Calgary, Alberta--(Newsfile Corp. - April 10, 2025) - Cleantek Industries Inc. (TSXV: CTEK) ("Cleantek" or the "Company") an innovative provider of patented clean technology solutions that reduce both cost and carbon intensity in the wastewater management and industrial lighting sectors, is pleased to announce its financial and operational results for the fourth quarter of 2024.
Cleantek's President and Chief Executive Officer, Riley Taggart, commented, "We are very pleased with Cleantek's final 2024 results. Despite headwinds in the second and third quarters, the Company ended the year in a strong financial and operational position. This was a year of transformation year for Cleantek, with several key personnel changes, including my own appointment and the addition of several experienced sales team members in both Canada and the US.
As a team, we have realigned our strategy to meet with market demands. We have invested in key areas of growth, enhanced our product offerings, and adopted a more disciplined operating model. The company continues to focus on maintaining its internal efficiencies and is committed to disciplined capital allocation.
Despite global market uncertainty, we are excited to build on our momentum into 2025 and believe that it will be a year of continued profitability."
Highlights for the Fourth Quarter 2024 (All amounts are in thousands of Canadian dollars unless otherwise indicated)
Cleantek generated revenue of $2,927 for Q4 2024, a decrease of $260 or 8%, from Q4 2023. The decreased revenue in 2024 is primarily due to lower activity levels and resulting lower utilization of the fleet;
Cleantek's gross profit was $1,835 or 63% of revenue for Q4 2024 compared with gross profit of $1,716 and 54% of revenue for Q4 2023 due to decreased salaries and wages and transportation and mobilization costs;
Cleantek's net income of $1,466 for Q4 2024 was $3,028 higher than the net loss of $(1,562) for Q4 2023; and,
Cleantek's Adjusted EBITDA was $1,762 for Q4 2024, an increase of $1,204 compared to $558 for Q4 2023 due primarily to the increased net income.
Expansion and Outlook
Cleantek's strategy focuses on delivering innovative and cost-effective solutions that reduce the carbon intensity as well as the capital and operating costs of industrial operations.
The Company's near-term strategy will continue to focus on:
maximizing utilization rates of its current fleet of sustainable lighting solutions and wastewater treatment assets;
expanding and growing the Company's fleet of wastewater treatment assets to satisfy increased demand in the oil and gas, midstream, mining, industrial and construction markets;
continuing to focus on expansion into international markets through the sale and rental of sustainable lighting solutions and wastewater units;
evaluating new technology partnerships in an effort to diversify product offerings and customer groups;
evaluate acquisition and merger opportunities to accelerate growth and market diversification.
The Company is uniquely positioned to capture growth opportunities in both wastewater evaporation and sustainable lighting markets. Cleantek expects increasing demand from the oil and gas, municipal grey water, and industrial wastewater sectors.
International Expansion - Expanding on the Company's success with the recent HALOTM sales, Cleantek completed a proof-of-concept trial with a larger international customer with its HALOTM line and is exploring several promising opportunities diversifying Cleantek's geographic focus and customer base. This expansion includes exploring opportunities for rental and/or product sales in both the lighting and waster water divisions.
EcoSteam - Cleantek introduced EcoSteam in 2024, a waste-gas powered solution for efficient wastewater treatment and dehydration. The first unit was completed and deployed in late 2024, and has operated at 100% utilization. Based on market demand, Cleantek will look to offer twenty-five units to the market in 2025. Operational feedback continues to be excellent with the units exceeding anticipated productivity goals.
DZeroE Iterative Development - To meet the growing demand for produced water evaporation, the "DZeroE" waste heat water evaporation technology that has been traditionally deployed in drilling rig applications is being retrofitted for use in production facilities. This strategic low cost initiatie is expected to enhance equipment utilization while reducing seasonal dependency. The DZeroE has also garnered interest in international markets and will be a primary focus for the company in late 2024 and into 2025.
SecureTek - Cleantek's line of remote security services, being offered as a stand-alone system or integrated with our sustainable lighting products, continues to drive higher utilization of existing assets and create an accretive new recurring revenue stream for the Company. Utilizing our existing infrastructure, SecureTek expands our reach into construction, mining, storage, agriculture, and other commercial markets with minimal capital investment.
