Cleantek Industries Inc. Announces Third Quarter 2024 Results
Cleantek Industries reported Q3 2024 financial results showing revenue of $2,779, a 23% decrease from Q3 2023. The company posted a net loss of $211 compared to net income of $245 in Q3 2023. Gross profit was $1,729 (62% of revenue) versus $2,284 (64%) in Q3 2023. Adjusted EBITDA decreased to $972 from $1,258 year-over-year. The company completed its first EcoSteam industrial water evaporation unit and secured a $4,000 manufacturing financing facility with BDC. Despite lower activity levels in the US, management remains optimistic about future growth potential in wastewater treatment and sustainable lighting markets.
Cleantek Industries ha riportato i risultati finanziari del terzo trimestre 2024, mostrando un fatturato di $2.779, con una diminuzione del 23% rispetto al terzo trimestre 2023. L'azienda ha registrato una perdita netta di $211 rispetto a un reddito netto di $245 nel terzo trimestre 2023. L'utile lordo è stato di $1.729 (62% del fatturato) rispetto ai $2.284 (64%) nel terzo trimestre 2023. L'EBITDA rettificato è diminuito a $972 da $1.258 rispetto all'anno precedente. L'azienda ha completato la sua prima unità di evaporazione dell'acqua industriale EcoSteam e ha ottenuto una linea di finanziamento per la produzione di $4.000 con BDC. Nonostante i livelli di attività più bassi negli Stati Uniti, la direzione rimane ottimista riguardo al potenziale di crescita futuro nei mercati del trattamento delle acque reflue e dell'illuminazione sostenibile.
Cleantek Industries reportó resultados financieros del tercer trimestre de 2024, mostrando ingresos de $2,779, una disminución del 23% en comparación con el tercer trimestre de 2023. La compañía registró una pérdida neta de $211 en comparación con un ingreso neto de $245 en el tercer trimestre de 2023. La ganancia bruta fue de $1,729 (62% de los ingresos) frente a $2,284 (64%) en el tercer trimestre de 2023. El EBITDA ajustado disminuyó a $972 desde $1,258 interanualmente. La empresa completó su primera unidad de evaporación de agua industrial EcoSteam y aseguró una línea de financiamiento para manufactura de $4,000 con BDC. A pesar de los niveles de actividad más bajos en EE. UU., la dirección se muestra optimista sobre el potencial de crecimiento futuro en los mercados de tratamiento de aguas residuales y iluminación sostenible.
Cleantek Industries는 2024년 3분기 재무 결과를 발표하며 $2,779의 수익을 보고하였고, 이는 2023년 3분기 대비 23% 감소한 수치입니다. 회사는 2023년 3분기 $245의 순이익에 비해 $211의 순손실을 기록하였습니다. 총 이익은 $1,729(수익의 62%)로, 2023년 3분기의 $2,284(64%)와 대비됩니다. 조정된 EBITDA는 전년 대비 $1,258에서 $972로 감소하였습니다. 회사는 첫 번째 EcoSteam 산업용 물 증발 장치를 완료하고 BDC와 $4,000 제조 자금 조달 시설 계약을 체결했습니다. 미국의 활동 수준이 낮음에도 불구하고 경영진은 하수 처리 및 지속 가능한 조명 시장에서의 미래 성장 잠재력에 대해 낙관적인 입장을 유지하고 있습니다.
Cleantek Industries a annoncé les résultats financiers du troisième trimestre 2024, affichant un chiffre d'affaires de 2 779 $, soit une diminution de 23 % par rapport au troisième trimestre 2023. L'entreprise a enregistré une perte nette de 211 $ par rapport à un bénéfice net de 245 $ au troisième trimestre 2023. Le bénéfice brut était de 1 729 $ (62 % du chiffre d'affaires) contre 2 284 $ (64 %) au troisième trimestre 2023. Le EBITDA ajusté a diminué à 972 $ contre 1 258 $ d'une année sur l'autre. L'entreprise a terminé sa première unité d'évaporation d'eau industrielle EcoSteam et a sécurisé une ligne de financement de fabrication de 4 000 $ avec BDC. Malgré des niveaux d'activité plus faibles aux États-Unis, la direction reste optimiste quant au potentiel de croissance futur des marchés du traitement des eaux usées et de l'éclairage durable.
