Click here to close now.

SYS-CON MEDIA Authors: David Sprott, Liz McMillan, Pat Romanski, Elizabeth White, tru welu

News Feed Item

Viridis Energy Reports Record Revenue with 169% Year-Over-Year Increase in Second Quarter 2014

Second quarter revenue increases 18% over first quarter 2014

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/19/14 -- Viridis Energy Inc. ("Viridis" or the "Company") (TSX VENTURE:VRD)(OTCQX:VRDSF), today reported financial results for its second quarter ended June 30, 2014. The Company delivered sequential growth in the second quarter of 18% over first quarter and grew revenue 169% compared to the second quarter of 2013.

Second Quarter Developments:


--  Second quarter financial metrics improved sequentially over first
    quarter 2014. Revenue increased 18%, gross profit rose 162%, and net
    losses were reduced by approximately 39%. Production at the Company's
    Nova Scotia plant, Scotia Atlantic Biomass ("Scotia") increased 63% over
    first quarter revenue, as it works toward operating at full capacity. 
--  Scotia was awarded a $517,250 Capital Investment Incentive from the
    Government of Nova Scotia for plant equipment purchases. 
--  Viridis entered into a strategic partnership with Halifax Grain Elevator
    Limited ("Halifax Grain"), in which Halifax Grain intends to invest up
    to $1 million in Scotia Atlantic Biomass Ltd. Halifax Grain owns 365
    storage silos with the capacity to store over 140,000 tons of bulk
    material at the Port of Halifax. 
--  Viridis Merchants increased revenue to $2.2 million during first six
    months of 2014 compared to $329,000 for same period in 2013. 
--  The Company completed a share consolidation in which it issued one new
    share for 10 old shares. As a result, the Company's shares outstanding
    were reduced from 138,451,883 to 13,845,190. In addition, outstanding
    options and warrants to purchase a total of 10,990,486 additional shares
    of common stock were reduced to 1,099,048. 

The Company generated $6.6 million in revenue during its second quarter 2014, an increase of 169% when compared to the second quarter 2013 revenue of $2.5 million and an 18% sequential increase from the first quarter 2014 revenue of $5.6 million. The improved revenue reflects the ramp-up of production from the Company's Scotia plant, which generated revenue of $3.5 million, up from $2.2 million in the first quarter 2014. (Scotia renewed operations in September 2013). It was also positively impacted by an increase in revenue from Viridis Merchants (Canada) Ltd., which generated $964,000 in revenue, an increase of $850,000 from the prior year second quarter and a $122,000 increase over the first quarter 2014. The Company's West Kelowna, British Columbia plant, Okanagan Pellet Company Ltd. ("OPC"), generated revenue of $2.1 million, which was lower than the prior year second quarter and first quarter 2014 due to an unprecedented trucking strike in Vancouver, British Columbia that ended late April. Consequently, the Company resumed delivery late in the second quarter and expects to catch up on orders during the third quarter.

The Company generated gross profit during the second quarter 2014 of $868,000 or 13% of revenue (gross margin) compared to $465,000 or 19% gross margin during the prior year second quarter and $332,000 or 6% gross margin during the first quarter of 2014. The year-to-year quarterly decrease in gross margin reflects the addition of the Company's Scotia operations, which is currently operating below full production capacity. As Scotia progresses towards full production capacity, the Company anticipates gross margin will significantly improve. On a non-IFRS basis - excluding depreciation - gross profit for the second quarter 2014 was $1.2 million, generating an 18% gross margin compared to $606,000 or 25% of revenue for the same period in 2013.

Viridis incurred a loss from operations of $(747,000) during the second quarter 2014, which compares to a loss from operations of $(365,000) for the same period in 2013. The increased loss from operations in the current year second quarter reflects the incremental costs of Scotia's full operations in the current year - Scotia resumed production in September 2013. This is also a 45% improvement from the loss from operations incurred in the first quarter 2014 of $(1.4) million.

