Greenlane Renewables Announces First Quarter 2022 Financial Results – QNT Press Release


~Company reports its second highest quarterly revenue, Q1 growth of 33% over Q1 2021~

VANCOUVERBC , May 12, 2022 /CNW/ – Greenlane Renewables Inc. (“Greenlane” or the “Company“) (TSX:GRN) (FSE: 52G) (OTC:GRNWF) today announced financial results for the first quarter ended March 31, 2022. For further information on these results please see the Company’s Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis filed on SEDAR at www.sedar.com. All amounts are in Canadian dollars unless otherwise stated and in accordance with IFRS.

First Quarter Highlights Include:

  • Revenue of $16.3 milliona 33% increase over the $12.2 million reported in the first quarter of 2021.
  • Gross profit of $3.6 milliongross margin (gross profit excluding amortization) of $4.0 million (25% of revenue).
  • Net loss of $2.2 million.
  • Adjusted EBITDA of $0.03 million1.
  • Sales order backlog2 of $35.7 million as at March 31, 2022.
  • Sales pipeline3 valued at over $900 million as at March 31, 2022.
  • Cash and cash equivalents of $23.1 million and no debt, other than payables and bonding resulting from normal course operations, as at March 31, 2022.
  • Acquired 100% of the outstanding shares of Airdep Srl (“Airdep”), a provider of biogas desulfurization and air deodorization products based in Vicenza, Italy.

Subsequent events:

  • On April 28, 2022the Company announced the signing of an $11.4 million (US$8.9 million) contract with a single customer for the supply of its PSA biogas upgrading systems for new food waste-to-RNG projects across three US states. Order fulfillment commenced immediately and is expected to conclude within 9 to 18 months.

“Despite challenging macro market conditions including the conflict in Eastern Europesupply chain disruptions and inflationary pressures, we continue to see strong demand for RNG generally and for our products specifically,” said Brad DouvillePresident and CEO of Greenlane. “We have been reminded that energy security is paramount and an issue that must be and can be solved at the same time as the climate crisis. RNG has an important role to play in both. Our first quarter of 2022 was marked by another strong set of results with revenue generated during the period the second highest in Company history and our sixth consecutive quarter of positive Adjusted EBITDA. To match the rapid growth of the RNG industry and of Greenlane, we continue to build the Company and strengthen the team by reinvesting prudently in the business to maintain product and market leadership.”

Greenlane continually updates its pipeline of active system sales opportunities, which at March 31, 2022 was over $900 millionrepresenting a net increase of $50 million in new opportunities since year-end 2021, and a 26% increase year over year versus $715 million at the end of Q1 2021. The sales pipeline represents visibility to a significant number of opportunities that funnel down through our sales process, and those opportunities that successfully convert into contract wins move into our sales order backlog2. The Company’s sales order backlog of $35.7 million as at March 31, 2022 is a snapshot in time which varies from quarter end to quarter end. The sales order backlog increases by the value of new system sales contracts and is drawn down over time as projects progress towards completion with amounts recognized in revenue.

The Market Outlook

According to research firm BloombergNEF, demand for renewable natural gas that can be produced from waste and other renewable sources could jump 45-fold over the next two decades as gas utilities seek to reduce their carbon emissions in the US Highlighting the importance of RNG as a key tool for gas utilities to decarbonize, BNEF projects that RNG consumption could reach as high as 3.15 trillion cubic feet by 2040 (or roughly 12% of current natural gas demand), versus 70 billion cubic feet in 2021.

In North AmericaRNG project and facility growth also look compelling as the RNG Coalition is projecting a doubling of RNG projects in the next 18 to 24 months, as close to 250 projects are under construction and/or have achieved development benchmarks. The trade organization also highlights the enormous demand potential for RNG in hard-to-decarbonize applications, such as heating demand for buildings, sustainable commercial transportation fuel, and maritime shipping applications. Another encouraging industry announcement was made recently by Waste Management, the largest landfill operator in North Americawhich will see the company invest US$825 million to expand its RNG footprint through 2025, increasing forecasted RNG production by 600%.

In the difficult to decarbonize transportation sector, we continue to see strong penetration of RNG as a heavy duty transport fuel. The latest data from NGV America and the RNG Coalition revealed that 64 percent of all on-road fuel used in natural gas vehicles in 2021 was RNG, equating to 13 percent growth over 2020 volumes and an impressive 234 percent increase since 2017.

In response to the Russian…

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