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OTTAWA, ONTARIO / October 30, 2018 - Thermal Energy International Inc. ("Thermal Energy" or the "Company") (TSXV: TMG), a global provider of proprietary energy and water efficiency, emission reduction and sustainability solutions to the industrial, commercial and institutional sectors, today announced its financial results for the three-month period ended August 31, 2018. All figures are in Canadian dollars.
Highlights:
"Following our record revenue for all of fiscal year 2018, we achieved record revenue again for the first quarter of fiscal 2019" said William Crossland, CEO of Thermal Energy. "The ongoing strategic investments we are making in expanding our team, capabilities and product offerings is clearly beginning to pay off. The acquisition of Boilerroom Equipment Inc. in June not only expanded our offering of complementary products but also gave us direct access to significant new sales channels and provides us with a strong United States base of operations. Last week we announced two orders that moved us beyond our traditional thermal energy efficiency market into the broader water efficiency and sustainability markets. As businesses across the globe search for ways they can reduce operating costs and improve sustainability, they will increasingly be looking to suppliers that have a broad range of sustainability capabilities to identify, recommend, and implement the most advantageous solutions." "With a strong order book and our expanded team, product offering and market reach, we are well positioned to continue our momentum in fiscal 2019 and beyond." Q1 2018 Financial Review: Revenues were $6,800,861 in the quarter ended August 31, 2018, representing an increase of $3,703,277, or 119.6%, over the $3,097,584 recognized in the quarter ended August 31, 2017. The increase in revenues from in the current quarter was mainly due to the partial delivery of the $11 million energy efficiency project with the Pulp & Paper Customer announced December 5, 2017, which was approximately 74% complete as at August 31, 2018, plus the addition of the Boilerroom Equipment business effective June 29, 2018. The gross profit of $2,209,885 in the quarter ended August 31, 2018 represented an increase of $692,088, or 45.6%, from the $1,517,797 achieved in the quarter ended August 31, 2017. The increase was mainly the result of increased revenues. Gross profit expressed as a percentage of sales was 32.5% in the first quarter of FY 2019 compared with 49.0% in the first quarter of FY 2018. The decrease in gross profit percentage was due to the product split between heat recovery and steam traps. Administration, selling, marketing and business development expenses ("Operating Expenses") in the quarter ended August 31, 2018 totaled $2,295,743 compared to $1,704,019 in the quarter ended August 31, 2017, an increase of $591,724, or 34.7%. Main increases included onetime costs related to the acquisition of Boilerroom Equipment Inc. ($107,342), the integration of Boilerroom Equipment Inc's results into the consolidated results, increased commission payable related to the increased revenue, the strategic investments in the future growth of the company including the addition of new sales and technical staff and additional investments in advertisement and marketing activities ($110,800), plus foreign exchange losses experienced in the quarter compared to foreign exchange gains experienced in the same quarter of the previous year (a difference of $54,644). Despite the increases, Operating Expenses as a percent of revenue was only 33.8% this year compared to 55.0% last year. Furthermore, excluding the onetime costs related to the acquisition of Boilerroom Equipment Inc. and the strategic investments to support the future growth of the business, Operating Expenses for the quarter would have been only $2,077,601. EBITDAS for the quarter was negative $50,736, a $135,533 improvement compared to first quarter last year. However, EBITDAS would have been $167,406, a $353,675 increase compared to the same quarter last year if we excluded the strategic investments in growth and onetime expenses noted above.
