BURLINGTON, Ontario, May 13, 2025--(BUSINESS WIRE)--Anaergia Inc. ("Anaergia", the "Company", "us" or "our") (TSX: ANRG) (OTCQX: ANRGF), a company that offers integrated waste-to-value solutions to reduce greenhouse gases by cost-effectively turning organic waste into renewable natural gas, fertilizer, and water, announced its financial results for the three-month period ended March 31, 2025. All financial results are reported in Canadian dollars unless otherwise stated.
"We are pleased to announce that Anaergia has achieved record Revenue Backlog* during the first quarter of 2025. As of March 31, 2025, our Revenue Backlog has surged by 94.1%, to $200.0 million, compared to $103.1 million at the end of December 2024. The increase in backlog was in the capital sales segment primarily in Italy and North America," said Assaf Onn, CEO of Anaergia.
"Additionally, we continue to pursue a robust pipeline of other opportunities, some of which we have already been awarded and disclosed since the beginning of the second quarter. We continue to execute our vision of Anaergia 2.0. and since Marny Investment SA’s investment in the Company in July 2024, we have taken decisive actions to enhance our financial foundation, refine our strategic direction, and restore investor confidence, leading to significant progress for Anaergia," added Mr. Onn.
First Quarter 2025 Financial Results
Financial highlights:
Revenue of $24.9 million for the first quarter of 2025 decreased 0.4%, or $93 thousand, compared to the first quarter of the prior year. The decrease was driven mainly due to lower sales in Italy and Asia Pacific, partially offset by increased sales in North America.
Gross profit of $5.4 million for the first quarter of 2025 decreased 16.6%, or $1.1 million, compared to the first quarter of the prior year. The quarter’s decrease was mainly driven by reduced gross profit of build, own, operate ("BOO") activities, partially offset by increased gross profit in capital sales.
Adjusted EBITDA1 loss of $3.9 million for the first quarter of 2025 improved by 34.5%, or $2.1 million, from a loss of $6.0 million in the first quarter of the prior year. The improvement in Adjusted EBITDA was primarily driven by decreases in net loss as well as addbacks of Rhode Island Bioenergy Facility ("RIBF") income tax credit transaction costs in the first quarter of fiscal year 2024 that did not recur in the current period.
Three months ended:
31-Mar-25
31-Mar-24
% Change
(In thousands of Canadian dollars)
Revenue
24,876
24,969
(0.4)
Gross profit
5,403
6,480
(16.6)
Gross profit %
21.7%
26.0%
(4.3) percentage
points
Loss from operations
(5,670)
(10,210)
44.5
Net loss
(5,897)
(11,481)
48.6
Adjusted EBITDA1
(3,940)
(6,019)
34.5
Statement of
Financial Position
31-Mar-25
31-Dec-24
(In thousands of Canadian dollars)
Total Assets
223,030
233,327
Total Liabilities
173,773
180,122
Equity
49,257
53,205
For a more detailed discussion of Anaergia’s results for the three-month period ended March 31, 2025, please see the Company’s financial statements and management’s discussion & analysis, which are available at https://www.anaergia.com/investor-relations and on the Company’s SEDAR+ page at www.sedarplus.com.
Non-International Financial Reporting Standards (IFRS™) Accounting Standards as issued by the International Accounting Standards Board (IASB)
This press release makes reference to certain non-IFRS™ measures. These measures are not recognized measures under IFRS™ and do not have a standardized meaning prescribed by IFRS™ and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS™ measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS™. We use non-IFRS™ measures, including "Adjusted EBITDA", "EBITDA" and "Revenue Backlog" to provide investors with supplemental measures. Management also uses non-IFRS™ measures internally in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our future debt service, capital expenditure and working capital requirements. Management believes these non-IFRS™ measures are important supplemental measures of operating performance because they eliminate items that have less bearing on operating performance and highlight trends in the core business that may not otherwise be apparent when relying solely on IFRS™ measures. Management believes such measures are useful as they allow for assessment of our operating performance and financial condition on a basis that is more consistent and comparable between reporting periods. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS™ measures in the evaluation of issuers.
Definitions of non-IFRS™ measures used in this press release are provided below.
"Adjusted EBITDA" is defined as EBITDA adjusted for our normalized proportionate interest in our BOO assets, one-time or non-recurring items, stock-based compensation expense, asset impairment charges and write downs, losses related to equity-accounted investees, significant one-time provisions, foreign exchange gains or losses, restructuring and severance costs, Enterprise Resource Planning customization and configuration costs, litigation and other claims settlements, gains and losses resulting from changes in certain balance sheet valuations (such as derivatives and warrants) and acquisition costs.
