Xebec Adsorption Sees Revenues Fall To $26.7 Million In Third Quarter
Xebec Adsorption (TSX: XBC) was yet another name to have reported financial results in the third quarter over the course of the last twenty four hours. The firm this morning published the results, indicating it recorded revenues of $26.7 million for the quarter ended September 30, along with a net loss.
Revenues declined on a sequential basis from $32.7 million in the second quarter to $26.7 million in the third quarter, however they were an improvement from the $18.4 million recorded in the year-ago period. Gross margins however improved on a quarter over quarter basis, climbing from $5.0 million in Q2 to $10.1 million in Q3.
Despite the improving gross margins, the company still posted an operating loss of $7.6 million following expenses of $17.6 million. The largest expense was selling and administrative expenses at $10.8 million, followed by other losses of $6.3 million.
Following additional financing expenses that netted out to $1.3 million, the company overall posted a net loss of $9.2 million for the three month period. Adjusted EBITDA meanwhile was recorded as $0.3 million.
In terms of guidance, management increased revenue guidance from a range of $110.0 million to $130.0 million to that of $120 million to $130.0 million. This however seems rather pointless, given that management also changed adjusted EBITDA margin guidance from a range of -3.0% to -4.0% to a range of -3.0% to -5.0%. The firm also indicated it is “preparing for potential transportation challenges which may result in delayed revenues in future quarters.”
Xebec Adsorption last traded at $3.39 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. 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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