Vancouver, BC - May 30, 2013 - Viridis Energy Inc. ("Viridis" or the "Company") (TSXV: VRD) a "Cleantech" manufacturer and distributor of alternative energy providing biomass fuel to global residential and industrial markets, today reported financial results for the first quarter ended March 31, 2012.
The Company reported revenue for the first quarter 2013 of $2.3 million compared to $2.4 million for the same quarter 2012. Gross profit increased to $336,000 or 15% of revenue in the first quarter of 2013 from $151,000 or 6% of revenue in the first quarter of 2012. This increase in gross margin reflects the Company's efforts to improve efficiency, utilize production capacity and improved selling prices of pellets due to growing demand. In accordance with IFRS reporting, Viridis' gross profit on revenue includes non-cash depreciation and amortization costs of $135,000 and $149,000 in the first quarter of 2013 and 2012, respectively. Excluding these non-cash charges, gross margin for the current quarter was approximately 20% compared to 12% in the same period in 2012.
"We are pleased with the improvement in cash gross margin to just over 20%, which also includes our lower margin, brokerage business. Our increased utilization of production capacity, coupled with improving market conditions, contributed to the year-over-year margin improvement," said Christopher Robertson, chairman and chief executive officer of Viridis Energy Inc.
The Company reported a loss from operations of $561,000 for the three month period ended March 31, 2013. This compares to a loss from operations of $818,000 in the same period 2012. These results include general and administrative (G&A) costs associated with Scotia Atlantic Biomass ("Scotia") that was acquired February 2012 of $192,000 and $132,000 during the first quarter of 2013 and 2012, respectively.
The Company incurred a comprehensive loss of $(753,000) or $(0.01) per basic share during the first quarter of 2013, which includes financing expenses of $167,000. This compares to a comprehensive loss of $(1.2) million or $(0.03) per basic share for the same period of 2012, which includes financing expenses of $337,000. The reduction in financing expenses reflects a debt restructuring at more favorable terms to the Company.
At March 31, 2013, the Company had Cash and Cash Equivalents of approximately $22,000, Accounts Receivable of approximately $867,000 and Inventory of approximately $718,000. Subsequent to March 31, 2013, the Company completed an equity financing, raising gross proceeds of $5 million.
During the first quarter of 2013, the Company settled its bank line of credit, which stood at approximately $3.0 million on December 31, 2012, The Company also restructured the short-term loan it incurred with the acquisition of Scotia Atlantic Biomass Company. This short-term debt was converted to long-term debt and is part of the approximately $5.5 million of long-term debt currently outstanding.
Viridis' common shares issued and outstanding as of March 31, 2013 were 64,298,883.
Mr. Robertson, added, "We intend to closely manage operating expenses as our Scotia facility becomes fully operational. We expect to generate revenue from our Scotia during the second half of 2013. Viridis combined production capacity of its Kelowna, BC and Scotia plants will reach 180,000 tonnes per year."
------------------------------- |Company Contact: Michele | |Rebiere Chief Financial | |Officer Viridis Energy Inc | |905-847-5226 | |[email protected]| -------------------------------
About Viridis Energy Inc.
Viridis Energy Inc. (TSXV: VRD) is a publicly traded, "Cleantech" alternative energy company specializing in wood biomass. Headquartered in Vancouver, B.C., Viridis Energy operates Cypress Pacific Marketing, Okanagan Pellet Company and Scotia Atlantic Biomass, thus providing the company with vertical integration for distribution and manufacturing as well as coast to coast national presence. For more information on Viridis Energy Inc. please refer to the company website at www.viridisenergy.ca.
