Company
Reports 46% Year-Over-Year and 147% Quarter-Over-Quarter Revenue
Growth
Vancouver, BC / ACCESSWIRE / April
16, 2014 / Viridis Energy
Inc. ("Viridis" or the "Company") (TSXV: VRD)
(OTC: VRDSF), a "Cleantech" manufacturer and distributor of
renewable energy providing waste biomass fuel to global residential
and industrial markets, today reported financial results for
its full year and fourth quarter ended December 31, 2013. Viridis
reported full year 2013 revenues of $13.9 million, an increase of
$4.4 million or 46% over 2012 of $9.5 million. The
year-over-year improvement reflects strengthened market dynamics,
including improved pricing, increased demand in
Europe, and the achievement of production capacity
goals at the Company's Okanagan Pellet plant, coupled with
the addition of production from the Company's new Scotia Atlantic
Biomass facilities.
Viridis anticipates continued
momentum in 2014 due to the significant developments achieved in
2013:
Scotia Atlantic:
- Commenced wood pellet
production at end of third quarter 2013 at its 120,000 ton
capacity, facility, which is expected to reach full production
capacity later this year;
- Entered into a worldwide
marketing agreement with Ekman & Co AB., one of the world's
oldest trading houses and wholesalers of forest products, for its
entire wood pellet production over a 24 month period,
which expires August 2015;
Viridis Merchants
- In its first month of launch
(December 2013), arranged its first transaction of
approximately 30,000 tons of wood pellets
from a Southeastern U.S. producer, which are to be delivered over a
12-month period to customers in Europe, generating $8 million in
incremental revenue for Viridis during the delivery period and
subsequent to year end an additional 12,000 tons generating over
$2.5 million was announced;
Viridis Energy
- Restructured
$5.7 million of debt with Cornwall Investments LLC into two new
facilities and, subsequent to year end, refinanced one of the two
facilities with the Royal Bank of Canada at a more favorable
interest rate;
- During the
second quarter 2013, secured $5 million in a private
placement of new equity.
"We have delivered four
sequential growth quarters during 2013 and the company is well
positioned for a breakout year in 2014," commented Christopher
Robertson, Viridis' CEO. "Our Okanagan plant achieved full capacity
with record margins, and in September 2013 we commenced shipments
from our new plant in Nova Scotia, which we anticipate will reach
full operating capacity in the second half of 2014. Additionally,
we have established an important avenue for additional growth,
Viridis Merchants, enabling us to accommodate commercial orders
incremental to our own production capacity."
The Company reported 2013 gross
profit of $2.0 million or 14.4% of revenue, which compares to gross
profit of $1.1 million or 11.7% of revenue in 2012.
Management expects Scotia's gross margin to improve as its
volume builds towards full capacity.
For the full year ended December 31,
2013, Viridis reported a comprehensive loss of $(3.3) million
or $(0.03) per basic share. This compares to a comprehensive loss
of $(9.5) million or $(0.19) per basic share in 2012, which
included $5.8 million write downs of impairment of intangible
assets and non-refundable deposit. The Company reported a loss from
operations of $(2.7) million in 2013 compared to a loss from
operations of $(2.9) million in the prior year.
Full year 2013 operating expenses
increased to $4.7 million from $4.0 million in 2012; however, as a
percent of revenue, these costs were down significantly, decreasing
from 41.9% in 2012 to 33.7% in 2013. The year-over-year increases
in operating expenses were primarily attributed to the costs of
resuming production and full staffing of Scotia's operations.
During the fourth quarter
2013, Viridis generated revenue of $6.1 million, an increase of
147% compared to $2.5 million in the fourth quarter 2012 and a 100%
improvement over the third quarter of 2013. The Company expects
revenue growth to continue as Scotia moves closer to production
capacity. Viridis reported a comprehensive loss of $(1.3)
million or $(0.01) per basic share for the fourth quarter 2013,
compared to a comprehensive loss of $(6.7) million or $(0.19) per
basic share for the same period in 2012, which included an
impairment of intangible assets of $5.5 million and a write down of
nonrefundable deposit of $250,000. This also compares to a
comprehensive loss of $(712,000) or $(0.01) per basic and diluted
share for third quarter 2013.
