Xebec Adsorption Posts Q1 Revenues Of $20.6 Million, Net Loss Of $9.2 Million
Xebex Adsorption (TSX: XBC) this morning filed its first quarter financial results, reporting revenues of $20.6 million along with a net loss of $9.2 million and adjusted EBITDA of negative $5.8 million. Quarterly results were a notable improvement over the firms disastrous fourth quarter results.
Revenues were notably up 222% on a quarter over quarter basis, climbing from the $6.4 million reported in the fourth quarter following a number of operational issues, to that of $20.6 million for the most recent quarter. Gross margins meanwhile came in at $4.2 million, or 20%.
Revenues however were not strong enough to keep the company in the black, with the company posting a net loss of $9.2 million following operating expenses of $12.1 million. Selling and administrative expenses comprised of the largest expense, coming in at $10.9 million.
Cash flows from operations faired no better, with the company posting negative operating cash flows of $20.2 million, along with negative cash flows from investing activities of $36.3 million, and negative cash flows from financing activities of $3.5 million. The company as a result saw its cash decline from $160.9 million to $99.9 million during the three month period.
In terms of guidance, the company has restated its prior guidance, with the company targeting consolidated revenue between $110.0 and $130.0 million for the year, along with adjusted EBITDA margins between 3.0% and 4.0%.
Xebec Adsorption last traded at $3.90 on the TSX.
Information for this briefing was found via Sedar and Xebec Absorption Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
