Xebec Adsorption Reports Q4 2020 Revenues Of $6.4 Million, Net Loss Of $28.3 Million

Xebec Adsorption (TSX: XBC) this morning reported its fourth quarter financial results. The company reported fourth quarter revenues of $6.4 million, as well as a net loss of $28.3 million. For the full fiscal year, revenues amounted to $56.5 million, below revised management guidance, while the net loss amounted to $32.0 million.

Revenues declined 65.2% on a quarter over quarter basis, falling from $18.4 million to just $6.4 million over the course of the quarter. The cratering of revenues is a result of revenue adjustments made to due to the way in which revenue was originally recognized. Negative adjustments of $5.2 million occurred during the quarter, as well as a further $1.9 million revenue reversal and an additional $5.4 million was reversed due to customers cancelling contracts.

Gross margins as a result also took a hit, with negative margins of $11.4 million being recognized for the quarter. SG&A meanwhile amounted to $13.6 million, which included provisions for bad debt and transaction costs for certain acquisitions made by the company.

For the full year, the company reported revenues of $56.5 million, which is still short of the $57.0 million guided to by the company earlier this month. Gross margins however hit the firms latest revised targets, coming in at just $0.3 million, while overall SG&A and the year amounted to $27.9 million.

Despite the distance of a fiscal year, the company provided a positive outlook for 2021. The company has targeted revenues between $110.0 million and $130.0 million, while adjusted EBITDA is anticipated to be between 3.0% to 4.0%, with figures based on a current backlog of $100.1 million in orders.

Xebec Adsorption last traded at $4.62 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.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

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...

Thursday, May 13, 2021, 07:56:50 AM

Market Movers: Greenlane Renewables

Greenlane Renewables Inc. (TSXV: GRN) sat atop the TSX Venture in terms of volume traded...

Saturday, July 4, 2020, 08:30:00 AM

Xebec Cuts 2020 Revenue Guidance By More Than 18%

Xebec Adsorption (TSX: XBC) this morning cut guidance for fiscal 2020, as a result of...

Friday, March 12, 2021, 08:24:17 AM

Xebec: BMO Downgrades, Slashes Price Target As Rising Costs Hit Bottom Line

On May 12, Xebec Adsorption (TSX: XBC) announced its first quarter financial results. The company...

Thursday, May 19, 2022, 03:52:00 PM

Xebec Sells Two Hydrogen Units, Financial Details Not Provided

Xebec Adsorption (TSX: XBC) this morning had a brief news release, wherein they identified they...

Thursday, September 30, 2021, 09:41:00 AM