PyroGenesis Canada, Inc, Montreal, Québec, Canada, has announced its financial and operational results for the second quarter ended June 30, 2021. The company recorded revenue of $8,280,572 in Q2 2021, representing an increase of 289% compared to the same period of 2020. Revenue for the six months of fiscal 2021 was $14,545,075 an increase of 411% over the first half of 2020.
The gross margin for Q2 2021 was $4,933,481 (59.6%) of revenue compared to a gross margin of $1,266,592 (59.5%) of revenue for Q2 2020. The modified EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) gain in Q2 2021 was $1,090,915 compared with a modified EBITDA loss of $265,804 for Q2 2020, representing an increase of 510%.
“We are happy to be announcing financial results for Q2 2021 and, once again, they are historical,” stated P Peter Pascali, CEO and chair of PyroGenesis. “As can be seen from the table below, net income from operations (not including share-based expenses) was profitable at $850K, on record quarterly revenues of $8.3MM (a 32% increase Q1 over Q2 2021).”
“This is the fourth quarter in a row that PyroGenesis has posted more revenues in each quarter than for all of 2019, and the company is on track to exceed the record revenues of 2020. Not only is PyroGenesis posting record revenues, with an overall gross margin of 59.6%, but the company’s backlog of signed contracts is increasing at the same time, which bodes well for the future. We expect this trend to continue,” added Pascali.
Focusing on Additive Manufacturing, the company states that it continues to expect to see significant year over year improvements in its AM metal powders offering as its NexGen™ facility, which incorporates all the previously disclosed benefits (increased production rates, lower capex, lower opex), is now online.
There are said to be major top tier aerospace companies and OEMs, in both Europe and North America, awaiting powders from this new state-of-the-art production line, and PyroGenesis is currently in the process of supplying sample powders to these customers for analysis. Of particular note, a major tier-one global aerospace company entered into an agreement with the company to qualify its powder, at considerable expense to the global aerospace company, with a view towards having the company become a supplier. PyroGenesis expects that such developments will continue and will translate into significant improvements in contributions to revenue by this segment in the mid-long term.
Regarding the financial outlook, PyroGenesis explains that it continues to be well-positioned, with a clean balance sheet, to execute on all its organic growth strategies as well as to continue actively pursuing growth through synergistic mergers and acquisitions.
Despite this, the company adds that it is not immune to the negative impact COVID-19 has had on businesses, specifically related to the workforce and, more importantly, the supply chain. Management believes that the company is better situated than most and is doing everything to mitigate these challenges. It does not expect any improvements from the impact of Covid before Q2 2022.