H2O Innovation Reports Record FY2020 Fourth Quarter Results
Key Financial Highlights
- Revenues reached $133.6 M for fiscal year 2020, representing a $15.6 M growth, or 13.3 %, compared to $118.0 M for the previous fiscal year;
- Gross profit margin before depreciation and amortization expenses represented 26.9 % of the Corporation’s total revenues for fiscal year 2020, compared to 23.0 % for the previous fiscal year;
- Net earnings of $0.8 M for the fourth quarter of fiscal year 2020, compared to a net loss of ($1.2 M) for the comparable quarter of the previous fiscal year;
- Adjusted EBITDA1 reached $12.5 M, or 9.4 % of revenues, for this fiscal year compared to $7.2 M, or 6.1 % of revenues, for the previous fiscal year;
- Adjusted EBITDA1 reached $4.8 M, or 13.4 % of revenues, for the fourth quarter of fiscal year 2020 compared to $2.4 M, or 7.4 % of revenues, for the comparable quarter of the previous fiscal year;
- Earnings before impairment and restructuring costs1 of $0.9 M for this fiscal year, compared to a loss before impairment and restructuring costs of ($2.2 M) for the previous fiscal year;
- Cash flows from operating activities generated $12.3 M in cash for this fiscal year, compared to $5.8 M of cash flows from operating activities generated during the previous fiscal year.
All amounts in Canadian dollars unless otherwise stated.
QUEBEC CITY, Sept. 24, 2020 (GLOBE NEWSWIRE) -- (TSXV: HEO) – H2O Innovation Inc. (“H2O Innovation” or the “Corporation”) announces its financial results for the fourth quarter and fiscal year ended June 30, 2020.
“The fourth quarter and year-end financial results of fiscal year 2020 are solid and representative of all the improvements implemented by the Corporation. The sustained net earnings shown in the fourth quarter and the continuous EBITDA improvement testify to the success of our strategy to focus on building a business relying on recurring sales, which represented 86.2 % of our revenues. The revenue growth was notably driven by the acquisition of Genesys, completed in the second quarter of this fiscal year. This acquisition has enabled us to double our distribution network, expand our chemical manufacturing capabilities in the United Kingdom and complement our specialty chemical product line. Organic growth was also driven by Piedmont which successfully secured and delivered major coupling and filter housing orders, including one for the largest desalination plant in the world (Tawelaah, UAE - 900,000 m3/d). From these new client relationships in the Middle East, the Corporation expects to generate more synergies through the selling of its specialty chemicals. The strong cash flow from operating activities of $12.3 M generated during the year, allowed us to reimburse a portion of our bank loans and minimize risks associated to market uncertainties. Thanks to our O&M business pillar that represents 48.0 % of the consolidated revenues, we have been able to maintain continuous free cash flow. This strong performance allowed us to complete the acquisition of Gulf Utility Service right after our year-end, adding more revenues, opportunities, and operational synergies in the State of Texas. Despite a slowdown in our Water Technology and Services (“WTS”) business pillar in the last fiscal year, the strategic orientation to focus on industrial and higher margin projects is starting to pay off. Indeed, our backlog is growing with the addition of 6 new industrial and municipal projects, worth $17.8 M, as announced on August 24, 2020. In light of the COVID‑19 pandemic, we came to realize even more that the water sector is in good position and that we have a resilient and robust business model. Our consolidated backlog stands at $125.4 M, our financial situation is strong, and our balance sheet is not highly leveraged, positioning us positively to navigate through a possible extended COVID-19 crisis with multiple opportunities ahead of us. Finally, it is with honor and humility that we have seen H2O Innovation nominated earlier in March, along with 3 other large water companies, as Water Company of the Year by the Global Water Intelligence”, stated Frédéric Dugré, President and Chief Executive Officer of H2O Innovation.