A company that offers integrated waste-to-value solutions, transforming organic waste into renewable natural gas, fertilizer, and water while reducing greenhouse gases, has announced its financial results for the first quarter ended March 31, 2024. All financial results are reported in Canadian dollars unless otherwise noted.
“Following my earlier comments on the reasons for the delays in delivering the annual financial statements, I want to extend my gratitude to those who were involved in preparing both the annual and these quarterly statements,” said Assaf Onn, CEO of Anaergia. “We are now looking forward to taking the necessary steps to realize the potential of Anaergia as we deploy our industry-leading technologies in markets worldwide,” added Mr. Onn.
First Quarter 2024 Financial Results
Financial highlights:
- Revenue: $25.0 million for the first quarter of 2024, a decrease of 33% or $12.4 million compared to the first quarter of the previous year. This decrease is mainly due to the completion of Italian Capital Sales projects, customer delays, and delays in new project signings. Additionally, Build, Own, Operate (“BOO”) revenue decreased due to the sale of the Bioener, S.p.A project in the third quarter of 2023.
- Gross profit: $6.5 million for the first quarter of 2024, an increase of 28% or $1.4 million compared to the first quarter of the previous year. The increase in gross profit was due to higher margins on new operation and maintenance (“O&M”) project contracts in North America and the UK, as well as increased margins from the SoCal Biomethane BOO project in the first quarter of this year.
- Adjusted EBITDA: Decreased by $9.3 million compared to the first quarter of 2023, falling from $3.3 million earnings to a loss of $6.0 million in the first quarter of this year. This negative variance is due to a $10.1 million gain on the sale of equity interests in a subsidiary of Anaergia that owned the Envo Biogas facility in Tønder, Denmark, in the first quarter of the previous year.
This press release references certain non-IFRS measures, which are not recognized under IFRS and may not be comparable to similar measures presented by other companies. These measures are provided as additional information to complement IFRS measures, offering further understanding of our results of operations from management’s perspective. They should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. Non-IFRS measures help investors by providing supplemental insights, facilitating operating performance comparisons over periods, and assessing our ability to meet future debt service, capital expenditure, and working capital requirements. Management believes these measures highlight trends in the core business that may not be apparent when relying solely on IFRS financial measures.
Definitions of non-IFRS measures and industry metrics used in this press release are provided below. A reconciliation of the non-IFRS measures to the most comparable IFRS measure is available under “Reconciliation of Non-IFRS Measures” in the MD&A.
“Adjusted EBITDA” is defined as net earnings before finance costs, taxes, depreciation, and amortization, adjusted for normalized proportionate interest in BOO assets, one-time or non-recurring items, stock-based compensation, asset impairments, gains and losses for equity-accounted investees, equity method adjustments, significant one-time provisions, foreign exchange gains or losses, restructuring costs, ERP customization and configuration costs, litigation and claim settlements, gains and losses from balance sheet valuation changes (such as derivatives and warrants), acquisition costs, and costs related to our initial public offering, including incremental auditing and professional services costs. For further details, refer to “Reconciliation of Non-IFRS Measures” below.
