Cleantek Industries Inc. Announces Second Quarter 2024 Results and New Manufacturing Financing Facility
Cleantek Industries Inc. (TSXV: CTEK) announced its Q2 2024 financial results, reporting revenue of $2,411, a 29% decrease from Q2 2023. The company faced challenges due to lower activity levels and fleet utilization. Key highlights include:
- Gross profit of $1,285 (53% of revenue)
- Net loss of $511, an improvement from $687 in Q2 2023
- Adjusted EBITDA of $259, down from $903 in Q2 2023
Cleantek secured a new BDC manufacturing financing facility of up to $4,000 for equipment production. The company also appointed Riley Taggart as the new President and CEO, and announced a private placement to raise up to $150. Cleantek continues to focus on expanding its sustainable lighting solutions and wastewater treatment assets.
Cleantek Industries Inc. (TSXV: CTEK) ha annunciato i risultati finanziari del Q2 2024, riportando un fatturato di $2.411, con una diminuzione del 29% rispetto al Q2 2023. L'azienda ha affrontato sfide a causa di livelli di attività più bassi e di una minore utilizzo della flotta. I punti salienti includono:
- Profitto lordo di $1.285 (53% del fatturato)
- Perdita netta di $511, un miglioramento rispetto ai $687 del Q2 2023
- EBITDA rettificato di $259, in calo rispetto ai $903 del Q2 2023
Cleantek ha ottenuto un nuovo finanziamento per la produzione BDC fino a $4.000 per la produzione di attrezzature. L'azienda ha anche nominato Riley Taggart come nuovo Presidente e CEO, e ha annunciato un collocamento privato per raccogliere fino a $150. Cleantek continua a concentrarsi sull'espansione delle sue soluzioni di illuminazione sostenibile e degli asset per il trattamento delle acque reflue.
Cleantek Industries Inc. (TSXV: CTEK) anunció sus resultados financieros del Q2 2024, reportando ingresos de $2,411, una disminución del 29% en comparación con el Q2 2023. La empresa enfrentó desafíos debido a niveles de actividad más bajos y un menor uso de la flota. Los aspectos más destacados incluyen:
- Beneficio bruto de $1,285 (53% de los ingresos)
- Pérdida neta de $511, una mejora respecto a los $687 del Q2 2023
- EBITDA ajustado de $259, en comparación con los $903 del Q2 2023
Cleantek aseguró un nuevo financiamiento de fabricación de BDC de hasta $4,000 para la producción de equipos. La empresa también nombró a Riley Taggart como nuevo Presidente y CEO, y anunció una colocación privada para recaudar hasta $150. Cleantek sigue centrando su atención en expandir sus soluciones de iluminación sostenible y activos para el tratamiento de aguas residuales.
Cleantek Industries Inc. (TSXV: CTEK)는 Q2 2024 재무 결과를 발표하며 수익이 $2,411에 이르렀으며, 이는 Q2 2023 대비 29% 감소한 수치입니다. 회사는 낮은 활동 수준과 함대 활용률로 인해 어려움에 직면했습니다. 주요 하이라이트는 다음과 같습니다:
- 총 이익 $1,285 (수익의 53%)
- 순손실 $511, Q2 2023의 $687에서 개선됨
- 조정된 EBITDA $259, Q2 2023의 $903에서 감소함
Cleantek은 장비 생산을 위한 최대 $4,000의 새로운 BDC 제조 금융 시설를 확보했습니다. 회사는 또한 Riley Taggart를 새로운 회장 겸 CEO로 임명했으며, 최대 $150의 자금을 모금하기 위한 사모 배치를 발표했습니다. Cleantek은 지속 가능한 조명 솔루션과 폐수 처리 자산 확장에 집중하고 있습니다.
