Thermal Energy International's Gross Profit Up 32% in First Quarter, Order Backlog Up to $7.8 Million
OTTAWA, ONTARIO – October 20, 2016 – Thermal Energy International Inc. (“Thermal Energy” or the “Company”) (TSXV: TMG), a global provider of proprietary energy efficiency solutions to the industrial, commercial and institutional sectors, today announced its financial results for the three-month period ended August 31, 2016. All figures are in Canadian dollars.
“Despite lower revenue for the quarter, our gross profit increased significantly and we have a robust order backlog of $7.8 million. Since the beginning of the first quarter we announced nearly $2.5 million in hospital orders, a $750 thousand heat recovery order from a global brewing company, and most recently, a $1.7 million heat recovery order from a leading ethanol producer. We also received several other smaller orders both during and subsequent to the end of the first quarter. These orders came from many different industries, including biotech and pharmaceutical, mining and resources, performance materials, textiles, food service packaging, and tire manufacturing. With two proven products that reduce both energy bills and carbon emissions, and with governments around the world taking unprecedented action with regards to climate change, we believe we are well-positioned to continue our strong track record of growth.” - William Crossland, CEO of Thermal Energy.
Q1 2017 Financial Review:
Revenue for the quarter was $2.1 million, representing a decrease of 16.5% compared to $2.6 million for the first quarter of last year. Despite a strong heat recovery order backlog, due to the timing of project implementation, heat recovery systems revenue decreased 55.9% as it included only the closing stages of an installation at a major hospital, as announced October 29, 2015 plus an installation at a major food producer, as announced May 3, 2016. Revenue from GEM condensate return systems increased 55.5% and included the partial conversion of a plant belonging to a Fortune 500 food and beverage company as well as revenues from the various orders mentioned in the Company’s news release dated September 20, 2016.
Gross profit for the quarter was approximately $1.5 million, an increase of 32.4% compared to $1.1 million in the first quarter a year earlier. The increase was attributable to the higher proportion of GEM product sales during the most recent quarter, which resulted in gross profit as a percentage of sales increasing to 68.2% from 43.0% a year earlier.
The higher gross profit combined with lower operating costs resulted in improved EBITDAS (defined as earnings before interest, taxation, depreciation, amortization, impairment of goodwill and other intangible assets, share-based compensation expense and net write down of lease) and a smaller net loss for the quarter. EBITDAS for the quarter was $3 thousand compared with negative $401 thousand a year earlier. The Company had a net loss of $80 thousand versus a net loss of $453 thousand in the first 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 negative $79 thousand compared to negative $336 thousand a year earlier.
Order and Backlog Summary
On July 25, 2016, the Company announced that it had received an $840 thousand order from a multi-site hospital group to connect all four boiler plants at one of the customer’s three hospitals to an existing heat recovery system previously installed by Thermal Energy.
On August 4, 2016, the Company announced it had received $1,148 thousand in orders from a hospital trust, including an $868 thousand heat recovery system at one of the trust’s hospitals and a $280 thousand GEM order for another of the trust’s hospitals.
On August 8, 2016, the Company announced it had received a $750 thousand heat recovery order from one of the world’s largest beer companies.
On September 14, 2016, the Company announced it had received a $500 thousand GEM order from a new hospital customer.
On September 28, 2016, the Company announced it had received a $1.7 million order from a leading producer of industrial and fuel alcohols for the supply and installation of one of Thermal Energy’s proprietary FLU-ACE heat recovery systems, which will be used to heat a greenhouse being built adjacent to one of the customer’s ethanol plants.
The following orders were also received during the quarter or subsequent to quarter end:
Including the above mentioned orders, the Company had an order backlog of approximately $7.8 million as at October 18, 2016, compared to $3.7 million at the same time last year. 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. The Company saves its customers money and improve their bottom line by reducing their fuel use and cutting their carbon emissions. Customers include a large number of Fortune 500 and other leading multinational companies across a wide range of industry sectors.
For more information, visit the Company website at www.thermalenergy.com and follow @GoThermalEnergy on Twitter at http://twitter.com/GoThermalEnergy.
GUELPH, Ontario, Oct. 12, 2016 /PRNewswire/ -- Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ), one of the world's largest solar power companies, today announced that working together with Empowered by Light, in partnership with the GivePower Foundation, it has donated 30 kW solar panels with 72 poly cell matrix, CS6X-P, to the first mini-grid systems in Virunga National Park -- installed in August 2016.
Located in the Eastern regions of the Democratic Republic of Congo, the Virunga National Park has been a UNESCO World Heritage site since 1979.Virunga National Park is home to a large portion of the world's endangered mountain gorillas, chimpanzees, Okapis, and other rare species. In recent years, many wildlife populations have been damaged by the Congo Civil War and relentless poaching efforts. Due to the efforts by the Virunga park rangers, these numbers have shown signs of reversal, and Canadian Solar is proud to be part of the continued protection efforts.
"Protecting endangered species and environment is every corporate citizen's responsibility. As a founder and a CEO of a world leading PV solution provider, I am happy to be able to empower rangers in their endeavour," commented by Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar.
This mini-grid PV system provides electricity to the three security sectors within the conservation, powering security lights, radios, and helping enhance the ranger's ability to protect the park's wildlife, even in remote areas at night.
About Canadian Solar Inc.
Founded in 2001 in Canada, Canadian Solar is one of the world's largest and foremost solar power companies. As a leading manufacturer of solar photovoltaic modules and provider of solar energy solutions, Canadian Solar also has a geographically diversified pipeline of utility-scale power projects in various stages of development. In the past 15 years, Canadian Solar has successfully delivered over 16 GW of premium quality modules to over 90 countries around the world. For additional information about the company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.
We believe it is essential that we move to a clean energy economy and lessen our dependence on fossil fuels this decade. This blog shares ideas, news and other information about better, cleaner ways to meet our energy needs.