The following is a summary of the Thermal Energy International Inc. (TMGEF) Q4 2024 Earnings Call Transcript:
Financial Performance:
Record revenue reached nearly $26 million in fiscal 2024, a 23% increase YoY.
Debt reduced to $2.4 million, down roughly $900,000 YoY.
Business Progress:
Expanded UK operations with larger industrial unit in Bristol to boost production.
Developed CREST mobile app to enhance energy savings and cross-selling.
Opportunity:
Potential for growth through organic measures and acquisitions.
Implementation of CREST mobile app could improve sales efficiency.
Risk:
Revenue may experience fluctuations due to budget timings and large orders.
Financial Performance:
Thermal Energy International reported record revenue for fiscal 2024, reaching nearly $26 million, a 23% increase from last year and a 63% increase from 2022.
EBITDA for fiscal 2024 was $2 million, up $260,000 from the previous year.
Net income for the year was almost $1 million, an increase of $262,000 from the previous year.
Cash and cash equivalents at the end of May 2024 were $7 million, and working capital was $3.5 million, both up from last year.
Debt was reduced year-over-year by about $900,000 to $2.4 million.
Business Progress:
Continued expansion in the UK with a move to a larger industrial unit in Bristol, enhancing production capacity.
Added five new sales and marketing personnel, including two in France, and four in engineering and production to meet growing demand.
Development of the CREST mobile app for efficient identification of energy savings and cross-selling opportunities.
Investments in global accounting programs and ERP software to support scalable operations.
Record high order intake for fiscal 2024 and an order backlog of $18.7 million at year-end, growing to $21.3 million by September 18.
Opportunities:
Well-positioned for growth through both organic measures and accretive acquisitions.
Expansion into new markets and further penetration into existing markets.
Implementing the CREST mobile app to enhance sales efficiency and energy project development.
Significant potential for increased business with top corporate accounts, which currently represent only about 5% penetration of their global sites.
Expectation of growing demand for energy efficiency and carbon reduction solutions, in line with global investment trends.
Risks:
Business experiences some lumpiness in revenue, influenced by budget timings and large order placements.
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