Anaergia Reports Fourth Quarter and Fiscal 2024 Financial Results

Positive Outlook Supported by 2024 Revenue Backlog & Robust Prospects for Future Sales

BURLINGTON, Ontario--(BUSINESS WIRE)--Anaergia Inc. (“Anaergia”, the “Company”, “we”, “us” or “our”) (TSX:ANRG) (OTCQX:ANRGF), a Renewable Natural Gas (“RNG”) technology company that offers integrated waste-to-value solutions to reduce greenhouse gases (“GHGs”) by cost-effectively turning organic waste into RNG, fertilizer, and water, today announced its financial results for the three-month and the twelve-month periods ended December 31, 2024. All financial results are reported in Canadian dollars unless otherwise stated.

"Since Marny invested in the Company, in July 2024, we have taken decisive steps to strengthen our financial foundation, refine our strategic direction, and rebuild investor confidence, and our latest financial results demonstrate that we are making meaningful progress," said Assaf Onn, CEO of Anaergia.

“Also, I am pleased to add that we are reintroducing disclosure of our Revenue Backlog*. Using a conservative definition, we have capital sales backlog of $90 million, plus operation and maintenance service backlog of $13.3 million, for a combined total backlog of $103.1 million as at year-end 2024. With the momentum of our recently announced project wins that are not yet disclosed in our backlog, and a strong funnel of potential future sales, we are confident in our strategic growth plan,” Mr. Onn added.

Fourth Quarter 2024 Financial Results

Financial highlights:

• Revenue for the fourth quarter of $34.1 million increased 1.9%, or $0.6 million, compared to Q4 2023 (Q4 2023: $33.4 million). For the year ended December 31, 2024, revenue of $111.6 million decreased 24.2% or $35.6 million, compared to Fiscal 2023 (Fiscal 2023: $147.2 million). The decrease was driven mainly due to Italian and North American Capital Sales projects being completed, some projects facing customer delays, and an interim delay in new capital sale project signing.

• Gross profit of $9.0 million for the fourth quarter of 2024 increased 157.8%, or $5.5 million, compared to results for the quarter in the prior year (Q4 2023: $3.5 million). For Fiscal 2024, gross profit of $25.6 million increased 29.9%, or $ 5.9 million, compared to Fiscal 2023 (Fiscal 2023: $19.7 million). The increase was mainly driven by management’s ability to capture higher margin Capital Sales and Operation and Maintenance (“O&M”) contracts as part of our capital light strategy, the continued progression and ramp of our margins on build-own-operate (“BOO”) projects, as well as close monitoring of costs through the project construction phase.

• Net loss for the fourth quarter of 2024 was $15.4 million, a 54.7% improvement or $18.6 million compared to Q4 2024 (Q4 2023 $34.1 million). For the year ending December 31, 2024, the Net Loss was $55.9 million, an increase of 71% or $136.9 million from Fiscal 2023 (Q4 2023: $192.8 million). The net loss significantly improved primarily due to the prior year’s loss on the disposal of Italian BOO HoldCo (“ITA”) of $54.4 million and deconsolidation of Rialto Bioenergy Facility, LLC (“RBF”) transaction of $35.7 million, both of which were partially offset by a $10.1 million gain on the sale of the Company’s equity interests in a subsidiary that owned the Envo Biogas facility in Tønder, Denmark. These three transactions in 2023 were nonrecurring in nature.

• Adjusted EBITDA¹ Loss of $6.3 million for the fourth quarter of 2024 improved 18.2%, or $1.4 million, compared to Q4 2023 (Q4 2023: Adjusted EBITDA Loss of $7.7 million). For Fiscal 2024, Adjusted EBITDA Loss of $26.9 million improved 23.0%, or $8.0 million, compared to Fiscal 2023 (Fiscal 2023: Adjusted EBITDA Loss of $34.9 million). The improvement in adjusted EBITDA year over year was driven by higher gross margins and a reduction in selling, general and administrative expenses.