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Complementary product offering and increased distribution network present significant cross-selling opportunities
OTTAWA, ONTARIO / TheNewswire –Thermal Energy International Inc.(“Thermal Energy” or the “Company”) (TSXV: TMG ), a global provider of industrial and institutional energy efficiency solutions, today announced that it has acquired all of the outstanding shares of privately held Boilerroom Equipment Inc. (“BEI”) based just outside of Pittsburgh PA. This acquisition is part of the Company’s strategy to develop a broad portfolio of thermal energy efficiency solutions targeted at the industrial, institutional and commercial markets and become a unique one-stop-shop for all of its clients’ thermal energy efficiency and heat recovery needs, whether they need heat recovery for thermal, electrical, drying, cooling, or other process needs. The purchase price is USD 2.25 million, plus earn-out consideration of up to USD 350 thousand if certain growth and performance targets are achieved over the next three years. Thermal Energy has received a term loan in the principal amount of USD 2.25 million from BDC Capital Inc., a wholly owned subsidiary of the Business Development Bank of Canada to fund the transaction. Based in Export, Pennsylvania, BEI engineers and manufactures the HEATSPONGE ®brand of best-in-class indirect contact heat recovery units for use in both commercial and industrial steam and hot water applications. The acquisition of BEI is expected to provide Thermal Energy with the following immediate benefits:
“The addition of BEI supports our growth strategy by expanding our team, distribution and product offering,” said William Crossland, CEO of Thermal Energy. “This makes Thermal Energy the only known global supplier of direct and indirect contact heat recovery systems. In the past, these two options have competed against each other, but now Thermal Energy has brought them together. As the global market moves more towards sustainability, the effective use of waste heat becomes paramount. Whether waste heat is used directly at the client site, or used to produce cooling or electricity at neighbouring sites, the market for waste energy is extensive. With this acquisition, we are uniquely positioned to take advantage of this existing trend. In this way, this transaction brings together two very complementary organizations and is expected to add shareholder value through increased sales and earnings. We also expect to benefit from BEI’s strong United States distribution network and established boiler OEM relationships. Similarly, there is potential for further growth using Thermal Energy’s global footprint to accelerate the deployment of BEI’s technologies. We are already very familiar with, and impressed by, BEI’s products, having integrated them into several of our projects over the years.” “I would also like to take this opportunity to welcome Vince Sands P.E., co-founder and current President of BEI, and his team to our company,” added Mr. Crossland. “As a registered professional engineer with a Bachelor of Science in Naval Architecture and Marine Engineering from the United States Merchant Marine Academy, Master of Business Administration studies, and a former United States Navy and US Coast Guard licenced engineering officer, Vince brings over 25 years of related industry experience and expertise to the combined business. In addition to being responsible for all sales, engineering and product development at BEI, Vince developed the heat transfer algorithms and computer code for their unmatched BRUCE engineering software.” Mr. Sands commented: “We are extremely pleased to be a part of Thermal Energy International. While I am very proud of the company we founded and built, we recognized that for BEI to achieve everything it is capable of would require partnering with a larger organization that can provide the resources BEI needs. It is my strong opinion that our HEATSPONGE line of steam boiler economizers represents the most advanced technology available to the global heat recovery market. Our SIDEKICK and RAINMAKER technologies have the potential to reshape the hydronic boiler market unlike any product since the development of the condensing boiler. We have invested over three years seeking the ideal acquisition partner and could not be more pleased in becoming a part of Thermal Energy. There is a real synergy between their direct contact and our indirect contact approach to heat recovery. Having supplied heat exchangers to Thermal Energy for years will make integration much smoother because of the established relationships. Most importantly, they share my passion to establish HEATSPONGE as the global leader in indirect heat recovery, which is going to make the next few years very exciting.” The acquisition expands Thermal Energy’s complementary product offering to include BEI’s indirect contact heat recovery products, which are scalable and customizable with minimal additional engineering. In addition to large industrial and institutional applications, these products are well-suited for the commercial market as well as smaller industrial and institutional sites that are not currently cost-effective for Thermal Energy’s FLU-ACE ® heat recovery systems. The acquisition also provides Thermal Energy with access to an engineered products distribution network of independent manufacturers’ representatives in the United States, Canada and parts of South America, a s well as an established direct sales channel to boiler equipment manufacturers. The USD 2.25 million purchase price is subject to a holdback of USD 250 thousand (the “Holdback Amount”) to be held for a period of 18 months following the closing of the acquisition in respect of certain indemnification obligations. Upon release, the balance of the Holdback Amount can be paid in cash or by the issuance of Thermal Energy shares, at the option of the vendors. In the event that Thermal Energy opts to pay the earn-out consideration by the issuance of shares, those share will be issued at a price per share equal to the greater of the fifty-two week volume weighted average price of shares of the Company on the Exchange ending on the day prior to the day that the relevant earn-out payment is due to be paid and the Discounted Market Price (as such term is defined in the Exchange’s Policy 1.1. In the event that the vendors opt to have the