Business
Cleantek Industries Inc. Announces Second Quarter 2024 Results and New Manufacturing Financing Facility
Calgary, Alberta--(Newsfile Corp. - August 8, 2024) - Cleantek Industries Inc. (TSXV: CTEK) (" Cl...
About this update from Cleantek Industries Inc.
[{"type":"text","content":"Cleantek Industries Inc. Announces Second Quarter 2024 Results and New Manufacturing Financing FacilityCalgary, Alberta--(Newsfile Corp. - August 8, 2024) - Cleantek Industries Inc. (TSXV: CTEK) (\"Cleantek\" or the \"Company\") is pleased to announce its second quarter 2024 financial and operational results. Cleantek is an innovative provider of patented, clean technology solutions focused on reducing both cost and carbon intensity in the wastewater management and industrial lighting sectors across North America. Cleantek's recently appointed President and Chief Executive Officer Riley Taggart commented, \"It was a challenging quarter for Cleantek as general activity levels were lower than initially forecast. Q2 is traditionally the most challenging quarter given the seasonality and break-up experienced in the Canadian oilfield drilling and services market. Despite the lower-than-expected utilization, we remain optimistic about the opportunity in the coming quarters. As an organization, we set out a plan to evaluate and pursue operational efficiencies and associated cost cutting measures over the balance of the year. These efficiency gains and the previously announced private placement, combined with the new manufacturing financing facility provided by BDC (see Corporate Update section below) will give Cleantek a clear path forward to increase revenue and profitability.\" Highlights for the Second Quarter 2024 (All amounts are in thousands of Canadian dollars unless otherwise indicated)Cleantek generated revenue of $2,411 for Q2 2024, a decrease of $986 or 29%, from Q2 2023. The decreased revenue in 2024 is primarily due to lower activity levels and resulting lower utilization of the fleet;Cleantek's gross profit was $1,285 or 53% of revenue for Q2 2024 compared with gross profit of $2,084 and 61% of revenue for Q2 2023;Cleantek's net loss of $511 for Q2 2024 was a $176 improvement from the net loss of $687 for Q2 2023; and,Cleantek's Adjusted EBITDA(1) was $259 for Q2 2024 compared to $903 for Q2 2023 due primarily to the decreased revenue.Expansion and OutlookCleantek's strategy focuses on delivering innovative and cost-effective solutions that reduce the carbon intensity as well as the capital and operating costs of industrial operations. By focusing on expanding the market awareness and adoption of its sustainable lighting ...