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Bought Deal at $2.10 via Desjardins.
Gross proceeds of ~$20M should set them up nicely for the future. And there is plenty of future news pending.
GLTA & JMO
TOP PICK on BNN today.
Looks like we are getting more and more attention.
"Takeout target" was the key phrase.
GLTA & JMO
Looks like I underestimated.
"The analyst estimates that the five orders will add a total of $15 million to Xebec’s backlog, now totalling about $86 million."
GLTA & JMO
“Transformative”: Xebec Adsorption gets new $3.20 price target at M Partners
DECEMBER 5, 2019 BY NICK WADDELL
Xebec Adsorption (Xebec Adsorption Stock Quote, Chart, News TSXV:XBC) has just announced a deal that M Partners analyst Andrew Hood calls “transformative” for the cleantech company.
In an update to clients on Thursday, Hood reiterated his “Buy” rating and lifted his target price from $2.80 to $3.20 per share.
Montreal-based Xebec, which provides gas generation, purification and filtration solutions, on Thursday announced a letter of intent with Maas Energy Works, a maker of manure digesting facilities, for five renewable natural gas systems, four of which will use Xebec’s innovative small-scale containerized Biostream upgrading solution.
The deal will see Xebec supply dairy farmers with an initial four Biostream container systems, a new product offering by Xebec, with renewable gas injected into the California gas grid, “significantly reducing the State’s carbon footprint while providing a substantial revenue stream for the farmers who proudly support climate change action,” according to the Xebec press release.
Hood says that the introduction of the Biostream upgrading system will allow Xebec to compete with membrane technologies for small-scale projects whereas the company has traditionally focused on medium-sized projects. The analyst estimates that the five orders will add a total of $15 million to Xebec’s backlog, now totalling about $86 million.
“This LOI represents Xebec’s entry into the California dairy market, which is the source of a significant chunk of the state’s emissions. The smaller-scale systems are ideal for farmers and enable them to reduce emissions and generate revenues by injecting the RNG into the gas grid,” writes Hood. “We are also optimistic this LOI could lead to a longer-term relationship with Maas Energy Works, which is one of two major developers for RNG sites in California (alongside CalBio).”
Hood calls Xebec’s RNG systems the most reliable, low-cost performance for upgrading biogas and says that Xebec continues to generate new avenues for growth which come in tandem with the “massive opportunity” that the company has in existing segments.
The analyst points to government support for reducing greenhouse gases as contributing to the worldwide investment in RNG infrastructure, with the market for equipment sales in Xebec’s target markets (Canada, the United States, France and Italy) being over $6 billion.
In addition, Hood says hydrogen purification is a potential long-term growth area for Xebec.
“Xebec has exposure to important long-term growth opportunities in hydrogen purification for fuel cell electric vehicles and Power-to-Gas storage. These segments provide solutions for the future, and Power-to-Gas enables monetization of renewable electricity as well by providing storage of excess supply. In comparison to lithium-ion batteries, Power-to-Gas could provide a much cheaper, more flexible option,” Hood writes.
The analyst thinks Xebec will generate fiscal 2019 revenue and EBITDA of $48 million and $5.7 million, respectively, and fiscal 2020 revenue and EBITDA of $98 million and $13.7 million, respectively. His $3.20 target represented a projected 12-month return of 41.0 per cent at the time of publication.
Xebec’s share price has been climbing over 2019, having now risen 219 per cent year-to-date.
Yes. Great piece today. More news on the way in my estimation.
These kinds of deals are indicative of an expanding pipeline and these companies want to get pin down delivery dates before additional XBC projects are confirmed.
We should see a break into the $2.50's once anallyst coverage and targets get updated.
I am going to guess this deal is worth north of $5M USD, plus maintenance & support.
GLTA & JMO
Xebec Enters California Dairy RNG Market with Maas Energy Works
December 05, 2019
- Marks the launch of Xebec’s Biostream™ systems -
MONTREAL, Dec. 05, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a global provider of clean energy solutions announced today that it signed a letter of intent on December 4th, 2019, with Maas Energy Works (“MEW”) for five Renewable Natural Gas (RNG) systems. Four of these systems will use Xebec’s innovative small-scale containerized Biostream™ upgrading solution.
The Biostream units are fully containerized and automated systems with a 62 to 280 SCFM (100 to 450 NCMH) capacity to convert biogas into 98+% pure biomethane, with 99+% methane recovery. The system is flexible and reliable with a 40 to 100% turn-down. One of the system options includes an integrated CNG Fuel Dispenser.
Maas Energy Works was looking for a solution that would support the production of renewable natural gas from biogas streams generated from animal waste on small dairy farms located throughout California. They discovered this innovative, affordable solution developed by Xebec that meets the needs of farmers while adhering to the strict California “Rule 30” specifications for the Low Carbon Fuel Standard (LCFS) program to reduce greenhouse gas (GHG) emissions.
Xebec will supply dairy farmers with an initial four (4) Biostream™ container systems, each with a 280 SCFM capacity. With additional included options, they could produce more than 80 million standard cubic feet (SCF) of pure biomethane annually. This renewable natural gas will be injected into the California gas grid, significantly reducing the State’s carbon footprint while providing a substantial revenue stream for the farmers who proudly support climate change action.
As part of the LOI, Xebec will also supply another, more substantial unit with a 1500 SCFM capacity for a site located in the Western region of the United States.
Project delivery dates are throughout 2020.
Quotes:
“Maas Energy Works has completed a detailed Technical and Commercial evaluation of different biogas upgrading technologies for our customers in California and found that Xebec’s unique BGX Biostream™ is a perfect fit for our farmers’ requirements to purify small biogas flows using one of the most cost-effective, compact solutions in the industry today.”
- Daryl Maas, President, Maas Energy Works
“Almost ten years ago, we began a clean energy journey in California with a demonstration plant that would successfully test our biogas upgrading solutions against the newly formed “Rule 30” specifications. With the fight against climate change dramatically escalating, we have been innovating ever since. I’m pleased that we can act now with technology solutions and the experience to answer many different needs for decarbonizing our future.”
- Dr. Prabhu Rao, COO, Xebec Adsorption Inc.
Related Links:
https://www.xebecinc.com/
https://www.maasenergy.com/
For more information:
Xebec Adsorption Inc.
