Calgary, Alberta--(Newsfile Corp. - May 1, 2025) - Green Impact Partners Inc. (TSX: GIP) ("GIP" or the "Company") today reports its results for the year ended December 31, 2024, and as of the date of this news release.
FINANCIAL HIGHLIGHTS
| (in thousands of dollars,
except per share data) | For the three months ended December 31, 2024 | For the three months ended December 31, 2023 |
| IFRS FINANCIAL MEASURES | | |
| Revenue | 36,970 | 37,390 |
| | | |
| NON-IFRS MEASURES | | |
| Adjusted EBITDA1 | (502) | (207) |
| (in thousands of dollars,
except per share data) | For the Year Ended December 31, 2024 | For the Year Ended December 31, 2023 |
| IFRS FINANCIAL MEASURES | | |
| Revenue | 145,022 | 161,162 |
| | | |
| NON-IFRS MEASURES | | |
| Adjusted EBITDA1 | (2,070) | (209) |
1 See Non-IFRS Measures below
Revenue: Revenues were $145.0 million for fiscal 2024 compared to $161.2 million in fiscal 2023.
The Company's Energy Product Optimization Services revenue decreased $16.3 million or 12% compared to the same period in 2023. This is due to a combination of a 10% decrease in volumes sold in conjunction with a 3% decrease in benchmark oil prices period over period. The weighted average price sold was $608.73/m3 for the year ended December 31, 2024, as compared to $627.81/m3 for the same period in 2023.
Fee for service revenue increased $0.2 million or 1% compared to the same period in 2023. This is due to a 6% increase in water treatment and disposal revenue as a result of a 15% increase in volumes processed. Fee for service solids disposal and recycling revenue decreased 4% as a result of a 25% decrease in volume processed. This is due to the composition of the differences between the Company's two solids disposal and recycling sites where one of the sites with the lower revenue per unit experienced a 26% decrease in volumes. However, 25% of solids revenue is attributable to this facility while it comprises 97% of the overall volume for the segment. Meanwhile, the other solids disposal and recycling site, which accounts for 75% of the solid's revenue with only 3% of the overall volume contribution, experienced a 2% decrease in volume and a 1% decrease in revenue over the same period due mainly to timing. Each site processes different materials and therefore have different underlying pricing for their services.
Adjusted EBITDA: The $2.1 million reduction in Adjusted EBITDA between December 31, 2024 and December 31, 2023 was primarily a result of the following, excluding adjustments for extraordinary items in each respective period:
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Gross profit improved by $2.0 million year-over-year as a result of lower fee for service direct costs due in large part to lower utility costs and lower treatment and disposal costs resulting from the nature of the volumes processed during the year compared to 2023. Energy Product Optimization margins also improved due mostly to an increase in high margin skim oil sales relative to 2023.
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This gross margin increase was partially offset by an aggregate increase of $1.4 million in salaries and wages and selling, general and administrative costs as a result of salary adjustments that became effective during 2024, severance costs paid out in the fourth quarter of 2024 and increased salaries and wages to support the Colorado JV.
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Further offsetting the improvement in gross profit was the increased losses before interest, depreciation and taxes realized from the Colorado JV, which were $3.3 million for the year ended 2024 compared to $0.1 million for the year ended 2023.
For a more detailed discussion on GIP's results for the year ended December 31, 2024, please see the Company's financial statements and management's discussion & analysis, which are available at: https://www.greenipi.com/investors/ and on the Company's SEDAR+ page at www.sedarplus.ca.
CORPORATE UPDATE
Corporate Credit Facility
The Company's corporate credit facility (the "Facility") matures on July 31, 2025 and will not be extended beyond the maturity date. As a result of the Company's going-concern disclosure within the financial statements for the year ended December 31, 2024 and corresponding Audit Report, the Company is now in default under the Facility. Under the Facility agreement, the Facility lender will have the right to demand repayment and/or realize on the security at any time under the Facility. A copy of the Facility agreement was filed on September 8, 2023 under the Company's profile on SEDAR+ at sedarplus.ca. The Facility lender has been advised of the default and the Company will be seeking to come to a constructive resolution with our Facility lender.
Colorado Joint Venture (the "Colorado JV")
Both Colorado JV sites began commercial gas production and sales in 2024, after the local utility resolved its technical issues. Over the course of the year, the Colorado JV identified ongoing design and design failures and is actively pursuing corrective measures available under its Engineering, Procurement & Construction ("EPC") contract. During the fourth quarter of 2024, the Colorado JV engaged a third-party independent engineering firm to assess the facilities and provide recommendations to rectify the issues. The Colorado JV is progressing through the remedies available under its EPC contract to correct the design and equipment failures over the remainder of 2025 and 2026. Subsequent to year end, the Colorado JV issued a Notice of Default to the EPC contractor. Due to the uncertainty of timing of the correction of EPC failures, the Company is not providing and is withdrawing its EBITDA guidance at this time (2025 EBITDA was previously estimated at $12.3 million, of which GIP would retain a 50% net interest).
