In This Article:
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Revenue: $607 million, a 13% increase from Q3 2023.
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EBITDA: $103 million, a 28% increase from Q3 2023.
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EBITDA Margin: 16.9%, up from 15% in Q3 2023.
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Free Cash Flow: $40.1 million for the quarter, $152.3 million year-to-date.
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Total Debt to EBITDA: 1.14 times, slightly up from 1.12 times last quarter.
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Cash Conversion Cycle: 101 days, below the targeted range of 110 to 115 days.
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CapEx: $85 million expected for 2024, reverting to $75 million in 2025.
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Share Repurchase: 9 million shares repurchased at an average price of $7.68.
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US Revenue: $403 million, representing 66% of total revenue.
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Canadian Revenue: $204 million, an all-time record.
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Funds Flow from Operations: $88 million, up from $62 million in Q2 2024.
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Return on Average Capital Employed (ROACE): 25.6%, up from 20.6% a year ago.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CES Energy Solutions Corp (CESDF) achieved all-time record quarterly revenue of $607 million, marking a 13% increase from the previous year.
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The company reported an all-time high quarterly EBITDA of $103 million, a 28% increase compared to Q3 2023.
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CESDF's EBITDA margin improved to 16.9%, up from 15% in the same quarter last year.
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The company successfully repurchased 9 million shares under its NCIB plan, representing 47% of the current program.
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CESDF's cash conversion cycle improved to a record 101 days, significantly below the targeted range of 110 to 115 days.
Negative Points
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Total debt to trailing 12 months EBITDA increased slightly to 1.14 times from 1.12 times in the previous quarter.
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Free cash flow decreased to $40 million for the quarter, down from $55 million in Q2 and $76 million in Q3 2023.
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The company reported a decrease in cash flow from operations to $73 million, compared to $83 million in Q2 and $100 million in Q3 2023.
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CESDF's total debt increased by $34 million from the prior quarter, reaching $439 million.
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The company anticipates a slight increase in CapEx to $85 million in 2024, which may impact free cash flow.
Q & A Highlights
Q: Can you provide more details on the record revenue and EBITDA achieved in Q3 2024? A: Kenneth Zinger, President and CEO, highlighted that CES Energy Solutions achieved all-time record quarterly revenue of $607 million, which was 13% higher than Q3 of last year. The EBITDA for the quarter was $103 million, marking a 28% increase from the previous year. The EBITDA margin improved to 16.9% from 15% in Q3 2023. This growth was driven by strong performance across all business lines and strategic investments in capital expenditures to support future growth.