MONTREAL, July 29, 2020 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the "Company", the “Corporation” or "PyroGenesis") that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch systems, is pleased to announce today its financial and operational results for the second-quarter ended June 30th, 2020.
“Percent complete revenue recognition in our major projects, which is the revenue recognition method we are mandated to follow by GAAP, is such that it is not linear, but exponential and as such, Q2 is now starting to reflect the results one might expect given recent announcements. It is interesting to note that using this revenue recognition method, only $1.8MM has been recognized under the $22MM+ DROSRITE™ contract for which we have announced receipt of over $7MM, and which will be completed within the next year. Using this same revenue recognition method, we can provide guidance for Q3 2020, and for the year ending December 31st, 2020: At this point, we expect that Q3 2020, and the nine months ending September 30, 2020, will both be profitable as will year end results. We are projecting Q3 2020 EPS (Basic & Diluted) to be conservatively in excess of 6 cents,” said P. Peter Pascali, CEO and President of PyroGenesis. “We are happy to be reporting these results in record time, and are pleased to note that we did so within the time frame set by more demanding exchanges. As such, we have set a goal to report all future financial results within the more stringent requirements set by the TSX as opposed to the TSXV.”
Q2 2020 results reflect the following highlights:
- Revenues of $2,128,454, an increase of 133% from $913,769 posted in Q2 2019
- Comprehensive income of $5,228,020 an increase of 332% from ($2,253,390) posted in Q2 2020
- Gross margin of 59.5% an increase of 39.2% over the same period in Q2 2019
- Cash on hand on June 30, 2020 was $1,567,777 (December 31, 2019: $34,431)
- Backlog of signed contracts as of the date of this writing is approx. $28MM.
Management Guidance for Q3 2020
- Management expects significant revenue growth
- Management expects that Q3 2020 and the nine months ending September 30, 2020 to be profitable
- Earnings per Share (EPS) > $0.06.
Management Guidance for full year 2020:
- Management expects significant revenue growth in 2020
- Earnings per Share (EPS) > $0.10.
OUTLOOK
Percent complete revenue recognition in our major projects, which is the revenue recognition method we are mandated to follow by GAAP, is such that it is not linear, but exponential and as such, Q2 is now starting to reflect the results one might expect given recent announcements. It is interesting to note that using this revenue recognition method, only $1.8MM has been recognized under the $22MM+ DROSRITE™ contract for which we have announced receipt of over $7MM, and which will be completed within the next year.
Using this same revenue recognition method, we can provide guidance for Q3 2020, and for the year ending December 31st, 2020: At this point we expect that Q3 2020, and the nine months ending September 30, 2020, will both be profitable as will year end results. We are projecting Q3 2020 EPS (Basic & Diluted) to be conservatively in excess of 6 cents and the year to be in excess of 10 cents.
Any discussion regarding the OUTLOOK of the company would be remiss if it did not address the continued increase in the Company’s market capitalization and the implications that has for the future.
Without a doubt the Company’s market capitalization suffered, as did many other companies, in the general Covid-19 market meltdown at the end of March 2020. However, PyroGenesis soon broke from the pack with the issuance of a material press release on March 24th, 2020.
Management believes that its breaking from the ranks caught the attention of investors, fund managers, and money managers who all now had the time during the COVID-19 lockdown to fully analyze the complicated story that is PyroGenesis. Management does not see any reason why this interest would abate anytime soon. To the contrary, Management has reason to believe that interest in the Company will only increase over the foreseeable future. As such, several strategies (up listings, spinoffs, acquisitions) are now being accelerated/considered.
Having a larger market capitalization has also helped in discussions with potential customers who take comfort from the possibility that a higher market capitalization may translate into easier access to capital. For the record, there is no intention to raise capital for working capital purposes.
If 2018 was the year in which PyroGenesis successfully positioned each of its commercial business lines by strategically partnering with multi-billion-dollar entities, and 2019 was the year that saw the appropriate personnel and infrastructure being put in place while building upon the success of 2018, then 2020 is without a doubt the year that the long awaited breakout, which began in the second half of 2019, takes place; it is in fact already upon us:
To date during 2020, PyroGenesis has:
- received significant payments under the $22MM contract with Drosrite International thereby validating announcements made during 2019,
- established a relationship with a US based tunneling company (contracts and payments ongoing),
- Established itself in the iron ore pelletization industry as a potential supplier of torches geared to replacing existing burners and thereby reducing GHGs. Interest is also spilling over into other industries with GHG reduction targets,