Forward-looking Statements
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future operations. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a continued downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties associated with the demand for biofuels, (3) the risk that the Company does not execute its business plan, (4) inability to finance operations and growth (5) inability to finance the start-up operations in Nova Scotia in a timely manner (6) inability to retain key management and employees, (7) an increase in the number of competitors with larger resources, and (8) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and the Company intends to update such forward looking information in the Company's MD&A in the event that actual results differ materially from such forward-looking statements contained herein. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian security regulators.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Financial Statements Follow
----------------------------------------------- |Viridis Energy Inc. | |---------------------------------------------| |Consolidated statements of financial position| |---------------------------------------------| |(Expressed in Canadian dollars) | |---------------------------------------------| |As at March 31, 2013 and December 31, 2012 | -----------------------------------------------
----------------------------------------------------------------- | | |March 31, 2013| |December 31, | | | | |(unaudited) | |2012 (audited)| | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| |ASSETS | | | | | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| |Current | | | | | | |---------------------------------------------------------------| | Cash and cash | | $      | | $    | | |equivalents | | 22,083 | |  | | | | | | | 413,570 | | |---------------------------------------------------------------| | Accounts | |     | |     | | |receivable | | 867,017 | | 753,208 | | |---------------------------------------------------------------| | Inventory | |      | |     | | | | |  718,435 | |  | | | | | | | 594,012 | | |---------------------------------------------------------------| | Prepaid | |      | |     | | |expenses | | 277,077 | |  225,761 | | |---------------------------------------------------------------| | Due from | |      | |     | | |related parties | | 54,000 | |  54,000 | | |---------------------------------------------------------------| | | |      | |     | | | | |  1,938,612 | |   | | | | | | |2,040,551 | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| |Property, plant | |     | |     | | |and equipment | |8,280,013 | |8,264,488 | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| | | | $    | | $    | | | | |10,218,625 | |10,305,039 | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| |LIABILITIES and SHAREHOLDERS' EQUITY | | | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| | Bank line of | | $      | | $    | | |credit | |      | | 2,992,832 | | | | | -      | | | | | | | | | | | |---------------------------------------------------------------| | Accounts | |      | |     | | |payable and | |2,667,443 | | 2,294,127 | | |accrued | | | | | | |liabilities | | | | | | |---------------------------------------------------------------| | Deferred | |      | |     | | |income | |   - | |   | | | | | | |157,058 | | |---------------------------------------------------------------| | Short term | |      | |     | | |loan payable | |      | |     | | | | |  808,119  | |   | | | | | | | 2,606,875  | | |---------------------------------------------------------------| | Due to related| |      | |     | | |parties | |      | |     | | | | | 111,999  | |   | | | | | | |164,670  | | |---------------------------------------------------------------| | Current | |      | |     | | |portion of loans| |  45,637 | |   19,646 | | |payable  | | | | | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| | | |3,633,198 | |8,865,208 | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| | Loans payable | |      | |     | | | | |5,528,176 | | - | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| | | |9,161,374 | |8,865,208 | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| |Shareholders' | | | | | | |equity | | | | | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| | Share capital | | $   | | $   | | | | | 22,897,578 | | 22,537,578 | | |---------------------------------------------------------------| | Contributed | |      | |     | | |surplus | |2,871,376 | | 2,861,376 | | |---------------------------------------------------------------| | Accumulated | |    | |    | | |deficit | |(24,711,703) | |(23,959,123) | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| | | |      | |     | | | | |1,057,251 | | 1,439,831 | | |---------------------------------------------------------------| | | | | | | | |---------------------------------------------------------------| | | | $   | | $   | | | | | 10,218,625 | | 10,305,039 | | -----------------------------------------------------------------
Viridis Energy Inc.
