FormerXBC Inc XEBEQ

Keep your chin up

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There are better days ahead.
Things to look forward to

Remember these items from the Q3 release?

• Revenues of $26.7 million for the three-month period ended September 30, 2021, compared to $18.4 million for the same period the prior year.
• Gross margin of $10.1 million (38%) for the three-month period ended September 30, 2021, compared to $4.4 million (24%) for the same period the prior year.
• the company has felt the impact of supply chain disruptions and continues to manage its risk which includes higher than normal inventory purchases and dual sourcing. 
• Xebec continues to execute on its long-term production-type RNG projects with the last handful of projects in final stages of execution and commissioning. The tapering down of impact from these legacy contracts as a result of less contribution to total revenues, was seen this quarter through a stronger gross margin
• Revenues on the recent 18-unit Biostream order have not yet been recognized as they will now be recognized on delivery, instead of on a percentage of completion basis.
• the expansion is further supported by the success and positive feedback received from customers for the first generation Biostream, which now has several units producing RNG at U.S. dairy farms and is performing at or above expectations.
• In addition, the increasing demand for distributed hydrogen production in the U.S. has resulted in Xebec starting the process of establishing local manufacturing through UECompression. The company is seeing an increasing number of quotes to convert renewable natural gas to green hydrogen, for which it possesses world leading technology for.
• Inmatec continues to see record production levels primarily due to the heightened demand caused by the COVID-19 pandemic for sustainably and reliably sourced medical-grade oxygen. To address this demand, last quarter a lease was signed to double the production floor space of the manufacturing facility in Herrsching, Germany and this expansion is well under way.
• While the service centers felt the impact of supply chain disruptions, bookings overall were strong for the quarter and several divisions are now seeing meaningful contributions from cleantech equipment.
• Xebec is addressing the renewable gas infrastructure opportunity through GNR Quebec Capital L.P. (“GNRQC”), a fund created in partnership with The Fonds de solidarit FTQ (“Fonds”), the largest capital development fund in Qubec. Xebec is an equal equity investor alongside the Fonds and will participate in the sale of renewable natural gas equipment alongside long-term parts & service agreements for the equipment.
   
  The fund has evaluated 28 projects to date and is actively involved with 18 of both greenfield and brownfield varieties in agriculture, municipal, landfill, mixed use, and industrial waste applications. The fund has now successfully executed several letters of intent (LOI) for projects in Qubec.