Greenlane Renewables Inc T.GRN

Q2 2021 quick analysis: Grade: B+

[DOCInvestor]

Tl/dr: I wanted EPS profit not just a tick of EBITDA, but I'll take it. With 11 million warrants gone and cycled through the system in the last 6 weeks, there is no way we don't hit $2.00/share by Q3.

Record revenue 12.6 million. Grade? A-.  It is good that they maintained another quarter of revenue at or above what they did in Q1. This was critical. 12.2 Q1 and 12.6 Q2 shows consistency.

Gross profit 2.9 million. Grade? C+. They pulled the same gross profit last quarter on 400k less revenue. Profit is important here.  Margins have not improved.

Warrants? 11 million gone (Duh, they were 26 cents.) A+. Those were ugly. 

Cash 36.5 million. Grade? B. Sometimes I just want to know how much cash a company has compared to the last quarter. Less than a million difference. Good.

EBITDA 120k. Grade? B. Hey, it's not a loss. It's a 230k improvement on essentially triple/quadruple revenue (depending on from your starting point). That's good. Not great. Good.

Sales backlog 41 million Sales pipeline 800 million. Grade? B+. I don't care about the sales pipeline. I care about the backlog, ESPECIALLY after a quarter of record realized revenue. This appears to be very sustainable, and their pipeline suggests that they are confident that their backlog and revenue will slowly uptick for the remainder of the year.

[ronster65]

Great analysis! Thanks. Thumbs up.

[SNgu8000]

I gave you THUMP UP Doc.

[tonyxdsun]

Sales contracts signed 16 million for Q2 VS 3.6 for Q1

[Motownwing]

Thanks for the analysis. I will add a few comments. Companies dealing with long-term contracts can have extremely lumpy results and new order bookings and corresponding backlog are the best indicators of future performance. Bookings for 2020 were 49.1 M$ with a closing backlog of 45.7 M$. Bookings to date (early August 2021) are at 38.4 M$ / trending for new order bookings of roughly 60 M$ for the

[sumpineh]

 Yes, I also appreciate your breakdown analysis. One negative that you did not mention was the foreign exchange gain of $414,000 vs.a loss of $113,000, together a total of $527.000 out of revenue of $12.6 million.That is not recurring revenue. All in all though we still have a growing business in a growing industry.I do like your $2.00 prediction which is not really very far away.

[bmbruce]

... clarification on the FX impact ... from the cc.. ...Colin Healey Hi guys. Thanks a lot for taking my questions. It looks like a solid quarter. So congrats on that. A lot of ground has been covered already. But just on the EBITDA. The Q-over-Q decline looks like it's mostly driven by FX. You had similar revenue to Q1, a little bit higher. I am just wondering if you are considering or

[sumpineh]

Thank you bmbruce for the FX clarification. I am sorry but her explanation went over my head.I realize it is just part of the accounting process but it is a figure that will move up or down every quarter and therefore will have an effect on earnings.This quarter was positive so it improved the earnings.

[DOCInvestor]

Excellent quote.  My question is who are these individuals selling into this news? I mean, I appreciated picking up a few more shares at $1.65, but I often question the investment IQ of some people. I'm always nice about it though, I try and think people need money to pay their mortgage or something, instead of the latter...that they are unsophisticated.

[SNgu8000]

DOC , It is MARKET Sir ! Some sell , some buy , some mad money and some lost the shirt . It's scary and fun 

[GoldenArm]

We have to wait till all the suckers are out of the stock.

[Zoolou1]

Go look at Level II and you'll easily see how many people are lining up to sell this stock.

[GoldenArm]

I've watched Bids and Asks get manipulated and watched all of them change instantly once any possibilty of up or down side trend developed. A lot of them are bogus. Read an article that brokerage are doing "Dark" trades ie. never letting your buy or sell even get to the market and filling it without reporting it.

[Treasure2020]

September is coming.....

[Zoolou1]

September is coming?? What does that mean? I could have easily predicted this by looking at my calender...

[bmbruce]

The sales order backlog at the end of Q2 was $41.9 million versus $37.7 million at the end of Q1 ... certainly an improvement and a positive.. ..The sales pipeline of $800. million at the end of Q2 versus $715 million at the end of Q1 is significant in that it reveals the overall positive growth in the sector and will certainly provide increasing opportunity for GRN...

[tonyxdsun]

Sales contracts  Q1  3.6 million Q2  16 million Q3   12.8 million so far

[tonyxdsun]