Brandon Chow, Investor Relations Specialist
+1 450.979.8700 ext 5762 bchow@xebecinc.com
Antonio Saavedra, Director, Sales and Business Development
+1 604.362.7297 asaavedra@xebecinc.com
About Xebec Adsorption Inc.
Xebec is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Well-positioned in the energy transition space with proprietary technologies that transform raw gases into clean sources of renewable energy, Xebec’s 1500+ customers range from small to multi-national corporations, governments and municipalities looking to reduce their carbon footprints. Headquartered in Montral, Quebec, Canada, Xebec has several Sales and Support offices in North America and Europe, as well as two manufacturing facilities in Montral and Shanghai. Xebec trades on the TSX Venture Exchange under the symbol XBC and the OTCQX Exchange under the symbol XEBEF. For more information, www.xebecinc.com.
sweet news for XBC.V what an amazing company!!
Re-entered XBC.V on the gap fill and some extra tidbits. She’s ready to rumble again.
Shakeout. Just like the other times. Needed to remove the clutter before heading back up.
Classic gap fill too. Great volume and churn.
GLTA & JMO
Another nice day so far. Fresh new high and good volume. So much strength. Shes going parabolic soon.
Even the warrants are gapping up.
GLTA & JMO
75 million back log. Brilliant sector. Good management. Profitable. What more can you ask for.
Shes got legs. And shes gonna be running well into 2020.
Likely taken out once MC gets over 500M.
And the news is just piling up..
GLTA & JMO
XBC.V here we go....just a beautiful play!!
No question this is one
Of the best Canadian plays right now. Stock has been trending for
5 years.
Its going to be THE major player in the RNG / Hydrogen refining market. They are becoming more vertically integrated and have many channels to drive revenue.
Plus the market is PRIME for these kinds of ESG companies that investors can feel good about, and demanding to have in their portfolio.
This time next year we will be in an entirely different capital arena.
GLTA & JMO
XBC.V ready to go here...gonna be a mega monster!!
Nice! My targets are considerably north of yours. We can all agree that this one is a winner and will be a darling for many many months if not years.
I think $3 by early next year.
GLTA & JMO
We are heavily invested with XBC.V This is one of the few gems on the Canadian side that is positioned extremely well for a long term growth..we own 25 000 shares and are not going anywhere soon. The chart is perfection and with a 75 million bag log its only going to get better in the months to come...I have a 2.38 near term target and a 2.60 long term target by spring!!
Xebec Reports Record 3rd Quarter 2019 with 136% in Revenue Growth
- EBITDA of $1.5million and Net Profit of $1.0 million -
MONTREAL, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) ("Xebec"), a global provider of clean energy solutions announced today its 2019 third quarter and nine-month periods results, with the following highlights:
~ Record revenues of $13.2 million in the third quarter of 2019 compared to $5.6 million for the same period in 2018, a 136% increase.
~ Positive EBITDA at $1.5 million for the third quarter 2019 compared to $0.1 million for the same period in 2018.
~ Net profit of $1.0 million or $0.02/share for the third quarter 2019, compared to a net loss of ($0.4) million or ($0.01)/share for the same period in 2018.
~ Working capital increased to $19.0 million as of September 30, 2019, for a current ratio of 2.3:1 compared with working capital of $5.2 million and a 1.6:1 ratio on December 31, 2018.
Financial Results
Revenues of $35.7 million for the nine-month period ended September 30, 2019, compared to $14.1 million for the same period in 2018, a 153% increase. The increase is mainly explained by the higher volume of major cleantech contracts.
Gross profit of $11.4 million or 32% of revenues for the nine-month period ended September 30, 2019, compared to $4.2 million for the same period in 2018, a 171% increase compared to the same period in 2018. The company has higher gross margins in the cleantech segment and a better absorption of the overhead costs due to a higher volume of sales.
Net profit of $2.5 million or $0.04 per share for the nine-month period ended September 30, 2019, compared to a net loss of ($1.9) million or ($0.04) per share for the same period in 2018, an improvement of $4.4 million. The increase is mainly due to higher sales and margins.
Positive EBITDA of $4.4 million for the nine-month period ended September 30, 2019, compared to ($0.4) million for the same period in 2018, an increase of $4.8 million.
Backlog increased by $5.5 million, from $65.5 million on November 8, 2018, to $71.0 million on November 11, 2019.
Awarded Tenders of $26.0 million as of November 11, 2019 to be contractually formalized into the backlog over the next 12 to 14 weeks.
Selling and administrative expenses increased by $2.8 million in the nine-month period ended September 30, 2019, compared to the same quarter of 2018. This is primarily due to an organizational scale-up of employees and associated costs to support the increased level of sales, order backlog and building quote log.
Cash on hand of $10.2 million and increased working capital of $19.0 million as of September 30, 2019, compared to $5.2 million on December 31, 2018.
Bought Deal Public Offering Units closed on July 4, 2019 for $11.6 million and Listing of Warrants.
Unsecured Convertible Debentures issued on November 16, 2017 for $2 million has been completely converted as of November 11, 2019.
CEO Quote:
“I am pleased to see that our team is implementing and executing the strategy we had outlined for Xebec’s growth as a sustainable and profitable clean tech company. Our rapid growth in the clean tech space is underpinned by a strong industrial and service business that is supportive of our cleantech operations. The benefits of this strategy will become more evident as we deploy more RNG plants and the infrastructure projects over the next few years. With strong and balanced growth in Europe, North America and China we are also benefitting from our global presence and associated market exposure. I am also excited about our activities in the gasification, carbon capture and hydrogen markets and we expect to discuss more about these opportunities in the coming quarters”. Operationally, we are making progress in establishing a strong supply chain to support our growth and we expect this to be a focus in the coming year leading to improved lead times and higher margins for our products.”
– Kurt Sorschak, President and CEO, Xebec Adsorption Inc.
Guidance for the remainder of 2019
Our outlook for the Cleantech segment remains unchanged from our previous guidance. Our Industrial Service and Support segment continues to grow in line with our acquisition strategy. Overall, we expect significant revenue growth in 2019. This growth includes our European and Chinese subsidiaries. Our guidance for the remainder of 2019 is based on current orders being processed plus some short-term orders through year end, mainly in our Industrial Service segment. We adjust our revenue guidance for 2019 to between $48.0 to $49.0 million and basic earnings per share (EPS) of $0.06 to $0.07.
