Thermal Energy International Reports First Quarter Results

Thermal Energy International (“Thermal Energy” or the “Company”) (TSXV: TMG),  today announced its financial results for the three-month period ended August 31, 2016. 
As quoted in the press release:

Despite lower revenue for the quarter, our gross profit increased significantly and we have a robust order backlog of $7.8 million,” said William Crossland, CEO of Thermal Energy. “Since the beginning of the first quarter we announced nearly $2.5 million in hospital orders, a $750 thousand heat recovery order from a global brewing company, and most recently, a $1.7 million heat recovery order from a leading ethanol producer. We also received several other smaller orders both during and subsequent to the end of the first quarter. These orders came from many different industries, including biotech and pharmaceutical, mining and resources, performance materials, textiles, food service packaging, and tire manufacturing.
Revenue for the quarter was $2.1 million, representing a decrease of 16.5% compared to $2.6 million for the first quarter of last year. Despite a strong heat recovery order backlog, due to the timing of project implementation, heat recovery systems revenue decreased 55.9% as it included only the closing stages of an installation at a major hospital, as announced October 29, 2015 plus an installation at a major food producer, as announced May 3, 2016. Revenue from GEM condensate return systems increased 55.5% and included the partial conversion of a plant belonging to a Fortune 500 food and beverage company as well as revenues from the various orders mentioned in the Company’s news release dated September 20, 2016.
Gross profit for the quarter was approximately $1.5 million, an increase of 32.4% compared to $1.1 million in the first quarter a year earlier. The increase was attributable to the higher proportion of GEM product sales during the most recent quarter, which resulted in gross profit as a percentage of sales increasing to 68.2% from 43.0% a year earlier.
 

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