VANCOUVER, BRITISH COLUMBIA- Viridis Energy Inc. ("Viridis" or the "Company") (TSX VENTURE:VRD) (OTCQX:VRDSF), a "Cleantech" manufacturer and distributor of alternative energy providing waste biomass fuel to global residential and industrial markets, today reported financial results for its first quarter ended March 31, 2012. During the quarter, Viridis increased its production capacity by over 150 percent through its acquisition of the largest wood pellet manufacturing plant in Atlantic Canada. On February 6, 2012, Viridis acquired the assets of Enligna Canada, a 110,000 ton capacity plant in Nova Scotia, and renamed this facility Scotia Atlantic Biomass Company Limited ("Scotia Atlantic"). Viridis expects to resume production during the second quarter of this year. To accomplish the acquisition in light of the short time to closing, the Company, through its Subsidiary, obtained a $2.4 million short-term bridge loan.
During the first quarter of 2012, Viridis generated revenue of $2.4 million. Sales of the home heating business in North America were slow due to the abnormally warm winter. In comparison, Viridis generated revenue of $2.7 million during the same period of 2011, and $3.5 million during the fourth quarter of 2011. The domestic home heating business, which is generally higher margin business, represented 26% of total revenue, down from 52% during the same period last year. Also impacting the year-to-year comparison is a shift in contract arrangements with certain customers in which the cost of freight, usually borne by the Company and recovered in the sales price, was paid directly by the customer, distorting the year-to-year sales comparison. As the Company further diversifies its revenue base with commercial energy generators and other industrial users, it expects to continue to see a reduction in the seasonal revenue fluctuations. The Company also anticipates sequential revenue growth acceleration as its recently acquired manufacturing capacity in Nova Scotia begins production in preparation for the fall/winter season.
The Company reported a comprehensive net loss of $(1.2) million or $(0.03) per basic share for the first quarter 2012 compared to a comprehensive net loss of $(714,000) or $(0.02) per basic share for the comparable 2011 period and a comprehensive net loss of $(989,000) or $(0.03) per basic share for the prior fourth quarter 2011. The increased loss during the current first quarter reflects financing costs and other start-up costs associated with Scotia Atlantic, offset by 24 percent decrease in operating expenses.