Execution and organizational development will be a key factor for the continued successful growth of Xebec. Management recognizes this and is fully focused on operational performance and the creation of an environment that will allow the company to scale. We are working on expanding our managerial capabilities by building strong results-driven teams that will deliver on the opportunities facing us.
Cleantech Systems
Our renewable gas solutions are growing in line with our expectations and delivering anticipated results. We continue to regard quotes as an early indicator for future order activity. Our quote log continues to increase and now exceeds $880.0 million and our order backlog stands at $71.0 million. Xebec has also been awarded a total of $26.0 million in tenders (including a landfill) that will be contracted into our backlog over the next 12 to 14 weeks. Landfill orders will be instrumental to our continued growth in 2020 and beyond. These numbers reflect the status as of November 11th, 2019.
We maintain our 2019 guidance for RNG systems and equipment and expect segment growth between 130% to 150% in 2019, representing revenues in the $34 to $36 million range.
Industrial Service and Support
Xebec continues to pursue organic and inorganic growth opportunities in this segment and expects to double revenues from $6.1 million in 2018 to about $11 to $12 million in 2019. We are on track to hit these numbers. We have introduced new products in 2019 and will be adding further products over the coming months to help boost our overall revenues and gross margins.
Our first acquisition, Compressed Air International (CAI) in Ontario, has performed exceptionally well in the first three quarters and is on track to grow revenues by 25% this year. As previously stated, Xebec is working on its next two acquisitions and expects to announce one acquisition on the West Coast before the end of 2019.
Renewable Gas Infrastructure
Canada has two provinces that currently offer renewable gas off-take agreements or GPAs (Gas Purchase Agreements) with terms of up to 20 years and prices of up to $30/GJ. The Liberal Government has just won re-election and consequently, Xebec expects the Canadian Clean Fuel Standard (CFS) to come into law by the middle of 2020. The CFS will create significant demand for RNG over the next 10 years and, according to Xebec’s own estimates, will require investment into renewable gas infrastructure of approx. $15 to $18 billion and demand for RNG systems of approx. $2.2 to $2.7 billion over the next 10 years.
In addition, Southern California Gas Company (SoCalGas) earlier this year announced a target of 20% RNG by 2030, offering further unique investment opportunities. As previously stated, Xebec is actively working on the establishment of its RNG Infrastructure business which will build, own and operate (BOO) high-quality renewable gas assets in Canada and the United States, and sell renewable natural gas to obligated parties and other third-party off-takers. Xebec continues to work towards a first project, and we continue to anticipate an announcement before year-end. No revenues or costs have yet been recorded.
Guidance for 2020
For 2020 Xebec expects continued growth and improved profitability. Given the current order backlog of $71.0 million and our $26.0 million in awarded tenders, we expect consolidated revenues for 2020 in the range of $80 to $90 million, net earnings of 7 to 9% and EBITDA margins of 11 to 13%.
More specifically, revenues in our Cleantech segment are expected to be $50 to $55 million and revenues from our Industrial Service & Support segment are expected to grow to $30 to $35 million with half attributed to acquisitions, and the rest to organic growth. Lastly, Xebec does not expect revenues to be recorded for our Renewable Gas Infrastructure segment in 2020.
Xebec to Host Live Investor Webinar to Discuss Q3 2019 Results
An investor webinar for shareholders, analysts, investors, media representatives, and other stakeholders will be held today, November 12, 2019 at 11:00AM EDT (8:00AM PDT).
The webinar can be accessed at: https://app.livestorm.co/xebec-adsorption-inc/2019-q3-investor-webinar
A recording of the webinar and supporting materials will be made available in the investor’s section of the Company’s website at www.xebecinc.com.
2019 Third Quarter Financial Statements and Management’s Discussion and Analysis
The complete financial statements, notes to financial statements, and Management’s Discussion and Analysis for the nine-month period ended September 30, 2019, are available on the company’s website at www.xebecinc.com or on the SEDAR website at www.sedar.com
Related links:
https://www.xebecinc.com
For more information:
Xebec Adsorption Inc.
Brandon Chow, Investor Relations Specialist
+1 450.979.8700 ext. 5762 bchow@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
+1 450.979.8701 ksorschak@xebecinc.com
About Xebec Adsorption Inc.
Xebec is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Well-positioned in the energy transition space with proprietary technologies that transform raw gases into clean sources of renewable energy, Xebec’s 1500+ customers range from small to multi-national corporations, governments and municipalities looking to reduce their carbon footprints. Headquartered in Montréal, Quebec, Canada, Xebec has several Sales and Support offices in North America and Europe, as well as two manufacturing facilities in Montréal and Shanghai. Xebec trades on the TSX Venture Exchange under the symbol XBC and on the OTCQX Exchange under the symbol XEBEF. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
New 52 week high yesterday! $2.28
A bit of a retrace and consolidation before it takes off again! So much good stuff coming out of this company and space.
Gotta love it.
GLTA & JMO
And another new high.
She's picking up steam..
GLTA & JMO
What a week last week was. Record High and Record Volume.
Weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee. I love coming back from vacation to see my investments soaring.
LOL
GLTA & JMO
New 52 week high yesterday. Settling down a bit ahead of the next leg up.
Gotta love it.
GLTA & JMO
Xebec Announces Over $11.7 Million in New Orders
MONTREAL, Sept. 11, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (OTCQX: XEBEF) (“Xebec”), a global provider of clean energy solutions announced it closed several contracts the past month totaling approximately CDN$11.7 million.
The orders span the breadth of Xebec capabilities – from renewable natural gas (RNG) generation through several hydrogen purification projects including a fuel cell fueling application, syngas purification from waste gasification, and CO2 capture and use.
In Canada, Xebec has been awarded a contract to supply and install a flange to flange biogas upgrading plant. The project, led by Oakville-based BerQ RNG, involves installing and operating refining equipment to create renewable gas from food waste in Ontario. Approximately 111,000 tons of carbon emissions will be reduced over the project’s 15-year life.
These combined orders will increase the backlog from $63.5 million (last reported Aug 12th, 2019) to $72.2 million as of Sept 6th, 2019.
