| Work Detail |
Green Impact Partners Inc. (GIP or the Company) today reports its results for the year ended December 31, 2024, and as of the date of this news release. Revenue: Revenues were $145.0 million for fiscal 2024 compared to $161.2 million in fiscal 2023. The Companys Energy Product Optimization Services revenue decreased $16.3 million or 12% compared to the same period in 2023. This is due to a combination of a 10% decrease in volumes sold in conjunction with a 3% decrease in benchmark oil prices period over period. The weighted average price sold was $608.73/m3 for the year ended December 31, 2024, as compared to $627.81/m3 for the same period in 2023. Fee for service revenue increased $0.2 million or 1% compared to the same period in 2023. This is due to a 6% increase in water treatment and disposal revenue as a result of a 15% increase in volumes processed. Fee for service solids disposal and recycling revenue decreased 4% as a result of a 25% decrease in volume processed. This is due to the composition of the differences between the Companys two solids disposal and recycling sites where one of the sites with the lower revenue per unit experienced a 26% decrease in volumes. However, 25% of solids revenue is attributable to this facility while it comprises 97% of the overall volume for the segment. Meanwhile, the other solids disposal and recycling site, which accounts for 75% of the solids revenue with only 3% of the overall volume contribution, experienced a 2% decrease in volume and a 1% decrease in revenue over the same period due mainly to timing. Each site processes different materials and therefore have different underlying pricing for their services. Adjusted EBITDA: The $2.1 million reduction in Adjusted EBITDA between December 31, 2024 and December 31, 2023 was primarily a result of the following, excluding adjustments for extraordinary items in each respective period: Gross profit improved by $2.0 million year-over-year as a result of lower fee for service direct costs due in large part to lower utility costs and lower treatment and disposal costs resulting from the nature of the volumes processed during the year compared to 2023. Energy Product Optimization margins also improved due mostly to an increase in high margin skim oil sales relative to 2023. This gross margin increase was partially offset by an aggregate increase of $1.4 million in salaries and wages and selling, general and administrative costs as a result of salary adjustments that became effective during 2024, severance costs paid out in the fourth quarter of 2024 and increased salaries and wages to support the Colorado JV. Further offsetting the improvement in gross profit was the increased losses before interest, depreciation and taxes realized from the Colorado JV, which were $3.3 million for the year ended 2024 compared to $0.1 million for the year ended 2023. For a more detailed discussion on GIPs results for the year ended December 31, 2024, please see the Companys financial statements and managements discussion & analysis, which are available at: https://www.greenipi.com/investors/ and on the Companys SEDAR+ page at www.sedarplus.ca. CORPORATE UPDATE Corporate Credit Facility The Companys corporate credit facility (the Facility) matures on July 31, 2025 and will not be extended beyond the maturity date. As a result of the Companys going-concern disclosure within the financial statements for the year ended December 31, 2024 and corresponding Audit Report, the Company is now in default under the Facility. Under the Facility agreement, the Facility lender will have the right to demand repayment and/or realize on the security at any time under the Facility. A copy of the Facility agreement was filed on September 8, 2023 under the Companys profile on SEDAR+ at sedarplus.ca. The Facility lender has been advised of the default and the Company will be seeking to come to a constructive resolution with our Facility lender. Colorado Joint Venture (the Colorado JV) Both Colorado JV sites began commercial gas production and sales in 2024, after the local utility resolved its technical issues. Over the course of the year, the Colorado JV identified ongoing design and design failures and is actively pursuing corrective measures available under its Engineering, Procurement & Construction (EPC) contract. During the fourth quarter of 2024, the Colorado JV engaged a third-party independent engineering firm to assess the facilities and provide recommendations to rectify the issues. The Colorado JV is progressing through the remedies available under its EPC contract to correct the design and equipment failures over the remainder of 2025 and 2026. Subsequent to year end, the Colorado JV issued a Notice of Default to the EPC contractor. Due to the uncertainty of timing of the correction of EPC failures, the Company is not providing and is withdrawing its EBITDA guidance at this time (2025 EBITDA was previously estimated at $12.3 million, of which GIP would retain a 50% net interest). GIP Mourns Loss of Geeta Sankappanavar GIP is saddened to share the passing of Geeta Sankappanavar, Chairperson of its Board of Directors. Geetas passing is an incredible loss for Green Impact Partners and for me personally, said Jesse Douglas. She was not only a friend, mentor, and supporter but also a challenger who inspired us to be better every day. Geeta was instrumental in the very formation of GIP, and she continuously helped shape our vision and mission to transform waste into energy. Her leadership and unwavering belief in the Future Energy Park were truly inspiring, and as we see this project become a reality, we are reminded of her lasting influence. Geetas impact on our company and the industry will be felt for years to come. Geetas legacy will endure in the work GIP does every day, and she will be deeply missed. |