Consolidated statements of operations and comprehensive loss
(Expressed in Canadian dollars)
For the three months ended March 31, 2013 and 2012
(Unaudited)
---------------------------------------------------------------------- |Â |Â |Â |Â |Â |Â |Â | |--------------------------------------------------------------------| |Â |Â |Â |Â |Â Â Â Â Â Â Â Â Â Â Â Â Â | | | | | |Â Â Three months ended March 31, | |--------------------------------------------------------------------| |Â |Â |Â |Â |Â Â Â Â Â Â |Â |Â Â | | | | | |Â Â Â 2013 | |Â Â | | | | | | | |Â Â | | | | | | | |Â Â | | | | | | | |Â | | | | | | | |2012 | |--------------------------------------------------------------------| |Â |Â |Â |Â |Â |Â |Â | |--------------------------------------------------------------------| |Sales |Â |Â |Â $ Â Â 2,213,852 |Â |Â $ Â Â | | | | | | |2,436,808 | |--------------------------------------------------------------------| |Costs of sales |Â |Â |Â Â Â Â 1,983,485 |Â |Â Â Â Â | | | | | | |2,286,143 | |--------------------------------------------------------------------| |Gross |Â |Â |Â |Â Â Â Â Â 336,367 |Â |Â Â Â Â | |profit | | | | | |Â 150,665 | |--------------------------------------------------------------------| |Â |Â |Â |Â |Â |Â |Â | |--------------------------------------------------------------------| |Operating expenses |Â |Â |Â |Â |Â | |--------------------------------------------------------------------| |Â |Selling and |Â |Â |Â Â Â Â Â Â Â |Â |Â Â Â Â | | |marketing | | |45,837 | |Â Â Â | | | | | | | |49,208 | |--------------------------------------------------------------------| |Â |Freight out |Â |Â |Â Â Â Â Â Â Â 8,209 |Â |Â Â Â Â | | | | | | | |Â Â Â | | | | | | | |91,549 | |--------------------------------------------------------------------| |Â |General and |Â |Â |Â Â Â Â Â 842,883 |Â |Â Â Â Â | | |administrative| | | | |Â 827,877 | |--------------------------------------------------------------------| |Â |Â |Â |Â |Â Â Â Â Â 896,929 |Â |Â Â Â Â | | | | | | | |Â 968,634 | |--------------------------------------------------------------------| |Loss before other |Â |Â |Â Â Â Â Â (560,562) |Â |Â Â Â Â | |items | | | | |Â (817,969) | |--------------------------------------------------------------------| |Â |Â |Â |Â |Â |Â |Â | |--------------------------------------------------------------------| |Other items |Â |Â |Â |Â |Â | |--------------------------------------------------------------------| |Â |Foreign |Â |Â |Â Â Â Â Â Â Â |Â |Â Â Â Â | | |exchange loss | | |(2,264) | |Â Â Â | | | | | | | |(3,513) | |--------------------------------------------------------------------| |Â |Finance |Â |Â |Â Â Â Â Â Â |Â |Â Â Â Â | | |expense | | |(166,552) | |Â Â | | | | | | | |(337,212) | |--------------------------------------------------------------------| |Â |Accretion |Â |Â |(23,202) |Â |(40,561) | | |expense | | | | | | |--------------------------------------------------------------------| |Â |Â |Â |Â |Â Â Â Â Â Â |Â |Â Â Â Â | | | | | |(192,018) | |Â Â | | | | | | | |(381,286) | |--------------------------------------------------------------------| |Loss before income |Â |Â |(752,580) |Â |(381,286) | |taxes recovery | | | | | | |--------------------------------------------------------------------| |Income tax recovered |Â |Â |- |Â |- | |--------------------------------------------------------------------| |Net loss and total |Â |Â |Â $ Â Â (752,580) |Â |Â $ Â Â | |comprehensive loss | | | | |(1,199,255)| |--------------------------------------------------------------------| |Â |Â |Â |Â |Â |Â |Â | |--------------------------------------------------------------------| |Â |Â |Â |Â |Â |Â |Â | |--------------------------------------------------------------------| |Net loss per share |Â |Â |Â |Â |Â | |--------------------------------------------------------------------| |Â |Basic and |Â |Â |Â $ Â Â Â Â Â Â Â |Â |Â $ Â Â | | |diluted | | |Â (0.01) | |Â Â Â Â | | | | | | | |Â Â (0.03) | |--------------------------------------------------------------------| |Â |Â |Â |Â |Â |Â |Â | |--------------------------------------------------------------------| |Weighted average |Â |Â |Â |Â |Â | |number of common | | | | | | |shares outstanding | | | | | | |--------------------------------------------------------------------| |Â |Basic and |Â |Â |61,510,840 |Â |41,277,911 | | |diluted | | | | | | ----------------------------------------------------------------------