PyroGenesis Canada Inc (TSE:PYR) (OTCQB:PYRNF) (FRA:8PY) reported third-quarter 2020 revenue of C$8.1 million, a 289% year-over-year increase, along with a 16-fold improvement in its net income to C$15.3 million.
The company also said its gross margin for the period rose 22.7% to 67.9%. And it ended the quarter with a $36.4 million backlog of signed contracts.
PyroGenesis Canada CEO Peter Pascali said in a statement: “We are happy to be announcing Q3 2020 financial results, which are simply historical. We have posted quarterly revenues of over $8MM which is more than we have posted for any full year in recent memory. This reflects the successful processing of the backlog of signed contracts which we have previously announced. As of this writing, we have also retired all significant debt and raised over $12MM in a bought-deal, leaving us with over $17MM of cash on hand, positioning us very well for the future.”
He added: “Of note, net income from operations of $3.1MM (before share-based expenses) is quite significant, and when combined with the results from our strategic investment, has contributed to a basic EPS of $0.10 for the quarter, and basic EPS of $0.13 for the 9 months, both of which have exceeded previous guidance. We expect this trend to continue.”
PyroGenesis said that it ended 3Q with positive cash flow from operations of $2.4 million, up from an $850,000 loss a year earlier. It added that revenue generated from active projects has begun to produce sufficient positive cash flow to fund operations.
The company, however, saw a 54% increase in its Selling, General and Administrative (SG&A) expenses, excluding the costs associated with the non-cash, share-based expenses, which were $2.3 million. It attributed the additional costs primarily to rising employee compensation (mostly commissions) as well as increasing professional fees (legal, accounting, and patent expenses).
PyroGenesis also announced Wednesday the signing of an initial $1.8 million plasma torch contract with a major iron ore producer.
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