Ottawa based, Thermal Energy International Inc. (TSXV: TMG), today announced its financial results for the three months (Q2) and six months (YTD) ended November 30, 2016. All figures are in Canadian dollars.
Q2 2017 Financial Review:
Revenue for the quarter grew 23% to $3.1 million compared to $2.5 million for the second quarter of last year. Sales of heat recovery systems increased 7%, while GEM sales were up 34% compared to the same quarter a year ago.
Gross profit for the quarter increased 19% to $1.9 million compared to $1.6 million for the second quarter of last year. As a percentage of sales, gross profit for the quarter was 62.7% compared to 64.6% in the second quarter a year ago.
The Company achieved significant increases in EBITDAS and net income for the quarter. EBITDAS for the quarter was $285 thousand compared to $84 thousand a year earlier. Net income for the quarter improved to $175 thousand from $26 thousand in the second quarter of last year.
Adjusted operating cash flow (defined as net income for the period, plus items not involving cash, plus lease payments received) for the quarter was $274 thousand compared to $85 thousand for the same period last year.
As at November 30, 2016, the Company had a net cash balance of $1.5 million. With cash balances and unused borrowing capacity combining for a total of approximately $1.9 million, management believes that it has sufficient capital resources to fund existing operations and anticipated capital requirements for the remainder of fiscal 2017.
Order and Backlog Summary:
The Company had an order backlog of approximately $7.1 million as at January 19, 2017, compared to $6.9 million a year ago. The current order backlog is comprised of several heat recovery orders announced during the first half of fiscal 2017, including $2.8 million remaining in orders from three hospital customers, $1.7 million from a leading ethanol producer, $644 thousand remaining from a global brewing company, and $150 thousand remaining from a global mining and materials company.
Previously announced GEM orders included in the current backlog are $194 thousand remaining in orders from a leading performance materials company, and $147 thousand from a hospital. The current backlog also includes a $95 thousand GEM order from a Fortune 500 food and beverage leader, which was not previously announced.
The Company includes in “order backlog” the value of projects in respect of which purchase orders have been received but have not yet been reflected as revenue in the Company’s published quarterly financial statements.
About Thermal Energy International Inc.
Thermal Energy International Inc. is an established global supplier of proprietary, proven energy efficiency and emissions reduction solutions to the industrial and institutional sectors. We save our customers money and improve their bottom line by reducing their fuel use and cutting their carbon emissions. Our customers include a large number of Fortune 500 and other leading multinational companies across a wide range of industry sectors.
Thermal Energy is also a fully accredited professional engineering firm, and can offer advanced process and applications engineering services.
Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, U.K., United States, Italy and China. The Company’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG.
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