Holdback Amount satisfied by the issuance of shares, those share will be issued at a price per share equal to the greater of the five day volume weighted average price of shares of the Company on the Exchange ending on the day prior to the closing of the acquisition and the Discounted Market Price (as such term is defined in the Exchange’s Policy 1.1 BEI's annual sales in each of the last two years was approximately USD 1.8 million while net income after adjusting for non-recurring expenses was $248, thousand last year and $201 thousand the year before. BDC Capital’s Growth and Transition team provided a USD $2.25 million dollar loan to Thermal Energy in support of the BEI acquisition. The debt is secured by Thermal Energy International Inc. and each of its material subsidiaries, has a term of 84 months and a floating interest rate, The initial interest rate is 9.1%. “We’re proud to support Thermal Energy’s continued growth in this key industry sector. By expanding its product suite and distribution network, we believe this acquisition will further solidify Thermal Energy as an energy efficiency and emissions reduction industry leader,” says Sean Crouse, Director BDC Growth and Transition Capital for the Ottawa/Outaouais regions. About BDC Capital BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital . About Boilerroom Equipment Inc. Boilerroom Equipment Inc. (“BEI”) was, prior to the acquisition, a privately held U.S. company based in Export, Pennsylvania, focused on the design, engineering and manufacturing of its proprietary HEATSPONGE™ indirect contact heat recovery systems. BEI was founded in 2005 by Barry Alberts and Vince Sands, P.E. with the vision of producing the most advanced technology for the commercial and industrial boiler industries supported by a new generation of automated design software. Easily maintainable and available in various metallurgies best suited to each individual application, the HeatSponge represents the state-of-the-art in global indirect contact boiler design. Condensing, multi-stage designs are resulting in efficiency gains greatly exceeding older heat recovery technology. The HeatSponge SIDEKICK and RAINMAKER reflect a first-to-market technology that enables existing conventional efficiency boilers to be retrofitted to high efficiency condensing at far lower cost. All of BEI’s indirect contact heat exchangers are supported by “BRUCE”, an automated software system that provides the majority of sales engineering and proposal support for the product line in real time. With potentially thousands of different permutations of the SIDEKICK and RAINMAKER alone, this next generation of highly advanced heat exchangers could not be commercially viable without the support of the BRUCE design and optimization software. 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 by providing a unique mix of proprietary products together with process, energy and, environmental engineering expertise, Thermal Energy is able to deliver unique turnkey projects with significant financial and environmental benefits for our customers. Thermal Energy's proprietary products include; GEM - Steam traps, FLU-ACE ® - Direct contact condensing heat recovery, and Dry-Rex ® - Low temperature biomass drying systems. Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, U.K., United States, Germany, Italy and China. The Company’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG. For more information, visit the company's website at www.thermalenergy.com and follow them on Twitter at http://twitter.com/GoThermalEnergy . CEO's Letter Provides Year-End Progress Report to Shareholders of Thermal Energy International6/21/2018 Fellow shareholders,
With fiscal 2018 having come to a close, I wanted to take the opportunity to reflect on all that we have done over the past year, as it was a banner year in more ways than one. While we won't be reporting our fiscal 2018 year-end financial results for a few more months, there are many accomplishments, and a lot of progress to talk about at this time. We've spent the last several years growing our business, our client base, and our teams. Not only are we continuing to do so, but we are beginning to see real results, as evidenced by the solid revenue growth reported for the first nine months of fiscal 2018, the receipt of the largest order in our history this past December, and our order book reaching (and remaining near) an all-time high. Growing our team Not being a capital intensive business, the key to organic growth has been, and continues to be, growing and investing in our team and enhancing our products. However, given the long sales cycle for our products and the technical nature of our sales process, new sales team members in particular take a considerable amount of time (one to two years) to ramp up and start meeting expectations. As a result, each year Thermal Energy's board and management team carefully assess the company's actual and expected profitability and cash flow, then strategically and deliberately take a portion of those profits and reinvest them in the future growth of the business by, among other things, adding to our team and developing new products, product enhancements or markets. In each of the last two years we have invested an average of an additional $350,000 in the future growth of our business primarily in the form of adding additional sales and technical team members. That is, we believe the investment of approximately $700,000 of the Company's cash flow into future growth, was (and is) in the best interests of the Company for the long term. At the end of fiscal 2016 and the start of fiscal 2017, we added a sales person for Latin America as well as a sales person and engineer to target the cogeneration market with our super-efficient, FLU-ACE(R) solution. Then later in fiscal 2017, we officially expanded into Germany with the hiring of our first sales person there. We also added two junior engineers and a North American marketing manager towards the end of fiscal 2017. Early in fiscal 2018, we hired a German, French and Italian speaking EU sales director to support and facilitate increased penetration in European markets, including Germany. Last October, we announced the hiring of Luc Mandeville (the former CTO and lead engineer for a global competitor Sofame) as a senior project engineer to support both growth in our existing product lines and to expand our product