The Company reported 2013 gross profit of $2 million, or 14.4% of revenue, which compares to gross profit of $1.1 million, or 11.7% of revenue in 2012. Management expects Scotia’s gross margin to improve as its volume builds towards full capacity.
For the full year ended December 31, 2013, Viridis reported a comprehensive loss of $3.3 million. This compares to a comprehensive loss of $9.5 million in 2012, which included $5.8 million write downs of impairment of intangible assets and non-refundable deposit. The Company reported a loss from operations of $2.7 million in 2013 compared to a loss from operations of $2.9 million in the prior year.
Full year 2013 operating expenses increased to $4.7 million from $4 million in 2012; however, as a percent of revenue, these costs were down significantly, decreasing from 41.9% in 2012 to 33.7% in 2013. The year-over-year increases in operating expenses were primarily attributed to the costs of resuming production and full staffing of Scotia’s operations.
During the 4Q 2013, Viridis generated revenue of $6.1 million, an increase of 147% compared to $2.5 million in the 4Q 2012 and a 100% improvement over the 3Q 2013. The Company expects revenue growth to continue as Scotia moves closer to production capacity.
Viridis reported a comprehensive loss of $1.3 million for the 4Q 2013, compared to a comprehensive loss of $6.7 million for the same period in 2012, which included an impairment of intangible assets of $5.5 million and a write down of nonrefundable deposit of $250,000. This also compares to a comprehensive loss of $712,000 for 3Q 2013.
Robert Aaron, Viridis newly appointed chairman said: “According to industry sources, the annual, global demand for wood pellets is expected to more than double over the next 7 years to $9 billion due to a combination of increased use, regulatory mandates and economics. With current demand exceeding current supply, we have made a number of important strategic moves over the past three years to position ourselves to become an important source of renewable energy.
“Logistically, we have located our manufacturing on both North American coasts, providing us with solid, stable supply of fiber feedstock and optimum port access to ship into the rapidly growing international markets. We have diversified our business model to not only supply the high-end, residential heat market with a premium white pellet, but also to supply the industrial market, both on a global scale.
“Our Scotia Atlantic acquisition will triple our annual in-house production over the next year. We also now have the ability to further supplement our production with cooperative transactions through Viridis Merchants. We have brought together a management team with a long industry track record, supported by a seasoned board of directors, who have identified opportunities to increase Viridis’ current supply of wood pellets from an aggregated 220,000 tons to over 1 million tons by the end of 2015.”
Viridis Energy Inc. is a publicly traded, "Cleantech" alternative energy company specializing in the agricultural and wood waste biomass.