Cleantek Industries hat die Finanzzahlen für das dritte Quartal 2024 veröffentlicht und zeigt einen Umsatz von $2.779, was einem Rückgang von 23% im Vergleich zum dritten Quartal 2023 entspricht. Das Unternehmen verzeichnete einen Nettoverlust von $211 im Vergleich zu einem Nettogewinn von $245 im dritten Quartal 2023. Der Bruttogewinn betrug $1.729 (62% des Umsatzes) im Vergleich zu $2.284 (64%) im dritten Quartal 2023. Das bereinigte EBITDA ging von $1.258 im Vorjahresvergleich auf $972 zurück. Das Unternehmen hat seine erste EcoSteam-Industriewasserdampfanlage fertiggestellt und eine Fertigungsfinanzierungseinrichtung in Höhe von $4.000 mit BDC gesichert. Trotz niedrigerer Aktivitätsniveaus in den USA bleibt das Management optimistisch hinsichtlich des zukünftigen Wachstumspotenzials im Bereich Abwasserbehandlung und nachhaltiger Beleuchtung.
- Maintained strong gross profit margin at 62% despite revenue decline
- Secured new $4,000 manufacturing financing facility from BDC
- Completed first EcoSteam industrial water evaporation unit
- Reduced non-current debt by $1,350 compared to December 2023
- Revenue decreased 23% to $2,779 compared to Q3 2023
- Net loss of $211 compared to net income of $245 in Q3 2023
- Adjusted EBITDA declined to $972 from $1,258 year-over-year
- Working capital deficit of $2,901 as of September 30, 2024
Calgary, Alberta--(Newsfile Corp. - November 14, 2024) - Cleantek Industries Inc. (TSXV: CTEK) ("Cleantek" or the "Company") is pleased to announce its third 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 President and Chief Executive Officer Riley Taggart commented, "I am very excited with the progress that we have made as an organization in the three short months since I joined the Company. Cleantek is functioning at a new level of internal efficiency that positions us for growth into 2025. While general activity in the US continued to lag expectations, the Company gained incredible momentum in the development of its long-term goals. The groundwork laid in the quarter sets the stage for increased long-term revenue and profitability.
Among the achievements for the quarter was the completion of our first EcoSteam industrial water evaporation unit. This high efficiency, natural gas-powered unit positions Cleantek as a force in the industrial wastewater sector.
Despite challenging in-period results I remain bullish on the direction of the company, the future activity levels of our legacy markets as well as Cleantek's potential in new and exciting sectors."
Highlights for the Third Quarter 2024 (All amounts are in thousands of Canadian dollars unless otherwise indicated)
Cleantek generated revenue of
$2,779 for Q3 2024, a decrease of$809 or23% , from Q3 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
$1,729 or62% of revenue for Q3 2024 compared with gross profit of$2,284 and64% of revenue for Q3 2023;Cleantek's net loss of
$211 for Q3 2024 was a$456 lower than the$245 of net income for Q3 2023; and,Cleantek's Adjusted EBITDA(1) was
$972 for Q3 2024 compared to$1,258 for Q3 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.
The Company's near-term strategy will continue to focus on:
maximizing utilization rates of its current fleet of sustainable lighting solutions and wastewater treatment assets;
expanding and growing the Company's fleet of wastewater treatment assets to satisfy increased demand in the oil and gas, midstream, mining, industrial and construction markets;
continuing to focus on expansion into international markets through the sale and rental of sustainable lighting solutions and wastewater units;
evaluating new technology partnerships in an effort to diversify product offerings and customer groups.
The Company is uniquely positioned to capture expansion in both wastewater evaporation and sustainable lighting markets. Cleantek expects that wastewater and evaporation opportunities in the oil and gas, municipal grey water and industrial wastewater industries.
International Expansion - Expanding on the Company's success with the recent HALOTM sales, Cleantek completed a proof-of-concept trial with a larger international customer with its HALOTM line and is exploring several promising opportunities diversifying Cleantek's geographic focus and customer base. This expansion includes exploring opportunities for rental and/or product sales in both the lighting and waster water divisions.
