 CEO Quarterly Overview The Q2 financial results are extremely encouraging, with rebounding revenue and profitability and continued strength in order intake. Highlights:
Quarter two produced stand out results, with revenue significantly ahead of the previous two quarters and with profitability better than the last two quarters and the same quarter last year. This was due, in part, to the build-up of demand during a time where we had limited access to customer sites. The growth in order intake and revenue demonstrates a growing global commitment to a ‘build back better’ approach as well as our ability as a company to meet surges in demand, as we all continue to navigate these challenging times. As organizations focus on energy efficiency as a way of not only reducing carbon emissions but of decreasing fuel use, minimizing costs, and maintaining production levels, we are well-positioned to continue to provide our customers with the solutions and support they need to grow their businesses. Quarterly AnalysisBy calculating the average quarterly results for the four quarters ending Feb 29, 2020 we are better able to compare recent results with those pre-COVID. Based on this analysis, we can see that in Q4 F2020 and Q1 F2021 revenue dropped quite significantly due to the impact of the COVID-19 global pandemic. However during Q2 F2021, revenue rebounded strongly approaching pre-pandemic levels while EBITDA and net income actually exceeded pre-pandemic levels.
Financial Position
Order Intake and Order Backlog
Sustainability that pays for itselfA global provider of proprietary and proven energy and water efficiency and emission reduction products and solutions to the industrial, commercial, and institutional markets. The Company is headquartered in Ottawa, Canada, with offices in the U.K., Italy, Germany, and U.S. Thermal Energy engages clients through a unique mix of process, energy, environmental and financial expertise to save our customers money and improve their bottom lines by reducing their fuel use and carbon emissions. The Company’s award-winning products have an excellent track record of longevity, proven reliability and performance and have been shown to provide: significant energy savings; improved water efficiency; reduced greenhouse gas emissions; lowered maintenance costs; improved product quality; and increased production efficiency. Thermal Energy’s products are effective in a wide range of industries and applications. Thermal Energy's proprietary products include: GEM™ - Steam Traps, FLU-ACE® - Direct contact condensing heat recovery, HEATSPONGE – Indirect contact condensing heat recovery systems, and DRY-REX™ - Low temperature biomass drying systems. A compelling investment opportunity Fast-growing global market within CleanTech with strong fundamentals Build Back Better, Green Recovery New aggressive carbon emission reduction targets  Strong track record of growth and profitability Profitable with 30% 5-year revenue CAGR  Compelling valuation and investment opportunity Forward looking statements
This presentation includes “forward-looking information”. For example, statements about the opportunities for repeat business; the possibility or expectation of additional orders; growth in existing markets; entry into new markets; order backlog; introduction of new products and services; establishment and growth of new distribution channels; growth opportunities and strategies; conversion of existing orders into revenues; are all forward looking information. Such forward looking information reflects Thermal Energy International’s (“TEI”) current expectations with respect to future events and are based on information currently available to management. Forward-looking information involves significant known and unknown risks, uncertainties and assumptions. For example, existing and new customers may not place orders for any number of reasons; fulfilment of orders, installation of product and activation of product could all be delayed for a number of reasons, some of which are outside of TEI’s control, which would result in anticipated revenues from such projects being delayed or in the most serious cases eliminated; TEI may not be successful in identifying and developing new products and our new or existing products may not result in new orders or gain acceptance in new geographical or industrial markets; we may not be successful in establishing new distribution channels or such new channels may not be successful; our growth strategies may not be successful or result in the anticipated growth and orders received by TEI may not turn into revenue in the time frame anticipated, or at all, due to many factors, some of which are outside of TEI’s control, including but not limited to TEI’s ability to deliver products on time and in accordance with specifications and the continuing financial viability of the customer. Readers are also referred to the risk factors outlined in our management’s discussion and analysis available at www.SEDAR.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information contained in this presentation. Readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this presentation and TEI does not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law. The term “EBITDA” as used in this presentation is not a recognized measure under IFRS, does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. This measure is provided as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective and should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. Please refer to our management’s discussion and analysis for the applicable period for a reconciliation of EBITDA to Net income (loss), the closest IFRS measure. Comments are closed.
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