Operational Update
Cleantek's fourth quarter 2024 revenue was $2,927, a decrease of $260 from same period last year. Cleantek has been able to maintain stable gross margin percentages through its continued employment of lean operating measures. The efficiency centric approach has prompted the re-organization of its operations structure and promoted a flatter, more accountable organization.
Results of Operations
| (Canadian $000's, except | Three months ended December 31 | Years ended December 31 | |||||||
| per share amounts and percentages) | 2024 | 2023 | Change | 2024 | 2023 | Change | |||
| Revenue | 2,927 | 3,187 | (260) | 11,787 | 13,989 | (2,202) | |||
| Gross profit | 1,835 | 1,716 | 119 | 7,220 | 8,385 | (1,165) | |||
| Gross profit % | 63% | 54% | 9% | 61% | 60% | 1% | |||
| Net (loss) income | 1,466 | (1,562) | 3,028 | 1,263 | (1,823) | 3,086 | |||
| Net (loss) income per share - basic ($) | 0.05 | (0.06) | 0.11 | 0.04 | (0.07) | $0.11 | |||
| Net (loss) income per share - diluted ($) | 0.05 | (0.06) | 0.11 | 0.04 | (0.07) | $0.11 | |||
| EBITDA(1) | 2,298 | (372) | 2,670 | 4,564 | 2,185 | 2,379 | |||
| Adjusted EBITDA(1) | 1,762 | 558 | 1,204 | 4,201 | 4,050 | 151 | |||
| Capital expenditures | 400 | 356 | 44 | 745 | 1,117 | (372) | |||
| As at: | December 31, 2024 | December 31, 2023 | Change | ||||||
| Total assets | 13,641 | 15,263 | (1,622) | ||||||
| Working capital deficit(1) | (1,939) | (2,942) | 1,003 | ||||||
| Non-current debt(1) | 7,085 | 8,470 | 1,385 | ||||||
| Total non-current liabilities | 7,085 | 8,516 | 1,431 | ||||||
| (1) Management considers EBITDA and adjusted EBITDA key metrics in analyzing operational performance and the Company's ability to generate cashflow. EBITDA is measured as net income (loss) before interest, tax, depreciation and amortization. Adjusted EBITDA is measured as EBITDA adjusted for share-based compensation and unusual items not representative of ongoing business performance such as litigation expenses and settlements, executive severance and the impact of unrealized foreign exchange gains and losses. Working capital (or also referred to as net current assets/liabilities) for Cleantek is calculated as current assets less current liabilities per the statement of financial position. Non-current debt includes the non-current portion of long-term debt and lease liabilities per the Non-Current Liabilities on the statement of financial position. These items are not defined and have no standardized meaning under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods' results. Please see "Non-IFRS Measurements" for further discussion of these items, and where applicable, reconciliations to measures calculated in accordance with IFRS. | |||||||||
About Cleantek Industries Inc.
Cleantek is a clean energy technology company focused on ESG-accretive solutions, providing specialized and fully integrated wastewater treatment, disposal equipment, and turnkey sustainable lighting rental solutions. By leveraging patented technology and industry expertise, Cleantek delivers tailored, cost-effective solutions to a diverse client base, including blue-chip exploration and production companies across North America.
With a focus on sustainability, safety, and operational excellence, Cleantek is well-positioned to meet the rising water treatment and sustainable lighting market demand. Our proven track record and commitment to innovation drive long-term value creation in the clean technology sector.
Selected financial and operation information is outlined below and should be read in conjunction with Cleantek's audited consolidated financial statements and management's discussion and analysis ("MD&A") for the years ended December 31, 2024 and 2023, which are available on the Company's SEDAR profile at www.sedarplus.ca.
NON-IFRS MEASUREMENTS
Cleantek uses certain financial measures to quantify its results that are not prescribed by IFRS. The following terms: "EBITDA", "adjusted EBITDA", "working capital" and "non-current debt" are not recognized measures under IFRS and may not be comparable to that reported by other companies. Cleantek believes that, in addition to measures prepared in accordance with IFRS, the non-IFRS measurements provide useful information to evaluate the Company's performance and ability to generate cash, profitability and meet financial commitments.
