Anaergia Reports Fourth Quarter and Fiscal 2023 Financial Results
“While there was a delay in the delivery of the financial statements, largely resulting from accounting and financial reporting impacts associated with the restructuring activities and transformation of the Company, we are encouraged to report that 2023 was a year of transition as our strategic review process is positively impacting the Company,” noted
Fiscal 2023 Financial Results
Financial highlights:
-
Revenue for the fourth quarter of 2023 was
$33.4 million , which is lower than revenue of$41.0 million reported for the same period in the previous year. For the year endedDecember 31, 2023 (“Fiscal 2023”), revenue decreased 9.2%, or$14.9 million , to$147.0 million compared to revenues in 2022. The decrease was driven mainly by lower Capital Sales revenue in the third quarter of 2023 due to a combination of some projects nearing completion, some projects facing customer and vendor delays, and delays in new project signings. -
Gross profit of
$3.5 million for the fourth quarter of 2023 increased by 84.4% compared to results in the prior year. The increase was due to the impact of newer contracts with higher margins inNorth America . Gross profit of$19.7 million for Fiscal 2023, decreased 26.1% compared to$26.7 million in gross profit in the prior year. -
Net loss for the fourth quarter of 2023 was
$34.1 million , compared to a net loss of$41.3 million for the same period in the previous year. The net loss for Fiscal 2023, increased to$192.8 million when compared to a net loss of$79.0 million for the prior year. The increase was mainly due to a loss related to the deconsolidation of the Rialto Bioenergy Facility (“RBF”)during the second quarter of 2023, estimated credit loss expenses taken during Fiscal 2023 (which included a loss on certain inter-company loans in the second quarter of 2023 that were determined to be no longer recoverable and subsequently sold toArjun Infrastructure Partners in the third quarter of 2023 as part of the on-going strategic review), a single event where a letter of credit related to a terminated operation and maintenance contract was drawn, and a larger loss from operations due to increased selling and general administrative expenses. -
Adjusted EBITDA1 for the fourth quarter of 2023 was
($7.7) million an improvement from adjusted EBITDA of($18.9) million in the fourth quarter of the previous year. Adjusted EBITDA decreased to($34.9) million for Fiscal 2023, from($26.2) million in the prior year. The decrease for the year was due to a decline in gross profit and to increased operating expenses.
Three months ended: |
|
|
(In thousands of Canadian dollars) |
|
|
|
|
|
Revenue |
33,408 |
41,025 |
Gross profit |
3,494 |
1,895 |
Gross profit % |
10.5% |
4.6% |
Loss from operations |
(35,931) |
(24,704) |
Net loss |
(34,058) |
(41,303) |
Adjusted EBITDA |
(7,713) |
(18,895) |
Twelve months ended: |
|
|
(In thousands of Canadian dollars) |
|
|
|
|
|
Revenue |
147,225 |
162,101 |
Gross profit |
19,729 |
26,684 |
Gross profit % |
13.4% |
16.5% |
Loss from operations |
(85,802) |
(36,839) |
Net loss |
(192,791) |
(79,000) |
Adjusted EBITDA |
(34,914) |
(26,188) |
Statement of Financial Position: |
|
|
(In thousands of Canadian dollars) |
|
|
|
|
|
Total Assets |
278,667 |
931,775 |
Total Liabilities |
205,077 |
595,730 |
Equity |
73,590 |
336,045 |
For a more detailed discussion of Anaergia’s results for the three-month and twelve-month periods ended
Other Significant Developments
On
Marny, through
On
On
The closing of the third tranche is anticipated to follow the lifting of the FFCTO (as defined below).
Failure-to-File Cease
On
Senior Leadership Change
The Company is announcing the resignation of its Chief Financial Officer,
Concurrently,
In the meantime,
Non- International Financial Reporting Standards (“IFRS”) Measures
This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures, including “Adjusted EBITDA” and “EBITDA” to provide investors with supplemental measures. Management also uses non-IFRS measures internally in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our future debt service, capital expenditure and working capital requirements. Management believes these non-IFRS measures are important supplemental measures of operating performance because they eliminate items that have less bearing on operating performance and highlight trends in the core business that may not otherwise be apparent when relying solely on IFRS measures. Management believes such measures are useful as they allow for assessment of our operating performance and financial condition on a basis that is more consistent and comparable between reporting periods. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.
Definitions of non-IFRS measures used in this press release are provided below. A reconciliation of the non-IFRS measures used in this press release to the most comparable IFRS measure can be found below under “Reconciliation of Non-IFRS Measures”.
