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100% they should have.
Thats the OTC for you though.. dumped this exchange a long long time ago for this very reason.
GLTA & JMO
What happens when this gets down to single pennies again?
Another R/s?
I would try to beat management to the punch and sell this down.
FINRA has to step in at some point.
GLTA & JMO
Love this company and what they are doing.. expect a sold out PP at .20 coming. I am buying via market at these levels.
GLTA & JMO
Great things on the horizon for this one.. could be better at promoting their business. But earnings should shine a light on the value on its own..
JMO & GLTA
My heart breaks for all those who deserve better.. and even for those who dont.
Hope this tuition prevents future losses on investments.
JMO & GLTA
Hate to say it but I was right..
Called it a long time ago.. even before the first R/S.
Trip zeros in the books.. and vapor cometh.
Next time I hope shareholders don't let there be a next time.
Cant listen if you are always talking.
GLTA & JMO
An unnatural disaster here.
Trip zeros is here..
R/S 100:1 and it slides all the way back to .10 with vapor on the horizon.
How long until the next R/S?
I feel sorry for shareholders.
GLTA & JMO
What a disaster.
Next time it will be easier for shareholders to listen instead of talking.. hopefully.
Writing was on the wall a long time ago.
Trip zeros and then vapor.
GLTA & JMO
Are we at trip zeros yet?
Its coming.. pre & post R/S.
GLTA & JMO
"Halo Collective GAAP EPS of -$10.48, revenue of $8.4M"
Yikes.
When is the next RS coming?
GLTA & JMO
Are we at trip zeros yet?
Vapor cometh.
LOL
I cant even make this stuff up.
GLTA & JMO
.00PS
Looks like we are sub-penny. Tisk tisk..
The R/s is not going to make people forget where this started the year.
If only someone called sub-penny when it was still sellable.
Wishing all shareholders a HNY and a better 2022.
GLTA & JMO
Trip zeros cometh.
NO amount of Reverse Splits will mask that reality.
GLTA & JMO
Finally seeing this for the dog it is?
I mean it only took a 99% loss.
LOL
GLTA & JMO
Xebec Announces Q3 2021 Financial Results
November 11 2021 - 07:00AM
Xebec Adsorption Inc. (TSX: XBC) ("Xebec"), a global provider of clean energy solutions, announced today its 2021 third quarter results, with the following highlights:
Revenues of $26.7 million for the three-month period ended September 30, 2021, compared to $18.4 million for the same period the prior year.
Gross margin of $10.1 million (38%) for the three-month period ended September 30, 2021, compared to $4.4 million (24%) for the same period the prior year.
Adjusted EBITDA of $0.3 million for the three-month period ended September 30, 2021, compared to $0.4 million for the same period last year.
Net loss of $9.2 million or ($0.06) per share in the three-month period ended September 30, 2021, compared to a net loss of $2.2 million or ($0.02) per share compared for the same period in the prior year.
Working capital of $71.2 million on September 30, 2021, for a current ratio of 1.88:1, compared to working capital of $171.2 million and a current ratio of 4.12:1 on December 31, 2020.
Management guidance updated with revenues at the top end of the range of $120.0 to $130.0 million from $110.0 to $130.0 and adjusted EBITDA margins in the range of -3.0% to -5.0% from -3.0% to -4.0% to reflect the acquisition of UECompression and supply chain risks.
As at September 30, 2021, the company had $61.9 million of cash and restricted cash compared to $168.6 million as at December 31, 2020.
Financial Highlights:
Revenues increased by $29.8 million to $80.0 million for the nine-month period ended September 30, 2021, compared to $50.2 million for the same period the prior year. The 59% increase is mainly explained by acquisitions completed in 2020 and 2021, including (1) $22.8 million for services companies and ACS, and (2) $30.5 million for HyGear and Inmatec. This was offset by lower revenues from long-term production-type RNG projects. As the company transitions to standardized products such as Biostream, revenues will be recognized on delivery.
Gross margin increased from $11.7 million to $19.3 million for the nine-month period ended September 30, 2021 compared to the same period the prior year. The gross margin percentage increased from 23% to 24% as the positive impact of acquisitions completed in 2020 and 2021 was offset by the negative impact from long-term production-type RNG contracts.