These non-IFRS measures ae intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
EBITDA and Adjusted EBITDA
Management considers EBITDA and adjusted EBITDA key metrics in analyzing operational performance and the Company's ability to generate cash flow. EBITDA is measured as net income (loss) before interest, tax, depreciation and amortization as differences in accounting treatments may distort our core business results. Adjusted EBITDA is measured as EBITDA adjusted for certain non-cash items, including share-based compensation, impact of unrealized foreign exchange gains and losses as well as unusual items not representative of ongoing business performance such as litigation expense and settlements and executive severance.
The following table provides a reconciliation of the non-IFRS measures, EBITDA and adjusted EBITDA, to the applicable IFRS measurements for Cleantek:
| Three months ended December 31 | Years ended December 31 | |||||
| (Canadian $000's) | 2024 | 2023 | 2024 | 2023 | ||
| Net income (loss) | 1,466 | (1,562) | 1,263 | (1,823) | ||
| Tax expense | 74 | 4 | 110 | 4 | ||
| Depreciation and amortization | 566 | 582 | 2,265 | 2,233 | ||
| Finance costs | 192 | 603 | 926 | 1,771 | ||
| EBITDA | 2,298 | (372) | 4,564 | 2,185 | ||
| Share-based compensation | 34 | 37 | 106 | 479 | ||
| Litigation expense | - | 162 | - | 550 | ||
| Legal Settlements/Severance | - | 550 | 273 | 550 | ||
| Unrealized FX (gain) loss | (570) | 181 | (742) | 287 | ||
| Adjusted EBITDA | 1,762 | 558 | 4,201 | 4,050 | ||
Working capital
Working capital (or also referred to as net current assets/liabilities) for Cleantek is calculated as current assets less current liabilities per the statement of financial position. The following table provides a reconciliation of working capital, a non-IFRS measure to the applicable IFRS measurements for the Company:
| December 31 | December 31 | |
| (Canadian $000s) | 2024 | 2023 |
| Current assets | 3,228 | 3,404 |
| Current liabilities | 5,167 | 6,346 |
| Working capital deficit | (1,939) | (2,942) |
Non-current debt
Management considers non-current debt in analyzing the Company's capital structure. Cleantek's capital structure consists of working capital, non-current debt and shareholders' equity. Non-current debt measures the long-term borrowings of the Company. Non-current debt for Cleantek is calculated as the non-current portions of long-term debt and lease liabilities. The following table provides a reconciliation of non-current debt, a non-IFRS measure to the applicable IFRS measurements for the Company:
| December 31 | December 31 | |
| (Canadian $000s) | 2024 | 2023 |
| Long-term debt - non-current portion | 6,534 | 7,806 |
| Lease liabilities - non-current portion | 551 | 664 |
| Non-current debt | 7,085 | 8,470 |
For Further Information:
Riley Taggart, President & Chief Executive Officer
E-mail: rtaggart@cleantekinc.com
Tel: 403-567-8700
www.cleantekinc.com
LinkedIn
X
Forward-Looking Statements
This news release contains certain "forward looking statements" including, for example, statements relating to expected improved financial flexibility, additional growth, potential middle east expansion, expansion of Cleantek's fleet of sustainable lighting solutions and EcoSteam wastewater treatment assets, the expected deployment of Cleantek's assets, available liquidity, Cleantek's outlook for the future and near-term strategy. Such forward-looking statements involve risks and uncertainties, both known and unknown. The results or events depicted in these forward-looking statements may differ materially from actual results or events. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding and are implicit in, among other things: receipt of regulatory approvals, the state of the capital markets, the ability of the Corporation to successfully manage the risks inherent in pursuing business opportunities in the oilfield services industry and outside the North American market, and the ability of the Corporation to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop its business. Any forward-looking statement reflects information available to Cleantek as of the date of this news release and, except as may be required by applicable securities laws, Cleantek disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/248160
