Anaergia has released its financial results for the three and six months ending June 30, 2024 (Q2 2024), along with the related management’s discussion and analysis (MD&A). Key highlights from these results and the MD&A are summarized below. All figures are reported in Canadian dollars unless otherwise noted.
Highlights from Q2 2024 Financial Results
Anaergia’s Q2 2024 financial performance reflects its ongoing transition to a capital-light business model. This shift has resulted in improved gross profit margins and a rise in Adjusted EBITDA. However, revenues for Q2 2024 decreased notably compared to the same quarter last year.
According to the MD&A, Anaergia remains focused on enhancing margins, cutting expenses, and conserving cash. The company plans to continue leveraging its technologies to boost sales and optimize value.
“These results indicate progress in our transition to a capital-light model,” said Assaf Onn, Chief Executive Officer of Anaergia. “We believe these outcomes demonstrate that Anaergia is on the right path,” added Mr. Onn.
Financial Performance for Q2 2024
- Revenues: Decreased by 45%, or $18.9 million, to $23.6 million in Q2 2024 compared to Q2 2023. This decline was primarily due to the completion of Italian Capital Sales projects, customer delays, and delays in new project signings.
- Gross Profit Margin: Increased to 17.6% in Q2 2024 from 9.0% in Q2 2023, marking a 96% improvement. This increase is attributed to the company’s strategic focus on more lucrative and higher-margin Capital Sales and Service contracts.
- Net Loss: Improved by 89%, or $104.1 million, to a loss of $13.4 million compared to Q2 2023. The improvement is largely due to the non-recurring $35.7 million loss from the deconsolidation of Rialto Bioenergy Facility, LLC and $59.4 million in expected credit losses from WTE Holding S.r.L.
- Adjusted EBITDA: Loss improved by 59%, or $11.6 million, compared to Q2 2023. This positive variance resulted from increased gross margins and significant reductions in SG&A expenses. SG&A for Q2 2024 was $10.7 million lower than Q2 2023, largely due to higher expected credit losses and one-time charges in the prior year.
For a detailed discussion of Anaergia’s Q2 2024 results, please refer to the Company’s financial statements and MD&A available on the SEDAR+ page
Non-IFRS Measures
This release references certain non-International Financial Reporting Standards (IFRS) measures. These measures are not standardized under IFRS and may not be comparable to similar measures presented by other companies. They are provided to complement IFRS measures and offer additional insights into our operational performance. These measures should not be viewed in isolation or as a substitute for IFRS financial information.
Definitions of Non-IFRS Measures:
- Adjusted EBITDA: Defined as net earnings before finance costs, taxes, depreciation, and amortization, adjusted for normalized proportionate interest in Build-Own-Operate assets, one-time items, stock-based compensation, asset impairments, equity-accounted investees, foreign exchange gains or losses, restructuring costs, ERP costs, and other specific adjustments.
- EBITDA: Defined as net income before finance costs, taxes, depreciation, and amortization.
For reconciliation of these non-IFRS measures to the most comparable IFRS measures, see the section “Reconciliation of Non-IFRS Measures” below.