SecureTek - Cleantek's line of remote security services, being offered as a stand-alone system or integrated with our sustainable lighting products, continues 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.
EcoSteam - The new waste-gas powered, wastewater treatment and dehydration system, or "EcoSteam". The first system was completed in September 2024 and, based on market demand, Cleantek will look to offer twenty five units to the market by Q2 25. Operational feedback to date has been excellent with the units exceeding anticipated productivity goals.
DZeroE Iterative Development - To meet the growing demand for produced water evaporation, the "DZeroE" waste heat water evaporation technology that has been traditionally deployed in drilling rig applications is being retrofitted for use in production facilities. This low investment pivot will augment unit utilization and provide a less seasonal market opportunity. The DZeroE has also garnered interest in international markets and will be a primary focus for the company in late 2024 and into 2025.
Operational Update
Cleantek's third quarter 2024 revenue was
Results of Operations
| (Canadian | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
| per share amounts and percentages) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||
| Revenue | 2,779 | 3,588 | (809 | ) | 8,860 | 10,802 | (1,941 | ) | |||||||||||||||
| Gross profit | 1,729 | 2,284 | (555 | ) | 5,386 | 6,669 | (1,283 | ) | |||||||||||||||
| Gross profit % | 62 | 64 | (2)% | 61 | 62 | (1)% | |||||||||||||||||
| Net (loss) income | (211 | ) | 245 | (456 | ) | (201 | ) | (262 | ) | 61 | |||||||||||||
| Net (loss) income per share - basic and diluted ($) | $ | (0.01 | ) | $ | 0.01 | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.00 | |||||||
| EBITDA(1) | 553 | 1,193 | (640 | ) | 2,268 | 2,557 | (289 | ) | |||||||||||||||
| Adjusted EBITDA(1) | 972 | 1,258 | (286 | ) | 2,441 | 3,492 | (1,051 | ) | |||||||||||||||
| Capital expenditures | 114 | 356 | (242 | ) | 345 | 802 | (457 | ) | |||||||||||||||
| As at: | September 30, 2024 | December 31, 2023 | Change | ||||||||||||||||||||
| Total assets | 12,907 | 15,263 | (2,356 | ) | |||||||||||||||||||
| Working capital deficit(1) | (2,901 | ) | (2,942 | ) | 41 | ||||||||||||||||||
| Non-current debt(1) | 7,120 | 8,470 | 1,350 | ||||||||||||||||||||
| Total non-current liabilities | 7,166 | 8,516 | 1,350 | ||||||||||||||||||||
(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, executive severance 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 25, 2024, the Company entered into a manufacturing financing facility with BDC which provides for up to
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 nine months ended September 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 and executive severance.
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 | Nine months ended | |||||||||||||
| (Canadian | 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net income (loss) | (211 | ) | 245 | (201 | ) | (262 | ) | |||||||
| Tax expense | - | - | 36 | - | ||||||||||
| Depreciation and amortization | 530 | 556 | 1,700 | 1,651 | ||||||||||
| Finance costs, net | 234 | 392 | 733 | 1,168 | ||||||||||
| EBITDA | 553 | 1,193 | 2,268 | 2,557 | ||||||||||
| Share-based compensation | 22 | 37 | 71 | 442 | ||||||||||
| Litigation expense/Executive Severance | 273 | 131 | 273 | 388 | ||||||||||
| Unrealized FX (gain) loss | 125 | (103 | ) | (171 | ) | 106 | ||||||||
| Adjusted EBITDA | 972 | 1,258 | 2,441 | 3,492 | ||||||||||
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:
| September 30, | December 31, | ||||||||
| (Canadian | 2024 | 2023 | |||||||
| Current assets | 2,567 | 3,404 | |||||||
| Current liabilities | 5,467 | 6,346 | |||||||
| Working capital deficit | (2,899 | ) | (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:
| September 30, | December 31, | |||||||
| (Canadian | 2024 | 2023 | ||||||
| Long-term debt - non-current portion | 6,829 | 7,806 | ||||||
| Lease liabilities - non-current portion | 291 | 664 | ||||||
| Non-current debt | 7,121 | 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 EcoSteam 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/230038
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