EverGen Infrastructure Corp (TSX-V:EVGN) has posted revenue of C$1.4 million for the three months ended March 31, 2022, boosted by the recognition of insurance proceeds during the quarter.
The renewable natural gas company said revenue for the first quarter was “relatively in line” with the C$1.6 million it reported a year ago, taking into account seasonal fluctuations, and exceeded management’s expectations.
"EverGen is in a strong position to expedite growth as Canada's RNG infrastructure platform and we have continued to deliver on our goals," said CEO Chase Edgelow in a statement.
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"We were able to expand our footprint into Alberta with the LOI (letter of intent) to acquire a 67% interest in GrowTEC, a stepping stone project towards our regional expansion in a strategic jurisdiction and expected consolidation of the RNG industry in Canada," he added.
EverGen said it recognized more than C$1.7 million of insurance progress payments during the first quarter, which covered all of the lost revenues and flood-related expenses to date at the FVB facility and approximately 60% of the flood-related expenses through March 31, 2022 at EverGen's NZWA facility.
“Evergen expects to receive further proceeds throughout the remainder of 2022 to cover any additional flood-related expenses,” it added.
Net loss for the quarter was C$200,000, a significant improvement from the year-ago loss of C$1.2 million, while adjusted EBITDA increased by 211% to C$600,000. Both items benefited from the recognition of the insurance proceeds, the company said.
As of March 31, 2022, cash and cash equivalents, including restricted cash, totaled C$20.2 million, while working capital registered a surplus of C$19.2 million.
“Evergen expects full financial recovery, with limited to no financial impact from the floods” in the subsequent quarters, the company said.
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