Viridis reported a comprehensive net loss of $(966,000) or $(0.07) per basic share for the second quarter 2014 compared to a comprehensive net loss of $(491,000) or $(0.05) per basic share for the second quarter 2013 period and a comprehensive net loss of $(1.6) million or $(0.10) per basic share for the first quarter 2014. The sequential improvement from the first quarter 2014 was due to increased production at the Company's Scotia plant and revenue growth at Viridis Merchants (Canada) Ltd. These improvements were partially offset by lower revenue experienced by OPC as a result of the six week, trucking strike, which has been resolved and product has resumed shipping late in the second quarter.

Operating expenses for the three months ended June 30, 2014 increased to $1.6 million from $829,000 in the comparable period in 2013, but slightly lower that the first quarter 2104 level of $1.7 million. Operating costs associated with the inclusion of Scotia in 2014 represented approximately $873,000 (of which $608,000 was freight charges) and Viridis Merchants Inc., the Company's newly formed brokerage entity located in the United States, represented approximately $74,000 of the year-over-year increase.

Finance and accretion expense totaled $205,000 in the second quarter 2014 compared to $125,000 in the same period of 2013 and $219,000 in the first quarter of 2014. The year-over-year increase was predominately due to a $95,000 increase in finance expense as a result of interest charges on equipment leases on Scotia's capital assets.

"Over the last few quarters, Viridis' resiliency has been tested. As 2014 began, we were still adapting to the bankruptcy of the railroad that serviced our West Kelowna plant by reverting to trucking and containerizing our pellets to focus on the European market where freight costs fit our economic model. This was followed by one of the worst winters in recorded history that, for a brief period, blocked transportation at our Nova Scotia plant. During the same period, we had to deal with an unprecedented trucking strike at the Port of Vancouver, to which we responded by building inventory for eventual delivery on our contracts, the bulk of which will be shipped during the third quarter. We have persevered through these impediments, reported a record revenue quarter, and have resumed our growth course," commented Christopher Robertson, Viridis' CEO. "While segments of our business are subject to seasonality, we are very pleased with the second quarter revenue growth, as it is an off-season quarter. Our third quarter is proving to be the 'catch-up' quarter resulting from the issues we dealt with through the first five months of the year. Our revenue forecast for the year remains in the range of $30-$35 million, and we continue to project exiting the year at a profitable run-rate."

Results for the Six Month Period:

The Company generated revenue of $12.3 million during the 2014 period, an increase of $7.5 million or 156% over the prior year six month period. The Company generated over $1.2 million in gross profit during the six-month period of 2014, compared to $800,000 during the same period of 2013. The Company incurred a comprehensive net loss of $(2.5) million or $(0.20) per basic share compared to a loss of $(1.2) million or $(0.15) per basic share.

At June 30, 2014, the Company reported cash and cash equivalents of $939,000 a decrease of $2.0 million from the March 31, 2014 balance. The reduction in cash was primarily due to working capital needed to finance inventory and accounts receivable increases of $1.4 million and $450,000, respectively, and certain investments in operations. The Company's accounts receivable were $1.7 million, representing DSO of 23 days, and inventory was $3.4 million. On June 30, 2014, Viridis had short-term debt of $950,000 (current portion of long-term debt) and long term debt of $5.8 million. The Company's shareholder equity totaled $4.7 million on June 30, 2014.

Consistent with the prior first quarter 2014, Viridis common shares outstanding on June 30, 2014 totaled 13.8 million shares. The Company's fully diluted share count totals 15.1 million, inclusive of all options (average exercise price of $2.64) and warrants (average exercise price $3.90). At second quarter end, the Company has tax loss carry forwards of approximately $19.4 million, which expire between 2029 and 2033.

Conference Call Details:


Date/Time:                  Wednesday, August 20, 2014 - 10:30 a.m. (ET)    
Telephone Number:           877-870-4263                                    
International Dial-In                                                       
Number:                     412-317-0790                                    
Canada Dial-In Number:      855-669-9657                                    
                                                                            
Internet Access:            http://www.videonewswire.com/event.asp?id=100249
                            or                                              
                            http://www.viridisenergy.ca/

It is recommended that participants phone-in at least 15 minutes before the call is scheduled to begin. A replay of the conference call in its entirety will be available approximately one hour after its completion via the Internet Access link above.