Quotes:
“Given the severe climate change issues we now face, the need to quickly transition to renewable energy and renewable fuel sources takes on more urgency. Globally the focus is not on IF but HOW. Consequently, in addition to Solar, Wind and RNG, there is tremendous movement forward in the areas of Renewable Hydrogen for Transportation (Fuel Cell Vehicles), Power to Gas for pipeline injection, Carbon Dioxide Capture and Sequestration, and creating fuels or chemicals from Waste Gasification. We at Xebec are excited to be involved in all these markets with ongoing projects. The future is full of possibilities.”
- Prabhu Rao, Chief Operating Officer, Xebec Adsorption Inc.
Related Links:
www.xebecinc.com
For more information:
Xebec Adsorption Inc.
Brandon Chow, Investor Relations Specialist
+1 450.979.8700 ext 5762 bchow@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
+1 450.979.8701 ksorschak@xebecinc.com
About Xebec Adsorption Inc.
Xebec is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Well-positioned in the energy transition space with proprietary technologies that transform raw gases into clean sources of renewable energy, Xebec’s 1500+ customers range from small to multi-national corporations, governments and municipalities looking to reduce their carbon footprints. Headquartered in Montréal, Quebec, Canada, Xebec has several Sales and Support offices in North America and Europe, as well as two manufacturing facilities in Montréal and Shanghai. Xebec trades on the TSX Venture Exchange under the symbol XBC and on the OTCQX Exchange under the symbol XEBEF. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
Xebec Announces the Commencement of Trading on the OTCQX® Best Market in the United States
Xebec Adsorption Inc. (TSXV: XBC) (OTCQX: XEBEF) (“Xebec”), a global provider of clean energy solutions is pleased to announce that the company has qualified to trade on the OTCQX® Best Market. Xebec upgraded to OTCQX from the Grey Market and will soon be DTC eligible.
Xebec begins trading today on OTCQX under the symbol “XEBEF.” U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com. The Company’s shares will continue to trade on the Toronto Stock Exchange - Venture under the symbol “XBC”.
Xebec will shortly announce that its shares will be eligible for electronic clearing and settlement in the United States through the Depository Trust Company ("DTC"). DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that manages the electronic clearing and settlement of publicly traded companies. DTC services provide cost benefits for investors and brokers trading Canadian securities in the United States.
Quotes:
"We are pleased to provide TSX-V-listed Xebec Adsorption Inc. with an efficient path to access U.S. investors on our OTCQX Market. OTCQX provides global companies with a transparent, cost-effective alternative to a U.S. exchange listing. We look forward to supporting Xebec Adsorption and its shareholders."
-Jason Paltrowitz, EVP of Corporate Services at OTC Markets Group.
“We have been looking forward to the day when we see ourselves represented in the U.S. on the OTCQX Market, the highest tier of OTC markets. Both institutional and retail investors throughout North America have expressed a growing interest in our business so this opens up an opportunity by expanding on a recognized U.S. securities trading platform.”
- Kurt Sorschak, President and CEO, Xebec Adsorption Inc.
For more information:
Xebec Adsorption Inc.
Brandon Chow, Investor Relations Specialist
+1 450.979.8700 ext 5762 bchow@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
+1 450.979.8701 ksorschak@xebecinc.com
About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market and the Pink® Open Market for 10,000 U.S. and global securities. Through OTC Link® ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors. To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com
About Xebec Adsorption Inc.
Xebec is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Well-positioned in the energy transition space with proprietary technologies that transform raw gases into clean sources of renewable energy, Xebec’s 1500+ customers range from small to multi-national corporations, governments and municipalities looking to reduce their carbon footprints. Headquartered in Montréal, Quebec, Canada, Xebec has several Sales and Support offices in North America and Europe, as well as two manufacturing facilities in Montréal and Shanghai. Xebec trades on the TSX Venture Exchange under the symbol XBC and on the OTCQX Exchange under the symbol XEBEF. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
Wow. Nice Quarter!
Best is yet to come. Top/Bottom lines are all in triple digit growth.
Lots of projects and news on deck for the rest of the year.
GLTA & JMO
Xebec Reports Record Q2, 2019 with a 140% Increase in Revenue
- EBITDA of $1.8 million, and Net Profit of $1.0 million -
MONTREAL, Aug. 13, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (OTC: XEBEF) (“Xebec”), a global provider of clean energy solutions announced today its 2019 second quarter and six-month periods results, with the following highlights:
* Record revenues of $12.8 million in the second quarter of 2019 compared to $5.3 million for the same period in 2018, a 140% increase.
* Positive EBITDA at $1.8 million for the second quarter 2019 compared to $0.3 million for the same period in 2018.
* Net profit of $1.0 million or $0.02/share for the second quarter 2019, compared to a net loss of ($0.1) million or ($0.003)/share for the same period in 2018.
* Working capital increased to $8.0 million on June 30, 2019, for a current ratio of 1.8:1 compared with working capital of $5.3 million and a 1.6:1 ratio on December 31, 2018.
Financial Results
~ Revenues of $22.5 million for the six-month period ended June 30, 2019, compared to $8.5 million for the same period in 2018, a 165% increase. The increase is mainly explained by the high volume of major cleantech contracts and a company acquisition.
~ Gross profit of $7.3 million or 31% of revenues for the six-month period ended June 30, 2019, compared to $2.4 million for the same period in 2018, a 204% increase compared to the same period in 2018. The company has a higher gross margin in the cleantech segment.
~ Net profit of $1.4 million or $0.03 per share for the six-month period ended June 30, 2019, compared to a net loss of ($1.5) million or ($0.03) per share for the same period in 2018, an improvement of $2.9 million. The increase is mainly due to higher sales and margin.
~ Positive EBITDA of $2.9 million for the six-month period ended June 30, 2019, compared to ($0.6) million for the same period in 2018, an increase of $3.5 million.
~ Backlog decreased by $4.6 million, from $68.1 million on August 6, 2018, to $63.5 million on August 12, 2019.
~ Selling and administrative expenses increased by $1.8 million in the six-month period ended June 30, 2019, compared to the same quarter of 2018. This is primarily due to an organizational scale-up of employees and associated costs to support the increased level of sales, order backlog and building quote log.
~ Working capital: as of June 30, 2019, the company had $1.2 million of cash on hand, and positive working capital increased to $8.0 million compared to $5.3 million on December 31, 2018.
