EverGen Infrastructure Corp. Reports Record First Quarter 2022 Financial Results
VANCOUVER, British Columbia--(BUSINESS WIRE)-- EverGen Infrastructure Corp. (“EverGen'' or the “Company”) (TSXV: EVGN) (OTCQB: EVGIF), today reported financial results as at and for the three-month period ended March 31, 2022 (“Q1 2022”). All amounts are in Canadian dollars unless otherwise stated and are in accordance with IFRS.
For further information on the results please see the Company’s Consolidated Financial Statements and Management’s Discussion and Analysis filed on SEDAR at www.sedar.com and on EverGen’s website at www.evergeninfra.com.
First Quarter Events & Updates
“EverGen is in a strong position to expedite growth as Canada’s RNG infrastructure platform and we have continued to deliver on our goals,” said Chase Edgelow, CEO of EverGen. “We were able to expand our footprint into Alberta with the LOI to acquire a 67% interest in GrowTEC, a stepping stone project towards our regional expansion in a strategic jurisdiction and expected consolidation of the RNG industry in Canada.”
During Q1 2022, EverGen recognized more than $1.7 million of insurance progress payments, which covers all of the lost revenues and flood-related expenses to date at the FVB facility and approximately 60% of the flood related expenses through March 31, 2022 at EverGen’s NZWA facility. EverGen expects to receive further proceeds throughout the remainder of 2022 to cover any additional flood related expenses. Net loss and Adjusted EBITDA were positively impacted by the recognition of these insurance proceeds in Q1 2022 and EverGen expects full financial recovery with limited to no financial impact from the floods.
As previously announced, during Q1 2022 EverGen entered into a letter of intent (“LOI”) to acquire a 67% interest in Grow the Energy Circle Ltd. (“GrowTEC”), a biogas facility in Alberta. GrowTEC has an offtake agreement with FortisBC and is currently in Phase 1 of a development which is expected to produce 80,000 gigajoules of RNG annually and is expected to be completed by year-end 2022.
Event Subsequent to the First Quarter
As previously announced, on May 20, 2022 EverGen acquired a 50% interest in Project Radius, a portfolio of late-development-stage projects in Ontario for a cash contribution of $1.5 million. Collectively the three projects are capable of producing ~1.7 million GJ/year of RNG and will be constructed throughout 2023 and 2024.
Q1 2022 Financial Highlights
The operating results included below exceeded management’s expectations and were further strengthened by the recognition of insurance proceeds during Q1 2022.
- Revenues of $1.4 million were relatively in line with Q1 2021 revenue of $1.6 million, taking into account seasonal fluctuations.
- Net loss of $0.2 million significantly improved from Q1 2021 net loss of $1.2 million, with insurance proceeds offsetting lost revenues and flood-related expenses.
- Adjusted EBITDA of $0.6 million increased by 211% relative to Q1 2021 Adjusted EBITDA of $0.2 million, due to an increase in the overall profitability of our business.
- Cash and cash equivalents (including restricted cash) of $20.2 million and a working capital surplus of $19.2 million as at March 31, 2022.
The following table presents EverGen’s Consolidated Financial and Operating Summary:
Three Months Ended
In thousands of Canadian Dollars
Net loss (2)(3)
Net loss per share ($), basic and diluted
Adjusted EBITDA (3)(4)
Total long-term liabilities
Working capital surplus (4)
Incoming organic feedstock (tonnes)
Organic compost and soil sales (yards)
RNG (gigajoules) (1)
RNG volumes commenced on April 16, 2021, upon the acquisition of FVB. RNG volumes were impacted during the first quarter of 2022 and fourth quarter of 2021 as a direct result of flooding events in the Abbotsford and Sumas Prairie regions, which resulted in the shut down of the FVB facility on November 15, 2021, until operations were restored. Since March 2, 2022, FVB has been operating and producing daily volumes of up to 334 GJ/d, restoring production volumes to historical levels.
Operating expenses and cost of goods sold increased during Q1 2022 and Q4 2021 at FVB and Net Zero Waste Abbotsford (“NZWA”) as a direct result of the flooding events.
EverGen recognized $1.7 million of insurance proceeds, for which $0.9 million was recorded in net income relating to lost revenues and additional costs incurred as a result of the floods as at March 31, 2022.
Please refer to “Non-IFRS Measures”.
About EverGen Infrastructure Corp.
EverGen, Canada’s Renewable Natural Gas Infrastructure Platform, is combating climate change and helping communities contribute to a sustainable future, starting on the West Coast of Canada. EverGen is an established independent renewable energy producer which acquires, develops, builds, owns and operates a portfolio of Renewable Natural Gas, waste to energy, and related infrastructure projects. EverGen is focused on Canada, with continued growth expected across other regions in North America and beyond.
For more information about EverGen Infrastructure Corp. and our projects, please visit www.evergeninfra.com.
EverGen uses certain financial measures referred to in this press release to quantify its results that are not prescribed by IFRS. The terms EBITDA, adjusted EBITDA and working capital are not recognized measures under IFRS and may not be comparable to that reported by other companies. EverGen believes that, in addition to measures prepared in accordance with IFRS, the non-IFRS measurement provide useful information to evaluate the Company’s performance and ability to generate cash, profitability and meet financial commitments.
These non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for other measures of performance prepared in accordance with IFRS.
EBITDA is defined as net income (loss) before interest, tax and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for share-based payment expenses (recoveries) and unusual or non-recurring items. Working capital is calculated as current assets less current liabilities.
This news release contains forward-looking statements and/or forward-looking information (collectively, “forward looking statements”) within the meaning of applicable securities laws. When used in this release, such words as “would”, “will”, “anticipates”, believes”, “explores” and similar expressions, as they relate to EverGen, or its management, are intended to identify such forward-looking statements. Such forward-looking statements reflect the current views of EverGen with respect to future events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause EverGen's actual results, performance or achievements to be materially different from any expected future results, performance or achievement that may be expressed or implied by such forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits EverGen will derive therefrom. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to: the impact of general economic conditions in Canada, including the ongoing COVID19 pandemic; industry conditions including changes in laws and regulations and/or adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, in Canada; volatility of prices for energy commodities; change in demand for clean energy to be offered by EverGen; competition; lack of availability of qualified personnel; obtaining required approvals of regulatory authorities, in Canada; ability to access sufficient capital from internal and external sources; optimization and expansion of organic waste processing facilities and RNG feedstock; the realization of cost savings through synergies and efficiencies expected to be realized from the Company’s completed acquisitions; the sufficiency of EverGen’s liquidity to fund operations and to comply with covenants under its credit facility; continued growth through strategic acquisitions and consolidation opportunities; continued growth of the feedstock opportunity from municipal and commercial sources, and the factors discussed under “Risk Factors” in the Company’s Annual Information Form dated January 31, 2022, many of which are beyond the control of EverGen.
Forward-looking statements included in this news release should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such forward looking statements.
The forward-looking statements contained in this release are made as of the date of this release, and except as may be expressly be required by law, EverGen disclaims any intent, obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.
Source: EverGen Infrastructure Corp.