Pinnacle Renewable Holdings Reports Fiscal 2017 Fourth Quarter and Year-End Results

Pinnacle Renewable Holdings (TSX:PL) has announced its financial results for Q4 and full fiscal year 2017, ended December 31, 2017.

As quoted in the press release:

These results are for the period ended prior to the completion of the Company’s initial public offering on February 6, 2018 (the “Offering”). Accordingly, these results will not be directly comparable to future results, primarily as a result of the change in the Company’s capitalization related to the Offering.

The Q4 2017 period comprised 13 weeks, while the comparable period in 2016 (“Q4 2016”) comprised the 14 weeks ended December 30, 2016. Fiscal 2017 comprised 52 weeks, while the comparable prior-year period (“Fiscal 2016”) comprised 53 weeks.

Fiscal 2017 and Year-to-Date Highlights

• Q4 2017 revenue and Adjusted EBITDA¹ increased by 2.9% and 16.4%, respectively, relative to Q4 2016;
• Fiscal 2017 revenue and Adjusted EBITDA¹ increased 9.9% and 27.8%, respectively, compared to Fiscal 2016;
• Pinnacle sold a record 1.4 million metric tons (“MT”) of industrial wood pellets in Fiscal 2017;
• Contracted backlog grew by 15.4% to approximately $3.0 billion as at December 29, 2017 relative to the contracted backlog of $2.6 billion as at December 30, 2016; and
• On March 8, 2018, Pinnacle commenced initial production of industrial wood pellets at its Entwistle Facility.

“2017 was a record year for Pinnacle on all our key metrics, reflecting growing demand from our customers in Europeand Asia, continued operating efficiencies, and the exceptional performance of our people,” said Robert McCurdy, Chief Executive Officer. “We expect to meet increasing customer demand in the near term by gradually ramping up production at our new Entwistle production facility and completing construction of the Smithers production facility.  We will also continue to evaluate strategic growth opportunities in western Canada and other targeted regions in the U.S. and Canada.”

Q4 2017 Financial Results
Revenue for Q4 2017 totaled $73.0 million, an increase of 2.9% compared to $70.9 million for Q4 2016. The increase was primarily the result of a higher average sales price per MT, which reflects an improved sales mix due to higher-priced U.K. and European contracts in Q4 2017 compared to Q4 2016. Industrial wood pellet sales volumes were approximately 334,000 MT in Q4 2017, similar to sales volumes of approximately 335,000 MT in Q4 2016, which had one additional week of operations.

Click here to read the full press release.