~ Bought Deal Public Offering: on July 4, 2019, the Company has closed an $11.6 Million Bought Deal Public Offering of Units and Listing of Warrants.
Current Market and Guidance for 2019
We continue to see positive developments in our renewable gas, hydrogen, and industrial service and products segments. In the first six months of 2019, we have made good progress with revenues and profitability. Overall gross margin generation was satisfactory; nevertheless, we continue to work on gaining some additional GM points over the next 12 to 18 months. The outlook for the Renewable Natural Gas (RNG) and hydrogen purification Clean Technology segment remains unchanged from our previous guidance. Our Industrial Service, Support and Products segment continues to grow, and our CAI acquisition is out-performing expectations. The SG&A ratio decreased by 15 % to 22 % in the six-month period ended June 30, 2019, compared to 37 % for the same six months of 2018.
Xebec has been providing guidance for 2019 with revenues of $45 million plus, net earnings in the $4 to $5 million and EBITDA in the $6 to $7 million range. We are currently on track to meet these numbers. Nonetheless, we are adjusting our EPS range to between 0.07 and 0.10 cents due to the higher outstanding share count from our July 2019 equity raise (units), some warrant conversions of the November 2018 equity raise (units), and the likely exercise of the 2017 convertible debentures in November this year.
Renewable Gas Systems - Clean Technology
We are seeing increased activity for RNG systems and we have accelerated our efforts across our operating geographies. Continued progress in Europe and North America, especially in the landfill gas space, is instrumental for our growth ambitions in 2020. We anticipate reporting progress on the landfill opportunities by year end. Our current quote log is close to $700 million, and our order backlog is over $63 million.
Service, Support and Products - Industrial
Our Industrial segment continues to perform well, despite some weakness in our gross margins. Growth will be achieved organically, combined with our acquisition strategy. The acquisition of profitable compressed air service companies is crucial in supporting our growing RNG installations. As previously stated, the product mix is an important contributor to achieving our GM target in the Industrial segment. Our first acquisition, Compressed Air International (CAI) in Ontario, has performed above expectations in the first half of 2019 and is on track to grow revenues by 20% full year. Xebec is currently working on its next two acquisitions.
Renewable Gas Generation - Infrastructure
In early May 2019, Xebec’s Board of Directors approved an expanded strategy for Xebec’s Infrastructure segment, allowing management to engage with a larger pool of potential partners to explore more opportunities. Currently, Canada has two provinces that offer renewable Gas Purchase Agreements (GPAs) with terms of up to 20 years, and prices of up to $30/GJ while California has recently announced a target of 20% RNG by 2030, offering unique investment opportunities. Xebec continues to actively work on the establishment of its RNG infrastructure business where we will build, own and operate (BOO) high-quality renewable gas assets in Canada and California, and sell renewable natural gas to obligated parties and other third-party off-takers. The Infrastructure investment opportunities for RNG facilities have created significant interest from a number of Industry participants. Xebec is currently evaluating these opportunities and potential partners. Great partnerships are paramount for success, so striking the right foundational balance is our priority for making this segment a reality. No revenues or costs have yet been recorded.
Xebec still expects to announce its first BOO project in 2019.
2019 Second Quarter Financial Statements and Management’s Discussion and Analysis
The complete financial statements, notes to financial statements, and Management’s Discussion and Analysis for the six-month period ended June 30, 2019, are available on the company’s website at www.xebecinc.com or the SEDAR website at www.sedar.com
Xebec to Host Live Investor Webinar to Discuss Q2 Results
An investor webinar for shareholders, analysts, investors, media representatives, and other stakeholders will be held today, August 13, 2019 at 9:00AM EDT.
The webinar can be accessed at: https://app.livestorm.co/xebec-adsorption-inc/q2-investor-webinar
A recording of the webinar and supporting materials will be made available in the investor’s section of the Company’s website at www.xebecinc.com.
Robert McWhirter discusses Xebec on BNN Market Call:
https://www.bnnbloomberg.ca/video/robert-mcwhirter-discusses-xebec~1743403
His biggest holding now!
GLTA & JMO
She's warming up for a prolonged run. :)
House codes on the BID are the big finstitutions.
GLTA & JMO
Xebec to Announce Q2 Results on August 13 and Host Investor Webinar
MONTREAL, July 30, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (OTC: XEBEF) (“Xebec”), a global provider of clean energy solutions, will announce its Q2, 2019 financial results on Tuesday, August 13th, 2019, before the market opens at 8:00AM EDT.
Xebec invites shareholders, analysts, investors, media representatives, and other stakeholders to our webinar where management will discuss Q2 results, followed by a Question and Answer (“Q&A”) period.
Kurt Sorschak, President and CEO will host the webinar alongside our CFO, Louis Dufour, on Tuesday, August 13th, 2019 at 9:00AM EDT.
Investor Webinar Details
Date: Tuesday, August 13th, 2019
Time: 9:00AM EDT
Access Investor Webinar
Click or paste the link below in your web browser for registration and follow the online instructions.
Registration URL: https://app.livestorm.co/xebec-adsorption-inc/q2-investor-webinar
After registering, you will receive a confirmation email with information about joining the webinar.
Questions can be asked by typing in the question in the webinar’s console at any time during the presentation and will be answered during the Q&A period.
Access Webinar by Dial-In
If you want to access the webinar by phone, you will first need to complete registration at the URL mentioned above. You’ll then need to access the webinar on the day of to receive a personalized dial-in number and code.
Note that those dialing-in will be in “listen only” mode and unable to participate in our Q&A.
Please visit the following page for further instructions on how to dial-in: https://support.livestorm.co/article/110-dial-in/
A recording of the webinar and supporting materials will be made available in the investor’s section of the Company’s website at www.xebecinc.com.
Related links:
https://www.xebecinc.com
https://support.livestorm.co/article/110-dial-in
For more information:
Xebec Adsorption Inc.
Sandi Murphy, Director, Investor Relations and Marketing
+1 450.979.8718 smurphy@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
ksorschak@xebecinc.com
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multi-national corporations and governments looking to reduce their carbon footprints. Headquartered in Montreal (QC), Xebec designs, engineers and manufactures innovative and transformative products, and has more than 1,500 customers worldwide. With two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America, Europe, and Asia, Xebec trades on the TSX Venture Exchange under the symbol XBC. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
Xebec to Present at the Canaccord Genuity 39th Annual Growth Conference on August 7th in Boston
MONTREAL, July 29, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (OTC: XEBEF) (“Xebec”), a global provider of clean energy solutions, today announced that Dr. Prabhu Rao, Chief Operating Officer, will present at the Canaccord Genuity 39th Annual Growth Conference to be held at the InterContinental Hotel in Boston, MA.
