01:47:22 EDT Wed 22 May 2024
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or Name

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Greenlane Renewables Inc
Symbol GRN
Shares Issued 153,232,771
Close 2023-11-09 C$ 0.20
Market Cap C$ 30,646,554
Recent Sedar Documents

Greenlane loses $5.21-million in Q3 2023

2023-11-09 16:37 ET - News Release

Mr. Ian Kane reports


Greenlane Renewables Inc. has released its financial results for the third quarter ended Sept. 30, 2023. For further information on these results, please see the company's condensed consolidated interim financial statements, and management's discussion and analysis filed under the company's profile on SEDAR+. All amounts reported are in accordance with international financial reporting standards (IFRS), unless otherwise stated.

Third quarter highlights include:

  • Revenue of $10.1-million;
  • Gross profit of $2.6-million, gross margin before amortization of $3.1-million (31 per cent of revenue);
  • Net loss and comprehensive loss of $5.2-million;
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $4.5-million;
  • Sales order backlog of $46.7-million (inclusive of the $35.3-million contract award announced on Oct. 5);
  • Cash and cash equivalents of $16.9-million, and no debt outside the ordinary course of business, as at Sept. 30, 2023.

Subsequent event:

  • On Oct. 5, Greenlane announced that it had been awarded a contract valued at $35.3-million ($26.2-million (U.S.) by a leading environmental services company in Brazil that is investing in a portfolio of landfill assets across the country to produce biomethane. Under the terms of the agreement, Greenlane will supply its proven Cascade PSA LF product, a complete landfill gas-to-biomethane solution, including two-stage pressure swing adsorption (PSA) technology. This solution is designed for high nitrogen and oxygen applications, and will be deployed in one of the largest landfills in Brazil.

"In 2023, we've taken action, and have been investing toward making the business scalable and creating operating leverage through the implementation of new systems and related processes," said Ian Kane, president and chief executive officer of Greenlane. "We've also rebranded and launched our new line of sector-focused standard products in September that will contribute to streamlined processes and cost-efficiencies. Our standard products are configured to order and will result in reduced engineering time, and a repeatable, simplified and faster sales process. We're building and optimizing the business to achieve sustainable positive adjusted EBITDA results. We expect the actions we are taking to drive positive adjusted EBITDA for fiscal 2024, recognizing that the timing of new purchase orders for our biogas upgrading equipment can vary from quarter to quarter.

"We have the drive to succeed and will continue to focus on efficiencies and overall cost reductions through key programs such as enterprise resource planning (ERP) and product life cycle management (PLM). These efforts will continue into 2024, but at a lower spending level, with much of the initial investments having been made in 2023. These initiatives, coupled with our focused efforts to increase our system sales, have already benefited Greenlane with the largest sales contract in the company's history announced last month. The changes under way will take some time to show in our financial results, but are expected to reflect our resilience, adaptability and commitment to deliver on our overall long-term results as we grow our product sales into existing and exciting new markets. I look forward to keeping the public informed of our progress."

Greenlane's gross margin before amortization for the third quarter of 2023 is 31 per cent of revenue, up from 25 per cent in the third quarter of 2022. The increase in gross margin before amortization percentage was largely driven by a higher proportion of service and component revenue versus system revenue in the quarter. Adjusted EBITDA was a loss of $4.5-million for the third quarter of 2023 compared with an income of $400,000 in the third quarter of 2022. The loss was driven by a lower contribution from gross margin as a result of lower revenue, bad debt expenses for provisions on projects, and an increase in professional fees, insurance and system implementation costs.

Conference call

The public is invited to listen to the conference call in real time by telephone today, Nov. 9, at 2 p.m. PT (5 p.m. ET). To access the conference call by telephone, please dial: 1-800-319-4610 (North America toll-free) or 1-604-638-5340. Callers should dial in five minutes to 10 minutes prior to the scheduled start time and ask to join the Greenlane Renewables conference call.

Shortly after the conference call, the replay will be archived on the Greenlane Renewables website, and replay will be available in streaming audio and a downloadable audio file.

About Greenlane Renewables Inc.

Greenlane is driving change: accelerating the energy transition to a net-zero-emissions economy. It is cleaning up two of the largest and most difficult to decarbonize sectors of the global energy system: the natural gas grid and commercial transportation. As a pioneer and leading specialist in biogas upgrading, Greenlane has been actively contributing to the decarbonization of the planet for over 35 years. The systems Greenlane provides transform biogas generated from organic waste into high-value, grid-ready renewable natural gas (RNG). The company's systems produce clean, low-carbon and carbon-negative RNG from organic waste sources, including agriculture (such as dairy and hog manure), water resource recovery facilities, food waste, landfills and sugar mills. Greenlane is the only biogas-upgrading company offering and actively deploying the three main upgrading technologies: water wash, pressure swing adsorption and membrane separation, plus proprietary biogas desulphurization technology. Greenlane has delivered over 140 biogas-upgrading systems into 19 countries, including some of the largest RNG production facilities in the world.

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