PyroGenesis Canada Inc (CVE:PYR (OTCQB:PYRNF) reported second-quarter results Wednesday morning, revealing revenue that doubled year-over-year thanks in part to its contract with waste management company Drosrite International LLC.
The company posted revenue of more than C$2.1 million for the three months ended June 30, up 133% from C$913,769 in the same period of 2019. Drosrite sales in the quarter were more than C$1.3 million.
Comprehensive income clocked in at $C5.2 million, more than quadruple the C$2.3 million it saw a year earlier, and its cash on hand jumped to C$1.5 million from C$34,431 at the end of December.
READ: PyroGenesis says it has received $7.5 million under its contract with waste management firm Drosite International LLC
The Drorite deal licenses the Montreal-based company to manufacture and sell aluminum dross processing Drosrite systems and technology to Saudi Arabia and other Middle Eastern countries. Aluminum dross is a byproduct of smelting, that, with treatment, can be recycled.
It’s backlog of signed contracts is roughly C$28 million, and while that revenue has not been officially recognized, the company said it is able to reliably project that the coming quarter and remaining fiscal year will be profitable.
“It is interesting to note that using this revenue recognition method, only C$1.8 million has been recognized under the C$22+ million Drosrite contract for which we have announced receipt of over C$7 million, and which will be completed within the next year,” CEO Peter Pascali said in a statement.
“At this point, we expect that Q3 2020, and the nine months ending September 30, 2020, will both be profitable as will year end results.”
Specifically, the company expects earnings per share to be more than C$0.06 for the third quarter and more than C$0.10 for 2020 as a whole.
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