Management is scheduled to present at 5:00 P.M, Eastern Time on Wednesday, August 7, 2019, and will be available to meet one-on-one with investors throughout the day and on Thursday.
Portfolio managers and analysts who wish to request a meeting with management should contact their Canaccord Genuity representative.
Dr. Rao’s participation will not be webcast. However, the latest investor presentation is available in the investor’s section of the Company’s website at www.xebecinc.com.
Related links:
https://www.xebecinc.com
For more information:
Xebec Adsorption, Inc.
Sandi Murphy, Director, Investor Relations and Marketing
+1 450.979.8718 smurphy@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
ksorschak@xebecinc.com
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multi-national corporations and governments looking to reduce their carbon footprints. Headquartered in Montreal (QC), Xebec designs, engineers and manufactures innovative and transformative products, and has more than 1,500 customers worldwide. With two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America, Europe, and Asia, Xebec trades on the TSX Venture Exchange under the symbol XBC. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
This week should be good!
Friday was a nice ramp and reminder if how quickly this can move under the right momentum.
GLTA & JMO
Xebec Announces Inclusion in DOE Project to Enable Economical Biomethane Production
$500,000 grant to Lawrence Livermore National Laboratory to research new composite sorbent technology
MONTREAL, July 11, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (OTC: XEBEF) (“Xebec”), a global provider of clean energy solutions is pleased to announce today its inclusion in the U.S. Department of Energy’s (DOE) US$24 million commitment to a public-private collaboration funding 77 energy technology projects.
With matching funds from the private sector, the Office of Technology Transition’s (OTT) Technology Commercialization Fund (TCF) will advance the commercialization of promising energy technologies and strengthen partnerships between DOE’s National Laboratories and private sector companies to deploy these technologies to the marketplace.
Xebec’s a supporting Industrial partner on this project as a result of its collaboration with Southern California Gas (SoCalGas), and a California treatment facility. The project is being conducted through Lawrence Livermore National Laboratory (LLNL) by lead researcher Sarah Baker.
This $500,000 grant to the Lawrence Livermore National Laboratory will be used to develop and seek to commercialize their composite sorbent technology to more effectively remove CO2 from biogas. This proposed technology has the potential for significant improvements over the current state-of-the-art adsorbents used for biogas upgrading.
Xebec will play an important advisory role with our expertise in sorbents and biomethane production. Also, there is the opportunity to commercialize the technology in a small-scale biogas upgrading plant if proven successful in early stages.
“Technology transfer is an essential component of our mission at DOE, helping ensure we deliver the maximum return on the investment of the American taxpayer," said U.S. Secretary of Energy Rick Perry. “Through the TCF, we are connecting entrepreneurs in the private sector with researchers at our National Labs to help deliver the innovations and technologies that will keep our nation secure, competitive, and energy abundant.”
The DOE received over 160 applications for 2019 TCF funding, with project teams engaging more than 90 different partners across multiple diverse disciplines. Teams must receive a 50 percent match of non-federal funds from private partners to receive a TCF award.
Quotes:
“LLNL is excited to work with Xebec, who has decades of experience with biogas upgrading technology, to rigorously test LLNL’s biogas upgrading materials and move them toward commercialization.”
– Sarah Baker, Staff Scientist, Lawrence Livermore National Laboratory
"We are proud to be working alongside LLNL and SoCalGas to research how new sorbents can enable more economical biomethane production. This is the first time Xebec has participated in a DOE funded project, and we look forward to vigorously testing LLNL’s biogas upgrading materials. The renewable natural gas industry is seeing unprecedented growth and cost reduction will be important in developing the market further.”
– Dr. Prabhu Rao, Chief Operating Officer, Xebec Adsorption Inc.
Related links:
https://www.energy.gov/articles/department-energy-announces-2019-technology-commercialization-fund-projects
https://www.xebecinc.com
For more information:
Xebec Adsorption Inc.
Sandi Murphy, Director, Investor Relations and Marketing
+1 450.979.8718 smurphy@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
ksorschak@xebecinc.com
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multi-national corporations and governments looking to reduce their carbon footprints. Headquartered in Montreal (QC), Xebec designs, engineers and manufactures innovative and transformative products, and has more than 1,500 customers worldwide. With two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America, Europe, and Asia, Xebec trades on the TSX Venture Exchange under the symbol XBC. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
Xebec Announces Closing of $11.6 Million Bought Deal Public Offering of Units and Listing of Warrants
Xebec Adsorption Inc. ("Xebec" or the "Corporation") (TSXV:XBC) is pleased to announce it has closed its previously announced bought deal offering, including the exercise in full of the Underwriters’ over-allotment option. A total of 8,280,000 units of Xebec (the "Units") were sold at a price of $1.40 per Unit for aggregate gross proceeds of $11,592,000 (the "Offering"). The Offering was conducted by a syndicate of underwriters led by Desjardins Capital Markets and including Beacon Securities Ltd., Paradigm Capital Inc., Canaccord Genuity Corp. and M Partners Inc. (together, the "Underwriters"). The net proceeds of the Offering will be used to, among other things and as more fully described in the short form prospectus relating to the Offering, develop and invest in new Renewable Natural Gas (RNG) projects, to expand the Corporation’s monitoring and service capabilities through selective acquisitions and for general corporate purposes.
Each Unit is composed of one common share in the capital of the Corporation (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable to acquire one additional Common Share (a “Warrant Share”) for a period of 12 months from the closing date of the Offering at an exercise price of $1.85 per Warrant Share.
In connection with the Offering, the Corporation paid the Underwriters a cash commission equal to 6% of the gross proceeds of the Offering, and compensation options (the "Compensation Options") equal to 6% of the Units issued pursuant to the Offering. Each Compensation Option will entitle the Underwriters to purchase a Unit at an exercise price of $1.40 for a period of 12 months from the closing date of the Offering.
