Press Releases

Thermal Energy International Announces First Quarter Financial Results

The first quarter of this new financial year follows the significant impact the COVID-19 global pandemic had in fiscal 2021.

OTTAWA, ONTARIO – October 26, 2021 – Thermal Energy International Inc. (“Thermal Energy” or the “Company”) (TSX-V: TMG, OTCQB: TMGEF), an innovative cleantech company and global provider of innovative and proprietary industrial carbon emissions reduction solutions, has announced its financial results for the first quarter ended August 31, 2021. All figures are in Canadian dollars.

​Quarter-end financial highlights:
  • Revenue: $3.9 million for the quarter, a 37.2% increase compared to the same quarter last year.
  • EBITDA: $81 thousand for the quarter, compared to $15 thousand for the same quarter last year.
  • Net Loss of $154 thousand for the first quarter, a 29.4% decrease compared to the same quarter last year. • Cash and working capital balances remain strong at $4.2 million and $3.3 million respectively.
  • Order backlog: $6.3 million up 5% from this time last year.
  • Turnkey project development: 11 projects currently in paid development for customers – 38% higher than the pre-pandemic levels in fiscal 2020 and the highest level in company history.

“The first quarter of this new financial year follows the significant impact the COVID-19 global pandemic had in fiscal 2021. Despite the challenges presented by the pandemic however, Thermal Energy remained profitable for the year with strong cash and working capital positions telling a tale of perseverance, strength and pride.” said William Crossland, CEO of Thermal Energy.

“For the first quarter this year revenue is up 37% compared to the same quarter last year. This is no small feat as COVID-19 is still prevalent across the globe.”

“We also acquired all the material assets of Sofame Technologies during the quarter, significantly increasing the number of unique carbon emission reductions solutions we can deliver to customers.”

“Our customized equipment, primarily GEM and Heatsponge, which require less travel and customer site visits, continue to register record levels of orders received despite the global pandemic. Our sales cycle for our turnkey solutions which require extensive travel and site visits can span months, and even years, largely due to their size, complexity, and the need to align with the customers’ capital budgeting and production cycles. Having said this the pipeline of turnkey projects that we are developing continues to track well ahead of previous years. We currently have 11 projects in paid development for customers. That is 38% higher than the pre-pandemic levels in fiscal 2020 and is the highest level of paid project development in the history of the company. Understanding the uniqueness of our sales cycle is crucial to understanding how our quarterly results are not always indicative of the bigger picture.”

“We can appreciate then, how even with the disruption to our turnkey solutions – namely restricted travel and on-site visitation - we have witnessed a rebound in activity thanks to the perseverance of our teams who continued to nurture new opportunities.”

COP26 and Increasing Carbon Emission Reduction Targets

“As we enter the next quarter of FY2022, our attention turns to COP26. The summit is expected to accelerate large-scale reductions in greenhouse gas emissions by asking countries to ‘come forward with even more ambitious 2030 emissions reductions targets that align with reaching net zero by the middle of the century’. In anticipation, our customers are already adjusting their sustainability targets to halve or more greenhouse gas emissions by 2030 and achieve net-zero by 2050, with many looking to Scope 3 emissions.”

Strategic Corporate Accounts

“With an extensive list of very large multinational customers, a key part of our on-going growth strategy is to deliver more carbon emission reduction solutions to more sites of our key Corporate Accounts. Over the last 5 years we have received over $37 million in orders, consisting of 245 individual orders at 68 different sites from eight key multinational Corporate Accounts, and we are just getting started with these and other customers.”

“On September 14, 2021 we announced additional success in this regard with the announcement of a third turn-key carbon emission reduction solution valued at approximately $900 thousand, for a multinational food products corporation, a company with more than 150 manufacturing sites around the world. So far we have received orders totaling approximately $5 million from ten different sites of this company in Europe and North America.”

“As experts in the field of industrial carbon emission reductions, and with a unique combination of proprietary products and solutions, onsite engineering, design, and installation capabilities, and an extensive list of strong, proven customer relationships, Thermal Energy International is perfectly positioned to assist our customers meet their increasing carbon emission reduction goals.”

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​Summary Financial Results 

First Quarter Financial Review

Quarterly revenue of $3.9 million, up 37% from last year, delivered a gross profit of $1.6 million. This resulted in a gross margin of 42%, compared to 47% for the same quarter prior year. Operating expenses incurred for the first quarter amounted to $1.7 million. A net loss of $154 thousand was incurred for the first quarter and EBITDA was $81 thousand. Working capital decreased by $0.5 million to $3.3 million on August 31, 2021, compared to $3.8 million on May 31, 2021. The decrease in working capital was mainly due to the decreased trade and other receivables, the increased trade payables and other liabilities as well as the increased deferred revenue. The Company’s cash position remains strong at $4.2 million as of August 31, 2021.

