FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2002
ENERGY POWER SYSTEMS LIMITED
(FORMERLY: ENGINEERING POWER SYSTEMS LIMITED)
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(Address of Principal executive offices)
Suite 301, 2 Adelaide Street West, Toronto, Ontario, M5H 1L6
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover form 20-F or Form 40-F:
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2b under the Securities Exchange Act of 1934:
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3- 2(b): 82
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ENERGY POWER SYSTEMS LIMITED
(formerly: Engineering Power Systems Limited)
Date: November 25, 2002 By:____"Sandra J. Hall"____ ______
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Sandra J. Hall, President, Secretary & Director
Energy Power
Systems Limited
Consolidated Financial Statements
September 30, 2002
(Unaudited)
(Expressed in Canadian Dollars)
ENERGY POWER SYSTEMS LIMITED
CONSOLIDATED BALANCE SHEET
(EXPRESSED IN CANADIAN DOLLARS)
SEPTEMBER 30, 2002 JUNE 30, 2002
(UNAUDITED) (AUDITED)
ASSETS
CURRENT
Cash $ 4,432,280 $ 5,610,621
Marketable securities 284,235 283,800
Receivables 11,798,444 5,218,201
Due from co-venturer 1,083,942 159,110
Inventories and work in progress 981,379 2,652,816
Prepaid expenses 53,113 59,618
Future income tax asset 61,473 61,473
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TOTAL CURRENT ASSETS 18,694,866 14,045,639
Oil and gas interests (net of accumulated
depletion) 4,413,251 4,400,078
Capital assets (net of accumulated
depreciation and amortization) 2,800,037 2,834,859
Investment 3,500,000 3,500,000
Future income tax asset 533,527 533,527
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$ 29,941,681 $ 25,314,103
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT
Bank indebtedness $ 2,226,438 $ 1,462,766
Accounts payable and accrued liabilities 7,925,465 4,022,114
Due to shareholders 315,000 628,346
Current portion of long-term debt 185,925 185,925
Future income tax liability 432,490 432,490
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TOTAL CURRENT LIABILITIES 11,085,318 6,731,641
Long-term debt 454,093 501,670
Future income tax liability 22,110 22,110
TOTAL LIABILITIES 11,561,521 7,255,421
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SHAREHOLDERS' EQUITY
Capital stock 42,096,732 42,096,732
Deficit (23,716,572) (24,038,050)
TOTAL SHAREHOLDERS' EQUITY $ 18,380,160 $ 18,058,682
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$ 29,941,681 $ 25,314,103
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The accompanying notes to the financial statements are an integral part of these
financial statements
ENERGY POWER SYSTEMS LIMITED
CONSOLIDATED STATEMENT OF EARNINGS AND DEFICIT
(UNAUDITED)
(EXPRESSED IN CANADIAN DOLLARS)
----------------------------------
FOR THE THREE
MONTH PERIOD
ENDING SEPTEMBER 30
2002 2001
---------------- --------------
Sales $ 10,462,874 $ 5,540,561
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Cost of sales (including depreciation
---------------------------------------------
and depletion of $117,619; 2001 - $61,587) 9,175,826 4,540,241
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Gross profit 1,287,048 1,000,320
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Administrative expenses 896,717 660,023
Amortization of goodwill - 65,314
Amortization of capital assets 17,179 39,810
Interest and bank charges 40,208 32,015
Interest on long-term debt 11,466 17,426
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965,570 814,588
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Earnings before the following 321,478 185,732
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Other income - 224,287
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NET EARNINGS $ 321,478 $ 410,019
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Deficit, beginning of period (24,038,050) (20,849,848)
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Deficit, end of period ($23,716,572) ($20,849,848)
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NET EARNINGS PER COMMON SHARE
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Net earnings per share $ 0.04 $ 0.07
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Weighted average common shares
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outstanding (thousands) 10,579 6,300
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FULLY DILUTED NET EARNINGS PER COMMON SHARE
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Net earnings per share $ 0.03 $ 0.05
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Weighted average fully diluted common shares
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outstanding (thousands) 11,010 8,695
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The accompanying notes to the financial statements are an integral part of these
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financial statements
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ENERGY POWER SYSTEMS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
(EXPRESSED IN CANADIAN DOLLARS)
----------------------------------
FOR THE THREE MONTH PERIOD
ENDING SEPTEMBER 30
2002 2001