The Company reported a gross
profit of $615,000 for the fourth quarter of 2013 compared to
$409,000 for the same period in 2012 and $595,000 for third quarter
of this year. The fourth quarter 2013 gross margin was
negatively impacted by the commencement of the Scotia facility that
has operated below full capacity during its startup phase, which
was offset by strong performance from the Okanagan plant. Operating
loss for 2013 fourth quarter totaled $(1.2) million versus
$(860,000) for the prior year fourth quarter and $(602,000) for the
third quarter 2013.
At
December 31, 2013, the Company reported cash and cash equivalents
of $1.6 million, accounts receivable of $1.3 million, and inventory
of $927,000. The Company's current ratio stood was 1.2x at the
year-end 2013, a significant increase over the prior year level of
0.2x. At year-end, Viridis had short-term debt of $158,000 and long
term debt of $6.2 million as a result of the debt restructuring
completed during the first quarter of 2013, extending the maturity
of $5.7 million of formerly short term liabilities.
The Company's shareholder equity totaled $3.5 million on
December 31, 2013, an increase of $2.1 million over year-end
2012.
On
December 31, 2013, Viridis common stock outstanding
totaled 114.3 million shares, compared to 59.8 million at year-end
2012. The increase in the Company's share count was primarily due
to the $5 million, non-brokered, private placement that was closed
during second quarter 2013 adding 50 million shares of
common stock. Subsequent to year-end,
on March 31, 2014, Cornwall Investments
LLC ("Cornwall") exercised 25,000,000 of its Viridis common share
purchase warrants at a price of $0.15 per share, generating
proceeds of $3.75 million. Consequently, as of today, Viridis
outstanding shares total 138,451,883 with fully diluted shares of
149,527,369, inclusive of all options (average exercise price of
$0.27) and warrants (average exercise price $0.22). As
of December 31, 2013, the Company has tax loss carry forwards of
approximately C$17.5 million, which expire between 2029 and
2033.
"According to industry sources, the
annual, global demand for wood pellets is expected to more than
double over the next 7 years to $9 billion due to a combination of
increased use, regulatory mandates and economics. With current
demand exceeding current supply, we have made a number of important
strategic moves over the past three years to position ourselves to
become an important source of renewable energy. Logistically, we
have located our manufacturing on both North American coasts,
providing us with solid, stable supply of fiber feedstock and
optimum port access to ship into the rapidly growing international
markets. We have diversified our business model to not only supply
the high-end, residential heat market with a premium white pellet,
but also to supply the industrial market, both on a global scale.
We have successfully completed two acquisitions and have a proven
track record for quick, successful turnarounds. Our Scotia Atlantic
acquisition will triple our annual in-house production over the
next year. We also now have the ability to further supplement our
production with cooperative transactions through Viridis
Merchants," commented Robert Aaron, Viridis newly appointed
chairman.
"We have brought together a
management team with a long industry track record, supported by a
seasoned board of directors, who have identified opportunities to
increase Viridis' current supply of wood pellets from an aggregated
220,000 tons to over 1 million tons by the end of 2015. Having
recently fortified our balance sheet, we are in a strong position
to act on opportunities to grow through expansion of existing
facilities, production aggregation via Viridis Merchants or tuck-in
acquisitions."
---------------------------------------------------------------
|Investor Contact: |Company Contact: |
|Yvonne L. Zappulla |Michele Rebiere |
|Managing Director |Chief Financial Officer |
|Grannus Financial Advisors,Inc.|Viridis Energy Inc |
|212-681-4108 |905-847-5226 |
|Yvonne@GrannusFinancial.com |investorinfo@viridisenergy.ca|
---------------------------------------------------------------
About Viridis
Energy Inc.
Viridis Energy Inc. (TSXV: VRD) is a
publicly traded, "Cleantech" alternative energy company
specializing in the agricultural and wood waste biomass. Located in
Vancouver, B.C., Viridis Energy Inc. operates Viridis Merchants
Inc. and Viridis Merchants (Canada) Ltd.., Okanagan Pellet Company
Inc. and Scotia Atlantic Biomass Company Limited, thus providing
the Company with vertical integration for distribution and
manufacturing as well as coast to coast national presence. For more
information on Viridis Energy Inc. please refer to the company
website at www.viridisenergy.ca.
