Company’s order intake up 130% in fiscal 2023
Thermal Energy International Inc. (“Thermal Energy” or the “Company”) (TSX-V: TMG, OTCQB: TMGEF), a provider of innovative energy efficiency and carbon emission reduction solutions to major corporations around the world, today reported its financial results today for the fourth quarter and year ended May 31, 2023. All figures are in Canadian dollars.
“The fourth quarter was one of our best quarters ever, setting new records for revenue and gross profit, and was a great finish to an excellent year,” said William Crossland, Thermal Energy CEO. “For the fiscal year, we had record gross profit and our second highest annual revenue and EBITDA. We saw a return in demand for our turn-key solutions, adding to the already strong growth we had in Custom Equipment. Additionally, our order intake and number of signed project development agreements in fiscal 2023 were higher than ever.”
“We continue to see strong interest from companies looking to save money while reducing their carbon emissions. Since the end of our fiscal year, we’ve received $8.4 million in new orders, including a $4 million order from a multinational pharmaceutical company – our largest turn-key order since before the pandemic. Additionally, we have several active project development agreements that we expect to convert into orders, and we have a robust and growing business development pipeline, positioning us well for a solid fiscal 2024.”
Fourth Quarter and Fiscal 2023 Financial Review
Fourth quarter revenue was $8.2 million, up 84% from the same quarter the year before. The growth was mainly due to the higher revenues from both Custom Equipment and Turn-key Heat Recovery Projects due to the increase in sales orders received in fiscal year 2023. Gross profit increased 101% to a quarterly record of $3.8 million, due to the growth in revenues. Operating expenses were $845 thousand more than the same quarter last year mainly due to staff's salary and incentive increase, change in foreign exchange gains and reduction in government subsidies received as compared to the last quarter of fiscal year 2022. Expenses are also up due to a number of growth-oriented investments being made such as additional project engineers, sales staff in new markets and a significant investment in the digitalization and automation of the key business processes, all of which are designed to increase efficiency, profitability and top line growth. Nonetheless, as a result of the increased revenues and gross profit, the net income and EBITDA for the quarter were $1.1 million and $967 thousand better than the fourth quarter last year, respectively.
For the year ended May 31, 2023, revenue was $21.1 million, up 33% from last year. The increase in revenues was mainly due to increased sales orders received in fiscal year 2023. Gross profit for the year was $9.6 million, an increase of $2.8 million, or 42%, mainly due to the increased revenue from GEM. Operating expenses incurred for the year amounted to $8.3 million, $140 thousand more than last year mainly because of increased staff costs, investment in digitalization, less government subsidies received, offset by the reduction in acquisition costs in the amount of $188 thousand, and the increase in foreign exchange gains of $84 thousand. As a result, the Company achieved net income of $720 thousand and EBITDA of $1.7 million, both representing an increase of $2.5 million from the prior year.
Business Outlook and Order Summary
Orders received (“Order Intake”) during the year totalled $27.3 million, an increase of 130% compared to $11.8 million in the prior year and the highest 12-month order intake in the Company’s history. As a result, the Company ended the year with an order backlog of $13 million, up 166% from the $4.9 million at the end of the prior year.
The Company has received $8.4 million in new orders subsequent to the May 31, 2023, year-end, bringing the current order backlog to $21.4 million as of September 26, 2023. A list and description of recent order highlights is available on page 15 of the Management’s Discussion and Analysis filed today.
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 80% of energy lost in typical boiler plant and steam system operations while delivering a high return on investment with a short, compelling payback.
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 the Company's investor website at https://investors-thermalenergy.com.
Source: Thermal Energy International
FuelPositive Corporation (TSX.V: NHHH) (OTCQB: NHHHF) (the “Company” or “FuelPositive”) announces third-party certification of initial ammonia output. FuelPositive, a leading Green Ammonia company, has successfully completed a pivotal milestone with its commercial model FP300 system start-up and activation of catalyst, making the FP300 the first decentralized, containerized, operational Green Ammonia system in the world.
Over the past two weeks of operation and evaluation, the system operated flawlessly at maximum activation temperatures and pressures. The Company ensured its internal and industry safety protocols and risk mitigation practices were adhered to at every step.
Five samples of produced ammonia were collected at random times during the evaluation period. The samples were collected at the takeoff point of the systems separator and sent to Ortech Consulting Inc., a third-party testing laboratory in Toronto, Canada.
The third-party testing laboratory, Ortech Consulting Inc., confirmed FuelPositive’s internal mass spectrometer readings, indicating that each random sample of anhydrous ammonia was exactly on target. The results were consistent throughout the samples. Both the conversion rates and volume output exceeded the Company’s expectations.
Nelson Leite, Chief Operating Officer and Director, stated, “We are excited to report that we have completed a key initial validation of our full-scale ammonia pilot system. For this initial evaluation period, to follow safety protocols, we ran one converter at 50% catalyst density, with a set target of anhydrous ammonia output. The results, which were internally and third-party validated, confirmed that our target conversion rates and volume output of anhydrous ammonia were exceeded by 17%.”