Three months ended:	31-Dec-24	31-Dec-23	% Change
(In thousands of Canadian dollars)
Revenue	34,057	33,408	1.9
Gross profit	9,007	3,494	157.8
Gross profit %	26.4%	10.5%	15.9	percentage points
Loss from operations	(7,234)	(35,931)	79.9
Net loss	(15,416)	(34,058)	54.7
Adjusted EBITDA^1	(6,311)	(7,713)	18.2

Twelve months ended:	31-Dec-24	31-Dec-23	% Change
(In thousands of Canadian dollars)
Revenue	111,646	147,225	(24.2)
Gross profit	25,633	19,729	29.9
Gross profit %	23.0%	13.4%	9.6	percentage points
Loss from operations	(40,036)	(85,802)	53.3
Net loss	(55,864)	(192,791)	71.0
Adjusted EBITDA^1	(26,892)	(34,914)	23.0

Statement of Financial Position:	31-Dec-24	31-Dec-23
(In thousands of Canadian dollars)
Total Assets	233,327	278,667
Total Liabilities	180,122	205,077
Equity	53,205	73,590

For a more detailed discussion of Anaergia’s results for the three-month and twelve-month periods ended December 31, 2024, please see the Company’s financial statements and management’s discussion & analysis, which are available at https://www.anaergia.com/investor-relations and on the Company’s SEDAR+ page at www.sedarplus.ca.

Non-International Financial Reporting Standards (“IFRS”) Measures

This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures, including “Adjusted EBITDA”, “EBITDA” and “Revenue Backlog” to provide investors with supplemental measures. Management also uses non-IFRS measures internally in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our future debt service, capital expenditure and working capital requirements. Management believes these non-IFRS measures are important supplemental measures of operating performance because they eliminate items that have less bearing on operating performance and highlight trends in the core business that may not otherwise be apparent when relying solely on IFRS measures. Management believes such measures are useful as they allow for assessment of our operating performance and financial condition on a basis that is more consistent and comparable between reporting periods. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.

Definitions of non-IFRS measures used in this press release are provided below. A reconciliation of the non-IFRS measures used in this press release to the most comparable IFRS measure can be found below under “Reconciliation of Non-IFRS Measures”.

“Adjusted EBITDA” is defined as EBITDA adjusted for our normalized proportionate interest in our BOO assets, one-time or non-recurring items, stock-based compensation expense, asset impairment charges and write downs, losses related to equity-accounted investees, significant one-time provisions, foreign exchange gains or losses, restructuring and severance costs, Enterprise Resource Planning (“ERP”) customization and configuration costs, litigation and other claims settlements, gains and losses resulting from changes in certain balance sheet valuations (such as derivatives and warrants) and acquisition costs.

“EBITDA” is defined as earnings before interest expenses, taxes and depreciation and amortization. The most comparable IFRS measure for EBITDA is net income (loss).

“Revenue Backlog” is defined as the balance of unrecognized, undiscounted, consolidated revenues from signed contracts in our capital sales and O&M/services segments. For our Capital Sales contracts, we have modeled only projects that have been contracted. For our O&M/Services segment, while most of our in-hand contracts are 5-15 years in tenure, we have conservatively modeled for only 3 years of contracted revenue.

See “Reconciliation of Non-IFRS Measures” below for a reconciliation of the foregoing non-IFRS measures to their most directly comparable measures calculated in accordance with IFRS.

Conference Call and Webcast Details

A conference call to review the Company’s financial results will take place at 9:00a.m. (ET) on Tuesday April 1, 2025. It will be hosted by management of Anaergia. An accompanying slide presentation will be posted to the Investor Relations section of the Company’s website shortly before the call.

To participate in the call, please sign up using the following pre-registration link to receive details on how to access the conference call:

• Conference Call Pre-registration: https://www.netroadshow.com/events/login?show=b200f3bc&confId=79326Avoid
  You will receive your access details via email.
• To listen to the webcast live: https://events.q4inc.com/attendee/915845392

The webcast will be archived and available in the Investor Relations section of our website following the call.