"EBITDA" is defined as earnings before interest expenses, taxes and depreciation and amortization. The most comparable IFRS™ measure for EBITDA is net income (loss).
"Revenue Backlog" is defined as the balance of unrecognized, undiscounted, consolidated revenues from signed contracts in our capital sales and operation and maintenance service ("O&M")/services segments. For our capital sales contracts, we have modeled only projects that have been contracted. For our O&M/services segment, while most of our in-hand contracts are 5-15 years in tenure, we have conservatively modeled for only 3 years of contracted revenue.
See "Reconciliation of Non-IFRS™ Measures" below for a reconciliation of the foregoing non-IFRS™ measures to their most directly comparable measures calculated in accordance with IFRS™.
Conference Call and Webcast Details
A conference call to review the Company’s financial results will take place at 9:00 a.m. (ET) on Wednesday May 14, 2025. It will be hosted by management of Anaergia. An accompanying slide presentation will be posted to the Investor Relations section of the Company’s website shortly before the call.
To participate in the call, please sign up using the following pre-registration link to receive details on how to access the conference call:
The webcast will be archived and available in the Investor Relations section of our website following the call.
About Anaergia
Anaergia is a pioneering technology company in the renewable natural gas ("RNG") sector, with over 250 patents dedicated to converting organic waste into sustainable solutions such as RNG, fertilizer, and water. We are committed to addressing a significant source of greenhouse gases ("GHGs") through cost-effective processes. Our proprietary technologies, combined with our engineering expertise and vast experience in facility design, construction, and operation, position Anaergia as a leader in the RNG industry. With a proven track record of delivering hundreds of innovative projects over the past decade, we are well-equipped to tackle today’s critical resource recovery challenges through diverse project delivery methods. As one of the few companies worldwide offering an integrated portfolio of end-to-end solutions, we effectively combine solid waste processing, wastewater treatment, organics recovery, high-efficiency anaerobic digestion, and biomethane production. Additionally, we operate RNG facilities owned by both third parties and Anaergia. This comprehensive approach not only reduces environmental impact but also significantly lowers costs associated with waste and wastewater treatment while mitigating GHG emissions.
This press release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information may relate to future plans, expectations and intentions, results, levels of activity, performance, goals or achievements, other future events or developments and may include, without limitation, information regarding our financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, plans and objectives. Particularly, information regarding our future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "may", "will", "would", "should", "could", "expects", "plans", "intends", "estimate", "believes", "likely", "potential", "continue", or "future" or the negative or other variations of these words or other comparable words or phrases. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Forward-looking statements in this press release include, among other things, statements relating to financial condition and results of operations; Company’s strategic growth plan; and statements regarding the Company’s Revenue Backlog and potential future sales.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that we considered appropriate and reasonable as of the date such statements were made. It is also subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk factors described in the Company’s annual information form and management’s discussion and analysis for the year ended December 31, 2024. Certain assumptions in respect of our ability to execute on our expansion plans; our ability to obtain or maintain existing financing on acceptable terms; and our ability of realizing the anticipated benefits of such are material factors underlying forward looking information and management’s expectations.
The purpose of the forward-looking statements in this press release is to provide the reader with a description of management’s current expectations regarding the Company’s financial performance and may not be appropriate for other purposes. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only to opinions, estimates and assumptions as of the date made. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release, and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Reconciliation of Non-IFRS™ Measures
Three months ended:
31-Mar-25
31-Mar-24
(In thousands of Canadian dollars)
Net loss
(5,897)
(11,481)
Finance costs, net
1,016
1,035
Depreciation and amortization
1,480
1,186
Income tax benefit
(1,886)
(17)
EBITDA
(5,287)
(9,277)
Share-based compensation expense
250
589
Losses related to equity-accounted investees
-
478
Other losses
809
320
RIBF income tax credit transaction cost
-
2,416
Foreign exchange (gain) loss
288
(545)
Adjusted EBITDA
(3,940)
(6,019)
* Using a new conservative definition of Revenue Backlog, first introduced with fiscal 2024 year end results. As defined under "Non-International Financial Reporting Standards ("IFRS"™) Accounting Standards as issued by the International Accounting Standards Board ("IASB")". 1 "Adjusted EBITDA" is a non-IFRS™ measure.