Nelson Leite continued, “The next step for FuelPositive, currently underway, is to run the system at full catalyst density across all five converters to achieve the final stages of system validation. Once this step is completed, it will be third-party validated and disclosed. A Factory Acceptance Test (FAT) is the planned final step before farm readiness.”
Ian Clifford, Chief Executive Officer and Chair, stated, “At this watershed moment, with great gratitude and pride, we celebrate our team for the successful initial output of anhydrous ammonia, making the FuelPositive FP-300 the first decentralized, containerized, commercial-scale system of its kind. This is the moment in the evolution of the Company we have all been working towards and we are overjoyed to share this news with all our supporters today.”
Ian Clifford continued, “Everyone involved has been working tirelessly over the last several years to bring FuelPositive’s new technology from concept to commercialization. We are very proud to have successfully navigated and overcome Covid-related supply chain issues, challenging global capital markets and various delays brought on by regulatory approvals.”
Ian Clifford concluded, “The production of traditional gray ammonia is one of the most polluting manufacturing and distribution processes on the planet;1 paradoxically, ammonia, as a nitrogen fertilizer, is needed to feed our ever-growing world population. FuelPositive understands global food security, and, as a result, we made conscious choices to lead toward a sustainable future in agriculture and other critical sectors. This is why FuelPositive’s decentralized Green Ammonia system and business model stands alone, reframing the status quo of a multi-billion-dollar commodity industry.”
FuelPositive is a Canadian technology company committed to providing commercially viable and sustainable, “cradle to cradle” clean technology solutions, including an on-farm/onsite, containerized Green Ammonia (NH3) production system that eliminates carbon emissions from the production of Green Ammonia.
By focusing on technologies that are clean, sustainable, economically advantageous and realizable, the Company aims to help mitigate climate change, addressing unsustainable agricultural practices through innovative technology and practical solutions that can be implemented now. The FuelPositive on-farm/onsite, containerized Green Ammonia production system is designed to produce pure, anhydrous ammonia for multiple applications, including fertilizer for farming, fuel for grain drying and internal combustion engines, a practical alternative for fuel cells and a solution for grid storage. Green Ammonia is also considered a key enabler of the hydrogen economy.
Source: FuelPositive Corporation
Tantalus Systems (TSX: GRID) (“Tantalus” or the “Company”), a smart grid technology company focused on helping build sustainable utilities for the future, is pleased to announce the start of field trials for the TRUSense™ Fiber Gateway (“TFG”). The TRUSense Gateway serves as a multi-purpose socket-based device that accelerates the modernization of the distribution grid for utilities and delivers secure and interoperable integration of behind-the-meter DERs onto the distribution system. The TRUSense Gateway is available for multiple communications protocols, including fiber, ethernet and cellular.
The field trials of the TFG are being conducted at several utilities to evaluate and confirm use cases in real-world scenarios prior to product launch. As part of the field trials, participating utilities will confirm the effectiveness and functionality of important features of the TFG including:
Coupled with the high-resolution measurement of power delivery, transient power events and local conditions such as sags, swells, outages and phase information, utilities will be able to pinpoint vulnerable distribution equipment, such as transformers, understand the true impact of electric vehicles and other DERs on the distribution grid, build robust demand-side flexibility programs, and mitigate the frequency and duration of power outages.
In conjunction with expanding cybersecurity requirements, the TRUSense Gateway is a highly secure platform using innovative VPN technologies, secure boot, encryption of data at rest, security-enhanced Linux and multiple firewalls to segregate consumers’ behind-the-meter devices data from utility operational data.
“Commencing field trials of our TRUSense Fiber Gateway marks another major milestone for our team,” said Peter Londa, President & CEO of Tantalus Systems. “This innovative offering is mission-critical for utilities that want to tap into the power of data, take part in the unfolding energy transition and boost the resilience of their grids. We truly appreciate having the opportunity to work alongside utilities through our advisory committee that are participating in these field trials and taking an active role in helping Tantalus bring the TRUSense Gateway to market.”
This solution comes at a time when utilities report that they are massively under-prepared to deal with the accelerating adoption of EVs, rooftop solar and other devices. Tantalus’ inaugural Utility of the Future study, released in January 2023, revealed that 69% of North American utilities surveyed reported being only a little or not at all prepared for the impact of EVs on their distribution grids. That same study showed that modernizing and digitizing the distribution grid—which includes access to interoperable data from behind the meter—was a priority for 93% of utilities surveyed.
To learn more about the TRUSense Gateway solution, please check our website at https://www.tantalus.com/smart-grid-solutions/gateway-solutions/ or contact us at the following email address: TantalusInfo@Tantalus.com.
About Tantalus Systems Holding Inc. (TSX: GRID)
Tantalus is a smart grid technology company that transforms aging one-way grids into future-proofed multi-directional grids that improve the efficiency, reliability and sustainability of utilities and the communities they serve. Our solutions are purpose-built to allow utilities to restore power quickly after major disruptions, adapt to rapidly shifting consumer expectations and population shifts, deliver innovative solutions based on the adoption of distributed energy resources and evolve their grid infrastructure at their own pace without needless cost or complexity. All this gives our user community the flexibility they need to get the most value from existing infrastructure investments while planning for future requirements. Learn more at www.tantalus.com.
Source: Tantalus Systems Holding Inc.