Cleantek Industries Inc. (TSXV: CTEK) a annoncé ses résultats financiers du Q2 2024, rapportant des revenus de 2,411 $, soit une diminution de 29 % par rapport au Q2 2023. L'entreprise a été confrontée à des défis en raison de niveaux d'activité plus bas et d'une utilisation réduite de sa flotte. Les points saillants incluent :
- Profit brut de 1,285 $ (53 % des revenus)
- Perte nette de 511 $, une amélioration par rapport à 687 $ au Q2 2023
- EBITDA ajusté de 259 $, en baisse par rapport à 903 $ au Q2 2023
Cleantek a obtenu un nouveau financement de fabrication BDC pouvant atteindre 4,000 $ pour la production d'équipements. L'entreprise a également nommé Riley Taggart comme nouveau président et PDG, et a annoncé un placement privé pour récolter jusqu'à 150 $. Cleantek continue de se concentrer sur l'expansion de ses solutions d'éclairage durable et de ses actifs de traitement des eaux usées.
Cleantek Industries Inc. (TSXV: CTEK) hat die finanziellen Ergebnisse für das Q2 2024 veröffentlicht und berichtet von Einnahmen in Höhe von $2.411, was einem Rückgang von 29% im Vergleich zum Q2 2023 entspricht. Das Unternehmen hatte mit Herausforderungen aufgrund niedrigerer Aktivitätsniveaus und Flottenauslastung zu kämpfen. Wichtige Highlights umfassen:
- Bruttogewinn von $1.285 (53% der Einnahmen)
- Nettobarverlust von $511, eine Verbesserung gegenüber $687 im Q2 2023
- Bereinigtes EBITDA von $259, gesunken von $903 im Q2 2023
Cleantek sicherte sich eine neue BDC-Finanzierungseinrichtung für die Herstellung von bis zu $4.000 für die Produktion von Geräten. Das Unternehmen ernannte auch Riley Taggart zum neuen Präsidenten und CEO und gab eine Privatplatzierung bekannt, um bis zu $150 zu sammeln. Cleantek konzentriert sich weiterhin auf die Erweiterung seiner nachhaltigen Beleuchtungslösungen und Entwässerungsanlagen.
- Secured a new BDC manufacturing financing facility of up to $4,000 for equipment production
- Appointed Riley Taggart as new President and CEO, potentially bringing fresh leadership
- Announced a private placement to raise up to $150, potentially improving liquidity
- Improved net loss to $511 from $687 in Q2 2023
- Maintained a high gross profit margin of 53% despite revenue decrease
- Revenue decreased by 29% to $2,411 compared to Q2 2023
- Adjusted EBITDA declined to $259 from $903 in Q2 2023
- Lower fleet utilization and activity levels impacted financial performance
- Working capital deficit increased to $3,184 from $2,942 in December 2023
Calgary, Alberta--(Newsfile Corp. - August 8, 2024) - Cleantek Industries Inc. (TSXV: CTEK) ("Cleantek" or the "Company") is pleased to announce its second quarter 2024 financial and operational results. Cleantek is an innovative provider of patented, clean technology solutions focused on reducing both cost and carbon intensity in the wastewater management and industrial lighting sectors across North America.
Cleantek's recently appointed President and Chief Executive Officer Riley Taggart commented, "It was a challenging quarter for Cleantek as general activity levels were lower than initially forecast. Q2 is traditionally the most challenging quarter given the seasonality and break-up experienced in the Canadian oilfield drilling and services market. Despite the lower-than-expected utilization, we remain optimistic about the opportunity in the coming quarters. As an organization, we set out a plan to evaluate and pursue operational efficiencies and associated cost cutting measures over the balance of the year. These efficiency gains and the previously announced private placement, combined with the new manufacturing financing facility provided by BDC (see Corporate Update section below) will give Cleantek a clear path forward to increase revenue and profitability."
Highlights for the Second Quarter 2024 (All amounts are in thousands of Canadian dollars unless otherwise indicated)
Cleantek generated revenue of
$2,411 for Q2 2024, a decrease of$986 or29% , from Q2 2023. The decreased revenue in 2024 is primarily due to lower activity levels and resulting lower utilization of the fleet;Cleantek's gross profit was
$1,285 or53% of revenue for Q2 2024 compared with gross profit of$2,084 and61% of revenue for Q2 2023;Cleantek's net loss of
$511 for Q2 2024 was a$176 improvement from the net loss of$687 for Q2 2023; and,Cleantek's Adjusted EBITDA(1) was
$259 for Q2 2024 compared to$903 for Q2 2023 due primarily to the decreased revenue.