Except for "per
share" amounts, monetary and share information contained in this
news release is rounded to the nearest
thousandth.
Forward-looking
Statements:
Certain of the
statements made in this news release may contain forward-looking
statements within the meaning of the United States Securities
Exchange Act of 1934 and forward-looking information within the
meaning of applicable Canadian securities law. Forward-looking
statements and forward-looking information include, but are not
limited to, statements or information with respect to anticipated
future revenue growth and gross margin increases, the expected
timing for achieving profitability, anticipated future production
levels and the projected production capabilities of the recently
acquired manufacturing capacity in Nova Scotia. Such statements are
subject to risks and uncertainties that may cause actual results,
performance or developments to differ materially from those
contained in the statements. No assurance can be given that any of
the events anticipated by the forward-looking statements will occur
or, if they do occur, what benefits the Company will
obtain from them. These forward-looking statements reflect
management's current views and are based on certain expectations,
estimates and assumptions which may prove to be incorrect. A number
of risks and uncertainties could cause our actual results to differ
materially from those expressed or implied by the forward-looking
statements, including: (1) a continued downturn in general economic
conditions in North America and internationally, (2) a change in
the European mandate for renewable energy, (3) a revision to the
UK's DECC renewable obligation, (4) a sharp increase in ocean
freight costs, (5) the inherent uncertainties associated with the
demand for biofuels, (6) the risk that the Company does not execute
its business plan, (7) inability to finance operations and growth
(8) inability to finance the start-up operations in Nova Scotia in
a timely manner (9) inability to retain key management and
employees, (10) an increase in the number of competitors with
larger resources, and (11) other factors beyond the Company's
control. These forward-looking statements are made as of the date
of this news release and the Company does not intend to update such
forward looking information unless required to do so by applicable
laws. Additional information about these and other assumptions,
risks and uncertainties are set out in the "Risks and
Uncertainties" section in the Company's MD&A filed with
Canadian securities regulators.
Neither the 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.
###
??? Financial Statements Follow ???
VIRIDIS ENERGY
INC.
CONSOLIDATED STATEMNETS OF FINANCIAL
POSITION
(Expressed in
Canadian Dollars)
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | | | | | | | December 31, December 31, |
| | | | | | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | 2013 | |2012 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|ASSETS | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|Current Assets: | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Cash and cash equivalents $ $ |$ | $ |413,570 |
| | | 1,594,246 | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Accounts receivable | | |753,208 |
| | |1,275,959 | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Inventory |926,933 | |594,012 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Prepaid expenses |546,917 | |225,761 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Due from related parties |- | |54,000 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Total Current Assets| | | | |4,344,055 | |2,040,551 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| |Property, plant and equipment |9,045,376 | |8,264,488 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Total Assets | | | | |$ 13,389,431|$ |10,305,039 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|LIABILITIES&SHAREHOLDERS' EQUITY | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|Current Liabilities: | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Bank line of credit |$ |$ |2,992,832 |
| | | | | |
| | | | | |
| | | - | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Accounts payable and accrued liabilities |3,329,868 | | 2,924,127 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Deferred income |196,595 | |157,058 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Short term loan payable |- | |2,606,875 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Due to related parties |44,373 | |164,670 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Current portion of loans payable |113,529 | |19,646 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| |3,684,365 | |8,865,208 |
|Total Current | | | |
|Liabilities | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|Long-term Liabilities: | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Loan payables |6,198,921 | |- |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Total Liabilities | | | | |9,883,286 | |8,865,208 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|Shareholders' Equity (deficit) | | | |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Share capital |$ 27,322,578 |$ |22,537,578 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Contributed surplus |3,446,376 | |2,861,376 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Accumulated deficit |(27,262,809) | |(23,959,123) |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | Total Stockholders’ Equity |3,506,145 | |1,439,831 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| |TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |$ 13,389,431 |$ |10,305,039 |
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
VIRIDIS ENERGY INC.
