Thermal Energy Reports Record First Quarter With Revenue Growth of 45%

On Monday, October 23, 2017, Canadian cleantech firm, Thermal Energy International, announced its financial results for its first quarter ended August 31, 2017. These results included revenue growth of 45%, including a 168% growth in heat recovery revenue for the quarter. The company also stated that its order backlog remained strong at $7.8 million.

Commenting on their results, Thermal Energy’s Chief Executive Officer, William Crossland said “Following our record revenue for all of fiscal year 2017, we achieved record revenue again for the first quarter of fiscal 2018. Four hospital projects and the early stages of a project for our leading Fortune 500 food and beverage customer contributed to a strong increase in heat recovery revenue during the quarter. Also of significance during the quarter, we announced a $1.46 million ‘Super-Efficient Cogeneration™’ heat recovery project with the same Fortune 500 food and beverage customer. Our order backlog remains strong at $7.8 million, and we remain focused on executing our business plan, growing the company and capitalizing on the positive market outlook for industrial energy efficiency and emissions reduction solutions worldwide.”

While GEM revenue was down 19.0% for the quarter, it still represented the second best first quarter GEM revenue in the company’s history following last year’s exceptionally strong first quarter during which GEM sales were up 57% over the prior year. GEM revenue for the most recent quarter included further orders from a leading performance materials company as well as the conversion of a site of a major pharmaceutical company.

Gross profit for the quarter increased 4.3% to just over 1.5 million. However, with a much higher proportion of revenue coming from heat recovery systems, gross profit as a percentage of sales fell to 49.0% from 68.2% for the same quarter a year ago.

Operating expenses for the quarter were higher with the addition of new sales and technical staff, and lower foreign exchange gains experienced in the quarter, due to a weaker pound sterling against the dollar. The company incurred a net loss of $181 thousand for the quarter versus a loss of $80 a year earlier.

During the quarter, the company received orders totaling $3.28 million from a leading Fortune 500 food and beverage customer, including a $1.82 million heat recovery order (announced July 6, 2017) and a $1.46 million “Super-Efficient Cogeneration™” project (announced August 31, 2017). While the company received revenue during the first quarter for the early stages of the July 6th heat recovery order, the remainder of the revenue for these two projects is expected to be earned during the current fiscal year.

Subsequent to quarter end, on October 12, 2017, the company announced that it had received a $1.32 million heat recovery order from an existing hospital group customer. The revenue from this project is also expected to be earned during the current fiscal year.

The following notable GEM orders were also received during the quarter or subsequent to quarter end:

  • $351 thousand in repeat business from a leading performance materials company;
  • $189 thousand in repeat business from a leading vacation destination company;
  • $100 thousand from an industrial processor and packager of vegetable products.

Including the above mentioned orders, the company had an order backlog of approximately $7.8 million as at October 19, 2017, compared to $7.8 million at the same time last year. The company includes in “order backlog” the value of projects in respect of which purchase orders have been received but have not yet been reflected as revenue in the company’s published quarterly financial statements.

Thermal Energy International is a global supplier of proprietary, proven energy efficiency and emissions reduction solutions to the industrial and institutional sectors. Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, U.K., United States, Germany, Italy and China. The company’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG.

For more information, visit the company’s website at

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