GuruFocus -
- Revenue: $8.1 million for Q3 2024, up from $6.9 million in the prior year.
- Gross Margin: 44% for Q3 2024, compared to 35% in the prior year.
- Operating Expenses: $3.4 million for Q3 2024, slightly up from $3.3 million in the prior year.
- EBITDA: $0.3 million for Q3 2024, compared to a loss of $0.7 million in the prior year.
- Net Earnings: $26,000 for Q3 2024, compared to a net loss of $729,000 in the prior year.
- Net Cash Balance: $2.2 million as of June 30, 2024, down from $3 million at the beginning of the fiscal year.
- Working Capital: $11.3 million as of June 30, 2024, up from $10.4 million in the prior year.
- Immediate Cash Availability: $4.8 million as of June 30, 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BluMetric Environmental Inc (BLMWF) reported a 17% increase in revenue for the third quarter compared to the same period last year.
- The company achieved a gross margin of 44% for the quarter, up from 35% in the prior year, attributed to lower subcontractor usage and increased billing rates.
- BluMetric Environmental Inc (BLMWF) maintained a positive net income and EBITDA, showcasing financial stability despite ongoing investments in cleantech expansion.
- The company secured a significant contract with Rheinmetall, valued at approximately $12 million, with production expected to commence in 2025.
- BluMetric Environmental Inc (BLMWF) is well-financed with a strong working capital position of $11.3 million, allowing for continued investment in growth and potential acquisitions.
- The transition to a cleantech-focused company involves longer sales and delivery cycles, which could impact short-term financial performance.
- Higher costs and overheads are being incurred due to investments in expanding manufacturing capabilities and hiring key personnel.
- The company's net cash balance decreased from $3 million at the beginning of the fiscal year to $2.2 million as of June 30, 2024.
- Operating expenses increased marginally to $3.4 million, primarily due to investments in business development activities.
- The company faces risks and uncertainties related to geopolitical tensions and the need to deliver products on time and within budget.
A: (Scott Macfabe, CEO) We are in the final stages of testing the prototype, and once approved, production will start. We expect to begin production early in the next fiscal year, with most of it completed by the end of the first or early second quarter. The total contract value is just under $12 million, with $11 million remaining after the prototype investment.
Q: Will the success of the Rheinmetall project lead to further opportunities with them or other clients?
A: (Scott Macfabe, CEO) While I can't speak directly for Rheinmetall, they are pleased with our work. We are promoting the unit to other markets as well, and there is significant interest globally. We are not solely reliant on Rheinmetall and are exploring broader market applications.
Q: Can you elaborate on the First Nations water contract and its potential market size?
A: (Scott Macfabe, CEO) The First Nations contract addresses boil water advisories in remote areas. Our systems are designed to be resilient and easy to operate, which is crucial in isolated communities. There is a significant need for such solutions, and we believe our systems can be widely deployed to address these challenges.
Q: How did the recent quarter's financial performance compare to the previous year?
A: (Dan Hilton, CFO) Revenue for the quarter was $8.1 million, up from $6.9 million last year. Gross margin increased to 44% from 35%, primarily due to reduced subcontractor usage and higher billing rates. EBITDA improved to $0.3 million from a loss of $0.7 million in the prior year.
Q: What is BluMetric's financial position and strategic focus moving forward?
A: (Dan Hilton, CFO) We have a strong financial position with $2.2 million in net cash and $11.3 million in working capital. This allows us to invest in cleantech scale-up, geographic expansion, and potential acquisitions. Our strategy is to maintain financial flexibility while executing our long-term growth plans.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.