EBITDA improves to $1.355 million from $308,000 and operating cash flow increases to $2.57 million from $1.61 million
/NOT FOR DISTRIBUTION IN THE USA/
KAMLOOPS, BC, Aug. 28, 2024 /CNW/ – After a year of rebuilding, Progressive Planet Solutions Inc. (TSXV: PLAN) (OTCQB: ASHXF) (“Progressive Planet”, “PLAN”, or the “Company”) announces its audited financial results for the year ending April 30, 2024.
“Fiscal 2024 was a year of implementing cost controls while preparing for long term growth. Our year-over-year increase in gross margin, coupled with significant reductions in selling and administrative expenses, are a strong testament to our desire to deliver long term shareholder value through positive cash flow from operations,” stated Steve Harpur, CEO. “While we experienced a small net loss for the year, this includes significant non-cash expenses such as depreciation, stock option issuances, and deferred income tax. The changes made in fiscal 2024 have set us up for a strong fiscal 2025.”
Fiscal 2024 highlights versus 2023
Achieved EBITDA1 of $1.355 million versus $308,000Revenue increased to $19.63 million from $19.54 million.Operating cash flow increased to $2.57 million from $1.61 millionGross margin2 increased to 30.6% from 26.2%Selling expenses decreased to $1.32 million from $1.93 millionResearch and development costs decreased to $531,000 from $875,000Interest costs decreased to $620,000 from $680,000Net loss decreased to $393,000 from 1.164 millionLong term debt reduced to $6.44 million from $6.75 millionCash on hand increased to $1.69 million from $705,000
Subsequent to Fiscal 2024
The Bank of Canada lowered prime twice, lowering the Company’s interest rate on its only significant source of debt, a floating rate, long-term debt facility with BMO by fifty basis pointsAnnounced and initiated a share buy-backShared 28-day compressive strength results for its PozPyro alternative cementInvested in technology to record and display plant production output in real time to plant operators and management, an industry practice known to increase productivity in industrial mineral processingInitiated engineering for expansion of grinding and packaging operationsCommenced study to reduce consumption of natural gas for mineral drying
In addition to financial highlights, Fiscal 2024 saw investment in new equipment and depreciation of existing equipment. The Company recorded $912,200 in depreciation expenses and invested a net amount of $213,600 (reflecting new equipment purchased less the sale of used equipment). When Progressive Planet acquired Absorbent Products in February 2022 for $16.3 million, none of the purchase price was recorded as goodwill. With the majority of the purchase price assigned to property, plant, and equipment, Progressive Planet has reported significant depreciation annually since the acquisition.
An additional non-cash expense of $435,000 was incurred for the issuance of deep out-of-the-money options in Fiscal 2024.
EBITDA is a non-IFRS financial measure. This ratio expresses earnings before interest, income taxes, depreciation, and amortization. It assists in explaining the Company’s results from period to period. There is no directly comparable IFRS measure.Gross margin is a non-IFRS financial measure. This ratio expresses gross profit as a percentage of revenue for a given period. It assists in explaining the Company’s results from period to period and measuring profitability. This ratio is calculated by dividing gross profit for a period by the corresponding revenue for the period. There is no directly comparable IFRS measure.
_________________________
Progressive Planet provides regular information for investors on its website: progressiveplanet.com/investors/. This includes press releases and other information about financial performance, patents filed, and information on corporate governance. For further information or investor relations inquiries, please contact:
Steve Harpur, CEO
1 (800) 910-3072
investors@progressiveplanet.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
About Progressive Planet:
Progressive Planet, a manufacturing company operating out of Kamloops, British Columbia, is reimagining what is possible when we prioritize our planet’s health. Our expertise lies in developing products using our owned mineral assets and recycled materials to create Products for a Healthy Planet™.
Our C-Quester™ Centre of Sustainable Solutions is proudly disrupting the cement, agricultural and animal care industries. Our product lines include patented and patent pending products which are developed with the express intent of promoting a healthy planet using naturally occurring minerals and the urban mining of recycled materials. Our products are found in over 10,000 retail stores across North America.
Forward-Looking Statements:
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the matters described herein including statements regarding the NCIB and the repurchases thereunder as well as the effect of those repurchases, statements regarding the future of the Bromley Creek Zeolite Mine and statements regarding the development of future products. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance, or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release.
Disclaimer:
This news release, required by Canadian laws, does not constitute an offer of securities and is not for distribution or dissemination outside Canada.
SOURCE Progressive Planet Solutions Inc.
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