Click here to close now.




















Welcome!

Microsoft Cloud Authors: Elizabeth White, the Editor, Michael Krems, Xenia von Wedel, Jayaram Krishnaswamy

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
                    --------------------------------------------------------
                    --------------------------------------------------------

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
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.