Selling and administrative expenses (“SG&A”) for the nine-month period ended September 30, 2021, of $31.7 million increased by $18.6 million compared to $13.1 million for the same nine months of 2020. The increase is primarily due to additional SG&A expenses associated with the newly acquired companies: (1) $5.9 million for services companies and ACS, and (2) $9.4 million for HyGear and Inmatec. In addition, SG&A expenses increased due to an organizational scale up of employees, hiring fees and associated costs to support the increased level of future sales.
Other gains and losses of $7.0 million for the nine-month period ended September 30, 2021 compared to $0.9 million for the same nine months of 2020. The increase is mainly due to a one-time payment arising from the prior departure of employees, legal costs and integration and M&A costs.
Research and development expenses of $1.9 million for the nine-month period ended September 30, 2021 were related to the development of the company’s second generation of the Biostream product and the continued development of biogas upgrading and hydrogen projects. As of January 1, 2021, R&D expenses are recorded as they are incurred.
Operating loss of $21.4 million for the nine-month period ended September 30, 2021 compared to an operating loss of $2.4 million for the same period in 2020. The increase in operating loss is mainly explained by the above-noted increase in SG&A and other gains and losses, offset by the slightly higher consolidated gross margin percentage.
Net loss of $25.9 million or ($0.17) per share in the nine-month period ended September 30, 2021 compared to a net loss of $3.7 million or ($0.04) per share for the same period the prior year.
Adjusted EBITDA decreased to ($9.0) million for the nine-month period ended September 30, 2021, from $1.4 million for the same period last year.
CEO Quote:
“In Q3 we made progress in executing our growth plan while also reducing the impact from our legacy, customized RNG projects. This resulted in a stronger gross margin compared to Q1 and Q2 of this year, as legacy contracts contributed fewer overall revenues and as we saw higher quality revenues across our segments. Ultimately, we are focused on our transition to standardized products which will reap benefits in both scale and costs. In addition, after the quarter end, we announced the acquisition of Colorado-based UECompression which gives us credible capacity to achieve significant organic growth with our containerized renewable natural gas and hydrogen generation systems for the North American market.
In 2021, we have made progress in building the team and enhance our operational setup to take advantage of the accelerating tailwinds for renewable gases. However, we will need to remain vigilant on supply chain risks and other operational disruptions as we continue to execute and grow our company,” stated Kurt Sorschak, Chairman, President and CEO of Xebec Adsorption Inc.
Current Market Outlook
Xebec continues to see an improving political and regulatory backdrop for its products and services. This can be seen with the “Build Back Better Act” from the Biden administration which would allocate $555 billion for U.S. investments in clean energy and combatting climate change. The Act specifically includes tax credits for biogas, renewable natural gas, hydrogen and local manufacturing. In addition, the Global Methane Pledge was announced at the COP26 conference, which aims cut methane emissions by 30% by 2030 compared to 2020 outputs. These initiatives, among others, continue to favour Xebec’s proven technologies and solutions for reducing emissions with renewable gases.
Furthermore, the company has felt the impact of supply chain disruptions and continues to manage its risk which includes higher than normal inventory purchases and dual sourcing. Xebec is also preparing for potential transportation challenges which may result in delayed revenues in future quarters. The company’s strategy in having local manufacturing and building a strategic sourcing function is expected to help mitigate this risk.
Systems - Cleantech
Renewable Natural Gas (RNG)
Xebec continues to execute on its long-term production-type RNG projects with the last handful of projects in final stages of execution and commissioning. The tapering down of impact from these legacy contracts as a result of less contribution to total revenues, was seen this quarter through a stronger gross margin. Overall, standardized products such as Biostream are expected to lead to a stronger organic revenue growth profile for the segment, more predictable cost management and improved gross margins.
The company has also begun production of its second-generation Biostream in Canada, with the aim of having a capacity run rate of 30 to 40 units per year. Revenues on the recent 18-unit Biostream order have not yet been recognized as they will now be recognized on delivery, instead of on a percentage of completion basis.
The recently announced additional capacity acquired with UECompression, will add another 120 to 150 containerized renewable gas systems for North American capacity totaling 150 to 190 units. This significant manufacturing capacity increase reflects the anticipated demand Xebec sees in the market for its products in the agricultural sector. In addition, the expansion is further supported by the success and positive feedback received from customers for the first generation Biostream, which now has several units producing RNG at U.S. dairy farms and is performing at or above expectations.