About Anaergia

Anaergia is a pioneering technology company in the RNG sector, with over 250 patents dedicated to converting organic waste into sustainable solutions such as RNG, fertilizer, and water. We are committed to addressing a significant source of GHG through cost-effective processes. Our proprietary technologies, combined with our engineering expertise and vast experience in facility design, construction, and operation, position Anaergia as a leader in the RNG industry. With a proven track record of delivering hundreds of innovative projects over the past decade, we are well-equipped to tackle today’s critical resource recovery challenges through diverse project delivery methods. As one of the few companies worldwide offering an integrated portfolio of end-to-end solutions, we effectively combine solid waste processing, wastewater treatment, organics recovery, high-efficiency anaerobic digestion, and biomethane production. Additionally, we operate RNG facilities owned by both third parties and Anaergia. This comprehensive approach not only reduces environmental impact but also significantly lowers costs associated with waste and wastewater treatment while mitigating GHG emissions.

For further information please see: www.anaergia.com

Forward-Looking Statements

This press release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may relate to future plans, expectations and intentions, results, levels of activity, performance, goals or achievements, other future events or developments and may include, without limitation, information regarding our financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, plans and objectives. Particularly, information regarding our future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “may”, “will”, “would”, “should”, “could”, “expects”, “plans”, “intends”, “estimate”, “believes”, “likely”, “potential”, “continue”, or “future” or the negative or other variations of these words or other comparable words or phrases. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Forward-looking statements in this press release include, among other things, statements relating to financial condition and results of operations; Company’s strategic growth plan; and statements regarding the Company’s Revenue Backlog and potential future sales.

Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that we considered appropriate and reasonable as of the date such statements were made. It is also subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risk factors described in the Company’s annual information form and management’s discussion and analysis for the year ended December 31, 2024. Certain assumptions in respect of our ability to execute on our expansion plans; our ability to obtain or maintain existing financing on acceptable terms; and our ability of realizing the anticipated benefits of such are material factors underlying forward looking information and management’s expectations.

The purpose of the forward-looking statements in this press release is to provide the reader with a description of management’s current expectations regarding the Company’s financial performance and may not be appropriate for other purposes. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only to opinions, estimates and assumptions as of the date made. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release, and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Reconciliation of Non-IFRS Measures
Three months ended:	31-Dec-24	31-Dec-23
(In thousands of Canadian dollars)
Net loss	(15,416)	(34,058)
Finance cost	1,969	826
Depreciation and amortization	1,616	1,287
Income tax (benefit) expense	6,923	(2,126)
EBITDA	(4,908)	(34,071)
RBF non-controlling interest	-	-
Share-based compensation expense	(1,634)	595
Loss on RBF embedded derivative	-	-
Loss on disposal of ITA	-	-
Fibracast Ltd. impairment	-	1,503
Asset impairment loss	352	26,336
Losses related to equity-accounted investees	-	765
Loss on control of RBF	-	(4,056)
Expected credit loss on loans receivable from related parties	-	-
Provision for customer claim	-	-
Other (gains) losses	726	1,066
ERP customization and configuration costs	-	-
RIBF income tax transaction costs	-	-
Severance costs	589	-
Foreign exchange (gain) loss	(1,436)	149
Adjusted EBITDA	(6,311)	(7,713)
		-

Twelve months ended:	31-Dec-24	31-Dec-23
(In thousands of Canadian dollars)
Net income (loss)	(55,864)	(192,791)
Finance income (cost)	5,493	3,333
Depreciation and amortization	5,650	6,069
Income tax (benefit) expense	6,465	(8,606)
EBITDA	(38,256)	(191,995)
RBF non-controlling interest	-	1,544
Share-based compensation expense	2,174	1,941
Loss on RBF embedded derivative	-	7,953
Loss on disposal of ITA	-	(665)
Fibracast impairment	6,244	8,151
Asset impairment loss	1,939	29,727
Losses related to equity-accounted investees	1,062	6,726
Loss on control of RBF	-	35,663
Expected credit loss on loans receivable from related parties	-	60,236
Provision for customer claim	-	1,002
Other (gains) losses	(1,388)	4,586
ERP customization and configuration costs	-	542
RIBF income tax transaction costs	2,416	-
Severance costs	965	-
Foreign exchange (gain) loss	(2,048)	(325)
Adjusted EBITDA	(26,892)	(34,914)

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* As defined under “Non-International Financial Reporting Standards (“IFRS”) Measures”. ^1 “Adjusted EBITDA” is a non-IFRS measure.