offerings. In the past few months, we've hired our second salesperson for the German market; a technical sales person in Texas to service the gulf coast petrochemical sector; and an experienced UK-based marketing manager. We remain focused on growing our team and their capabilities and are targeting similar investments in fiscal 2019. We are already in the process of looking for additional salespeople in both North America and Europe. Over the last two years we have also increased our spending on product and intellectual property research and development and are planning further increased investment in this area in fiscal 2019 as well. But we are not just growing the team and geographic footprint. We are also making significant investments to improve our team's capabilities and productivity. We are developing and implementing a number of improvements and efficiencies in the areas of lead generation, pre-screening tools, automated quote generation, enhanced CRM system capabilities, training video libraries and market data bases. And later this month we are holding a global employee conference with four days of multi-stream product and sales training for our entire sales and engineering teams to ensure every member of the team achieves their full potential as quickly and efficiently as possible. All of these investment activities --- the on-going hiring, training and retention of the additional sales and technical staff, product, market and application R&D, enhanced marketing, upgraded operational systems --- have, over the past few years, resulted in higher operating costs and lower profitability. These are long term investments. And while it impacts our bottom line in the short term, this thoughtful and measured reinvestment is key to our growth. It does take time for it to pay off, and I believe we are starting to see just that. Expanding our product offering In July of 2016 (which was in fiscal 2017) we announced that we were targeting the attractive cogeneration market by combining our proprietary FLU-ACE(R) heat recovery technology and engineering expertise with existing power generation technologies to provide the highest efficiency cogeneration solution available in the market, our Super-Efficient Cogeneration solution. Last summer, in August (fiscal 2018) we received our first order under our new Super-Efficient Cogeneration offering, a $1.5 million order from one of our prime existing clients, a leading Fortune 500 food and beverage conglomerate. The dramatic energy efficiency improvement that our Super-Efficient Cogeneration solution offered over typical cogeneration systems allowed us, at this customer site, to roughly double the revenue that we will earn when compared to providing a FLU-ACE system alone. The plan is to replicate this at other sites with this customer and other customers, thereby growing our aggregate revenue by increasing the number of potential sites as well as increasing the potential revenue at each site. It is important to note that our GEM, FLU-ACE, and Super-Efficient Cogeneration solutions are just a few of the hundreds of thermal energy efficiency products and services in the marketplace. We see great potential for adding more complementary products and services that could be sold to our already extensive client list. Our strategic plan contemplates the expansion of our product offering through both in-house product development and potentially via acquisitions of similar companies or technologies. Demonstrating our capabilities This past December, we announced the largest contract in the history of our company, an $11 million energy efficiency project with Resolute FP Canada Inc. ("Resolute"). The project includes the installation of two of our proprietary FLU-ACE(R) Heat Recovery Systems and the conversion of steam traps to our GEM(TM) Steam Traps. This project is expected to result in natural gas savings of more than 35% for Resolute's Thunder Bay, Ontario mill, while reducing the customer's greenhouse gas emissions by approximately 43,000 metric tonnes. Bringing this project to fruition was a significant undertaking. We have been working in partnership with Resolute for more than a year and a half now, designing, developing, and now implementing a heat recovery and steam conservation project that meets their energy savings and greenhouse gas reduction goals for the Thunder Bay mill. While working to secure the project, we were also working with Resolute to ensure the project would qualify for funding from the Ontario Centres of Excellence (OCE) Target GHG Stream 1 Program. In fact, we were able to help Resolute secure $5 million in funding for the project. Our project's participation in the TargetGHG Stream 1 Program provides further validation of our GHG emission reduction innovation with a reference customer. Importantly, this project demonstrates that, we can not only deliver a large scale project such as this, but also identify and win the applicable funding for our customers as well. This combination of product and service provides a tremendous value-added offering for our clients in a space where carbon taxes and funding opportunities for GHG reduction projects are steadily growing. As we continue to grow and invest in our team, we will also continue to grow and strengthen our engineering and project development capabilities. With activity ramping up during the fourth quarter of fiscal 2018, this project is now well underway and progressing in line with our expectations. The majority of the revenue associated with this project is expected to be recorded in fiscal 2019 and we look forward to keeping you up to date with its progress as time goes on. Continuing to execute our strategy This past year has been an exciting one. From our first Super-Efficient Cogeneration order, to receiving our largest order ever, we had several successes and an order book that's stronger than ever. Our challenge is to keep and build upon this momentum in fiscal 2019 and beyond. We continue to believe that we have the right strategy in place for delivering sustainable growth. We remain focused on growing our market share in key markets such as North America and Europe. As we have mentioned, one of the ways to do this is to expand our complementary product offering, offering a more comprehensive approach to our clients' needs. Other ways would include expanding distribution within these key markets, or targeting additional