CONSOLIDATED STATEMENTS OF LOSS AND TOTAL
COMPREHENSIVE LOSS
(Expressed in Canadian Dollars, except number
of shares and per share amounts)
--------------------------------------------------------------------------------------------------------------------------------------------
| | |Three Months Ended | |Year Ended |
| | |December 31, | |December 31, |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | |2013 | |2012 | |2013 | |2012 |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
|Sales | $ | 6,103,087 | $ | 2,479,411|$ |13,918,816 | $ |9,548,177 |
|------------------------------------------------------------------------------------------------------------------------------------------|
|Cost of Sales | |5,488,251 | |2,070,750 | | 11,907,838 | |8,435,305 |
|------------------------------------------------------------------------------------------------------------------------------------------|
|Gross profit | | 614,836 | | 408,661 | |2,010,978 | |1,112,872 |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
|Operating expenses: | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
| Selling and marketing | |99,692 | |49,904 | |242,826 | |167,385 |
|------------------------------------------------------------------------------------------------------------------------------------------|
| Freight-out | |393,121 | |41,466 | |451,375 | |167,492 |
|------------------------------------------------------------------------------------------------------------------------------------------|
| General and administrative | |741,806 | |401,717 | |3,463,857 | |2,891,816 |
|------------------------------------------------------------------------------------------------------------------------------------------|
| Maintenance and start-up cost for Scotia facility | |534,586 | |775,999 | |534,586 | |775,999 |
|------------------------------------------------------------------------------------------------------------------------------------------|
| Total operating expenses | | 1,769,205 | |1,269,086 | |4,692,644 | |4,002,692 |
|------------------------------------------------------------------------------------------------------------------------------------------|
|Loss before other items | | (1,154,369)| |(860,425) | | (2,681,666) | |(2,889,820) |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
|Other items: | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
| Foreign exchange loss | | | |(11,318) | | | | |
| | | | | | | | | |
| | | (944) | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | |(19,712) |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | |(1,742) | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
| Disposal of property, plant and equipment | |- | |- | |2,821 | | - |
|------------------------------------------------------------------------------------------------------------------------------------------|
| Impairment of intangible assets and goodwill | |- | |(5,541,990)| |- | |(5,541,990) |
|------------------------------------------------------------------------------------------------------------------------------------------|
| Write-down of non-refundable deposit | |- | |(250,000) | |- | |(250,000) |
|------------------------------------------------------------------------------------------------------------------------------------------|
| Finance expense | |(151,193) | |(107,232) | |(484,174) | |(751,858) |
|------------------------------------------------------------------------------------------------------------------------------------------|
| Accretion expense | |(41,613) | |- | | (138,925) | | (86,668) |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | |(193,750) | |(5,910,540)| | (622,020) | |(6,650,228) |
|------------------------------------------------------------------------------------------------------------------------------------------|
|Loss before income taxes recovered | |(1,348,119) | |(6,770,965)| |(3,303.686) | |(9,540,048) |
|------------------------------------------------------------------------------------------------------------------------------------------|
|Income taxes recovered | |- | |- | |- | |- |
|------------------------------------------------------------------------------------------------------------------------------------------|
|Net loss and total comprehensive loss |$ |(1,348,119) |$ |(6,770,965)|$ |(3,303.686) |$ |(9,540,048) |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
|Loss per share | | (0.01) |$ | | $| (0.03) |$ | ( 0.19) |
| Basic and diluted |$ | | | | | | | |
| | | | |(0.19) | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | |114,298,883 | | 49,861,479| |97,611,212 | | 49,861,479 |
|Weighted | | | | | | | | |
|average | | | | | | | | |
|number of | | | | | | | | |
|common shares | | | | | | | | |
|outstanding | | | | | | | | |
| | | | | | | | | |
| Basic and | | | | | | | | |
|diluted | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------|
| | | | | | | | | |
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Viridis Energy Inc. (TSXV:VRD)
過去 株価チャート
から 5 2024 まで 6 2024
Viridis Energy Inc. (TSXV:VRD)
過去 株価チャート
から 6 2023 まで 6 2024