Nov 21, 2012. /Lesprom Network/. Viridis Energy Inc. reported financial results for its 3Q that ended September 30, 2012. Viridis generated revenue for the 3Q 2012 of $2.2 million compared to $2.4 million in the previous quarter and $3.3 million during the same quarter of 2011, as the company said in a press release received by Lesprom Network. The year-to-year comparison was impacted by the change in sales terms as it related to freight in which the cost of freight, usually borne by the Company and recovered in the sales price, was paid directly by the customer, distorting the year-to-year sales comparison. For the nine month period ended September 30, 2012, revenues were $7.1 million compared to $8.9 million for the same period in 2011. As a percentage of revenue, freight represented 40% in 2012 compared to 65% in 2011. The Company reported a gross profit of approximately $367,000 for the 3Q 2012 compared to a negative gross profit for the same period in 2011 and gross profit of $186,000 in 2Q this year. The Company generated gross margin of 17% in the 3Q 2012, which is a significant increase over last quarter’s gross margin of 7.7%. In 2012, the gross margin has increased sequentially each quarter and this trend is likely to continue into the 4Q, as revenue mix shifts towards the higher margin residential market during the home heating season. Operating expenses for the three month period ended September 30, 2012 were approximately $849,000, which includes $189,000 of general and administrative (“G&A”) costs attributed to the Scotia Atlantic Biomass Company Limited (“Scotia”) acquired by Viridis during the 1Q 2012. Excluding G&A costs associated with the acquired Scotia facility, operating costs decreased approximately 45% or $660,000 from the prior year’s third quarter as a result of intensive cost management and a focus on operational efficiencies. The Company reported a comprehensive loss of approximately $598,000 or $0.01 per basic share for the 3Q 2012, compared to a loss of $1.4 million or $0.04 per basic share during the same period in 2011 and a loss of $972,000 or $0.02 per share in 2Q 2012. The decreased loss during the 3Q reflects lower G&A, lower financing costs and improved margins. It is important to note that while the Company has been carrying the costs associated with the Scotia facility, the plant is not expected to generate revenue until 2Q 2013. “We continue to improve the financial health of our Company as we position it for growth in 2013. Excluding the incremental costs associated with readying the Scotia plant for production, our efficiency efforts have resulted in a reduction in costs of approximately $1.5 million or 36% from the prior year nine month period. In fact, our current operations excluding Scotia reflect a 3Q 2012 EBITDA of approximately $140,000 short of breakeven,” said Christopher Robertson, CEO and director of Viridis Energy. Christopher Robertson added, “We plan to have our Scotia Atlantic Biomass pellet plant in full operation to address the increased demand for wood pellets when the RO plan takes effect in early 2013. The revenue contribution generated from our Scotia plant, coupled with improved results from our existing plant, is expected to position Viridis Energy for profitability in 2013. Our efforts in fine tuning our operations, diversifying into the commercial market, securing raw material sources, and expanding our production capacity have enabled Viridis to establish itself as a leading source of wood pellets, worldwide. We have confidence the fruits of our efforts will materialize in the upcoming year.” Viridis Energy Inc. is a publicly traded, "Cleantech" alternative energy company specializing in the agricultural and wood waste biomass.