Business Outlook and Order Summary

The Company ended the quarter with an order backlog of $6.3 million, compared to $6 million in the same quarter of previous year. Orders received during the quarter are 57.3% lower than orders received in the same quarter of last year.

The Company defines its order backlog as the value of projects for which purchase orders have been received, but that have not yet been fully reflected as revenue in the Company’s published financial statements.

A selection of recent orders includes:
    1. $900,000 equipment order for a Heat Recovery from a multinational food products corporation, announced September 14, 2021.
    2. $500,000 equipment order for a Heat Recovery biogas application from a leading global brewer in Russia, announced April 15, 2021
    3. $1,180,000 heat recovery project with a major US dairy group to reduce site’s natural gas usage by 13% as well cut its annual CO2 emissions by over 730 tonnes, announced March 17, 2021
    4. $1,000,000 heat recovery system for a multinational brewery, announced February 24, 2021.
    5. $770,000 heat recovery equipment order for a North American Hospital, announced January 19, 2021
    6. $1,530,000 heat recovery equipment and extension order for a large publicly funded European healthcare provider as announced October 27, 2020
    7. $840 thousand turnkey, energy-saving heat recovery system for a multinational food products corporation as announced on October 6, 2020
    8. $920,000 heat recovery system for one of Europe’s largest food and drink groups as announced on August 18, 2020
    9. $950,000 energy efficient equipment and engineering for a plant upgrade project for a leading consumer protein company as announced on June 10, 2020.
Full financial results including Management’s Discussion and Analysis and accompanying notes to the financial results are available on and


Notes to editors

About Thermal Energy International Inc.

Thermal Energy International Inc., ranked as one of Canada’s Top Growing Companies in 2021, 2020 and 2019, is an established global supplier of proprietary, proven energy efficiency and emissions reduction solutions to the industrial and institutional sectors. We save our customers money and improve their bottom line by reducing their fuel use and cutting their carbon emissions. Our customers include many Fortune 500 and other leading multinational companies across a wide range of industry sectors.

Thermal Energy is a fully accredited professional engineering firm and by providing a unique mix of proprietary products together with process, energy, and environmental engineering expertise, Thermal Energy can deliver unique turnkey projects with significant financial and environmental benefits for our customers.

Thermal Energy's proprietary products include: GEM™ - Steam traps, FLU-ACE® - Direct contact condensing heat recovery, HEATSPONGE – Indirect contact condensing heat recovery systems, and DRY-REX™ - Low temperature biomass drying systems.

Thermal Energy has engineering offices in Ottawa, Canada, Pittsburgh, USA, as well as Bristol, UK, with sales offices in Canada, UK, USA, Germany, Poland, and Italy. TEI’s common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG. For more information, visit our website at and follow us on Twitter.

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This press release contains forward-looking statements relating to, and amongst other things, based on management’s expectations, estimates and projections, the anticipated effectiveness of the Company’s products and services, the timing of revenues to be received by the Company, the anticipated effects of COVID-19 on the business, backlog and revenue, the expectation that orders in backlog will become revenue and the anticipated benefits of the Company’s current efforts at training and business improvement efforts. Information as to the amount of heat recovered, energy savings and payback period associated with Thermal Energy International’s products are based on the Company’s own testing and average customer results to date. Statements relating to the expected installation and revenue recognition for projects, statements about the anticipated effectiveness and lifespan of the Company’s products, statements about the expected environmental effects and cost savings associated with the Company’s products and statements about the Company’s ability to cross-sell its products and sell to more sites are forward looking statements. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, some of which are outside of the Company’s control, could cause events and results to differ materially from those stated. Fulfilment of orders, installation of product and activation of product could all be delayed for a number of reasons, some of which are outside of the Company’s control, which would result in anticipated revenues from such projects being delayed or in the most serious cases eliminated. Actions taken by the Company’s customers and factors inherent in the customer’s facilities but not anticipated by the Company can have a negative impact on the expected effectiveness and lifespan of the Company’s products and on the expected environmental effects and cost savings expected from the Company’s products. Any customer’s willingness to purchase additional products from the Company and whether orders in the Company’s backlog as described above will turn into revenue is dependent on many factors, some of which are outside of the Company’s control, including but not limited to the customer’s perceived needs and the continuing financial viability of the customer. The Company disclaims any obligation to publicly update or revise any such statements except as required by law. Readers are referred to the risk factors associated with the Company’s business as described in the Company’s most recent Management’s Discussion and Analysis available at

EBITDAS and backlog are non-IFRS financial measures, do not have a standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable to similar measures presented by other companies. Please refer to the Company’s most recent Management’s Discussion and Analysis available at www.SEDAR .com for more details about these non-IFRS financial measures.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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