SHARC Energy Announces Q3 2024 Financial Results
SHARC Energy reported Q3 2024 financial results with revenue of $0.79M, a 44% increase from Q3 2023. Year-to-date revenue reached $2.34M, representing 147% of full-year 2023 revenue and a 35% increase from YTD 2023. Gross margins decreased to 32% in Q3 2024 and 37% YTD 2024, compared to 40% and 42% in the previous year. The company maintains a Sales Pipeline of $17.1M and a Sales Order Backlog of $2.5M. Notable developments include closing a $2M debenture financing and receiving purchase orders for significant projects in New York.
SHARC Energy ha riportato i risultati finanziari del terzo trimestre del 2024 con un fatturato di 0,79 milioni di dollari, un aumento del 44% rispetto al terzo trimestre del 2023. Il fatturato dall'inizio dell'anno ha raggiunto 2,34 milioni di dollari, corrispondente al 147% del fatturato totale dell'anno 2023 e a un aumento del 35% rispetto all'anno precedente. I margini lordi sono diminuiti al 32% nel terzo trimestre del 2024 e al 37% dall'inizio dell'anno, rispetto al 40% e al 42% dell'anno scorso. L'azienda mantiene una pipeline di vendite di 17,1 milioni di dollari e un portafoglio ordini di 2,5 milioni di dollari. Tra gli sviluppi significativi si registra la chiusura di un finanziamento tramite obbligazioni di 2 milioni di dollari e l'acquisizione di ordini di acquisto per progetti importanti a New York.
SHARC Energy reportó los resultados financieros del tercer trimestre de 2024 con ingresos de 0,79 millones de dólares, un aumento del 44% en comparación con el tercer trimestre de 2023. Los ingresos hasta la fecha alcanzaron 2,34 millones de dólares, representando el 147% de los ingresos del año completo 2023 y un aumento del 35% respecto al año anterior. Los márgenes brutos disminuyeron al 32% en el tercer trimestre de 2024 y al 37% hasta la fecha, en comparación con el 40% y el 42% del año pasado. La compañía mantiene un pipeline de ventas de 17,1 millones de dólares y un respaldo de pedidos de 2,5 millones de dólares. Los desarrollos notables incluyen el cierre de un financiamiento de 2 millones de dólares en bonos y la recepción de órdenes de compra para proyectos significativos en Nueva York.
SHARC Energy는 2024년 3분기 재무 결과를 발표하며 79만 달러의 수익을 기록하였고, 이는 2023년 3분기 대비 44% 증가한 수치입니다. 연초부터의 수익은 234만 달러에 도달하여, 2023년 연간 수익의 147%에 해당하며 2023년 YTD 대비 35% 증가했습니다. 2024년 3분기 총 마진은 32%로, YTD 2024년은 37%로 감소했으며, 이는 작년의 40% 및 42%와 비교됩니다. 회사는 1710만 달러의 판매 파이프라인과 250만 달러의 판매 주문 잔고를 유지하고 있습니다. 주목할 만한 발전으로는 200만 달러의 전환사채 금융 마감과 뉴욕의 주요 프로젝트에 대한 구매 주문 수신이 포함됩니다.
SHARC Energy a annoncé les résultats financiers du troisième trimestre 2024 avec des revenus de 0,79 million de dollars, soit une augmentation de 44% par rapport au troisième trimestre 2023. Les revenus depuis le début de l'année ont atteint 2,34 millions de dollars, représentant 147% des revenus de l'année entière 2023 et une augmentation de 35% par rapport à l'année précédente. Les marges brutes ont diminué à 32% au troisième trimestre 2024 et à 37% depuis le début de l'année, contre 40% et 42% l'année dernière. L'entreprise maintient une pipeline de ventes de 17,1 millions de dollars et un stock de commandes de 2,5 millions de dollars. Parmi les développements notables, on peut mentionner la clôture d'un financement par obligation de 2 millions de dollars et la réception de commandes pour des projets significatifs à New York.
