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  • Vertex Resource Group (VTX) reported its financial and operational results for the third quarter ending September 30th, 2022
  • The company stated that Q3 continued momentum built in the previous two quarters and achieved the highest quarterly revenue and adjusted EBITDA in its history at $59.1 million and $10.4 million, respectively
  • The company’s outlook for Q4 2022 and into next year is that North American economies will continue to benefit from favourable commodity prices in energy, utilities, agriculture, and forestry
  • CEO Terry Stephenson sat down with Daniella Atkinson to discuss the results
  • Vertex Resource Group Ltd. (VTX) opened trading at C$0.355

Vertex Resource Group (VTX) reported its financial and operational results for the third quarter ending September 30th, 2022.

CEO Terry Stephenson sat down with Daniella Atkinson to discuss the results.

The company stated that Q3 continued momentum built in the previous two quarters and achieved the highest quarterly revenue and adjusted EBITDA in its history at $59.1 million and $10.4 million, respectively.

Highlights:








Three Months ended

Nine Months ended


September 30,

September 30,

(in thousands of Canadian Dollars)

2022

2021

per cent
change

2022

2021

per cent
change

Revenue

59,139

42,284

40 per cent

1,58,537

1,13,362

40 per cent

Gross profit

15,934

12,082

32 per cent

39,614

31,319

26 per cent

Adjusted EBITDA

10,412

7,633

36 per cent

24,629

19,827

24 per cent

Free cash flow

8,885

7,094

25 per cent

21,555

17,577

23 per cent

Adjusted EBITDA per share, basic and
diluted

0.09

0.08

13 per cent

0.24

0.22

9 per cent

Net income was $2.5 million for the quarter compared to $0.6 million in Q3 2021.

Adjusted working capital increased by $13.7 million to support the operating needs of an excellent quarter.

The company received an advance on its syndicated term loan of $10 million. It used $1.2 million to fund the cash component of the purchase consideration and $5.8 million to settle Young EnergyServe Inc.’s acquisition liabilities.

Free cash flow amounted to $8.9 million compared to $7.1 million in Q3 2021 for the three months ended September 30, 2022. For the nine months ended September 30, 2022, free cash flow amounted to $21.6 million compared to $17.6 million in Q3 2021.

Revenue increased to $158.5 million from $113.3 million for the same period in 2021, the highest in any previous nine-month period.

The company logged record adjusted EBITDA of $24.6 million for the nine months of 2022 compared to $19.8 million in 2021, where adjusted EBITDA included wage subsidies of $3.0 million.

Net income for the nine months ended September 30, 2022, was $3.7 million compared to $0.3 million in the comparative period.

The company’s outlook for Q4 2022 and into next year is that North American economies will continue to benefit from favourable commodity prices in energy, utilities, agriculture, and forestry. In addition, Vertex has major capital projects from multiple midstream, utilities/telecommunications, municipal infrastructure, and energy transition projects in 2022 and 2023.

While pursuing growth opportunities, the company is continuing to maintain its focus on cost containment, operating efficiencies, geographic diversification, and sector diversification.

Vertex Resource Group Ltd is a provider of environmental services and solutions, offering a unique combination of consulting, field services and modern equipment. From initial site selection, consultation, and regulatory approval, through construction, operation, and maintenance, to conclusion and environmental cleanup, Vertex provides a wide array of services to customers operating in the energy, mining, utilities, private development, public infrastructure, construction, telecommunications, forestry, agriculture, and government sectors.

Vertex principally operates in Canada with select locations in the United States.

Vertex Resource Group Ltd. (VTX) opened trading at C$0.355 per share.


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