Thermal Energy International Reports Fourth Quarter and Fiscal 2024 Results
Rhea-AI Summary
Thermal Energy International (TSXV: TMG) (OTCQB: TMGEF) reported record financial results for fiscal 2024. Key highlights include:
- Revenue up 23% to $25.9 million for the year
- Gross profit up 30% to $12.5 million
- EBITDA up 15% to $2.0 million
- Net income up 36% to $1.0 million
- Order intake up 8% to $29.5 million
- Order backlog up 43% to $18.7 million
The company reinvested $1.5 million in growth initiatives, including expanding its team and production capacity. While Q4 results were lower year-over-year due to exceptional GEM orders in the prior year, annual performance showed significant growth across the business. The current order backlog stands at $21.3 million as of September 18, 2024.
Positive
- Record annual revenue of $25.9 million, up 23% year-over-year
- Gross profit increased 30% to $12.5 million for the year
- EBITDA grew 15% to $2.0 million annually
- Net income rose 36% to $1.0 million for the fiscal year
- Order intake increased 8% to $29.5 million
- Order backlog up 43% to $18.7 million as of May 31, 2024
- Current order backlog of $21.3 million as of September 18, 2024
Negative
- Q4 revenue decreased 8% to $7.5 million compared to the previous year
- Q4 gross profit down 18% to $3.1 million year-over-year
- Q4 EBITDA decreased 64% to $0.4 million compared to last year
- Q4 net income down 70% to $0.3 million year-over-year
- Operating expenses increased by $2.5 million for the full year
News Market Reaction – TMGEF
In the trading session that priced this news, TMGEF declined 11.79%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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Fiscal 2024 was a record year for revenue, order intake, and EBITDA
Ottawa, Ontario--(Newsfile Corp. - September 19, 2024) - Thermal Energy International Inc. (TSXV: TMG) (OTCQB: TMGEF) ("Thermal Energy" or the "Company"), a provider of innovative energy efficiency and carbon emission reduction solutions to major corporations around the world, today reported its financial results for the fourth quarter and year ended May 31, 2024. All figures are in Canadian dollars.
Highlights:
(Comparisons are on a year-over-year basis)
- Revenue:
$25.9 million (up23% ) for the year,$7.5 million (down8% ) for the quarter. - Gross profit:
$12.5 million (up30% ) for the year,$3.1 million (down18% ) for the quarter. - EBITDAi:
$2.0 million (up15% ) for the year,$0.4 million (down64% ) for the quarter. - Net income:
$1.0 million (up36% ) for the year,$0.3 million (down70% ) for the quarter. - Order intake:
$29.5 million (up8% ) for the year, including$5.1 million in the quarter. - Order backlogii was
$18.7 million as at May 31, 2024, up43% compared to last year, and$21.3 million as at September 18, 2024.
Overview
"Fiscal 2024 was a remarkable year for Thermal Energy International, setting new records in revenue, order intake, and EBITDA," said William Crossland, Thermal Energy CEO. "Given the nature of our business our quarterly results can vary quite significantly. In this regard, our continued growth in annual revenue and profitability is especially noteworthy considering the exceptional fourth quarter we had in the prior year, which included revenue from a number of exceptionally large GEM orders, including
"We reinvested more than
i EBITDA represents earnings before interest, taxation, depreciation, amortization, impairment of intangible assets, and share-based compensation expense. See note below about non-IFRS measures.
ii Order backlog represents any purchase orders that have been received by the Company but have not yet been reflected as revenue in the Company's published financial statements. See note below about non-IFRS measures.
Summary Financial Results
| In thousand except % data | Three months ended May 31, 2024 | Three months ended May 31, 2023 | Twelve months ended May 31, 2024 | Twelve months ended May 31, 2023 |
| Revenue | ||||
| Gross profit | ||||
| Gross margin | ||||
| Operating expenses | ||||
| Net income (loss) | ||||
| EBITDAiii | ||||
| Cash position | ||||
| Working capital | ||||
| Orders received | ||||
| Order backlogiv as of May 31 |
Fourth Quarter 2024 and Fiscal 2024 Financial Review
Fourth quarter revenue was
Operating expenses for the quarter were
For the quarter, the Company had EBITDA of
For the year ended May 31, 2024, revenue was
i EBITDA represents earnings before interest, taxation, depreciation, amortization, impairment of intangible assets, and share-based compensation expense. See note below about non-IFRS measures.
ii Order backlog represents any purchase orders that have been received by the Company but have not yet been reflected as revenue in the Company’s published financial statements.
Operating expenses for the year amounted to
The Company achieved EBITDA of
Year-end cash and working capital balances were approximately
Business Outlook and Order Summary
Orders received ("Order Intake") during the fourth quarter totalled
The Company also received
Full financial results including Management's Discussion and Analysis and accompanying notes to the financial results are available on www.sedarplus.ca and investors-thermalenergy.com/en/financial-overview.
Notice of Earnings Call and Webcast
Management of Thermal Energy will host an earnings call and webcast today, September 19, 2024, at 8:30 am ET to discuss its fourth quarter financial results. A question-and-answer session will follow management's prepared remarks, at which time qualified equity analysts will be able to submit questions via the webcast.
The live webcast will be available at https://bit.ly/TMG2024Q4webcast. You may join the webcast via MS Teams on your computer, mobile app or room device. Please join the webcast approximately 15 minutes prior to the earnings call to ensure adequate time for registration and admittance to the webcast.
For more information on joining an MS Teams meeting, visit: https://bit.ly/TMGMSTeams.