The Units were offered by way of short form prospectus in all of the provinces of Canada. Copies of the final short form prospectus and documents incorporated therein may be obtained by sending a written request to the Secretary of the Corporation at 730, Industriel Blvd., Blainville, Québec, Canada, J7C 3V4, telephone: (450) 979-8700, and are available electronically under the Corporation’s issuer profile on SEDAR at www.sedar.com.
The TSX Venture Exchange (the "TSXV") has conditionally approved the listing of the Common Shares and Warrants underlying the Units and the Common Shares underlying the Warrants, subject to fulfilling all of the requirements of the TSXV. The Warrants will be trading under the symbol "XBC.WT". Trading of all such securities is expected to commence on July 4, 2019.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and applicable U.S. state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereunder.
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multi-national corporations and governments looking to reduce their carbon footprints. Headquartered in Montreal (QC), Xebec designs, engineers and manufactures innovative and transformative products, and has more than 1,500 customers worldwide. With two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America, Europe, and Asia, Xebec trades on the TSX Venture Exchange under the symbol XBC. For additional information on the Corporation, its products and services, visit Xebec at xebecinc.com.
Another great day of volume here. And the pps is climbing nicely.
Hitting $1.80 is a nice sign of things to come as a new 52 week high comes into focus.
GLTA & JMO
Xebec Adsorption Inc. Opens the Market
06/13/2019 10:23:00 AM
TORONTO, June 13, 2019 /CNW/ - Kurt Sorschak, President & CEO, Xebec Adsorption Inc. (XBC), joined Sylvain Martel, Director, Capital Formation, Ontario & Qubec, TSX Venture Exchange, to open the market to celebrate ten years listed on TSX Venture Exchange. Xebec Adsorption Inc. is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Xebec has two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America, Europe, and Asia. Xebec Adsorption Inc. commenced trading on TSX Venture Exchange on June 12, 2009.
GLTA & JMO
Wow. What a surge in volume and price support.
Looks like the capital infusion is going to push this one into a whole new tier of investment. And by the looks of the L2 there are some big names getting in. Looking forward to the coverage and news that is no doubt looming.
GLTA & JMO
Xebec Announces $10 Million Bought Deal Public Offering of Units
MONTREAL, June 11, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. ("Xebec" or the "Corporation") (TSXV:XBC) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Desjardins Capital Markets (the “Underwriters”) pursuant to which the Underwriters have agreed to purchase on a bought deal basis 7,200,000 units (the “Units”) at a price of $1.40 per Unit (the “Offering Price”) for aggregate gross proceeds to Xebec of $10,080,000 (the “Offering”).
Each Unit will consist of one common share of the Corporation (a "Common Share") and one common share purchase warrant (each common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share, at a price of $1.85 per Common Share, for a period of 12 months from the closing date of the Offering.
The Corporation has granted the Underwriters an option, exercisable, in whole or in part, at any time until and including 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering at the Offering Price to cover over-allotments, if any. The Underwriters can elect to exercise the Over-Allotment Option for Units only, for Warrants only, or any combination thereof. If the Over-Allotment Option is exercised in full, the total gross proceeds of the Offering will be $11,592,000.
The Units will be offered by way of short form prospectus to be filed in each of the provinces of Canada and in the United States by way of private placement pursuant to the exemption from registration provided for under Rule 144A of the United States Securities Act of 1933, as amended, and in such other jurisdictions outside of Canada and the United States as are agreed to by the Corporation and the Underwriters, in each case provided that no prospectus, registration statement or other similar document is required to be filed in such jurisdiction and that the Corporation will not be or become subject to any continuous disclosure obligations in such jurisdiction.
The Corporation intends to use the net proceeds from the Offering to develop and invest in new RNG projects, to expand its monitoring and service capabilities through selective acquisitions and for general corporate purposes.
The Offering is expected to close on or about July 4, 2019 (the "Closing Date") and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and applicable U.S. state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereunder.
For more information:
Xebec Adsorption Inc.
Sandi Murphy, Director, Investor Relations and Marketing
+1 450.979.8718 smurphy@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
ksorschak@xebecinc.com
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multi-national corporations and governments looking to reduce their carbon footprints. Headquartered in Montreal (QC), Xebec designs, engineers and manufactures innovative and transformative products, and has more than 1,500 customers worldwide. With two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America, Europe, and Asia, Xebec trades on the TSX Venture Exchange under the symbol XBC. For additional information on the Corporation, its products and services, visit Xebec at xebecinc.com.
Xebec Reports Record Q1, 2019 with a 206% Increase in Revenue
- EBITDA of $1.1 million, and Net Profit of $0.4 million -
MONTREAL, May 28, 2019 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC – OTC: XEBEF) ("Xebec"), a global provider of gas generation, purification and filtration solutions announced today its 2019 first quarter results, with the following highlights:
~ Record revenues of $9.8 million in the first quarter of 2019 compared to $3.2 million for the same period in 2018, a 206% increase.
~ Positive EBITDA at $1.1 million for 2019 compared to $(0.9) million for the same first quarter in 2018.
~ Net profit of $0.4 million or $0.01/share for 2019, compared to a net loss of ($1.4) million or ($0.03)/share for the same period in 2018.
~ Working capital was stable at $5.2 million as of March 31, 2019, for a current ratio of 1.4:1 compared with working capital of $5.2 million and a 1.6:1 ratio on December 31, 2018.
Financial Results
Revenues of $9.8 million for the first quarter of 2019 compared to $3.2 million for the same period in 2018, a 206% increase. The increase is mainly explained by the high volume of major cleantech contracts and a company acquisition.
Gross profit of $3.3 million or 34% of revenues for the first quarter of 2019 compared to $0.8 million for the same quarter in 2018, a 323% increase compared to the same period in 2018. The company has a higher gross margin in the cleantech segment.
Net profit of $0.4 million or $0.01 per share for the three-month period ending March 31, 2019, compared to a net loss of ($1.4) million or ($0.03) per share for the same period in 2018, an improvement of $1.8 million. The increase is mainly due to higher sales and margin.
Positive EBITDA of $1.1 million for the three-month period ending March 31, 2019, compared to ($0.9) million for the same period in 2018, an increase of $2.0 million.
Backlog increased by $5.8 million, from $66.1 million on May 28, 2018, to $71.9 million on May 27, 2019.