Hydrogen
The quarter saw several hydrogen contract wins, including a contract for a new industry application (annealing heat-treatment process) with a Turkish based flat steel manufacturer for two Hy.GEN® 150 units. Xebec also commissioned a key project in the Czech Republic where hydrogen will be delivered with a local partner to both a tungsten manufacturing and photonics plant.
In addition, the increasing demand for distributed hydrogen production in the U.S. has resulted in Xebec starting the process of establishing local manufacturing through UECompression. The company is seeing an increasing number of quotes to convert renewable natural gas to green hydrogen, for which it possesses world leading technology for.
Lastly, Xebec’s hydrogen PSA purification platform is seeing more activity as the mobility market develops. For example, an order was received from a leading marine robotics company to produce high purity hydrogen from ammonia cracking for a fuel cell onboard a ship. Xebec expects that as the mobility market develops, the need for high-purity hydrogen will accelerate growth opportunities for its PSA platform.
Oxygen and Nitrogen
Inmatec continues to see record production levels primarily due to the heightened demand caused by the COVID-19 pandemic for sustainably and reliably sourced medical-grade oxygen. To address this demand, last quarter a lease was signed to double the production floor space of the manufacturing facility in Herrsching, Germany and this expansion is well under way.
Organizations around the world continue to see the benefits of on-site production of gases. Inmatec showcased the value proposition recently with a large delivery to a hospital in St. Lucia. Historically, there was no oxygen available on the island and the gas had to be imported in liquid form in shipping containers. This supply would cost upwards of USD $250 per ton. By generating the gas on-site instead, the hospital now pays one tenth the cost as before, reduces their carbon footprint, is ensured a secure supply, and can serve more patients in intensive care units (ICU).
Lastly, Inmatec is seeing a pickup in on-site nitrogen generation activity as industrialized economies reopen around the world as COVID-19 imposed restrictions are lifted.
Support – Industrial Products & Services
Xebec saw several developments in its roll-up strategy to acquire compressed air service companies to build out the company’s Cleantech Service Network. Two acquisitions were made in the quarter, including California-based California Compression and the assets of Wisconsin-based Wisconsin Compressed Air.
While the service centers felt the impact of supply chain disruptions, bookings overall were strong for the quarter and several divisions are now seeing meaningful contributions from cleantech equipment. Xebec expects that the pace of acquisitions may slow down as the company works to integrate, optimize and focus its efforts within the segment.
Renewable Gas Infrastructure
Xebec is addressing the renewable gas infrastructure opportunity through GNR Quebec Capital L.P. (“GNRQC”), a fund created in partnership with The Fonds de solidarité FTQ (“Fonds”), the largest capital development fund in Québec. Xebec is an equal equity investor alongside the Fonds and will participate in the sale of renewable natural gas equipment alongside long-term parts & service agreements for the equipment.
The fund has evaluated 28 projects to date and is actively involved with 18 of both greenfield and brownfield varieties in agriculture, municipal, landfill, mixed use, and industrial waste applications. The fund has now successfully executed several letters of intent (LOI) for projects in Québec.
Management Guidance for 2021
For fiscal full-year 2021, Xebec is updating its previously announced guidance with revenues now expected to be at the top end of the range of $120.0 to $130.0 million from $110.0 to $130.0 million and adjusted EBITDA margins in the range of -3.0% to -5.0% from -3.0% to -4.0%. This guidance reflects contribution from the recently announced acquisition of UECompression and increased supply chain risks.
Xebec to Host Live Investor Webinar to Discuss Q3 2021 Results
An investor webinar for shareholders, analysts, investors, media representatives, and other stakeholders will be held today, November 11, 2021, at 8:30AM EST (5:30AM PST).
Register here: https://app.livestorm.co/xebec-adsorption-inc/2021-q3-investor-webinar
A recording of the webinar and supporting materials will be made available later today in the investor’s section of the Company’s website at xebecinc.com/investors.
2021 Third Quarter Financial Statements and Management’s Discussion and Analysis
The condensed financial statements, notes to financial statements, and Management’s Discussion and Analysis for the three-month period ended September 30, 2021, are available on the company’s website at xebecinc.com/investors or on the SEDAR website at www.sedar.com.
Related links:
https://xebecinc.com/
For more information:
Xebec Adsorption Inc.
Brandon Chow, Director, Investor Relations
+1 450.979.8700 ext 5762
bchow@xebecinc.com
About Xebec Adsorption Inc.
