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.

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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.