On Tuesday, April 18, 2017, Canadian cleantech company, Thermal Energy International (TSX-V: TMG), announced their year-to-date financial results for the first nine months of their fiscal year. Importantly, they announced that their order backlog was up 70% from a year ago, and that their YTD revenue, gross profit, EBITDAS and net income were all up from a year ago. The company is one of the more profitable cleantech companies listed on the TSX Venture Exchange, and has proprietary energy efficiency and emission reduction products that have been proven in many industries.
With governments the world over focused on battling climate change and looking at ways to improve energy independence, the market fundamentals for a company such as Thermal Energy are incredibly strong. In fact, according to the International Energy Agency, $22 trillion is expected to be invested in energy efficiency over the next 25 years. So there is no shortage of upside here.
Also very important to point out, when Thermal Energy reported their YTD results, in their news release they mentioned that the company had "no debt and our working capital and net cash balance are up from the end of fiscal 2016," and that "we remain on the lookout for other complementary products and services that we can offer to our broad, existing client list.” Given that the company had referenced that they were looking for acquition targets previously, perhaps these latest comments are signaling that they are getting close to doing a deal. Certainly they would seem to be in a good position to do so.
With 9 month revenues ahead of this time last year, and ahead of this time in 2014 (which was one of their second highest revenue year), it will be interesting to see how much of their $8 million order backlog makes its way to the revenue ledger for the end of this fiscal year, which is the end of May. Either way, they seemed primed for something big, hopefully in the near future.
