- H2O Innovation has released the financial results for the third quarter of its 2021 fiscal year, which ended March 31, 2021
- Highlights include higher revenue generation, net earnings of $2.1 million compared to a net loss last year, higher cash flow, and significantly lower net debt
- The company is on track to achieve its three-year plan
- H2O Innovation provides water treatment solutions based on membrane filter technology for municipal, energy, and natural resources end-users
- H2O Innovation (HEO) opened trading at $2.45 per share
H2O Innovation (HEO) has released the financial results for the third quarter of its 2021 fiscal year, which ended March 31, 2021.
Frédéric Dugré, President and CEO of H2O Innovation, commented on the strong third quarter results.
“As we continue to build our platform of complementary water treatment technologies and services through acquisitions and innovations,” he said, “we multiply the synergies between these technologies and services which simultaneously fosters an exceptional business culture full of diverse talents.”
The company saw an overall increase in revenue generation in the third quarter, up 8.6 per cent compared to Q3 2020. This increase was driven largely by the strong performance of the company’s water technologies and services (WTS) business pillar.
Revenues coming from the WTS business pillar increased by $3.4 million compared to the same quarter of fiscal year 2020. The increase was primarily due to a recent wave of projects as well as the resumption of work following delays caused by the COVID-19 pandemic.
“Despite the lasting COVID-19 pandemic, our business model combined with the essential nature of the products and services offered is providing financial robustness and resiliency,” said Mr. Dugré.
Compared to a net loss of $3.1 million in 2020, the company reported net earnings of $2.1 million in Q3 2021, driven by an increase in consolidated revenues and lower impairment costs.
Cash flows from operations in the third quarter generated $10.2 million compared to $0.9 million during the same period of the previous fiscal year. The large increase in cash flows was due to the net earnings of $2.1 million, stock-based compensation costs, finance costs, and $6.5 million in favourable changes to working capital items.
The company ended the quarter with significantly less debt compared to the same time last year, ending with $3.3 million of net debt compared to $10.5 million in 2020.
“With a strong financial position showing a net debt-to-adjusted EBITDA ratio of 0.20, we have room to invest in organic growth opportunities and to realize strategic acquisitions, and therefore achieve our 3-year Plan,” concluded Mr. Dugré.
H2O Innovation provides water treatment solutions based on membrane filter technology for municipal, energy, and natural resources end-users.
H2O Innovation (HEO) opened trading at $2.45 per share.