Expansion and Outlook
Cleantek's strategy focuses on delivering innovative and cost-effective solutions that reduce the carbon intensity as well as the capital and operating costs of industrial operations. By focusing on expanding the market awareness and adoption of its sustainable lighting solutions and wastewater treatment assets, Cleantek continues to experience increased utilization of these high-margin product lines.
In 2023, the Company launched two new growth initiatives, including SecureTek, Cleantek's line of remote security services, as well as the company's newest addition to the ZeroE line of wastewater treatment products, the mobile waste gas fired GZeroE. Both growth initiatives will utilize the Company's existing asset base and require minimal capital investment for what the Company believes could be substantial growth opportunities in adjacent industry verticals.
International Expansion - Expanding on the Company's recent success with the recent HALOTM sales, Cleantek completed a proof-of-concept trial with the Kingdom of Saudi Arabia for its HALOTM line and is exploring several promising opportunities diversifying Cleantek's geographic focus and customer base, including exploring opportunities across the Middle East for rental and/or product sales.
SecureTek - Cleantek's line of remote security services, being offered as a stand-alone system or integrated with our sustainable lighting products, is expected to drive higher utilization of existing assets and create an exciting new recurring revenue stream for the Company. Utilizing our existing infrastructure, SecureTek is an accretive service offering and a great opportunity to expand our reach into the construction, mining, storage, agriculture, and other commercial markets, with minimal new capital investment.
Mobile GZeroE & GSteam - Adding to the fleet of ZeroE technology is our new waste-gas powered, wastewater treatment and dehydration system, or "GZeroE" and "GSteam". Both technologies utilize waste-gas as its primary energy source. The first system was launched in March 2024 to one of a growing number of clientele and has received excellent feedback. The manufacture of additional units will be determined based off customer demand and feedback.
The Company's near-term strategy will continue to focus on:
maximize utilization rates of its current fleet of sustainable lighting solutions and mobile ZeroE wastewater treatment assets;
expanding and growing the Company's fleet of mobile ZeroE wastewater treatment assets to satisfy increased demand in the oil and gas, midstream, mining, industrial and construction markets;
continuing to focus on the expansion of the international market through the sale and rental of sustainable lighting solutions.
leveraging Cleantek's technology to capture additional market share through organic growth of the ZeroE wastewater treatment and vaporization services, including the new mobile GZeroE and GSteam, as well as the new product and service offering in SecureTek;
evaluating new technology partnerships in an effort to diversify product offering and customer group.
The Company is uniquely positioned with the prospect to capture expansion in both ZeroE wastewater vaporization and sustainable lighting markets. Cleantek expects that wastewater and vaporization opportunities in the oil and gas, municipal grey water, and industrial wastewater industries.