SHARC Energy berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Umsatz von 0,79 Millionen US-Dollar, was einem Anstieg von 44% im Vergleich zum dritten Quartal 2023 entspricht. Der Umsatz seit Jahresbeginn beläuft sich auf 2,34 Millionen US-Dollar, was 147% des Gesamtjahresumsatzes 2023 entspricht und einen Anstieg von 35% im Vergleich zum bisherigen Jahr darstellt. Die Bruttomargen sanken im dritten Quartal 2024 auf 32% und auf 37% seit Jahresbeginn, verglichen mit 40% bzw. 42% im Vorjahr. Das Unternehmen hält ein Verkaufspipeline von 17,1 Millionen US-Dollar und einen Auftragsbestand von 2,5 Millionen US-Dollar. Zu den bemerkenswerten Entwicklungen gehört der Abschluss einer 2 Millionen US-Dollar Anleihefinanzierung und der Erhalt von Bestellungen für bedeutende Projekte in New York.
- Revenue growth of 44% YoY in Q3 2024
- YTD revenue of $2.34M represents 147% of full-year 2023 revenue
- Sales Pipeline of $17.1M indicates strong future growth potential
- Secured $2M in debenture financing
- Sales Order Backlog includes 10 projects, highest in company history
- Gross margins declined to 32% in Q3 from 40% in Q3 2023
- Sales Order Backlog decreased by 7% ($0.2M) since August 2024
VANCOUVER, British Columbia, Nov. 27, 2024 (GLOBE NEWSWIRE) -- SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) ("SHARC Energy" or the “Company”) is pleased to announce it has filed financial results for the three and nine months ended September 30, 2024. All figures are in Canadian Dollars and in accordance with IFRS unless otherwise stated.
Third Quarter and Year to Date (YTD) Financial Highlights:
- Revenue for the nine months ended September 30, 2024 (“YTD 2024”) is
$2.34M representing147% of the full year revenue in 2023. Revenue slightly increased quarter over quarter from the three months ended June 30, 2024, of$0.78M to$0.79M during the three months ended September 30, 2024 (“Q3 2024”). - Revenue for Q3 2024 is
$0.79M , which is a44% increase from the three months ended September 30, 2023 (“Q3 2023”). YTD 2024 revenue is$2.34M which represents a35% increase from the nine months ended September 30, 2023 (YTD 2023”). - Gross margins for Q3 2024 and YTD 2024 were lower at
32% and37% , versus40% and42% reported in Q3 2023 and YTD 2023, respectively, due to sales mix. Management remains optimistic that this margin range aligns with our expectations for the coming quarters. - As of November 27, 2024, the Company has a Sales Pipeline1 of 17.1 million (M) and Sales Order Backlog2 of
$2.5M . Sales Pipeline saw a slight increase of2% or$0.3M while Sales Order Backlog slightly decreased by7% or$0.2M since the Company’s August 29, 2024 disclosure despite drawing down Sales Order Backlog by$0.79M . The Company continues to observe the maturity of its Sales Pipeline providing the Company’s revenue more consistency with reduced revenue volatility, providing a solid platform to scale and grow.
Michael Albertson, President of SHARC Energy US, said, "The third quarter of 2024 continued to validate SHARC Energy’s pipeline has reached a key maturity milestone as Sales Order Backlog grew from its previous disclosure on August 29, 2024, despite recognizing quarter over quarter revenue growth in Q3 2024 compared to Q2 2024. Sales Order Backlog currently contains 10 projects, consistent with Q2 2024, representing the greatest number of projects under order at any period in the Company’s history. We see this as a strong indication that the Company’s future revenue is not only growing but diversifying. There are several projects indicating signs of conversion from Sales Pipeline to Sales Order Backlog which should affirm continued stability and growth of revenue in the near and long term."
“Thermal Energy Networks, commonly referred to as TENs or district energy, is a growing solution for managing small to large scale thermal energy loads efficiently and cost-effectively. WET supported solutions continue to grow in awareness and acceptance with the Company learning of projects in planning across North America and globally. In the Greater Vancouver, British Columbia region alone, there are several municipal or utility supported TENs ranging in size and scale, similar to the False Creek Neighborhood Energy Utility or leləm̓ projects, in different stages of development that will increase SHARC Energy's local footprint over the next few years. In the United States, legislation allowing or mandating utilities to develop thermal energy network demonstration projects or pilots have been passed in eight states, including the State of New York and recently added California, where the Company has installations in progress, projects in design and a growing list of leads looking to implement WET TENs,” added Mr. Albertson.
