H2O Innovation’s 2019 Third Quarter Results – Shows Adjusted EBITDA at 6.8% of revenues and Net Earnings
Press Release
Key highlights
- Sustained revenue growth of $5.6 M, or 21.1% over the same period of the previous fiscal year, reaching $32.3 M for the third quarter of fiscal year 2019;
- Recurring revenues from Aftermarket, Specialty Products and Operation & Maintenance (“O&M”), represented 81.9% of total revenues for the third quarter of fiscal year 2019;
- Selling, operating and administrative expenses % (“SG&A”) decreased to 17.0% for the third quarter of fiscal year 2019, from 18.4% for the same quarter of the previous fiscal year;
- Consolidated backlog, combining Projects and O&M business pillars, stood at $138.7 M as of March 31, 2019, compared to $123.1 M for the period ended March 31, 2018;
- Adjusted EBITDA1 reached $2.2 M, or 6.8% of revenues, during the third quarter of fiscal year 2019, compared to $1.1 M, or 4.0% of revenues, for the same quarter of the previous fiscal year;
- Net earnings increased to $0.5 M for the third quarter of fiscal year 2019, from a net loss of ($0.01 M) for the same quarter of the previous fiscal year;
- Adjusted net earnings2 stood at $1.3 M for the third quarter of this fiscal year, compared to an adjusted net earnings of $0.5 M for the same quarter of the previous fiscal year.
Quebec City, May 15, 2019 – (TSXV: HEO) – H2O Innovation Inc. (“H2O Innovation” or the “Corporation”) announces its results for the third quarter of fiscal year 2019 ended March 31, 2019.
“We are extremely pleased to post these strong results, as they represent effectively the uniqueness of our business model providing high recurring revenues, high customers’ retention, multiple sales synergies between our business pillars and a proven acquisition platform capable to integrate rapidly, and with efficiency, new acquisitions. Each of our six business lines, regrouped under three business pillars, continues to strive for revenue growth, gross margin improvements, SG&A expenses optimization, product innovation and business process improvements. Our road map is clear, and our objectives remain ambitious: we want to scale-up our business with projects providing sales synergies for the other business lines, develop and add new specialty products capable to improve our gross profit and leverage our sales distribution networks, and continue to consolidate the fragmented market of O&M in North America. Our business has never been as strong as it is now. Our third quarter results show sustained EBITDA performance with net earnings along with a strong balance sheet, paving the way for a strong year end”, stated Frédéric Dugré, President and Chief Executive Officer of H2O Innovation.
Read More: https://www.h2oinnovation.com/wp-content/uploads/2019/05/HEO_press_release_Q3-2019_ENG_FINAL-1.pdf
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