Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify Blog

News Feed Item

Viridis Energy Reports Record Revenue with 169% Year-Over-Year Increase in Second Quarter 2014

Second quarter revenue increases 18% over first quarter 2014

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/19/14 -- Viridis Energy Inc. ("Viridis" or the "Company") (TSX VENTURE: VRD)(OTCQX: VRDSF), today reported financial results for its second quarter ended June 30, 2014. The Company delivered sequential growth in the second quarter of 18% over first quarter and grew revenue 169% compared to the second quarter of 2013.

Second Quarter Developments:

--  Second quarter financial metrics improved sequentially over first
    quarter 2014. Revenue increased 18%, gross profit rose 162%, and net
    losses were reduced by approximately 39%. Production at the Company's
    Nova Scotia plant, Scotia Atlantic Biomass ("Scotia") increased 63% over
    first quarter revenue, as it works toward operating at full capacity.
--  Scotia was awarded a $517,250 Capital Investment Incentive from the
    Government of Nova Scotia for plant equipment purchases.
--  Viridis entered into a strategic partnership with Halifax Grain Elevator
    Limited ("Halifax Grain"), in which Halifax Grain intends to invest up
    to $1 million in Scotia Atlantic Biomass Ltd. Halifax Grain owns 365
    storage silos with the capacity to store over 140,000 tons of bulk
    material at the Port of Halifax.
--  Viridis Merchants increased revenue to $2.2 million during first six
    months of 2014 compared to $329,000 for same period in 2013.
--  The Company completed a share consolidation in which it issued one new
    share for 10 old shares. As a result, the Company's shares outstanding
    were reduced from 138,451,883 to 13,845,190. In addition, outstanding
    options and warrants to purchase a total of 10,990,486 additional shares
    of common stock were reduced to 1,099,048.

The Company generated $6.6 million in revenue during its second quarter 2014, an increase of 169% when compared to the second quarter 2013 revenue of $2.5 million and an 18% sequential increase from the first quarter 2014 revenue of $5.6 million. The improved revenue reflects the ramp-up of production from the Company's Scotia plant, which generated revenue of $3.5 million, up from $2.2 million in the first quarter 2014. (Scotia renewed operations in September 2013). It was also positively impacted by an increase in revenue from Viridis Merchants (Canada) Ltd., which generated $964,000 in revenue, an increase of $850,000 from the prior year second quarter and a $122,000 increase over the first quarter 2014. The Company's West Kelowna, British Columbia plant, Okanagan Pellet Company Ltd. ("OPC"), generated revenue of $2.1 million, which was lower than the prior year second quarter and first quarter 2014 due to an unprecedented trucking strike in Vancouver, British Columbia that ended late April. Consequently, the Company resumed delivery late in the second quarter and expects to catch up on orders during the third quarter.

The Company generated gross profit during the second quarter 2014 of $868,000 or 13% of revenue (gross margin) compared to $465,000 or 19% gross margin during the prior year second quarter and $332,000 or 6% gross margin during the first quarter of 2014. The year-to-year quarterly decrease in gross margin reflects the addition of the Company's Scotia operations, which is currently operating below full production capacity. As Scotia progresses towards full production capacity, the Company anticipates gross margin will significantly improve. On a non-IFRS basis - excluding depreciation - gross profit for the second quarter 2014 was $1.2 million, generating an 18% gross margin compared to $606,000 or 25% of revenue for the same period in 2013.

Viridis incurred a loss from operations of $(747,000) during the second quarter 2014, which compares to a loss from operations of $(365,000) for the same period in 2013. The increased loss from operations in the current year second quarter reflects the incremental costs of Scotia's full operations in the current year - Scotia resumed production in September 2013. This is also a 45% improvement from the loss from operations incurred in the first quarter 2014 of $(1.4) million.

Viridis reported a comprehensive net loss of $(966,000) or $(0.07) per basic share for the second quarter 2014 compared to a comprehensive net loss of $(491,000) or $(0.05) per basic share for the second quarter 2013 period and a comprehensive net loss of $(1.6) million or $(0.10) per basic share for the first quarter 2014. The sequential improvement from the first quarter 2014 was due to increased production at the Company's Scotia plant and revenue growth at Viridis Merchants (Canada) Ltd. These improvements were partially offset by lower revenue experienced by OPC as a result of the six week, trucking strike, which has been resolved and product has resumed shipping late in the second quarter.