applications or vertical markets in these regions. We can do all of this either organically or through acquisitions. Our business operates in a highly fragmented market consisting of hundreds of small-to-medium-sized sized energy efficiency technology providers operating in North America, Europe and around the world. We believe there are several companies out there that would be a good fit, combined with us, and we continue to seek accretive acquisitions as part of our multi-faceted growth strategy. We believe the global market for energy efficiency remains an extremely attractive one. Governments the world over continue to pursue and implement regulations to reduce carbon emissions as they look to make the transition to a clean energy economy. Energy efficiency can help them achieve all of this faster and more cheaply than other initiatives. As such, the industrial sector continues to adopt measures that can improve the energy efficiency of internal processes and operations, thus contributing to an increased demand for energy efficiency products, solutions and services globally. By continuing to execute our multifaceted growth strategy, we plan to capitalize on these strong market fundamentals and position ourselves to be the preferred solutions provider for this space. I would like to take this opportunity to thank you, our shareholders, for your loyalty and support over the years. As I look ahead, I could not be more confident in our team, strategy, and growth prospects. I am very proud of what the Thermal Energy team has accomplished over this past year and I look forward to what the future holds in store for us. Sincerely, William Crossland Thermal Energy Receives $1.2 Million Order from Leading Fortune 500 Food & Beverage Customer6/12/2018  OTTAWA, ONTARIO / TheNewswire / June 12, 2018 – Thermal Energy International Inc. (“ Thermal Energy ” or the “Company”) (TSX-V: TMG ), a global provider of industrial and institutional energy efficiency solutions , has received a $1.2 million order from one of its corporate accounts, a leading Fortune 500 food and beverage conglomerate, for another FL U-ACE ® heat recovery system. The project is expected to be completed and revenue earned over the next nine months. “We are pleased to announce the receipt of another significant order from this corporate account,” said William Crossland, CEO of Thermal Energy. “This $1.2 million FLU-ACE order is the third substantial order from this customer in the past twelve months. Last summer we announced a $1.46 million “ Super-Efficient Cogeneration™ ” heat recovery project in August, and a $1.82 million FLU-ACE order in July 2017. Including this latest order, we have now sold our heat recovery systems to seven of this customer’s sites, and have either partially or fully converted 28 of their sites over to our GEM™ venturi orifice steam traps. Importantly, all of our business with this customer to date has been with one division in one geographical area, and they have hundreds of sites across several divisions around the globe. With our products’ wide applications in the food and beverage industry, this customer continues to choose Thermal Energy to help them reduce their energy costs while lowering their greenhouse gas emissions.” The FLU-ACE system will recover the energy from the waste heat generated in the flue gases of one of the onsite boilers. The waste heat recovered will be returned to process in the form of hot water. The FLU-ACE system is expected to provide the site with annual utility savings of approximately $245 thousand, while reducing greenhouse gas emissions by 2,085 tonnes per year. 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 by providing a unique mix of proprietary products together with process, energy and, environmental engineering expertise, Thermal Energy is able to deliver unique turnkey projects with significant financial and environmental benefits for our customers. Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, U.K., United States, Germany, Italy and China. The Company’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG. For more information, visit the Company's website at www.thermalenergy.com and follow them on Twitter at http://twitter.com/GoThermalEnergy . OTTAWA, ONTARIO – April 23, 2018 – Thermal Energy International Inc. (“Thermal Energy” or the “Company”) (TSXV: TMG), a global provider of industrial and institutional energy efficiency solutions, today announced its financial results for the three months (Q3) and nine months (YTD) ended February 28, 2018. All figures in this news release are in Canadian dollars. Today the Company also announced that it has received a $690 thousand heat recovery order from a new Canadian hospital customer. The heat recovery system is expected to provide the hospital with annual energy savings of $200 thousand, while reducing its annual greenhouse gas emissions by approximately 2,000 tonnes. The project is expected to be completed and revenue earned over the next six months. With this latest hospital order, the Company’s order backlog is now $16.3 million, more than double the $8.0 million reported at this time last year. Q3 and YTD Financial Highlights:
“Our strong revenue growth of almost 20% for the year-to-date and our exceptionally high order backlog are a testament to our growth strategy and the ability of our team to execute it. This is tracking to be a banner year for us, and given the strong order backlog, our outlook beyond this fiscal year remains very positive. During the third quarter we received the largest order in our history – an $11 million energy efficiency project with Resolute Forest Products. This did not contribute significantly to our third quarter revenue, but will boost our revenue from now into fiscal 2019, and possibly early fiscal 2020.” “We remain focused on growing our business, and to do so we must continue to grow and invest in our team. In my mid-year letter to shareholders on January 29, 2018, I mentioned our plans for hiring a second salesperson for the German market; a technical sales person in Texas to service the gulf coast petrochemical sector; and, an experienced UK-based marketing manager. I am pleased to say that we have since made each of these additions to our team, and are in the process of looking for additional salespeople in both North America and Europe.” Q3 2018 Financial Review:
