• Revenue: $8.1 million for Q3 2024, up from $6.9 million in the prior year.

• Gross Margin: 44% for Q3 2024, compared to 35% in the prior year.

• Operating Expenses: $3.4 million for Q3 2024, slightly up from $3.3 million in the prior year.

• EBITDA: $0.3 million for Q3 2024, compared to a loss of $0.7 million in the prior year.

• Net Earnings: $26,000 for Q3 2024, compared to a net loss of $729,000 in the prior year.

• Net Cash Balance: $2.2 million as of June 30, 2024, down from $3 million at the beginning of the fiscal year.

• Working Capital: $11.3 million as of June 30, 2024, up from $10.4 million in the prior year.

• Immediate Cash Availability: $4.8 million as of June 30, 2024.

• Warning! GuruFocus has detected 6 Warning Signs with BLMWF.

Release Date: August 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• BluMetric Environmental Inc (BLMWF) reported a 17% increase in revenue for the third quarter compared to the same period last year.

• The company achieved a gross margin of 44% for the quarter, up from 35% in the prior year, attributed to lower subcontractor usage and increased billing rates.

• BluMetric Environmental Inc (BLMWF) maintained a positive net income and EBITDA, showcasing financial stability despite ongoing investments in cleantech expansion.

• The company secured a significant contract with Rheinmetall, valued at approximately $12 million, with production expected to commence in 2025.

• BluMetric Environmental Inc (BLMWF) is well-financed with a strong working capital position of $11.3 million, allowing for continued investment in growth and potential acquisitions.

Negative Points

• The transition to a cleantech-focused company involves longer sales and delivery cycles, which could impact short-term financial performance.

• Higher costs and overheads are being incurred due to investments in expanding manufacturing capabilities and hiring key personnel.

• The company's net cash balance decreased from $3 million at the beginning of the fiscal year to $2.2 million as of June 30, 2024.

• Operating expenses increased marginally to $3.4 million, primarily due to investments in business development activities.

• The company faces risks and uncertainties related to geopolitical tensions and the need to deliver products on time and within budget.

Q & A Highlights

Q: Regarding the Rheinmetall contract, when do you expect production to begin, and what is the total contract value? A: (Scott Macfabe, CEO) We are in the final stages of testing the prototype, and once approved, production will start. We expect to begin production early in the next fiscal year, with most of it completed by the end of the first or early second quarter. The total contract value is just under $12 million, with $11 million remaining after the prototype investment.