Operating expenses for the three months ended June 30, 2014 increased to $1.6 million from $829,000 in the comparable period in 2013, but slightly lower that the first quarter 2104 level of $1.7 million. Operating costs associated with the inclusion of Scotia in 2014 represented approximately $873,000 (of which $608,000 was freight charges) and Viridis Merchants Inc., the Company's newly formed brokerage entity located in the United States, represented approximately $74,000 of the year-over-year increase.

Finance and accretion expense totaled $205,000 in the second quarter 2014 compared to $125,000 in the same period of 2013 and $219,000 in the first quarter of 2014. The year-over-year increase was predominately due to a $95,000 increase in finance expense as a result of interest charges on equipment leases on Scotia's capital assets.

"Over the last few quarters, Viridis' resiliency has been tested. As 2014 began, we were still adapting to the bankruptcy of the railroad that serviced our West Kelowna plant by reverting to trucking and containerizing our pellets to focus on the European market where freight costs fit our economic model. This was followed by one of the worst winters in recorded history that, for a brief period, blocked transportation at our Nova Scotia plant. During the same period, we had to deal with an unprecedented trucking strike at the Port of Vancouver, to which we responded by building inventory for eventual delivery on our contracts, the bulk of which will be shipped during the third quarter. We have persevered through these impediments, reported a record revenue quarter, and have resumed our growth course," commented Christopher Robertson, Viridis' CEO. "While segments of our business are subject to seasonality, we are very pleased with the second quarter revenue growth, as it is an off-season quarter. Our third quarter is proving to be the 'catch-up' quarter resulting from the issues we dealt with through the first five months of the year. Our revenue forecast for the year remains in the range of $30-$35 million, and we continue to project exiting the year at a profitable run-rate."

Results for the Six Month Period:

The Company generated revenue of $12.3 million during the 2014 period, an increase of $7.5 million or 156% over the prior year six month period. The Company generated over $1.2 million in gross profit during the six-month period of 2014, compared to $800,000 during the same period of 2013. The Company incurred a comprehensive net loss of $(2.5) million or $(0.20) per basic share compared to a loss of $(1.2) million or $(0.15) per basic share.

At June 30, 2014, the Company reported cash and cash equivalents of $939,000 a decrease of $2.0 million from the March 31, 2014 balance. The reduction in cash was primarily due to working capital needed to finance inventory and accounts receivable increases of $1.4 million and $450,000, respectively, and certain investments in operations. The Company's accounts receivable were $1.7 million, representing DSO of 23 days, and inventory was $3.4 million. On June 30, 2014, Viridis had short-term debt of $950,000 (current portion of long-term debt) and long term debt of $5.8 million. The Company's shareholder equity totaled $4.7 million on June 30, 2014.

Consistent with the prior first quarter 2014, Viridis common shares outstanding on June 30, 2014 totaled 13.8 million shares. The Company's fully diluted share count totals 15.1 million, inclusive of all options (average exercise price of $2.64) and warrants (average exercise price $3.90). At second quarter end, the Company has tax loss carry forwards of approximately $19.4 million, which expire between 2029 and 2033.

Conference Call Details:

Date/Time:                  Wednesday, August 20, 2014 - 10:30 a.m. (ET)
Telephone Number:           877-870-4263
International Dial-In
Number:                     412-317-0790
Canada Dial-In Number:      855-669-9657

Internet Access:            http://www.videonewswire.com/event.asp?id=100249
                            or
                            http://www.viridisenergy.ca/

It is recommended that participants phone-in at least 15 minutes before the call is scheduled to begin. A replay of the conference call in its entirety will be available approximately one hour after its completion via the Internet Access link above.

About Viridis Energy Inc.

Viridis Energy Inc. (TSX VENTURE: VRD)(OTCQX: VRDSF), is a publicly traded, "Cleantech" manufacturer and distributor of renewable energy providing wood waste biomass fuel to global residential and industrial markets. Located in Vancouver, B.C., Viridis Energy Inc. operates Viridis Merchants (Canada) Ltd., Okanagan Pellet Company Ltd., Scotia Atlantic Biomass Company Limited and Viridis Merchants Inc., thus providing the company with vertical integration for distribution and manufacturing as well as coast to coast national presence. For more information on Viridis Energy Inc. please refer to the company website at www.viridisenergy.ca.