Revenue for the quarter was $3.2 million, which was comparable to the revenue in the third quarter of last year. Sales of heat recovery systems increased 3.8% while sales of GEM™ Condensate return systems were down 5.4% for the quarter. The third quarter included heat recovery revenues from two ongoing hospital projects, the continuation of a project at a sixth site of a leading Fortune 500 food and beverage producer (announced July 6, 2017), initial work on the co-generation project with the same customer (announced August 31, 2017), and the early engineering phase of the energy efficiency project with Resolute Forest Products (announced December 5, 2017). GEM revenues in the quarter included further orders from a leading performance materials company, as well as a number of smaller value orders. Gross profit for the quarter was approximately $1.6 million, down 4.5% from approximately $1.7 million in the third quarter of last year. As a percentage of sales, gross profit for the quarter fell to 49.6% from 52.0% in the third quarter a year ago. The decrease in gross profit percentage resulted from current heat recovery projects carrying lower margins than in the previous year. Operating expenses for the quarter were $1,786 thousand compared with $1,720 thousand for the same quarter last year. As a percentage of revenue, operating expenses were 55.3% for the quarter, compared to 53.3% a year ago. The increase was attributable to small increases in costs associated with new sales and technical staff, plus the timing of audit fee invoices. The Company had negative EBITDAS of $156 thousand and a net loss of $159 thousand for the quarter. This compares to negative EBITDAS of $2 thousand and a net loss of $56 thousand in the third quarter of last year. At the end of February 2018, the Company had working capital of $1.2 million compared to $1.4 million at the end of fiscal 2017. The Company’s net cash position (cash and cash equivalents) decreased to $2.1 million from just under $3.0 million as at May 31, 2017. In addition to its net cash balance, the Company also had an estimated $246 thousand of unused borrowing capacity under its bank loans at the end of the third quarter. Full financial results including Management’s Discussion and Analysis and accompanying notes to the financial results, are available on www.SEDAR.com and www.thermalenergy.com. Order and Backlog Summary As at April 23, 2018, the Company had an order backlog of $16.3 million, compared with $8.0 million a year earlier. In addition to the $690 thousand heat recovery order announced today, and several smaller orders received during the quarter and subsequent to quarter end, the Company’s order backlog also includes the following orders:
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 by providing a unique mix of proprietary products together with process, energy and, environmental engineering expertise, Thermal Energy is able to deliver unique turnkey projects with significant financial and environmental benefits for our customers. Thermal Energy's proprietary products include; GEMTM - Steam traps, FLU-ACE® - Direct contact condensing heat recovery, and Dry-Rex® - Low temperature biomass drying systems. Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, U.K., United States, Germany, Italy and China. The Company’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG. For more information, visit the Company's website at www.thermalenergy.com and follow @GoThermalEnergy on Twitter at http://twitter.com/GoThermalEnergy. OTTAWA, ONTARIO - March 26, 2018 – Thermal Energy International Inc. (“Thermal Energy” or the “Company”) (TSX-V: TMG), a global provider of industrial and institutional energy efficiency solutions, has received a $820 thousand order from a teaching hospital for one of the Company’s proprietary FLU-ACE® heat recovery systems. This system has been designed to significantly reduce the operating costs of the hospital as well as reduce the carbon footprint of the site. The project is expected to be completed and revenue earned over the next six months.
“This order is yet another example of why our hospital customers continue to choose Thermal Energy,” said William Crossland, CEO of Thermal Energy. “With best-in-class efficiency, high return on investment, and a 20-plus year track record, the FLU-ACE heat recovery systems are a proven solution for reducing operating costs and carbon emissions. By making hospitals greener and more energy efficient, hospitals can reallocate funds to where they matter most, providing excellent health care. The FLU-ACE system will recover the energy from the waste heat generated in the flue gases of two gas-fired hot water boilers and an onsite cogeneration unit. The waste heat will be used to generate hot water for use in hydronic heating and domestic hot water. Once installed, the FLU-ACE system is expected to provide the teaching hospital with annual savings of approximately $220 thousand, while reducing greenhouse gas emissions by 1,007 tonnes per year. 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 by providing a unique mix of proprietary products together with process, energy and, environmental engineering expertise, Thermal Energy is able to deliver unique turnkey projects with significant financial and environmental benefits for our customers. Thermal Energy's proprietary products include; GEMTM - Steam traps, FLU-ACE® - Direct contact condensing heat recovery, and Dry-Rex® - Low temperature biomass drying systems. Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, U.K., United States, Germany, Italy and China. The Company’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG. For more information, visit the Company's website at www.thermalenergy.com and follow them on Twitter at http://twitter.com/GoThermalEnergy. # # # 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 and the timing of revenues to be received by the Company. 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 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. 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.
OTTAWA, ONTARIO – January 29, 2018 – Thermal Energy International Inc. (“Thermal Energy” or the “Company”) (TSXV: TMG), a global provider of industrial and institutional energy efficiency solutions, today announced its financial results for the three-month (the “quarter”) and six-month (the “first half” or “year-to-date”) periods ended November 30, 2017. All figures are in Canadian dollars.
