EverGen Infrastructure Corp (TSX-V:EVGN) has announced financial results for the first quarter of 2023 (Q1 2023) which show an 18% year-on-year increase in revenue to $1.7 million.
The revenue growth was primarily attributed to higher volumes of incoming organic feedstock at Evergen's Sea to Sky Soils facility and the inclusion of GrowTEC, a company acquired in 2022.
The company reported cash and cash equivalents of $5.8 million as of March 31, 2023, which decreased from $8.9 million at the end of 2022 due to investments in expansion projects. Despite this, Evergen's remaining funds, along with a $31 million term loan and anticipated operating cash flows, are expected to fully support the company's core renewable natural gas (RNG) expansion initiatives.
However, Evergen reported a net loss of $1.0 million in Q1 2023, up from $200,000 in Q1 2022. The increase in net loss was mainly due to the recognition of $900,000 of insurance proceeds in the previous year. Adjusted EBITDA for Q1 2023 stood at $20,000, a decrease from $600,000 in Q1 2022, largely because of the insurance proceeds recognized in the previous year.
In the results statement, Chase Edgelow, the CEO of Evergen, expressed enthusiasm for the company's progress and the expansion of its core RNG projects, commenting: "Two thousand twenty-two set a strong foundation for the company's success in 2023. We are thrilled with the progress of our core RNG expansion projects and increased volumes of feedstock at our organic waste and composting facilities."
To provide an update on its results, Evergen will host a conference call on May 25, 2023, at 10.00am Eastern Time, led by CEO Edgelow.
Additionally, the company said it has engaged PI Financial Corp to ensure active and orderly trading of its common shares on the TSX Venture Exchange, demonstrating Evergen's commitment to maintaining liquidity and supporting market trading.
Evergen Infrastructure is a Canadian renewable natural gas infrastructure platform focused on combating climate change and promoting sustainable practices. The company acquires, develops, builds, owns, and operates renewable natural gas, waste-to-energy, and related infrastructure projects in Canada, with plans for expansion in other regions of North America and beyond.
Contact the author at jon.hopkins@proactiveinvestors.com