Thermal Energy International Inc. · TSXV:TMG
Thermal Energy International — Q1 FY2020 Earnings Presentation
12 slides from Thermal Energy International's earnings presentation, October 2019
Slide 1: Q1 FY2020 Review and Update
Q1 FY2020 Review and Update October 2019 An Innovative Technology Company Providing Custom Energy and Emission Reduction Solutions TSX-V: TMG | enq@thermalenergy.com | www.thermalenergy.com
Slide 2: Forward-looking statements
Forward-looking statements This presentation includes “forward-looking information”. For example, statements about the opportunities for repeat business; the possibility or expectation of additional orders; growth in existing markets; entry into new markets; order backlog; introduction of new produc
Slide 3: Revenue
Revenue First quarter ($ millions) 8 • Second highest Q1 revenue in Company $6.8 history. 7 6 $5.0 • Q1 FY2019 includes $4.3 million in revenue 5 from the $11 million Resolute mega project. 4 $3.1 • GEM steam trap revenue up 20% in Q1 2020 3 $2.6 compared to Q1 2019. $2.1 2 $1.2 • Q1 2020 revenue is
Slide 4: Gross profit
Gross profit First quarter ($ millions) 2.5 $2.2 • Gross profit increased 13% to $2.2 million. 2 $1.9 • Gross margin increased to 44% from 29% last year. 1.5 $1.2 $1.2 • Last year’s gross margin was heavily $0.9 influenced by the Resolute mega project. 1 $0.6 • This year’s margin benefits from a mor
Slide 5: Operating expenses (excluding R&D)
Operating expenses (excluding R&D) First quarter ($ millions) • Operating expenses decreased 10% in Q1 2.5 this year. $2.0 • Excluding the impact of: 2 $1.8 • Foreign exchange, and $1.3 $1.3 $1.4 • Transaction expenses related to the 1.5 $1.2 acquisition Boilerroom Equipment; 1 Operating Expenses we
Slide 6: EBITDAS
EBITDAS First quarter ($ thousands) 500 $472 • Record Q1 EBITDA. 300 • With the majority of our short to medium 100 $3 term expansionary growth investments now complete our focus is on maximizing -100 Q1 15 Q1 16 Q1 17 Q1 18 Q1 19 Q1 20 the benefit of these investments to further -$51 grow revenues,
Slide 7: Net income
Net income First quarter ($ thousands) 300 $241 • $241k net income for the quarter is a Q1 200 record. 100 0 • This is the first time the company has been -100 Q1 15 Q1 16 Q1 17 Q1 18 Q1 19 Q1 20 profitable in the typically slow Q1 period. -200 -$80 -$49 -300 -$181 -400 -500 -$453 -600 -700 -800 -$6
Slide 8: Cash position
Cash position Fiscal year ends and most recent quarter ($ millions) 6.0 $5.6 • Steady year over year increases. 5.0 $4.2 • Cash up $1.4 million since year end. 4.0 $3.3 • Cash position up $4.9 million since FY 2015. $3.0 3.0 2.0 $1.1 1.0 $0.7 0.0 May.15 May.16 May.17 May.18 May.19 Aug.19 www.thermal
Slide 9: Working capital
Working capital Fiscal year ends and most recent quarter ($ millions) 2.5 • Working capital remains strong. $2.0 $2.1 $2.0 2.0 • Up $1.6 million since 2015. $1.4 1.5 $1.0 1.0 $0.5 0.5 0.0 May.15 May.16 May.17 May.18 May.19 Aug.19 www.thermalenergy.com | 9
Slide 10: Order Book
Order Book Order backlog as of reporting date ($ millions) 16 $14.6 • Order backlog continues to grow. 14 • October 2019 up $5.3 million or 57% 12 compared to October 2018. 10 $9.3 $7.8 $7.8 8 6 4 $3.4 2 0 Oct.15 Oct.16 Oct.17 Oct.18 Oct.19 www.thermalenergy.com | 10
Slide 11: Recent Orders
Recent Orders Customers include leading global companies across many sectors > $1.4M order from a > $738K order from leading multinational food-products European meat processing corporation company > Turn key, energy saving heat > Flu-Ace heat recovery system recovery system > $1.5M order from a lea
Slide 12: Follow us
Follow us www.thermalenergy.com Thermal-Energy-International on LinkedIn GoThermalEnergy on Facebook @GoThermalEnergy on Twitter www.thermalenergy.com | 12
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