Business
CEO Provides Update Letter to the Shareholders of Thermal Energy International
(via TheNewswire) Ottawa, Ontario / TheNewswire / January 29, 2018 - Thermal Energy I...
About this update from Thermal Energy International Inc.
[{"type":"text","content":"CEO Provides Update Letter to the Shareholders of Thermal Energy International(via TheNewswire)\n\n \nOttawa, Ontario / TheNewswire / January 29, 2018 - Thermal Energy International Inc. (\"Thermal Energy\" or the \"Company\") (TSXV: TMG), a global provider of industrial and institutional energy efficiency solutions, would like to provide a corporate update to shareholders from its CEO, William Crossland. \n\n \n \nLetter to Shareholders\n\n \n \nThe first half of fiscal 2018 was strong for Thermal Energy International and it looks like this is shaping up to be a banner year for our company. Revenue for the first half of the year was up 31% to $6.8 million, and demand for our proprietary energy efficiency solutions is at an all-time high --- as evidenced by the receipt of the largest order in our history subsequent to the end of the first half and our current order backlog being at an all-time high. Our strong revenue growth and record-high order backlog are a testament to our growth strategy and the ability of our team to execute it. \n\n \n \nOur strong revenue growth in the first half of the year was driven by increased demand for our FLU-ACE(R) heat recovery technology. Sales of our heat recovery systems increased by $2.4 million, or 132%, compared to the first six months of fiscal 2017. Heat recovery revenue in the first half of fiscal 2018 included revenue from five major ongoing projects, including the partial installation of a system at a leading producer of industrial and fuel alcohols, an installation at a major hospital, the final stages of two other hospital installations, plus the substantial completion of a project at a leading Fortune 500 food and beverage producer - our sixth heat recovery site with this particular customer.\n\n \n \nWhile revenue from the sale of our GEM(TM) Condensate return systems was down 23% for the year-to-date, the comparable period in fiscal 2017 was an outstanding one for our GEM business, with revenue growth of 42% compared to the first six months of fiscal 2016. \n\n \n \nHaving heat recovery systems comprise a significantly larger proportion of our sales mix in the first half of fiscal 2018 had an impact on our gross profit and margins. As a reminder, our heat recovery systems typically have a lower contribution margin than our GEM sales. Despite the higher revenue for the period, gr...