Kelso Technologies Inc. 2024-Q3 Financials Summary
VANCOUVER, British Columbia and BONHAM, Texas, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Kelso Technologies Inc. ("Kelso" or the "Company"), (TSX:KLS), reports that it has released its unaudited consolidated interim financial statements and Management Discussion and Analysis for the three months ended September 30 2024.
The unaudited consolidated interim financial statements were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). All amounts herein are expressed in United States dollars (the Company's functional currency) unless otherwise indicated.
The Company's unaudited consolidated financial statements and MD&A for the three months ended September 30, 2024 were approved by the Board of Directors on October 16, 2024.
HIGHLIGHTS:
In Q3-2024, revenue decreased by 20% to $2.52 million compared to $3.14 million in Q3-2023, resulting in a net loss of $361,800. However, this net loss represents an improvement from Q2-2024, where the net loss was $544,927, primarily due to new management's focus on expense reduction strategies.
Kelso continues to maintain above industry average gross profit margin of 44% due to the maintenance of production effectiveness and efficiencies stemming from per order-based pricing models.
The third quarter of 2024 was a challenging period for the Company, due to ongoing market weakness in tank car demand. The Company's focus remains towards sustainable revenue growth.
Kelso remains focused on management of its operations to align with reductions in revenue. Quarter-over-quarter improvement in expenses relative to revenue showed three months ending September 30, 2024 relative expenses to revenue was 58% versus the prior quarter of 65%. Management remains committed to cost controls to effectively work within its means for efficient operations.
Frank Busch was appointed interim Chief Executive Officer. As well as the appointments of Sameer Uplenchwar as the Chief Financial Officer, and Maureen O'Hanley Doucette as Corporate Secretary.
Management is continuing to focus its attention on increasing shareholder value by reducing expenses associated with the KXI HD system (KXI) and will continue with the previously announced KXI strategic review to maximize shareholder value.
Subsequent event to the quarter-end, Kelso's US subsidiary secured a line of credit amounting to $500,000 from Texas Capital Bank.
SUMMARY OF FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2024
Three months ended September 30
2024
2023
Revenues
$
2,523,282
$
3,138,137
Gross profit
$
1,113,199
$
1,421,248
Gross profit margin
44
%
45
%
Adjusted EBITDA (loss)
$
(297,751
)
$
(36,142
)
Net income (loss)
$
(361,800
)
$
(102,723
)
Nine months ended September 30
2024
2023
Revenues
$
8,067,477
