- Record Production Volumes Contribute to Best Quarterly Performance
- $24 million Contributed to Growth-Related Projects
- Dividend of $0.0375 Per Share Declared
VANCOUVER, BC, Nov. 9, 2020 - Pinnacle Renewable Energy ("Pinnacle" or the "Company") (TSX: PL) today reported revenues of $131.7 million in Q3 2020, $39.1 million or 42% higher than Q3 2019 revenues of $92.6 million.
The increase in revenues in Q3 2020 versus the comparable quarter in 2019 results from higher production volumes at a number of the Company's facilities during the quarter.
The Company's Adjusted Gross Margin(1) ("AGM") increased by $13.8 million to $31.7 million in Q3 2020 compared to Q3 2019 or 24.1% of revenue in Q3 2020 (19.3% of revenue in Q3 2019). AGM was $20.0 million or 15.1% of revenue in Q2 2020 and $17.9 million or 19.3% of revenue in Q3 2019. Excluding the net insurance benefits relating to the Entwistle incident, AGM in Q3 2020 was $29.1 million or 22.1% of revenue versus $15.8 million or 17.1% of revenue in Q3 2019.
Adjusted EBITDA(1) was $10.0 million higher in Q3 2020, coming in at $26.1 million, versus $16.1 million in Q2 2020 and $13.6 million in Q3 2019, while net income was $7.7 million compared with net income of $0.02 million in Q2 2020 and a net loss of $1.5 million in Q3 2019. Excluding the net insurance benefits of the Entwistle incident, Adjusted EBITDA was $23.4 million or 17.8% of revenue compared with $11.5 million or 12.4% in Q3 2019. Excluding the net insurance benefits related to the Entwistle incident net income would have been $5.0 million in Q3 2020 compared to a net loss of $3.0 million in Q3 2019.
The positive momentum we experienced in the second quarter of 2020 ("Q2 2020") continued into Q3 2020 in spite of the many challenges associated with the on-going COVID-19 pandemic, resulting in the best quarterly performance in the Company's history. Pinnacle's strategy of investing in both new capacity and production efficiency has delivered strong gains in productivity and cost reductions while setting the stage for the Company to grow its revenue base and profitability.
Pinnacle has earned its position in the top tier of the global wood pellet industry through consistent attention to quality, reliability of supply and service to our customers. These priorities, along with the goals of delivering outstanding returns to our shareholders, safe and rewarding careers for our employees, and economic and environmental benefits for the communities in which we operate, will continue to guide our business strategy into the future. We also gain comfort knowing that our products play a role in addressing the challenges of global climate change.
Source: Pinnacle Renewable Energy