To access the conference call via dial-in (audio only), please use the information below.
Calling from Canada: +1 437-703-4481
Find a local number: https://bit.ly/TMG2024Q4local
Phone Conference ID: 147 635 09 #
The webcast will be archived on Thermal Energy's website following the call date.
Readers are encouraged to subscribe to TEI News to receive strategic news and updates directly to their inbox.
ENDS
For media enquiries contact:
Thermal Energy International Inc.
Canada: 613-723-6776
UK: +44 (0)117 917 2179
Marketing@thermalenergy.com
For investor enquiries:
William Crossland
President and CEO
Thermal Energy International Inc.
613-723-6776
Investors@thermalenergy.com
Notes to editors
About Thermal Energy International Inc.
Thermal Energy International Inc. provides energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. We save our customers money by reducing their fuel use and cutting their carbon emissions. Thermal Energy's proprietary and proven solutions can recover up to
Thermal Energy is a fully accredited professional engineering firm with engineering offices in Ottawa, Canada, Pittsburgh, USA, as well as Bristol, UK, with sales offices in Canada, UK, USA, Germany, Poland, and Italy. By providing a unique mix of proprietary products together with process, energy, and environmental engineering expertise, Thermal Energy can deliver unique, site-specific turnkey and custom engineered solutions with significant financial and environmental benefits for our customers.
Thermal Energy's common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG and on the OTCQB under the symbol TMGEF. For more information, visit our investor website at https://investors-thermalenergy.com or company website at www.thermalenergy.com and follow us on Twitter at https://twitter.com/GoThermalEnergy.
Forward-Looking Statements
This press release contains forward-looking statements relating to, and amongst other things, based on management's expectations, estimates and projections, the anticipated effectiveness of the Company's products and services, the timing of revenues to be received by the Company, the expectation that orders in backlog will become revenue, the anticipated benefits of the Company's current efforts at training and business improvement efforts, opportunities for growth, the Company's belief that it can capitalize on opportunities, the size of markets and opportunities open to the Company and expectations that order intake will bounce back.. Information as to the amount of heat recovered, energy savings and payback period associated with Thermal Energy International's products are based on the Company's own testing and average customer results to date. Statements relating to the expected installation and revenue recognition for projects, statements about the anticipated effectiveness and lifespan of the Company's products, statements about the expected environmental effects and cost savings associated with the Company's products and statements about the Company's ability to cross-sell its products and sell to more sites are forward looking statements. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, some of which are outside of the Company's control, could cause events and results to differ materially from those stated. Fulfilment of orders, installation of product and activation of product could all be delayed for a number of reasons, some of which are outside of the Company's control, which would result in anticipated revenues from such projects being delayed or in the most serious cases eliminated. Actions taken by the Company's customers and factors inherent in the customer's facilities but not anticipated by the Company can have a negative impact on the expected effectiveness and lifespan of the Company's products and on the expected environmental effects and cost savings expected from the Company's products. Any customer's willingness to purchase additional products from the Company and whether orders in the Company's backlog as described above will turn into revenue is dependent on many factors, some of which are outside of the Company's control, including but not limited to the customer's perceived needs and the continuing financial viability of the customer. The Company disclaims any obligation to publicly update or revise any such statements except as required by law. Readers are referred to the risk factors associated with the Company's business as described in the Company's most recent Management's Discussion and Analysis available at www.sedarplus.ca.
Non-IFRS Financial Measures
The Company believes the following non-IFRS financial measures provide useful information to both management and investors to better understand the financial performance and financial position of the Company.
EBITDA
Management believes that EBITDA (earnings before interest, taxation, depreciation, amortization, impairment of intangible assets, and share-based compensation expense) is a useful performance measure as it approximates cash generated from operations, before tax, capital expenditures and changes in working capital, and excludes impairment of intangible assets. EBITDA also assists comparison among companies as it eliminates the differences in earnings due to how a company is financed. EBITDA does not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and therefore may not be comparable to similar measures presented by other companies. There is no direct comparable IFRS measure for EBITDA.
A reconciliation of net income (loss) to EBITDA is shown below.
| Three months ended | Twelve months ended | |||
May 31, | May 31, | May 31, | May 31, | |
| Total net income (loss) attributable to owners of the parent | 278,473 | 965,545 | 929,504 | 717,959 |
| Total net income (loss) attributable to non-controlling interest | 11,875 | 5,857 | 52,664 | 2,490 |
| Interest charge | 94,700 | 80.299 | 416,816 | 449,341 |
| Interest revenue | (49,340) | - | (49,340) | - |
| Income tax (recovery) expense | (95,126) | (28,005) | 16,981 | (26,514) |
| Depreciation and amortization | 116,584 | 93,139 | 384,329 | 367,917 |
| Share based compensation | 65,306 | 53,319 | 237,251 | 216,934 |
| EBITDA | 422,472 | 1,170,154 | 1,988,205 | 1,728,127 |
Order Backlog
Order backlog is a useful performance measure that Management uses as an indicator of the short-term future revenue of our Company resulting from already recognized orders. The Company includes in "order backlog" any purchase orders that have been received by the Company but have not yet been reflected as revenue in the Company's published financial statements. It is important to note that once an order or partial order is recorded as revenue, the order backlog is reduced by the amount of the newly reported revenue. Order backlog does not have a standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable to similar measures presented by other companies.
For additional details on non-IFRS financial measures, please refer to the Company's most recent Management's Discussion and Analysis available at www.sedarplus.ca for more details about these non-IFRS financial measures.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223837