PyroGenesis Canada Inc said it is on track to exceed its record 2020 revenue after it posted its second quarter results showing revenue of $8.3 million, a 289% increase from the $1.3 million figure in the same quarter last year.
The 2Q 2021 revenue figure – a company record, according to PyroGenesis – helped the Montreal-based firm post a net income from operations of $850,000 for the three-month period ended on June 30, 2021.
Its gross margin profit of $4.9 million represented an increase of 290% from $1.3 million in 2Q 2020.
PyroGenesis said it had a backlog of signed contracts of nearly $32 million as of mid-August.
CEO P Peter Pascali called the quarterly results “historical” in a statement to shareholders.
“This is the fourth quarter in a row that PyroGenesis has posted more revenues in each quarter than for all of 2019, and the company is on track to exceed the record revenues of 2020,” said Pascali. “Not only is PyroGenesis posting record revenues, with an overall gross margin of 59.6%, but the company’s backlog of signed contracts is increasing at the same time, which bodes well for the future. We expect this trend to continue.”
Looking ahead, PyroGenesis said it is in a good position to execute on its growth strategies.
The group also said it is now highlighting the greenhouse gas emission reduction benefits of its advanced plasma processes product offering now that governments are promoting and funding environmental technologies and infrastructure products.
The firm’s net comprehensive loss came in at $20.4 million, compared to a gain of $5.2 million in 2Q 2020, which PyroGenesis attributed to a variety of factors including an increase in product and service-related revenue and higher cost of sales and services.
PyroGenesis ended the quarter with $18.1 million in cash and equivalents, enough to finance its operations “for the foreseeable future,” it said.
Contract for two Air Plasma Torch systems
In a separate statement, PyroGenesis Canada also announced that it has signed a $1.2 million contract for two Air Plasma Torch systems with an existing Asian client.
The torches are to be incorporated into the client’s medical waste destruction systems. The company said the name of the client will remain confidential for competitive reasons.
“This contract is for two Air Plasma Torch systems, which are low powered and very different from the high-powered torches we offer to other industries (for example – iron ore pelletization), and underscores both the versatility and acceptance of our torches as well as our unique engineering capabilities,” said P. Peter Pascali, CEO and chair of PyroGenesis in the statement.
“Of note, if successful, these medical waste systems may replace legacy technologies, such as medical incinerators, which are inefficient and widely criticized for generating greenhouse gases. There is an enormous unaddressed medical waste management need worldwide, particularly in Southeast Asia, for cutting-edge solutions such as this.1 More importantly, this entry into the medical waste destruction market is just another of our offerings that complements our strategy to become a preeminent supplier of processes that reduce greenhouse gases,” Pascalli added.
Both Air Plasma Torch systems are expected to be delivered in Q1 2022.
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