HIGHLIGHTS:
Second Quarter Financial Review:
Driven by stronger heat recovery sales, Thermal Energy’s revenue increased 21.1% to $3.7 million for the quarter compared to $3.1 million for the second quarter of last year. Heat recovery revenue was up 108.0% and included the substantial completion of an installation at a major hospital, progress of a project at a sixth site of a leading Fortune 500 food and beverage customer (as announced July 6, 2017), and the partial installation of a system at a leading producer of industrial and fuel alcohols (as announced September 28, 2016). Revenue from GEM condensate return systems was down 26.0%, despite further orders from a leading performance materials company. The decrease was mainly the result of lower public sector sales. Gross profit for the quarter was just under $1.9 million, or 49.7% of revenue, compared to slightly more than $1.9 million, or 62.7% of revenue, in the second quarter of last year. Gross margin was affected by the product split, with the second quarter of this year having a much higher proportion of revenues deriving from the sale of heat recovery systems. Operating expenses for the quarter were $1,777 thousand compared with $1,687 thousand for the same quarter last year. Operating expenses as a percentage of revenue decreased to 47.7% from 54.8% a year ago, despite additional costs associated with new technical and sales staff needed to grow the business. The Company had EBITDAS and net income of $109 thousand and $71 thousand respectively for the quarter. This compares to EBITDAS and net income of $285 thousand and $175 thousand respectively in the second quarter of last year. Business Update and Order Backlog Summary: Subsequent to quarter end, on December 5, 2017 the Company announced an $11 million energy efficiency project with Resolute FP Canada Inc. The project, which included the installation of two FLU-ACE® Heat Recovery Systems and the conversion of the mill’s steam traps to Thermal Energy’s proprietary GEM Steam Trap system, represents the Company’s largest heat recovery and largest GEM orders to date. The project is expected to be substantially completed and revenue earned over the next 17 months. As part of the Company’s evolving corporate account development strategy the Company recently received four GEM orders totaling $601 thousand from two multinational consumer products companies. More specifically:
Also subsequent to year end, the Company received a $120 thousand heat recovery equipment order from a producer and supplier of fresh and value-added food products. Including the above mentioned recent orders, the Company had an order backlog of approximately $1 million as at January 2018, compared to $7.1 million when it reported second quarter results a year earlier. 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 by providing a unique mix of proprietary products together with process, energy and, environmental engineering expertise, Thermal Energy is able to deliver unique turnkey projects with significant financial and environmental benefits for our customers. Thermal Energy's proprietary products include; GEMTM - Steam traps, FLU-ACE® - Direct contact condensing heat recovery, and Dry-Rex® - Low temperature biomass drying systems. Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, U.K., United States, Germany, Italy and China. The Company’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG. For more information, visit the Company's website at www.thermalenergy.com and follow @GoThermalEnergy on Twitter at http://twitter.com/GoThermalEnergy.
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 and the timing of revenues to be received by the Company. Statements relating to the expected installation and revenue recognition for projects, statements about the anticipated effectiveness and lifespan of the Company’s products and statements about the expected environmental effects and cost savings associated with the Company’s products 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. Additional heat recovery and GEMTM steam trap projects being developed by the Company may not result in orders for the Company’s products. The Company disclaims any obligation to publicly update or revise any such statements except as required by law.
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. $11 Million Thermal Energy Project Expected to Reduce Pulp & Paper Company's Natural Gas Bill by 35%12/4/2017  OTTAWA, ONTARIO– December *, 2017 – Thermal Energy International Inc. (“Thermal Energy” or the “Company”) (TSX-V: TMG), a global provider of industrial and institutional energy efficiency solutions, has been engaged by an existing pulp and paper customer to design, develop and implement a major energy efficiency improvement and greenhouse gas reduction project. The project includes the installation of two of Thermal Energy’s proprietary FLU-ACE® Heat Recovery Systems and the conversion of the mill’s steam traps to Thermal Energy’s proprietary GEM™ Steam Trap system.
Once completed, the $11 million project is expected to provide the customer with annual natural gas savings of more than 35%, while reducing its annual greenhouse gas emissions by more than 20%, or approximately 43,000 metric tonnes. “Pulp and paper is one of the most energy intensive sectors and our energy efficiency solutions represent a win-win scenario,” said William Crossland, CEO of Thermal Energy. “We have been working in partnership with this customer over the past year to develop a turn-key project that meets both their energy savings and greenhouse gas reduction goals. This resulted in our largest single order to date and a project that can serve as a blueprint for other large energy users around the world looking for an optimal solution for fighting climate change, by providing significant reductions in carbon emissions and energy use while, at the same time, delivering a high return on investment” The estimated annual reduction in greenhouse gas emissions resulting from the project, once complete, is equivalent[1] to:
This project represents Thermal Energy’s largest heat recovery and largest GEM orders to date and is expected to be substantially completed and revenue earned over the next 18 months. 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 by providing a unique mix of proprietary products together with process, energy and, environmental engineering expertise, Thermal Energy is able to deliver unique turnkey projects with significant financial and environmental benefits for our customers. Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, U.K., United States, Germany, Italy and China. The Company’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG. For more information, visit the Company's website at www.thermalenergy.com and follow them on Twitter at http://twitter.com/GoThermalEnergy. William Crossland President and CEO Thermal Energy International Inc. 613-723-6776 bill.crossland@thermalenergy.com Trevor Heisler Investor Relations Heisler Communications 416-500-8061 trevor@heislercommunications.com # # # 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 and the timing of revenues to be received by the Company. 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 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. 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. [1] United States Environmental Protection Agency’s Greenhouse Gas Equivalencies Calculator: www.epa.gov/energy/greenhouse-gas-equivalencies-calculator [2] The Cost of Wind Energy in the US: www.awea.org/falling-wind-energy-costs Vancouver, Canada / TheNewswire - Legend Power Systems Inc. (TSXV: LPS) (the "Company"), a global leader in voltage reduction and optimization technology, today announced it retained the services of John Skipper, a veteran of Con Edison New York who recently left the Power Utility after 32 years of service. While at Con Edison, Mr. Skipper was responsible for business development activities centered around energy efficiency and demand management. Legend Power is working with Mr. Skipper in a sales capacity to leverage his extensive local network of facility managers, property managers, building owners, and potential distribution partners. Mr. Skipper adds a mature network backed by long-term relationships to aggressively grow Legend's business in the New York region.