Xebec is a global provider of clean energy solutions for renewable and low carbon gases used in energy, mobility and industrial applications. The company specializes in deploying a portfolio of proprietary technologies for the distributed production of hydrogen, renewable natural gas, oxygen and nitrogen. By focusing on environmentally responsible gas generation, Xebec has helped thousands of customers around the world reduce their carbon footprints and operating costs. Headquartered in Québec, Canada, Xebec has a worldwide presence with eight manufacturing facilities, thirteen Cleantech Service Centers and five sales offices spanning over four continents. Xebec trades on the Toronto Stock Exchange under the symbol (TSX: XBC). For more information, xebecinc.com.
Xebec Acquires Colorado-based UECompression to Establish North America’s Leading Renewable Natural Gas and Hydrogen Manufacturing Facility
November 03 2021 - 03:35PM
Xebec Adsorption Inc. (TSX: XBC) (“Xebec”), a global provider of clean energy solutions, is pleased to announce today that it has closed the acquisition of all the outstanding shares of Colorado-based UECompression (“UEC”). Founded in 1983, UEC is a premier designer and builder of custom air and gas compressor solutions for power generation, industrial and energy applications.
The acquisition of UEC provides Xebec with a cost-effective and timely pathway towards expanding production capacity five-fold for standardized renewable gas systems while supporting UEC’s legacy business as the operation continues its energy transition. In addition, Xebec’s global manufacturing footprint is further optimized by bringing European gas generation products such as Hy.GEN to the U.S. and focuses UEC’s facility on containerized and skid-mounted renewable energy systems. Furthermore, the acquisition increases the Cleantech Service Network coverage by six states (Montana, Wyoming, Colorado, North & South Dakota and Nebraska) to meet the increasing need for local service and support as the demand for standardized RNG and hydrogen systems accelerates.
Xebec expects that with limited changes to operations it can use UEC’s excess capacity to produce approximately 150 to 190 containerized BGX Biostream™ (“Biostream”) biogas upgrading and Hy.GEN hydrogen units per year in North America. The new capacity from UEC adds to recent capacity increases in Xebec’s Canadian manufacturing facility.
“UEC helps Xebec solidify its position as a leading renewable gas player by adding a 100,000 sq. foot manufacturing facility in the U.S. With this acquisition, we are responding to the accelerating energy transition and the associated interest in containerized RNG and hydrogen systems. Furthermore, UEC’s existing compression expertise in hydrogen will become increasingly relevant as the hydrogen economy develops. The acquisition will also help us in fully complying with current and evolving needs for local sourcing,” said Kurt Sorschak, Chairman, President and CEO, Xebec Adsorption Inc.
The total consideration for the acquisition of the outstanding shares of UEC is of USD $8 million (CAD $9.9 million) and is subject to certain holdbacks and adjustments. On a standalone basis, UEC is expected to have unaudited revenues of approximately USD $35.0 million (CAD $43.3 million) for 2021. With the introduction of containerized renewable natural gas and hydrogen systems and leveraging the Cleantech Service Network to support UEC’s and Xebec’s installed equipment base, Xebec expects to see significant growth for this operation over the coming years.
Significant capacity increase to support the growing U.S. animal manure RNG market
According to the United States Department of Agriculture and National Pork Producers Council, there are approximately 92,000 active dairy and hog farms in the U.S. The American Biogas Council estimates that approximately 8,574 of these farms are primed for biogas and renewable natural gas production with more than 98 farms already producing RNG for the local transportation market.
Xebec is focused on serving animal manure-based projects because of their ability to reduce emissions from agriculture, support local communities and recycle nutrients. Biostream is well positioned as a market leading solution for animal livestock operations as showcased with orders from top U.S. dairy developers which include an initial 18-unit order from the Brightmark and Chevron RNG partnership.
Related links:
https://www.xebecinc.com
Media Inquiries:
Public Relations for Xebec
Victor Henriquez, Senior Partner
victor@publicsc.com
+1 514.377.1102
Investor Relations:
Xebec Adsorption Inc.
Brandon Chow, Director, Investor Relations
bchow@xebecinc.com
+1 450.979.8700 ext 5762
About Xebec Adsorption Inc.