Forward-looking Statements

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future operations. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a continued downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties associated with the demand for biofuels, (3) the risk that the Company does not execute its business plan, (4) inability to finance operations and growth (5) inability to retain key management and employees, (6) an increase in the number of competitors with larger resources, and (7) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and the Company intends to update such forward looking information in the Company's MD&A in the event that actual results differ materially from such forward-looking statements contained herein. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian securities regulators.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

-- Financial Statements Follow --


Viridis Energy Inc.
Consolidated statements of financial position
(Expressed in Canadian dollars)
As at June 30, 2014 and December 31, 2013
----------------------------------------------------------------------------
                                                   30-Jun-14
                                                 (Unaudited)      31-Dec-13
----------------------------------------------------------------------------

ASSETS

Current
  Cash and cash equivalents                  $       938,703   $  1,594,246
  Accounts receivable                              1,702,327      1,275,959
  Inventory                                        3,356,771        926,933
  Prepaid expenses                                   436,592        546,917
----------------------------------------------------------------------------
Total Current Assets                               6,434,393      4,344,055

Property, plant and equipment                      9,383,136      9,045,376
----------------------------------------------------------------------------
TOTAL ASSETS                                 $    15,817,529   $ 13,389,431
----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIABILITIES and SHAREHOLDERS' EQUITY

  Accounts payable and accrued liabilities   $     4,454,778   $  3,329,868
  Deferred income                                     13,724        196,595
  Due to related parties                                   -         44,373
  Current portion of loans payable                   947,617        113,529
----------------------------------------------------------------------------
Total Current Liabilities                          5,416,119      3,684,365
Loans payable                                      5,755,556      6,198,921
----------------------------------------------------------------------------
Total Liabilities                                 11,171,675      9,883,286
----------------------------------------------------------------------------

Shareholders' equity

  Share capital                              $    31,579,818   $ 27,322,578
  Contributed surplus                              2,871,376      3,446,376
  Accumulated deficit                            (29,805,340)   (27,262,809)
----------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY                         4,645,854      3,506,145
----------------------------------------------------------------------------

TOTAL LIABILITIES and SHAREHOLDERS' EQUITY   $    15,817,529   $ 13,389,431
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Viridis Energy Inc.
Consolidated statement of loss and total comprehensive loss
(Expressed in Canadian dollars, except number of shares and per share
amounts)
For the three and six months ended June 30, 2014 and 2013

                    Three months ended June 30,   Six months ended June 30,
                            2014           2013          2014          2013
Sales               $  6,649,275  $   2,473,296  $ 12,291,002  $  4,793,148
Cost of sales          5,780,944      2,008,698    11,090,979     3,992,183
                    --------------------------------------------------------
Gross profit             868,331        464,598     1,200,023       800,965
                    --------------------------------------------------------

Operating expenses
  Selling and
   marketing             110,403         39,405       234,913        85,242
  Freight-out            625,214          4,436     1,193,786        12,645
  General and
   administrative        879,635        785,368     1,871,394     1,628,251
                    --------------------------------------------------------
                       1,615,252        829,209     3,300,093     1,726,138
                    --------------------------------------------------------
Loss before other
 items                  (746,921)      (364,611)   (2,100,070)     (925,173)
                    --------------------------------------------------------

Other items
  Foreign exchange
   loss                  (13,636)        (4,424)      (18,503)       (6,688)
  Disposal of
   property plant
   and equipment               -          2,821             -         2,821
  Finance expense       (184,100)       (88,531)     (361,395)     (255,083)
  Accretion expense      (20,880)       (36,473)      (62,563)      (59,675)
                    --------------------------------------------------------
                        (218,616)      (126,607)     (442,461)     (318,625)
                    --------------------------------------------------------
Loss before income
 taxes recovery         (965,537)      (491,218)   (2,542,531)   (1,243,798)
Income taxes
 recovered                     -              -             -             -
                    --------------------------------------------------------
Net loss and total
 comprehensive loss $   (965,537) $    (491,218) $ (2,542,531) $ (1,243,798)
                    --------------------------------------------------------
                    --------------------------------------------------------

Net loss per share
  Basic and diluted $      (0.07) $       (0.05) $      (0.20) $      (0.15)
                    --------------------------------------------------------
                    --------------------------------------------------------

Weighted average
 number of common
 shares outstanding
 basic and diluted    13,847,052      9,968,350    12,658,960     8,064,695
                    --------------------------------------------------------
                    --------------------------------------------------------

Contacts:
Investor Contact:
Grannus Financial Advisors, Inc.
Yvonne L. Zappulla
Managing Director
212-681-4108
[email protected]

Company Contact:
Viridis Energy Inc.
Michele Rebiere
Chief Financial Officer
905-847-5226
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...