"It's a practical reality that when working with someone of John's caliber, doors open quickly," stated Randy Buchamer, President and CEO of Legend Power. "For many influential people in our target market, John was their go-to guy at Con Edison. He's a person of influence and a trusted advisor to the people we want to talk to. The quality of his network is unmatched and his impact was evident from even before we had a formal working relationship. John is a catalyst to achieve rapid sales expansion and revenue growth in New York." John Skipper joins Legend with over 32 years of business development experience in the New York energy efficiency landscape. His newly formed consulting company, Pure Energy LLC, is designed to help companies like Legend introduce proven energy efficiency technologies to a wide audience in New York's five boroughs and its surrounding areas. Mr. Skipper will work in tandem with Frank Maricic to develop a growing sales presence in the Northeastern USA as Legend Power continues its aggressive growth strategy in the United States. Mr. Skipper represents the second member of Legend's growing local sales presence, backed by a Fortune-500 name-brand testimonial account in the area and a massively untapped opportunity for the company's patented solution. About Legend Power Systems Inc. Legend Power Systems Inc. (www.legendpower.com) is changing the way buildings around the world use power. The Company's patented and proprietary technology reduces overvoltage, a natural condition present in power grids around the world. Overvoltage inflates energy costs, damages electrical equipment, and increases the negative impact a building has on the environment. Legend's utility-proven Harmonizer improves the power efficiency of an entire building to reduce total energy consumption and power costs, while maximizing equipment life. The solution provides customers risk free energy savings, improves the value of their physical assets, and enhances their sustainability efforts. As an application with demand side benefits, Legend is also a key contributor toward utility conservation goals. In 2015 Legend was recognized as the top performing cleantech company on the TSX Venture Exchange. OTTAWA, ONTARIO / TheNewswire - 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 it has hired leading industry expert, Luc Mandeville as a Senior Project Engineer, effective immediately. Luc Mandeville has over 30 years of experience in the energy efficiency sector, with considerable expertise in the areas of condensing heat recovery, direct fired water heaters, boilers, and NOx control. Most recently, Mr. Mandeville was the Chief Technology Officer of Sofame Technologies Inc., a cleantech company that he also co-founded, and which has a number of product offerings similar and complementary to Thermal Energy's business.
"We are pleased to welcome Luc Mandeville to our team as our new Senior Project Engineer," said William Crossland, CEO of Thermal Energy. "Luc brings extensive experience developing and implementing a large number of energy efficiency projects in a wide variety of sectors. In addition to numerous projects with food and beverage, consumer products, pharmaceutical and energy companies, he has also completed projects at a number of major hospitals, including McGill University Heath Centre and the Centre hospitalier de l'Universite de Montreal, as well as a number of universities including Princeton and Rutgers. While much of Luc's experience is similar to our existing business, much more is complementary in terms of both product and application expansion. In this regard we are excited about both the depth and breadth Luc adds to our growing engineering and project development capabilities." Under Mr. Mandeville's leadership, Sofame Technologies Inc., designed, engineered and manufactured a variety of heat recovery, industrial water heating and NOx control systems. He served as Sofame's President for over 20 years and has developed markets in North America and Europe for Sofame's products since the company's founding in 1984. Prior to starting Sofame, he worked in the water treatment field for ten years with Degremont Limited. Luc Mandeville is an industrial engineering graduate from Ecole Polytechnique of Montreal. 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's proprietary products include; GEMTM - Steam traps, FLU-ACE(R) - Direct contact condensing heat recovery, and Dry-Rex(R) - Low temperature biomass drying systems. Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, U.K., United States, Germany, Italy and China. The Company's common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG. For more information, visit the Company's website at www.thermalenergy.com and follow @GoThermalEnergy on Twitter at http://twitter.com/GoThermalEnergy. |
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