Pinnacle Renewable Energy's revenue for 4Q 2019 totaled $91.5 million, a decrease of 11.8% compared to $103.7 million for 4Q 2018. Adjusted gross margin was $16.4 million, or 17.9% of revenue in 4Q 2019, compared to $16.7 million, or 16.1% of revenue in 4Q 2018.
The company reported a net loss of $3.2 million in 4Q 2019, compared to a net profit $7.4 million in 4Q 2018. The change in net profit reflects higher selling, general and administrative ("SG&A") expenses and amortization costs reflecting the company's new production facilities, as well as increased finance costs, partially offset by reduced production costs.
Adjusted EBITDA totaled $11.3 million in 4Q 2019, compared to $13.8 million in 4Q 2018.
Revenue for fiscal 2019 totaled $377.8 million, an increase of 8.7% compared to $347.4 million for fiscal 2018. The increase was primarily attributable to higher sales volumes mostly due to a full year of revenue contribution from the production and sale of pellets from the Smithers and Aliceville facilities, each of which contributed no production volume in 1Q – 3Q 2018, offset by lower production volumes at its B.C. facilities due to sawmill curtailments and reductions in sawmill residual deliveries.
Adjusted gross margin was $65 million, or 17.2% of revenue in fiscal 2019, compared to $67.6 million, or 19.5% of revenue in fiscal 2018.
The company reported a net loss of $9.9 million in fiscal 2019, compared to a net profit of $2.7 million in fiscal 2018. The change in net profit reflects higher distribution costs, higher amortization costs reflecting the company's new production facilities, and higher production costs due to higher fibre costs, cash conversion costs and costs incurred for third party wood pellet purchases, partially offset by reduced selling, general and administrative ("SG&A") expenses.
Adjusted EBITDA totaled $47.2 million in fiscal 2019, compared to $55.1 million in fiscal 2018.
Pinnacle Renewable Energy is a growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets.
