Xebec Reports Record 3rd Quarter 2019 with 136% in Revenue Growth

– EBITDA of $1.5million and Net Profit of $1.0 million –

MONTREAL, Nov. 12, 2019 (GLOBE NEWSWIRE) — Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a global provider of clean energy solutions announced today its 2019 third quarter and nine-month periods results, with the following highlights:

Record revenues of $13.2 million in the third quarter of 2019 compared to $5.6 million for the same period in 2018, a 136% increase.

Positive EBITDA at $1.5 million for the third quarter 2019 compared to $0.1 million for the same period in 2018.

Net profit of $1.0 million or $0.02/share for the third quarter 2019, compared to a net loss of ($0.4) million or ($0.01)/share for the same period in 2018.

Working capital increased to $19.0 million as of September 30, 2019, for a current ratio of 2.3:1 compared with working capital of $5.2 million and a 1.6:1 ratio on December 31, 2018.

Financial Highlights:

Financial Results

Revenues of $35.7 million for the nine-month period ended September 30, 2019, compared to $14.1 million for the same period in 2018, a 153% increase. The increase is mainly explained by the higher volume of major cleantech contracts.

Gross profit of $11.4 million or 32% of revenues for the nine-month period ended September 30, 2019, compared to $4.2 million for the same period in 2018, a 171% increase compared to the same period in 2018. The company has higher gross margins in the cleantech segment and a better absorption of the overhead costs due to a higher volume of sales.

Net profit of $2.5 million or $0.04 per share for the nine-month period ended September 30, 2019, compared to a net loss of ($1.9) million or ($0.04) per share for the same period in 2018, an improvement of $4.4 million. The increase is mainly due to higher sales and margins.

Positive EBITDA of $4.4 million for the nine-month period ended September 30, 2019, compared to ($0.4) million for the same period in 2018, an increase of $4.8 million.

Backlog increased by $5.5 million, from $65.5 million on November 8, 2018, to $71.0 million on November 11, 2019.

Awarded Tenders of $26.0 million as of November 11, 2019 to be contractually formalized into the backlog over the next 12 to 14 weeks.

Selling and administrative expenses increased by $2.8 million in the nine-month period ended September 30, 2019, compared to the same quarter of 2018. This is primarily due to an organizational scale-up of employees and associated costs to support the increased level of sales, order backlog and building quote log.

Cash on hand of $10.2 million and increased working capital of $19.0 million as of September 30, 2019, compared to $5.2 million on December 31, 2018.

Bought Deal Public Offering Units closed on July 4, 2019 for $11.6 million and Listing of Warrants.

Unsecured Convertible Debentures issued on November 16, 2017 for $2 million has been completely converted as of November 11, 2019.

CEO Quote:
“I am pleased to see that our team is implementing and executing the strategy we had outlined for Xebec’s growth as a sustainable and profitable clean tech company. Our rapid growth in the clean tech space is underpinned by a strong industrial and service business that is supportive of our cleantech operations. The benefits of this strategy will become more evident as we deploy more RNG plants and the infrastructure projects over the next few years. With strong and balanced growth in Europe, North America and China we are also benefitting from our global presence and associated market exposure. I am also excited about our activities in the gasification, carbon capture and hydrogen markets and we expect to discuss more about these opportunities in the coming quarters”. Operationally, we are making progress in establishing a strong supply chain to support our growth and we expect this to be a focus in the coming year leading to improved lead times and higher margins for our products.”
– Kurt Sorschak, President and CEO, Xebec Adsorption Inc.

Guidance for the remainder of 2019