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OPERATING ACTIVITIES
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Net earnings $ 321,478 $ 410,019
Adjustments to reconcile net earnings to
net cash provided by operating activities
Amortization of goodwill - 65,314
Amortization of capital assets 134,798 101,397
Future income taxes, net - (745)
------------------------------------------- ------------ -----------
456,276 575,985
Net change in non-cash working capital
Receivables (6,580,243) (489,890)
Inventories and work in progress 1,671,437 (982,454)
Prepaid expenses 6,505 (35,012)
Accounts payable and accrued liabilities 3,903,351 256,834
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CASH USED IN OPERATIONS (542,674) (674,537)
FINANCING ACTIVITIES
Bank indebtedness 763,672 586,598
Long term debt, net (47,577) (52,485)
Repayment to shareholders (313,346) 177
Issue of common shares - 823,246
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CASH PROVIDED BY FINANCING ACITIVITIES 402,749 1,357,536
INVESTING ACTIVITIES
Purchase of capital assets (26,027) (27,762)
Purchase of oil and gas interests (87,122) (115,938)
Due from co-venturer (924,832) (275,158)
Marketable securities (435) (158,405)
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CASH USED IN INVESTING ACTIVITIES (1,038,416) (577,263)
NET INCREASE IN CASH (1,178,341) 105,736
Cash, beginning of period 5,610,621 1,242,621
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CASH, END OF PERIOD $ 4,432,280 $1,348,357
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The accompanying notes to the financial statements are an integral part of these
financial statements
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CASH, END OF PERIOD CONSISTS OF:Cash $4,432,280 $1,348,357
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ENERGY POWER SYSTEMS LIMITED
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTH PERIOD ENDING SEPTEMBER 30, 2002
------------------------------------------------------------
(EXPRESSED IN CANADIAN DOLLARS)
1. BASIS OF PRESENTATION
These unaudited interim consolidated financial statements have been prepared
following the same accounting policies and methods of computation as the
consolidated financial statements for the year ended June 30, 2002. These
interim financial statements should be read in conjunction with the Company's
audited consolidated financial statements together with notes for the year ended
June 30, 2002.
2. SEGMENTED INFORMATION
The Company's operations are separated into two distinct segments; the
Industrial & Offshore Division, consisting of the consolidated operations of M&M
Engineering Limited, a wholly owned subsidiary, and the Oil & Gas Division
performing oil and gas exploration and production. M&M is an industrial
contracting company performing fabrication and installation of process piping,
installation of production equipment, steel tank erection, specialized welding
services and industrial maintenance. Results for the three months ending
September 30, 2002 and September 30, 2001are as follows:
FOR THE THREE MONTHS ENDING SEPTEMBER 30, 2002
Industrial
& Offshore Oil & Gas Corporate Total
Revenue 10,306,317 156,557 - 10,462,874
Interest expense 49,901 - 1,773 51,674
Amortization and depletion 60,849 73,949 - 134,798
Net earnings (loss) 689,503 (21,761) (346,264) 321,478
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Capital assets and
oil and gas interests 2,800,037 4,413,251 - 7,213,288
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FOR THE THREE MONTHS ENDING SEPTEMBER 30, 2001
Industrial
& Offshore Oil & Gas Corporate Total
Revenue 5,402,224 138,337 - 5,540,561
Interest expense 49,441 - - 49,441
Amortization and depletion 152,357 14,354 - 166,711
Net earnings 323,438 37,929 48,652 410,019
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Capital assets and
oil and gas interests 3,236,702 2,119,077 - 5,355,779
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3. SUBSEQUENT EVENTS
On October 4, 2002 96,000 warrants exercisable at $9.60 expired.
4. SHARE CAPITAL
(a) Authorized and Issued:
Authorized:
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Unlimited number of Common Shares, without par value
Unlimited number of Class A Preference Shares, Series I
Unlimited number of Class A Preference Shares, Series II
Issued
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Common shares
# Consideration
Balance, as at June 30, 2002 10,578,645 $42,096,732
Balance, as at September 30, 2002 10,578,645 $ 42,096,732
(b) Common share purchase warrants outstanding consist of the following:
EXERCISE EXPIRY 2002 2001
PRICE DATE # #
$8.00 March 9, 2002 - 222,917
$9.60 October 4, 2002 96,000 96,000
US$4.45 March 13, 2003 40,000 -
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136,000 318,917
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(c) Common share purchase options outstanding consist of the following:
EXERCISE EXPIRY 2002 2001
PRICE DATE HOLDER # #
$ 1.50 February 6, 2005 Directors and employees - 105,000
$ 4.00 June 14, 2005 Directors and consultants 21,000 110,000
$ 6.30 January 8, 2006 Directors and employees 274,000 -
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295,000 215,000
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