GIP Mourns Loss of Geeta Sankappanavar
GIP is saddened to share the passing of Geeta Sankappanavar, Chairperson of its Board of Directors.
"Geeta's passing is an incredible loss for Green Impact Partners and for me personally," said Jesse Douglas. "She was not only a friend, mentor, and supporter but also a challenger who inspired us to be better every day. Geeta was instrumental in the very formation of GIP, and she continuously helped shape our vision and mission to transform waste into energy. Her leadership and unwavering belief in the Future Energy Park were truly inspiring, and as we see this project become a reality, we are reminded of her lasting influence. Geeta's impact on our company and the industry will be felt for years to come."
Geeta's legacy will endure in the work GIP does every day, and she will be deeply missed.
About Green Impact Partners
Green Impact Partners is forging a path towards a sustainable future by turning waste into clean, renewable energy. With a focus on renewable natural gas (RNG) and clean bioenergy projects, our mission is to acquire, develop, construct, and operate facilities that not only produce energy but also play an important role in waste reduction and lowering emissions. Our comprehensive approach spans the entire project life cycle, from idea generation through construction to ongoing operations. In addition to our RNG and clean bio-energy projects, GIP maintains a current portfolio of water and solids treatment and recycling facilities in Canada, alongside a solids recycling business in the United States.
Traded on the TSX Venture Exchange under the symbol GIP, Green Impact Partners invites you to join us in our journey to create a more sustainable future. For more information about GIP, please visit www.greenipi.com.
Non-IFRS Measures
The non-IFRS financial measures used within this news release by the Company are EBITDA and Adjusted EBITDA. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. EBITDA is a non-IFRS measure, calculated by adding back the impacts of income tax, finance costs, depreciation and amortization to net income (loss) for the period. EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures provided by other companies. Management believes EBITDA is an important performance metric that measures normalized recurring cash flows before changes in non-cash working capital. Adjusted EBITDA is defined as EBITDA adjusted for certain non-operating, non-recurring and non-cash items. Adjusted EBITDA is used by management to evaluate the earnings and performance of the Company before consideration of capital, financing and tax structures. Net income (loss) is the most directly comparable IFRS financial measure. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures provided by other issuers. Prior period Adjusted EBITDA has been calculated and presented in accordance with the current period calculation and presentation. Except as otherwise indicated, these financial measures will be calculated and disclosed on a consistent basis from period to period. For more information with respect to such financial measures, see the "Summary of Non-IFRS Measures" section of GIP's most recent MD&A which is available on SEDAR+ at www.sedarplus.ca.
Investor & Analyst Inquiries:
Nikolaus Kiefer
Chief Investment Officer
(236) 476-3445
investors@greenipi.com
Media Inquiries:
media@greenipi.com
Cautionary Statements
This news release contains forward-looking statements and/or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. When used in this release, such words as "would", "will", "anticipates", believes", "targets", "explores" and similar expressions, as they relate to GIP, or its management, are intended to identify such forward-looking statements. Such forward-looking statements reflect the current views of GIP with respect to future events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause GIP's actual results, performance or achievements to be materially different from any expected future results, performance or achievement that may be expressed or implied by such forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to: risk in default of its Facility with the Facility Lender, the risks related to reaching definitive documents and closing with the FEP Lead Equity Partner, risk related pricing estimates for FEP, successful resolution with the EPC contractor; the impact of general economic conditions in Canada and the United States, global supply chain issues; increased inflationary pressures; industry conditions including changes in laws and regulations and/or adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, in Canada and the United States; volatility of prices for energy commodities; change in demand for clean energy to be offered by GIP; competition; failure to negotiate and conclude any required commercial agreements; non-performance of agreements in accordance with their terms; lack of availability of qualified personnel; obtaining required approvals of regulatory authorities, in Canada and the United States; ability to access sufficient capital from internal and external sources; many of which are beyond the control of GIP. Forward-looking statements included in this news release should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such forward-looking statements. In particular, this news release contains forward-looking statements, based upon assumptions which management of the Company believes to be reasonable, pertaining to but not limited to the following: continued ramp up of production at the Colorado JV and the Notice of Default with the EPC Contractor; financial close with the FEP Lead Equity Partner, FEP project costs, final investment decision and Notice to Proceed to construction for the Future Energy Park project; ability to access sufficient debt and equity required for Future Energy Park; budgets, including future capital, operating or other expenditures and projected costs; ability to meet anticipated construction timing; the Company's ability to execute on its business plan.
Readers are encouraged to review and carefully consider the risk factors pertaining to GIP described in the filing statement of GIP dated May 17, 2021, and the 2024 year end MD&A which are accessible on GIP's SEDAR+ issuer profile at www.sedarplus.ca. The forward-looking statements contained in this release are made as of the date of this release, and except as may be expressly be required by law, GIP disclaims any intent, obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Management of GIP has included the above summary of assumptions and risks related to forward-looking statements provided in this release to provide shareholders with a more complete perspective on GIP's current and future operations and such information may not be appropriate for other purposes. GIP's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits GIP will derive therefrom.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.
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