sponsors include Deloitte, Gowlings, Wellington Financial, TMX Group, HKMB Hub International, National Angel Capital Organization, CVCA, MaRS and IGLOO Software. For further information, visit www.fast50.ca.

About ProSep

ProSep is a technology-focused process solutions provider to the upstream oil and gas industry. ProSep designs, develops, manufactures and commercializes technologies to separate oil, water and gas generated by oil and gas production. For more information, please visit www.prosep.com.

Caution concerning forward-looking statements

This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of ProSep Inc. These statements are based, among others, on the Company's current assumptions, expectations, estimates, objectives, plans and intentions regarding projected revenues and expenses, the economic and industry environments in which the Company operates or which could affect its activities, the Company's ability to attract new clients and consumers as well as its operating costs, raw materials and energy supplies which are subject to a number of risks and uncertainties. Forward-looking statements can generally be identified by the use of the conditional tense, the words "may", "should", "would", "believe", "plan", "expect", "intend", "anticipate", "estimate", "foresee", "objective" or "continue" or the negative of these terms or variations of them or words and expressions of similar nature. Actual results could differ materially from the conclusion, forecast or projection stated in such forward-looking information. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include but are not limited to the Company's ability to develop, manufacture, and successfully commercialize value added equipments and services, the availability of funds and resources to continue its operations and pursue its projects, legislative or regulatory developments, competition, technological change, changes in government and economic policy, inflation and general economic conditions in geographic areas where ProSep Inc. operates. These and other factors should be considered carefully and undue reliance should not be placed on the forward-looking statements.

Contacts:
ProSep Inc.
Investor Relations and Media:
Danielle Ste-Marie
VP Marketing and Communications
(514) 522-5550 ext. 238
dste-marie@prosep.com

CONTENT POSTED ON THIS BLOG DOES NOT CONSTITUTE A BUY OR SELL RECOMMENDATION. MANY OF THE COMPANIES PROFILED HERE I AM NOT INVESTED IN AND DO NOT INTEND TO INVEST IN. THESE ARE MERELY MY THOUGHTS ON MARKET CONDITIONS AND STOCK VALUATIONS. INVESTING IN THE STOCK MARKET CAN BE VERY RISKY AND YOU SHOULD ALWAYS CONSULT AN INVESTMENT PROFESSIONAL BEFORE MAKING ANY DECISIONS. ULTIMATELY YOU ARE RESPONSIBLE FOR CONDUCTING YOUR OWN DUE DILIGENCE AND PROTECTING YOUR MONEY.