Operational Update
Cleantek's second quarter 2024 revenue was
Results of Operations
| (Canadian | Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||
| per share amounts and percentages) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||
| Revenue | 2,411 | 3,397 | (986 | ) | 6,081 | 7,214 | (1,133 | ) | ||||||||||||||
| Gross profit | 1,285 | 2,084 | (799 | ) | 3,657 | 4,385 | (728 | ) | ||||||||||||||
| Gross profit % | 53 | 61 | (8)% | 60 | 61 | (1)% | ||||||||||||||||
| Net (loss) income | (511 | ) | (687 | ) | 176 | 11 | (507 | ) | 518 | |||||||||||||
| Net (loss) income per share - basic and diluted ($) | $ | (0.02 | ) | $ | (0.02 | ) | $ | 0.00 | $ | 0.00 | $ | (0.02 | ) | $ | 0.02 | |||||||
| EBITDA(1) | 310 | 252 | 58 | 1,716 | 1,363 | 353 | ||||||||||||||||
| Adjusted EBITDA(1) | 259 | 903 | (644 | ) | 1,470 | 2,234 | (764 | ) | ||||||||||||||
| Capital expenditures | 80 | 321 | (241 | ) | 231 | 446 | (215 | ) | ||||||||||||||
| As at: | June 30, 2024 | December 31, 2023 | Change | |||||||||||||||||||
| Total assets | 13,410 | 15,263 | (1,853 | ) | ||||||||||||||||||
| Working capital deficit(1) | (3,184 | ) | (2,942 | ) | (242 | ) | ||||||||||||||||
| Non-current debt(1) | 7,381 | 8,470 | 1,089 | |||||||||||||||||||
| Total non-current liabilities | 7,427 | 8,516 | 1,089 | |||||||||||||||||||
(1) Management considers EBITDA and adjusted EBITDA key metrics in analyzing operational performance and the Company's ability to generate cashflow. EBITDA is measured as net income (loss) before interest, tax, depreciation and amortization. Adjusted EBITDA is measured as EBITDA adjusted for share-based compensation and unusual items not representative of ongoing business performance such as litigation expenses and settlements and the impact of unrealized foreign exchange gains and losses. Working capital (or also referred to as net current assets/liabilities) for Cleantek is calculated as current assets less current liabilities per the statement of financial position. Non-current debt includes the non-current portion of long-term debt and lease liabilities per the Non-Current Liabilities on the statement of financial position. These items are not defined and have no standardized meaning under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods' results. Please see "Non-IFRS Measurements" for further discussion of these items, and where applicable, reconciliations to measures calculated in accordance with IFRS.
Corporate Updates
BDC Manufacturing Financing Facility
On July 29, 2024, the Company signed a new BDC facility for a build loan to fund the manufacture of new equipment, including GZeroE or GSteam and Halo units, for an amount up to
Management Change, Private Placement and Option Grant
On July 22, 2024, the Board of Directors of Cleantek announced the appointment of Riley Taggart as the new President and CEO of the Company. Upon Riley Taggart assuming the positions of President and CEO Matt Gowanlock stepped down from the positions of President and CEO with immediate effect and resigned as Director effective August 4, 2024, and Riley Taggart was appointed Director of Cleantek on August 8, 2024. In conjunction with this change a grant of 500,000 stock options were issued to Riley Taggart on July 19, 2024, at an exercise price of
Also on July 22, 2024, Cleantek announced its intention to complete a non-brokered private placement of units at a subscription price of
About Cleantek
Cleantek is a clean energy technology company focused on ESG accretive technology solutions with operations across North America. Cleantek has developed and commercialized its patented wastewater dehydration technology, the ZeroE, which it rents to its customers for use at gas processing facilities and on drilling rigs focused on hydro-sustainability. Cleantek's ZeroE technology separates wastewater into (i) clean water which is evaporated and returned to the natural hydrological cycle and (ii) concentrated brine which is disposed of using traditional means. The ZeroE technology is powered by the waste heat generated from the engine exhaust of gas plants and drilling rigs. Complimenting Cleantek's ZeroE technology is the suit of low carbon LED lighting systems containing our patented Solar Hybrid lighting systems and HALO Crown mounted lighting systems.
Selected financial and operation information is outlined below and should be read in conjunction with Cleantek's unaudited condensed consolidated interim financial statements and management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2024 and 2023, which are available on SEDAR at www.sedarplus.ca .
NON-IFRS MEASUREMENTS
Cleantek uses certain financial measures to quantify its results that are not prescribed by IFRS. The following terms: "EBITDA", "adjusted EBITDA", "working capital" and "non-current debt" are not recognized measures under IFRS and may not be comparable to that reported by other companies. Cleantek believes that, in addition to measures prepared in accordance with IFRS, the non-IFRS measurements provide useful information to evaluate the Company's performance and ability to generate cash, profitability and meet financial commitments.
