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Viridis Energy loss $0.01 per share

Staff writer |
Viridis Energy reported financial results for its third quarter and nine month period ended September 30, 2013. The loss was $712,000 or $0.01 per basic share for the third quarter of 2013.

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This includes final start-up costs of $520,000 associated with Scotia and approximately $100,000 of start-up costs associated with Viridis Merchants.

This compares to a comprehensive loss of $598,000 or $0.01 per basic share during the same period in 2012 and a loss of $491,000 or 0.01 per share in second quarter of 2013, which included $189,000 and $251,000 of Scotia start-up costs, respectively.

As the company noted, Scotia renewed production operation in late August 2013, which contributed $525,000 of revenue during the period, but also incurred two months of full operating costs as the Company trained personnel.

With a production capacity in excess of 120,000 tonnes per year, Viridis expects Scotia will be operating at full capacity and become financially independent shortly.

The company reported a gross profit sales less cost of sales of $595,000 for the third quarter of 2013 compared to $367,000 for the same period in 2012 and $465,000 for second quarter of this year.

Improvements in capacity utilization and the shift from industrial power to residential heat market at the Okanagan Pellet Company supported the continued increase of the Company’s gross margin to 19.7% in the third quarter 2013 from 18.8% in the second quarter 2013 and 16.5% in the prior year second quarter.

Management expects its gross margin from its mature operations to continue to trend up as its revenue mix shifts towards the higher margin residential market during the home heating season; however, Scotia’s gross margin is projected to lag until its operation reaches higher production levels and volume efficiencies are realized.

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