This morning, Ottawa-based cleantech company, Thermal Energy International Inc. (TSX-V: TMG), announced its financial results for its fiscal year ended May 31, 2017.
“Our record highs in revenue and gross profit in fiscal 2017 are the result of the successful execution of our strategy on multiple fronts. We gained new customers; sold more to existing customers; and continued to develop our corporate accounts. We also launched our new ‘Super-Efficient Cogeneration™’ service offering during the year, subsequently announcing our first project under this offering at the end of August. Importantly, this provides us with another complementary service to sell to both existing and prospective customers. We look to build on our momentum and capitalize on the very favourable market conditions we have been witnessing around the world for emission reduction and energy efficiency solutions.” - William Crossland, CEO.
Fiscal Year 2017 Financial Review:
The Company had record high revenue for the fiscal year 2017. Revenue for the year was $13.2 million, representing an increase of 6.4% over revenue of $12.4 million for fiscal 2016. While heat recovery revenue was down 9.4%, GEM revenue increased 28.6% for the year.
Heat recovery revenue for the year included the substantial completion of installations at two major hospitals as well as the substantial completion of an extension project at another major hospital. Other projects included an installation at a global brewing company (announced August 8, 2016), an installation at a leading food products business (announced May 3, 2016), and a second equipment sale to a global mining company. In addition, an equipment sale to a leading producer of industrial and fuel alcohols (announced September 28, 2016) was partially complete by year end.
Higher GEM revenue for the year included an increase in orders from a leading performance materials company, orders from an international textiles manufacturer and a multinational biotech company (as reported in the press release dated September 20, 2016), plus two hospitals.
Gross profit increased 9.5% to a record high $7.4 million compared with $6.8 million the year before. As a percentage of revenue, gross profit increased to 56.4% from 54.8% in fiscal 2016. The higher gross profit and gross profit percentage were due primarily to the higher proportion of GEM sales during the period.
Operating expenses were $6.9 million compared to $6.5 million in fiscal 2016. Despite additional costs associated with new staff and marketing activities mentioned earlier, operating expenses as a percentage of revenue were essentially unchanged at 52.0% for the year, compared to 52.1% a year earlier.
EBITDAS increased 32.9% to $750 thousand compared with $564 thousand in the prior year. Net income increased 51.7% to $393 thousand compared with $259 thousand in the prior year.
Recent Order and Backlog Summary:
Subsequent to year end, the Company had received orders totaling $3.28 million from a leading Fortune 500 food and beverage customer, including a $1.82 million heat recovery order (announced July 6, 2017) and a $1.46 million “Super-Efficient Cogeneration™” project (announced August 31, 2017).
Also subsequent to year end, the Company had received $244 thousand in GEM orders representing repeat business from a leading performance materials company. These orders had not been previously announced.
Including the above mentioned recent orders, the Company had an order backlog of approximately $9.0 million as at September 22, 2017, compared to $7.3 million when it reported fiscal 2016 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 them on Twitter at http://twitter.com/GoThermalEnergy.