“Adjusted EBITDA” is defined as net earnings before finance costs, taxes and depreciation and amortization adjusted for our normalized proportionate interest in our BOO assets and one-time or non-recurring items, stock-based compensation expense, asset impairment charges and write downs, gains and losses for equity-accounted investees, foreign exchange gains or losses, restructuring costs, Enterprise Resource Planning (“ERP”) customization and configuration costs, litigation and other claims settlements, gains and losses resulting from changes in certain balance sheet valuations (such as derivatives and warrants), acquisition costs and costs related to our initial public offering, including estimated incremental auditing and professional services costs incurred in connection with our initial public offering.
“EBITDA” is defined as net income before finance costs, taxes and depreciation and amortization.
About
For further information please see: www.anaergia.com
Forward-Looking Statements
This press release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may relate to future plans, expectations and intentions, results, levels of activity, performance, goals or achievements, other future events or developments and may include, without limitation, information regarding our financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, plans and objectives. Particularly, information regarding our future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “may”, “will”, “would”, “should”, “could”, “expects”, “plans”, “intends”, “estimate”, “believes”, “likely”, or “future” or the negative or other variations of these words or other comparable words or phrases. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Forward-looking statements in this press release include, among other things, statements relating to financial condition and results of operations; statements regarding the Company’s ongoing strategic review; statements regarding the anticipated closing of the third tranche of the
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that we considered appropriate and reasonable as of the date such statements were made. It is also subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk factors described in the Company’s annual information form and management’s discussion and analysis for the year ended
The purpose of the forward-looking statements in this press release is to provide the reader with a description of management’s current expectations regarding the Company’s financial performance and may not be appropriate for other purposes. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only to opinions, estimates and assumptions as of the date made. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release, and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Reconciliation of Non-IFRS Measures
Three months ended: |
|
|
(In thousands of Canadian dollars) |
|
|
Net loss |
(34,058) |
(41,303) |
Finance income (cost) |
826 |
1,054 |
Depreciation and amortization |
1,287 |
904 |
Income tax (benefit) expense |
(2,126) |
8,611 |
EBITDA |
(34,071) |
(30,734) |
|
|
|
RBF non-controlling interest |
- |
(647) |
Share-based compensation expense |
595 |
508 |
(Gain) loss on RBF embedded derivative |
- |
(2,324) |
Change in fair value of equity investment |
- |
656 |
Loss on sale of |
- |
- |
|
1,503 |
- |
Remeasurement of previously held interest in Bioener, S.p.A. |
- |
92 |
Share of loss in equity accounted investees |
765 |
581 |
Loss on control of the RBF |
(4,056) |
- |
Expected credit loss on loans receivable from related parties |
- |
- |
Impairment loss |
26,336 |
- |
Provision for customer claim |
- |
4,760 |
Remeasurement of debt |
- |
3,164 |
Other (gains) losses |
1,066 |
4,852 |
ERP customization and configuration costs |
- |
262 |
Costs related to previous offerings |
- |
22 |
Foreign exchange (gain) loss |
149 |
(87) |
Adjusted EBITDA |
(7,713) |
(18,895) |
Twelve months ended: |
|
|
(In thousands of Canadian dollars) |
|
|
Net income (loss) |
(192,791) |
(79,000) |
Finance income (cost) |
3,333 |
1,289 |
Depreciation and amortization |
6,069 |
3,740 |
Income tax (benefit) expense |
(8,606) |
14,523 |
EBITDA |
(191,995) |
(59,448) |
|
|
|
RBF non-controlling interest |
1,544 |
(647) |
Share-based compensation expense |
1,941 |
1,335 |
(Gain) loss on RBF embedded derivative |
7,953 |
16,676 |
Change in fair value of equity investment |
- |
656 |
Loss on sale of |
(665) |
- |
|
8,151 |
- |
Remeasurement of previously held interest in Bioener, S.p.A. |
- |
(3,272) |
Share of loss in equity accounted investees |
6,726 |
5,204 |
Loss on control of the RBF |
35,663 |
- |
Expected credit loss on loans receivable from related parties |
60,236 |
- |
Impairment loss |
29,727 |
- |
Provision for customer claim |
1,002 |
4,760 |
Remeasurement of debt |
- |
3,164 |
Other (gains) losses |
4,586 |
4,388 |
ERP customization and configuration costs |
542 |
1,178 |
Costs related to previous offerings |
- |
285 |
Foreign exchange (gain) loss |
(325) |
(467) |
Adjusted EBITDA |
(34,914) |
(26,188) |
___________________________
1 “Adjusted EBITDA” is a non-IFRS measure.
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