About Viridis Energy Inc.

Viridis Energy Inc. (TSX VENTURE:VRD)(OTCQX:VRDSF), is a publicly traded, "Cleantech" manufacturer and distributor of renewable energy providing wood waste biomass fuel to global residential and industrial markets. Located in Vancouver, B.C., Viridis Energy Inc. operates Viridis Merchants (Canada) Ltd., Okanagan Pellet Company Ltd., Scotia Atlantic Biomass Company Limited and Viridis Merchants Inc., thus providing the company with vertical integration for distribution and manufacturing as well as coast to coast national presence. For more information on Viridis Energy Inc. please refer to the company website at www.viridisenergy.ca.

Forward-looking Statements

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future operations. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a continued downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties associated with the demand for biofuels, (3) the risk that the Company does not execute its business plan, (4) inability to finance operations and growth (5) inability to retain key management and employees, (6) an increase in the number of competitors with larger resources, and (7) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and the Company intends to update such forward looking information in the Company's MD&A in the event that actual results differ materially from such forward-looking statements contained herein. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian securities regulators.

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 release.

-- Financial Statements Follow --


                                                                            
Viridis Energy Inc.                                                         
Consolidated statements of financial position                               
(Expressed in Canadian dollars)                                             
As at June 30, 2014 and December 31, 2013                                   
----------------------------------------------------------------------------
                                                   30-Jun-14                
                                                 (Unaudited)      31-Dec-13 
----------------------------------------------------------------------------
                                                                            
ASSETS                                                                      
                                                                            
Current                                                                     
  Cash and cash equivalents                  $       938,703   $  1,594,246 
  Accounts receivable                              1,702,327      1,275,959 
  Inventory                                        3,356,771        926,933 
  Prepaid expenses                                   436,592        546,917 
----------------------------------------------------------------------------
Total Current Assets                               6,434,393      4,344,055 
                                                                            
Property, plant and equipment                      9,383,136      9,045,376 
----------------------------------------------------------------------------
TOTAL ASSETS                                 $    15,817,529   $ 13,389,431 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES and SHAREHOLDERS' EQUITY                                        
                                                                            
  Accounts payable and accrued liabilities   $     4,454,778   $  3,329,868 
  Deferred income                                     13,724        196,595 
  Due to related parties                                   -         44,373 
  Current portion of loans payable                   947,617        113,529 
----------------------------------------------------------------------------
Total Current Liabilities                          5,416,119      3,684,365 
Loans payable                                      5,755,556      6,198,921 
----------------------------------------------------------------------------
Total Liabilities                                 11,171,675      9,883,286 
----------------------------------------------------------------------------
                                                                            
Shareholders' equity                                                        
                                                                            
  Share capital                              $    31,579,818   $ 27,322,578 
  Contributed surplus                              2,871,376      3,446,376 
  Accumulated deficit                            (29,805,340)   (27,262,809)
----------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY                         4,645,854      3,506,145 
----------------------------------------------------------------------------
                                                                            
TOTAL LIABILITIES and SHAREHOLDERS' EQUITY   $    15,817,529   $ 13,389,431 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Viridis Energy Inc.                                                         
Consolidated statement of loss and total comprehensive loss                 
(Expressed in Canadian dollars, except number of shares and per share       
amounts)                                                                    
For the three and six months ended June 30, 2014 and 2013                   
                                                                            
                    Three months ended June 30,   Six months ended June 30, 
                            2014           2013          2014          2013 
Sales               $  6,649,275  $   2,473,296  $ 12,291,002  $  4,793,148 
Cost of sales          5,780,944      2,008,698    11,090,979     3,992,183 
                    --------------------------------------------------------
Gross profit             868,331        464,598     1,200,023       800,965 
                    --------------------------------------------------------
                                                                            
