Vancouver, BC - Viridis Energy Inc. ("Viridis" or the "Company") a "Cleantech" manufacturer and distributor of alternative energy providing biomass fuel to global residential and industrial markets, today reported financial results for the first quarter ended March 31, 2012.
The Company reported revenue for the first quarter 2013 of $2.3 million compared to $2.4 million for the same quarter 2012. Gross profit increased to $336,000 or 15% of revenue in the first quarter of 2013 from $151,000 or 6% of revenue in the first quarter of 2012. This increase in gross margin reflects the Company's efforts to improve efficiency, utilize production capacity and improved selling prices of pellets due to growing demand. In accordance with IFRS reporting, Viridis' gross profit on revenue includes non-cash depreciation and amortization costs of $135,000 and $149,000 in the first quarter of 2013 and 2012, respectively. Excluding these non-cash charges, gross margin for the current quarter was approximately 20% compared to 12% in the same period in 2012.
"We are pleased with the improvement in cash gross margin to just over 20%, which also includes our lower margin, brokerage business. Our increased utilization of production capacity, coupled with improving market conditions, contributed to the year-over-year margin improvement," said Christopher Robertson, chairman and chief executive officer of Viridis Energy Inc.
The Company reported a loss from operations of $561,000 for the three month period ended March 31, 2013. This compares to a loss from operations of $818,000 in the same period 2012. These results include general and administrative (G&A) costs associated with Scotia Atlantic Biomass ("Scotia") that was acquired February 2012 of $192,000 and $132,000 during the first quarter of 2013 and 2012, respectively.
The Company incurred a comprehensive loss of $(753,000) or $(0.01) per basic share during the first quarter of 2013, which includes financing expenses of $167,000. This compares to a comprehensive loss of $(1.2) million or $(0.03) per basic share for the same period of 2012, which includes financing expenses of $337,000. The reduction in financing expenses reflects a debt restructuring at more favorable terms to the Company.
At March 31, 2013, the Company had Cash and Cash Equivalents of approximately $22,000, Accounts Receivable of approximately $867,000 and Inventory of approximately $718,000. Subsequent to March 31, 2013, the Company completed an equity financing, raising gross proceeds of $5 million.
During the first quarter of 2013, the Company settled its bank line of credit, which stood at approximately $3.0 million on December 31, 2012, The Company also restructured the short-term loan it incurred with the acquisition of Scotia Atlantic Biomass Company. This short-term debt was converted to long-term debt and is part of the approximately $5.5 million of long-term debt currently outstanding.
Viridis' common shares issued and outstanding as of March 31, 2013 were 64,298,883.
Mr. Robertson, added, "We intend to closely manage operating expenses as our Scotia facility becomes fully operational. We expect to generate revenue from our Scotia during the second half of 2013. Viridis combined production capacity of its Kelowna, BC and Scotia plants will reach 180,000 tonnes per year."
Source: Viridis Energy Inc.
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