Selling and administrative expenses increased by $1.0 million in the first quarter of 2019 compared to the same quarter of 2018. This is primarily due to an organizational scale-up of employees and associated costs to support the increased level of sales, order backlog and building quote log.
As of March 31, 2019, the company had $0.5 million of cash on hand and positive working capital is stable at $5.2 million, same as of December 31, 2018.
CEO Quote:
“The renewable gas industry is finally making headway. The recent announcement of UPS to source 170 Million Gallon Equivalents of RNG over a seven-year period from Clean Energy Fuels Corp., is the largest ever purchase of RNG in U.S. history. This will reduce as much as 1 million metric tons of GHG emissions over the life of the agreement. It is equivalent to planting 17,000,000 trees, removing 228,000 cars off the road, or recycling 374,000 tons of waste that would otherwise be sent to the landfill. UPS drives more than 6,100 CNG and LNG vehicles which can be powered by RNG, allowing these staggering reductions in lifecycle greenhouse gas emissions when compared to conventional diesel.
Heavy duty transport and public transit vehicles are ideal for RNG as a transport fuel. Environmental benefits are significant, and the technology is fully commercial and readily available, contrary to either fuel cell or battery technology which has not yet reached the same stage of development as RNG for heavy duty applications. RNG is a unique fuel derived from organic waste materials that links the circular economy - from energy production in the form of zero-carbon transport fuels benefiting the environment, through other participants in the waste generation and processing industries like farmers, food processors, municipalities, waste companies, and others. Xebec looks forward to playing a leading role in the future development of this emerging industry.” – Kurt Sorschak, President and CEO, Xebec Adsorption Inc.
Current Market and Guidance for 2019
Our outlook for renewable natural gas and hydrogen purification remains unchanged from our previous guidance. We expect our Service segment, which includes Industrial Air & Gas, to continue its revenue growth in line with our acquisition strategy. Overall, we anticipate significant revenue growth in 2019 from both our European and Chinese subsidiaries, as well as our North American business. Our guidance is based on current order backlog plus anticipated future orders throughout the year. We maintain our guidance of CDN$ 45.0 million+ and earnings per share (EPS) in the range of $0.10 to $0.13 for 2019. Execution and organizational development will be key to continuing growth. Management recognizes this and is fully focused on operational performance and the creation of an environment that will allow the company to scale. We are working on expanding our managerial capabilities, building strong, results-driven teams that will deliver on the opportunities facing us.
Systems - Clean Technology
Our renewable gas solutions are delivering expected results. Our efforts to obtain larger landfill gas orders are gaining traction and we expect to report progress on this front within the next two quarters. These orders will be instrumental to our growth in 2020. We continue to regard quote activity as an early indicator for future order activity. Our current quote log exceeds $760 million, and our order backlog is almost $72 million. Xebec has started to expand its European focus to include Spain, a country that has not yet implemented any renewable gas policies, but these are expected soon. We maintain our 2019 guidance for RNG systems and equipment and expect growth of 130% to 150% in 2019, generating revenues in the range of $33 to $35 million, expenses of approx. $25 million and gross margins of approx. $10 million.
Service - Industrial Air & Gas Products, Parts and Support
Xebec continues to pursue organic and inorganic growth opportunities and expects to double revenues from $6.1 million in 2018 to about $12 million in 2019, with expenses of approx. $7.5 million and gross margin at around $4.5 million. Our Q1/19 numbers are on track. We will be introducing additional filtration products over the coming months to help boost our overall gross margin. The product mix is an important contributor to GM achievability which is 40%+ in this segment. Our first acquisition, Compressed Air International (CAI) in Ontario, has performed well in Q1/19 and is on track to grow revenues by 20% this year. Xebec is working on its next two acquisitions and expects to close them in 2019 with another two in 2020.
Infrastructure - Renewable Gas Generation
In early May 2019, Xebec’s Board of Directors approved an expanded strategy for Xebec’s Infrastructure segment, allowing management to engage with an increasing number of potential partners to explore more opportunities. Currently, Canada has two provinces that offer renewable Gas Purchase Agreements (GPAs) with terms of up to 20 years and prices of up to $30/GJ. California has recently announced a target of 20% RNG by 2030, offering unique investment opportunities with prices of up to $75/GJ. As previously announced, Xebec is actively working on the establishment of its RNG infrastructure business where we will build, own and operate (BOO) high-quality renewable gas assets in Canada and California, and sell renewable natural gas to obligated parties and other third-party off-takers. Xebec hopes to announce its first project by mid-year. No revenues or costs have yet been recorded.
2019 First Quarter Financial Statements and Management’s Discussion and Analysis
The complete financial statements, notes to financial statements, and Management’s Discussion and Analysis for the three-month period ended March 31, 2019, are available on the company’s website at www.xebecinc.com or on the SEDAR website at www.sedar.com
Related links:
https://www.xebecinc.com
https://www.cnn.com/2019/05/22/business/ups-renewable-natural-gas/index.html
For more information:
Xebec Adsorption Inc.
Sandi Murphy, Director, Investor Relations and Marketing
+1 450.979.8718 smurphy@xebecinc.com
Kurt Sorschak, President and Chief Executive Officer
ksorschak@xebecinc.com
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multi-national corporations and governments looking to reduce their carbon footprints. Headquartered in Montreal (QC), Xebec designs, engineers and manufactures innovative and transformative products, and has more than 1,500 customers worldwide. With two manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America, Europe, and Asia, Xebec trades on the TSX Venture Exchange under the symbol XBC. For additional information on the company, its products and services, visit Xebec at xebecinc.com.
A close at the 52 week high and HOD.
Gotta love that.
GLTA & JMO
New 52 Week high this morning.
Earnings to follow.
:)
GLTA & JMO
She's rolling hard to the upside. Bid swelling and earnings in a week.
Will likely be north of the 52 week high by then.
GLTA & JMO
XBC reporting on May 28th.
Should be interesting.
GLTA & JMO
Gotta love the chart and how the company is on a massive growth trajectory.
GLTA & JMO
Another new 52 Week High.
Look at all that volume and support.
This could run for a while with the amount of coverage and government regulations kicking in.
GLTA & JMO
Nice day here.
Finished at HOD.
GLTA & JMO
New 52 week high. :)
XBC continues to be a gem in a great space.
GLTA & JMO
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