Operating expenses                                                          
  Selling and                                                               
   marketing             110,403         39,405       234,913        85,242 
  Freight-out            625,214          4,436     1,193,786        12,645 
  General and                                                               
   administrative        879,635        785,368     1,871,394     1,628,251 
                    --------------------------------------------------------
                       1,615,252        829,209     3,300,093     1,726,138 
                    --------------------------------------------------------
Loss before other                                                           
 items                  (746,921)      (364,611)   (2,100,070)     (925,173)
                    --------------------------------------------------------
                                                                            
Other items                                                                 
  Foreign exchange                                                          
   loss                  (13,636)        (4,424)      (18,503)       (6,688)
  Disposal of                                                               
   property plant                                                           
   and equipment               -          2,821             -         2,821 
  Finance expense       (184,100)       (88,531)     (361,395)     (255,083)
  Accretion expense      (20,880)       (36,473)      (62,563)      (59,675)
                    --------------------------------------------------------
                        (218,616)      (126,607)     (442,461)     (318,625)
                    --------------------------------------------------------
Loss before income                                                          
 taxes recovery         (965,537)      (491,218)   (2,542,531)   (1,243,798)
Income taxes                                                                
 recovered                     -              -             -             - 
                    --------------------------------------------------------
Net loss and total                                                          
 comprehensive loss $   (965,537) $    (491,218) $ (2,542,531) $ (1,243,798)
                    --------------------------------------------------------
                    --------------------------------------------------------
                                                                            
Net loss per share                                                          
  Basic and diluted $      (0.07) $       (0.05) $      (0.20) $      (0.15)
                    --------------------------------------------------------
                    --------------------------------------------------------
                                                                            
Weighted average                                                            
 number of common                                                           
 shares outstanding                                                         
 basic and diluted    13,847,052      9,968,350    12,658,960     8,064,695 
                    --------------------------------------------------------
                    --------------------------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust...
2015 predictions circa 1970: houses anticipate our needs and adapt, city infrastructure is citizen and situation aware, office buildings identify and preprocess you. Today smart buildings have no such collective conscience, no shared set of fundamental services to identify, predict and synchronize around us. LiveSpace and M2Mi are changing that. LiveSpace Smart Environment devices deliver over the M2Mi IoT Platform real time presence, awareness and intent analytics as a service to local connecte...
High-performing enterprise Software Quality Assurance (SQA) teams validate systems that are ready for use - getting most actively involved as components integrate and form complete systems. These teams catch and report on defects, making sure the customer gets the best software possible. SQA teams have leveraged automation and virtualization to execute more thorough testing in less time - bringing Dev and Ops together, ensuring production readiness. Does the emergence of DevOps mean the end of E...
Amazon and Google have built software-defined data centers (SDDCs) that deliver massively scalable services with great efficiency. Yet, building SDDCs has proven to be a near impossibility for companies without hyper-scale resources. In his session at 15th Cloud Expo, David Cauthron, CTO and Founder of NIMBOXX, highlighted how a mid-sized manufacturer of global industrial equipment bridged the gap from virtualization to software-defined services, streamlining operations and costs while connect...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
paradigm shifts in networking, to cloud and licensure, and all the Internet of Things in between. In 2014 automation was the name of the game. In his session at DevOps Summit, Matthew Joyce, a Sales Engineer at Big Switch, will discuss why in 2015 it’s complexity reduction. Matthew Joyce, a sales engineer at Big Switch, is helping push networking into the 21st century. He is also a hacker at NYC Resistor. Previously he worked at NASA Ames Research Center with the Nebula Project (where OpenSta...
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will address the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affec...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In this session, James Kirkland, Red Hat's Chief Architect for the ...
While there are hundreds of public and private cloud hosting providers to choose from, not all clouds are created equal. If you’re seeking to host enterprise-level mission-critical applications, where Cloud Security is a primary concern, WHOA.com is setting new standards for cloud hosting, and has established itself as a major contender in the marketplace. We are constantly seeking ways to innovate and leverage state-of-the-art technologies. In his session at 16th Cloud Expo, Mike Rivera, Seni...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are bein...
Cloud Expo, Inc. has announced today that Andi Mann returns to DevOps Summit 2015 as Conference Chair. The 4th International DevOps Summit will take place on June 9-11, 2015, at the Javits Center in New York City. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great team at ...