Post by
BCdude on Jun 04, 2021 1:41am
Thoughts about Q1 numbers
For those not paying attention the numbers in Q1 may seem like a step back, but there are a few factors at play that make me unconcerned.
"Certain technical services projects that were expected to be advanced in Q1 2021 were postponed to later in the year or to early 2022. The delays and interruptions are mainly pandemic related, ranging from disruptions in supply chains to travel restrictions to business decision deferrals."
So, it sounds like the major disruption was covid-related, and this is not lost revenue but rather deferred to later in the year.
Also: "Looking into 2022 and beyond, as new water treatment plants currently under construction are brought online over the next 12 months and begin to drive growth in recurring revenues from their operations, we anticipate general quarter-toquarter fluctuations in financial performance to begin to ease and to decrease the trends of weaker first quarters."
Good to see year-round production at these new projects, which should help to stabilize revenue from quarter to quarter.
There'a also the point made by others about future business prospects flying under the radar. There's a table of advancing projects on Page 7 of the MDA which is worth your time to read. They discuss no fewer than 13 projects they are currently consulting on -- three of which we know will lead to recurring revenue by 2022. The other ten may or may not turn into this type of long-term relationhsip, but I understand from past discussions that management often finds new clients by starting to work on a consulting basis.
Kudos to management for slowly and steadily building this story.