Kamloops, August 29, 2022 – Progressive Planet Solutions Inc. (TSXV: PLAN) (“PLAN”, “Progressive Planet” or the “Company”), a manufacturer of agricultural, household and industrial products whose pioneering technology turns post-consumer glass into high-performance cement using CO2 sequestration, is pleased to announce the financial results of its consolidated group of companies for the fiscal year ending April 30, 2022.
PLAN acquired Absorbent Products Ltd. (“APL”) on February 18, 2022. As a result, PLAN’s financial results include the revenues and expenses of APL for seventy-two days from February 18, 2022 to April 30, 2022.
Highlights include the following:
- Revenue of $3,833,146 which consisted of 72 days of revenue from APL and,
- Net loss for the year of $3,278,379
In the fourth quarter ending April 30, 2022, the PLAN Group of companies incurred certain one-time expenses associated with the acquisition of APL including the following:
- Non-recurring legal, accounting, appraisal and valuation fees;
- Non-recurring financing fees;
- A non-cash expense of $1.08 million recorded for the issuance of 8.3 million warrants (strike price of $0.36) awarded for personal guarantees on $3 million of bank debt; and,
- An increase in the costs of sales of over $300,000 due to the write up of starting inventory at APL at the date of acquisition as required by IFRS accounting standards.
In addition, APL incurred substantially higher freight costs than normal due to the rapid increase in the cost of diesel and labour shortages in the trucking industry along with the inability to pass on these higher costs to many customers until after the year end.
Significant price increases were successfully implemented to most customers after year end to address lower margins and higher freight costs. Further details on how management addressed the inflationary environment and the operations of APL are contained in the MD&A which can be found at www.sedar.com.
“Progressive Planet underwent a fundamental change in the last quarter of 2022,” stated Steve Harpur, CEO. “We purchased a business with mineral assets that we believe are underutilized and that provide core ingredients to make regenerative fertilizers and alternative cements from mineral powders produced as a by-product of APL’s business. Immediately upon taking over operations, we were faced with legacy customer relationships that were no longer profitable in the inflationary environment we inherited. Tough decisions were made in the short term to position the Company for better long-term growth (and we appreciate the support of our customers through this transition). Details of these decisions are contained in more detail in the MD&A.”
Mr. Harpur further commented, “In addition to adjusted pricing initiatives, our focus on operational efficiencies and continued capacity expansion efforts to meet increased demand should lay a strong foundation for PLAN’s future.”
Financial results for Q1 2023 (ending July 31, 2022) will be released on or before September 29, 2022 and will reflect the first full quarter of consolidated operations after the acquisition of APL.
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the matters described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release.