PyroGenesis Canada Inc, the high-tech materials group, told investors it was well-positioned for future growth, particularly with its offerings to help reduce greenhouse gases, as it unveiled further revenue growth in its third quarter.
In the three months to September 30, the company reported revenue of $9,317,926 - up 14% from the $8,149,427 seen in 3Q, 2O20, and which included revenue of $3,712,000 from its recent acquisition of Pyro Green-Gas, formerly known as AirScience Technologies Inc.
The net income and comprehensive income came in at $623,664, down from $15,325,996 in the prior-year quarter, mainly due to a number of factors, including increased R&D expenses, changes in fair market value adjustment of strategic investments and financial expenses, and an increase in the cost of sales and services.
READ: PyroGenesis Canada expects positive net income for 3Q and record $22M revenue for nine months
"The company has recently focused its offerings to highlight their GHG emissions reduction benefits, which has been enhanced by Pyro Green-Gas offerings," the firm said. "We consider this strategy to be timely as many governments are stimulating their respective economies by promoting and funding both environmental technologies and infrastructure projects."
Peter Pascali, CEO of PyroGenesis, also noted that the latest quarter was the fifth in a row that PyroGenesis has posted more revenues for the quarter than full-year 2019 revenues.
"It is also the third consecutive quarter of increased revenues compared to the previous quarter. This represents the successful execution on our strategy, the processing on our backlog of signed contracts as well as the benefit from our recent acquisition," he said in a statement.
"Backlog from signed and/or awarded contracts is at a historically high level of $44.9MM which, given recent margins, bodes well for the near term. We fully expect this trend to continue," he added.
The company said cash and equivalents stood at $15,781,528 on September 30, compared to $18,104,899 at the end of 2020 and that it does not expect to need to raise capital to execute on its growth strategy "over the foreseeable future".
PyroGenesis Canada Inc is involved in the commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases, and are economically attractive alternatives to conventional 'dirty' processes.
It has created proprietary, patented and advanced plasma technologies that are being vetted and adopted by multiple multibillion-dollar industry leaders in four massive markets: iron ore pelletization, aluminum, waste management, and additive manufacturing.
Contact the author at giles@proactiveinvestors.com