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.
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