These non-IFRS measures ae intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
EBITDA and Adjusted EBITDA
Management considers EBITDA and adjusted EBITDA key metrics in analyzing operational performance and the Company's ability to generate cash flow. EBITDA is measured as net income (loss) before interest, tax, depreciation and amortization as differences in accounting treatments may distort our core business results. Adjusted EBITDA is measured as EBITDA adjusted for certain non-cash items, including share-based compensation, impact of unrealized foreign exchange gains and losses as well as unusual items not representative of ongoing business performance such as litigation expense and settlements.
The following table provides a reconciliation of the non-IFRS measures, EBITDA and adjusted EBITDA, to the applicable IFRS measurements for Cleantek:
| Three months ended June 30 | Six months ended June 30 | |||||||||||||
| (Canadian | 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net income (loss) | (511 | ) | (687 | ) | 11 | (507 | ) | |||||||
| Tax expense | - | - | 36 | - | ||||||||||
| Depreciation and amortization | 576 | 544 | 1,169 | 1,094 | ||||||||||
| Finance costs, net | 245 | 395 | 500 | 776 | | |||||||||
| EBITDA | 310 | 252 | 1,716 | 1,363 | ||||||||||
| Share-based compensation | 21 | 334 | 50 | 405 | ||||||||||
| Litigation expense | - | 140 | - | 256 | ||||||||||
| Unrealized FX (gain) loss | (72 | ) | 177 | (296 | ) | 210 | | |||||||
| Adjusted EBITDA | 259 | 903 | 1,470 | 2,234 | ||||||||||
Working capital
Working capital (or also referred to as net current assets/liabilities) for Cleantek is calculated as current assets less current liabilities per the statement of financial position. The following table provides a reconciliation of working capital, a non-IFRS measure to the applicable IFRS measurements for the Company:
| June 30, | December 31, | ||||||
| (Canadian | 2024 | 2023 | |||||
| Current assets | 2,540 | 3,404 | |||||
| Current liabilities | 5,724 | 6,346 | |||||
| Working capital deficit | (3,184 | ) | (2,942 | ) | |||
Non-current debt
Management considers non-current debt in analyzing the Company's capital structure. Cleantek's capital structure consists of working capital, non-current debt and shareholders' equity. Non-current debt measures the long-term borrowings of the Company. Non-current debt for Cleantek is calculated as the non-current portions of long-term debt and lease liabilities. The following table provides a reconciliation of non-current debt, a non-IFRS measure to the applicable IFRS measurements for the Company:
| June 30, | December 31, | ||||||
| (Canadian | 2024 | 2023 | |||||
| Long-term debt - non-current portion | 7,141 | 7,806 | |||||
| Lease liabilities - non-current portion | 240 | 664 | |||||
| Non-current debt | 7,381 | 8,470 | |||||
Forward-Looking Statements
This news release contains certain "forward looking statements" including, for example, statements relating to expected improved financial flexibility, additional growth, potential middle east expansion, expansion of Cleantek's fleet of sustainable lighting solutions and mobile GZeroE wastewater treatment assets, the expected deployment of Cleantek's assets, available liquidity, Cleantek's outlook for the future and near-term strategy. Such forward-looking statements involve risks and uncertainties, both known and unknown. The results or events depicted in these forward-looking statements may differ materially from actual results or events. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding and are implicit in, among other things: receipt of regulatory approvals, the state of the capital markets, the ability of the Corporation to successfully manage the risks inherent in pursuing business opportunities in the oilfield services industry and outside the North American market, and the ability of the Corporation to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop its business. Any forward-looking statement reflects information available to Cleantek as of the date of this news release and, except as may be required by applicable securities laws, Cleantek disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Riley Taggart, President & Chief Executive Officer
E-mail: rtaggart@cleantekinc.com
Orson Ross, Chief Financial Officer
E-mail: oross@cleantekinc.com
Cleantek Industries Inc.
Tel: 403-567-8700
www.cleantekinc.com
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 news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219308
FAQ
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