Greenlane Renewables Inc. ("Greenlane" or the "Company") (TSX: GRN) (FSE: 52G) (OTC: GRNWF) today announced its financial results for the third quarter ended September 30, 2024. For further information on these results please see the Company's Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis filed under the Company's profile on SEDAR+ at www.sedarplus.ca. All amounts reported are in Canadian dollars and in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") unless otherwise stated.
Third Quarter Highlights from Continuing Operations Include:
- Revenue of $10.5 million;
- Gross profit of $3.4 million, Gross Margin1 before amortization of $3.6 million (34% of revenue);
- Adjusted EBITDA2 loss of $0.2 million;
- Net loss and comprehensive loss of $2.0 million;
- Sales Order Backlog3 of $14.3 million as at September 30, 2024;
- Cash and cash equivalents of $15.4 million and no debt, other than payables resulting from normal course operations, as at September 30, 2024.
"Greenlane's third-quarter performance demonstrates our commitment to diligent completion of biogas upgrading system contracts, disciplined cost management and realizing operational efficiencies, leading to an increase in revenue over the same quarter last year and a substantial improvement in our cash balance and Adjusted EBITDA," said Brad Douville, CEO of Greenlane. "We have adapted and implemented changes to our cost structure appropriate for the opportunities in front of us through a reduction in workforce. Our stated goal of achieving positive Adjusted EBITDA for the full year depended upon signing new biogas upgrading system contracts that have experienced delays associated with our customers' final decisions to start construction. As a consequence, while we maintain our goal of positive Adjusted EBITDA, we have determined that it will not be achieved in 2024."
"As recently announced, we have increased our service business by adding maintenance contracts that generate additional opportunities from Greenlane's large installed customer base. Greenlane continued to expand its impact in RNG markets, completing over 20 biogas upgrading system projects in the last two years, over 145 in total. While uncertainties in customer project starts and competitive pressures continue to affect new biogas upgrader system sales, we are excited about Greenlane's future. We are well-positioned to capitalize on the global push towards decarbonization, and our ongoing projects underscore our commitment to supporting a sustainable energy transition. We're confident that our streamlined, agile organization will continue to make meaningful contributions to the RNG industry."
Monty Balderston, CFO of Greenlane noted, "As of September 30, 2024, we had a cash balance of $15.4 million which was a 70% increase from June 30, 2024 driven by the conversion of accounts receivable to cash. We reported revenue of $10.5 million for Q3 2024, a 10% increase over Q3 2023. Our revenue growth was driven by both system sales and aftercare services. System sales contributed $8.5 million, while aftercare services grew to $2.0 million, reflecting increased demand for our support services. Greenlane's Gross Margin before amortization for the third quarter of 2024 of 34% of revenue, or $3.6 million, benefited from the positive impact of $0.4 million related to the release of expired warranty provisions. Excluding the warranty impact, Gross Margin before amortization is 30%, which is higher than our overall third quarter of 2023 comparative period and second quarter 2024 financial performance as a result of higher aftercare service contribution to the revenue mix."
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