Yahoo Finance Fluence Corp Ltd (EMFGF) Q1 2024 Earnings Call Transcript Highlights: Strong Revenue Growth and ...
Q4 Revenue: $27.7 million
Annual Revenue: $70 million
Q4 EBITDA: $2.9 million
Annual EBITDA: $0.2 million
Q4 Gross Margin: 30.6%
Annual Gross Margin: 27.8%
Q4 SPS and Recurring Revenue: Up 68% from Q4 2022
Annual SPS and Recurring Revenue: 67% of total 2023 revenue
Backlog: $92 million, up 92% from end of 2022
2024 Revenue Guidance: $90 million to $100 million
2024 EBITDA Guidance: $3.5 million to $4 million
Debt Repayment: $13 million from capital raise proceeds
Cash and Securities: $24.6 million plus $7.9 million in security deposits
Release Date: April 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the competition in the MABR and high-strength industrial waste sectors? A: Thomas Pokorsky, CEO of Fluence Corporation Ltd, highlighted that in the MABR sector, Fluence faces competition from only two other companies, SUEZ and OxyMem (DuPont), whose technologies differ significantly from Fluence's flat sheet membrane. In the high-strength industrial waste and waste-to-biogas sectors, Pokorsky believes there are no competitors offering a comprehensive solution like Fluence, providing them a competitive edge.
Q: How is Fluence adapting to the new government policies in the USA, particularly the Inflation Reduction Act and Buy American requirements? A: CEO Thomas Pokorsky explained that Fluence could benefit from the Inflation Reduction Act, which offers $25 billion in tax credits for waste-to-energy projects. However, the Buy American rules pose challenges, prompting Fluence to plan a new membrane production facility in the US to comply with these requirements and reduce costs.
Q: What is the status of the operation and maintenance contract for the Ivory Coast project? A: Pokorsky noted that the full O&M contract would likely not be active until next year, as the local infrastructure for water distribution is still under development. However, Fluence expects to secure a contract for idling operations this year, which would position them well for the long-term contract.
Q: What are the financial expectations for Fluence in 2024 regarding cash flow and net profits? A: Ben Fash, VP of Corporate Development, anticipates positive operating cash flow for 2024, although cash will also be allocated to debt repayment. He also mentioned that Fluence aims to be net profit neutral or thereabouts for the year.
Q: Could you provide details on the potential large value MABR projects in the USA? A: CEO Pokorsky confirmed that Fluence is progressing with several major MABR projects in the USA, each potentially worth seven figures, with specific projects underway in Idaho, California, and Maryland.
Q: What investments are required for the new membrane production facility in the US? A: Pokorsky estimated an investment of between $1 million and $2 million for the new facility, depending on its size and scale. This strategic move is intended to make Fluence more competitive by reducing shipping and import costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