Xebec is a global provider of clean energy solutions for renewable and low carbon gases used in energy, mobility and industrial applications. The company specializes in deploying a portfolio of proprietary technologies for the distributed production of hydrogen, renewable natural gas, oxygen and nitrogen. By focusing on environmentally responsible gas generation, Xebec has helped thousands of customers around the world reduce their carbon footprints and operating costs. Headquartered in Québec, Canada, Xebec has a worldwide presence with seven manufacturing facilities, thirteen Cleantech Service Centers and five sales offices spanning over four continents. Xebec trades on the Toronto Stock Exchange under the symbol (TSX: XBC). For more information, xebecinc.com.
Yikes.. How long until this drops below $1 and is effectively sub-penny prior to RS?
Honestly.
GLTA & JMO
Really?
LOL
I cant even make this stuff up.
GLTA & JMO
TIMMMMBERRRRRRRRR!
Chart looks like a black diamond ski run.
HALO.. you really pulled one over on shareholders.
GLTA & JMO
BINGO.
Its just part of the wash, rinse, repeat.
The Authorized Shares dont get reduced, only the float.
Not a great thing for shareholders.
GLTA & JMO
The D will fall off after a while.
It designated an RS has just occurred.
Watch it fall. The symbol and the price.
Poor shareholders got worked.
GLTA & JMO
Yikes!
But I called it..
Watch sub-penny tomorrow.
And then another drop after the R/S:
Cant make this stuff up.
GLTA & JMO
Sprint to the exits!
Dumping like crazy.
Yikes.
GLTA & JMO
Timmmmmmmmberrrrrrrrrr!
Get the shovels out! LOL
GLTA & JMO
New 52 week low.
.0165
Yikes.
Sub-penny cometh.. then vapor.
GLTA & JMO
Another 20% down on a very up day for the markets.
Sub-penny cometh.. and then vapor.
Pennyland graveyard is where this one will likely end up.
GLTA & JMO
More like a long squeeze.
LOL
Get ready for those sub-penny shares.. cascading 52 week lows is not a great omen.
GLTA & JMO
Wowza. 12M shares for IR compensation.
LOL.
LOL.
The spigots of dilution are wide open.
This is called death spiral financing and is kind of a sneaky way to milk shareholders out of their equity in the company.
Billions of reasons not to love this company. Shares will soon be worth less than the wallpaper of an outhouse.
Triple zeros cometh.. and then an R/S. If FINRA allows it.
GLTA & JMO
Even worse! LOL
Trip zeros cometh.
I cant even make this stuff up.
GLTA & JMO
Whaaaat?! LOL
Pretty sure any more pumps and this one will get shut down by the SEC.
There have already been a bunch of red flags.
GLTA & JMO
NOT smart.
.02's are next and then sub-penny.
This will not end well for anyone who got duped into buying.
GLTA & JMO
Death spiral financing..
The spigots of dilution are wide open..
WIDE.
Sub-penny cometh.. then a wicked R/S.
GLTA & JMO
I guess after a couple years of PPS erosion 4% down could seem like a strong day.
LOL
This one is headed to the pennyland graveyard.
I cant even make this stuff up.
GLTA & JMO
Maybe because strong days are few and far between as this has eroded from .60+
I mean really.
Sub-penny cometh.
Not IF, but WHEN.
Followed by an R/S.
GLTA & JMO
Whoever said this was going to .0001 was dreaming.
Less like a dream, more like a nightmare.
Would a dilution machine own over 100 million in assets?
Yes. A distressed asset can quickly become a liability. And understanding the two is important.
Would a dilution machine earn millions in audited And increasing revenue every quarter?
Yes. I have seen lots of interesting bookkeeping. In any case revenue and dilution are not mutually exclusive.
Don't dilution machines usually sell hundreds of millions of shares but have nothing to show for it?
Partly correct. Usually the former not the latter.
Soon this dilution machine will begin diluting my account with FREE SHARES from TWO spinoffs.
LOL. Meanwhile the value of shares continues to plummet. Was this part of the investment thesis originally?
Spinoffs that were acquired with shares, one reportedly having received a 30 million dollar valuation.
LMAO.. reportedly? Cant even make this stuff up.
IYKYK..
GLTA & JMO
TIMBERRRRRRRRRRR!
Whoever said this was going to drop after the short term pump was right on the money.
Seen it once, seen it a hundred times.
Dilution machines are easy to spot.
GLTA & JMO
And the AS is Unlimited.
You know what that means.. if it quacks like a duck, walks like a duck, looks like a duck..
ITS A FOUL.
GLTA & JMO
Yikes.
They will need more capital and dilution is likely the only way they will be able to accomplish that.
GLTA & JMO