Q3 2024 Highlights and Subsequent Events
- Fred Andriano appointed to the Board of Directors. The Company announced the appointment of Fred Andriano to its Board of Directors on November 7, 2024. Mr Andriano was previously CFO at WaterFurnace International, where his leadership was critical in strategic acquisitions, international joint ventures and impressive growth, with revenues doubling from
$65M to$130M culminating in a$364M acquisition by NIBE Group in 2014. He continued as CFO and eventually moving to Vice President of Financial and Administrative Services for NIBE North America. During this time, Mr. Andriano played a pivotal role in securing major acquisitions, such as Enertech and The Climate Control Group, expanding NIBE’s footprint in the renewable energy space. - Closing of
$2 Million 8.0% Debenture financing. The Company closed a non-brokered private placement of debenture units of the Company (“Debenture units”) at a price of$1,000 per Debenture Unit, for gross proceeds of$2,000,000. Each Debenture Unit will be comprised of: (i) a$1,000 principal amount of8.0% unsecured debenture of the Company (the “Debenture”); and (ii) 5,000 common share purchase warrants of the Company (the “Warrants”). Each Warrant will entitle the holder thereof to acquire one common share in the capital of the Company (each, a “Share”) at an exercise price of$0.20 per Share for a period of 36 months from the date of issuance. - False Creek Neighbourhood Energy Utility (“NEU”) Expansion. The Company continued work on the supply and maintenance agreement with the City of Vancouver for the provision and maintenance of five SHARC systems for the False Creek NEU Expansion. During the period, the Company completed and billed milestone 3 of 5 of the agreement, where all components have been delivered to site. The project is expected to be completed before the end of 2024.
- Purchase order received for Whitney Young retrofit featured in NYSERDA Empire Building Challenge. The Company received a purchase order for a SHARC 660 WET system for the Whitney Young Manor recapitalization project in Yonkers, New York. The Whitney Young Manor will undergo a
$22 million renovation, with nearly$12 million allocated to the project’s decarbonization effort, inclusive of all energy efficiency measures. The retrofit project will highlight how to leverage a recapitalization opportunity to comprehensively retrofit energy systems and modernize an affordable housing complex. The system shipped in Q1 2024. - Purchase Order received for Phase 1 of transformative
$1.2B development to create 2,400 affordable homes, a medical clinic, and retail in Brooklyn, New York. The Company received a purchase order for a SHARC 660 WET system to be included in the first phase of a transformative$1.2 billion redevelopment in Brooklyn’s East New York neighborhood led by Apex Building Company, L+M Development Partners, RiseBoro Community Partnership, and Services for the Underserved. The system shipped Q1 2024. - Insiders, including management and directors, have purchased 4,632,500 common shares of the Company year to date. Insider ownership represents
16% of the current outstanding float.
For complete financial information for the three and nine months ended September 30, 2024, please see the Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis (“MD&A”) filed on SEDAR at www.sedar.com.
About SHARC Energy
SHARC International Systems Inc. is a world leader in energy recovery from the wastewater we send down the drain every day. SHARC Energy's systems recycle thermal energy from wastewater, generating one of the most energy-efficient and economical systems for heating, cooling & hot water production for commercial, residential, and industrial buildings.
SHARC Energy is publicly traded in Canada (CSE: SHRC), the United States (OTCQB: INTWF) and Germany (Frankfurt: IWIA) and you can find out more on our SEDAR profile.
Learn more about SHARC Energy: Website | Investor Page | LinkedIn | YouTube | PIRANHA | SHARC
ON BEHALF OF THE BOARD
Lynn Mueller
Chairman and Chief Executive Officer
For investor inquiries, please contact: Hanspaul Pannu Chief Financial & Operating Officer SHARC Energy Telephone: (604) 475-7710 ext. 4 Email: hanspaul.pannu@sharcenergy.com | For media inquiries, please contact: Mike Tanyi Director of Marketing & IT SHARC Energy Telephone: 604.475.7710 Ext.109 Email: mike.tanyi@sharcenergy.com |
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified using words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. SHARC Energy’s actual results could differ materially from those anticipated in this forward-looking information because of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company. SHARC Energy believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Any forward-looking information contained in this news release represents the Company’s expectations as of the date hereof and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether because of new information, future events or otherwise, except as required by applicable securities legislation.
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1 Sales Pipeline is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2024 MD&A.
2 Sales Order Backlog is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2024 MD&A.
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