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Greenlane Renewables Announces First Quarter 2024 Financial Results

~Improvement in Q1 Adjusted EBITDA with 2024 positive EBITDA goal remaining intact~

Vancouver, British Columbia, CanadaMay 9, 2024 Greenlane Renewables Inc. (“Greenlane'’ or the “Company”) (TSX: GRN / FSE: 52G / OTC: GRNWF) today announced its financial results for the first quarter ended March 31, 2024. For further information on these results please see the Company’s Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis filed under the Company’s profile on SEDAR+ at www.sedarplus.ca. All amounts reported are in Canadian dollars and in accordance with International Financial Reporting Standards (“IFRS”) unless otherwise stated.

First Quarter Highlights Include:

  • Revenue of $18.1 million;
  • Gross profit of $4.6 million, Gross Margin1 before amortization of $4.8 million (27% of revenue);
  • Adjusted EBITDA2 loss of $0.5 million;
  • Net loss and comprehensive loss of $0.8 million,
  • Sales Order Backlog3 of $24 million as at March 31, 2024; and
  • Cash and cash equivalents of $7.2 million and no debt, other than payables, advance payment / performance bonding and standby letters of credit resulting from normal course operations, as at March 31, 2024.
  • Subsequent to March 31, 2024, the Company sold Greenlane Renewables UK Limited that carried on the Company’s UK and EU-based legacy aftercare services business. For Q1 2024, the business generated revenue of $0.5 million and realized an Adjusted EBITDA loss of $0.1 million. This transaction triggered a restatement of our financial statements to reflect this business as discontinued operations.

“We recognized a significant improvement in Adjusted EBITDA with a reduced loss of $0.5 million in Q1 2024 compared to a loss of $1.7 million in Q4 2023,” said Ian Kane, President & CEO of Greenlane. “We continue to drive toward our goal of positive Adjusted EBITDA this year, which also requires us to refill our sales pipeline. We have significant sales activities ongoing and look to convert them into purchase orders as soon as possible. With respect to our collaborative agreement with ZEG Biogás in Brazil announced a year ago, we started to recognize royalty revenue this quarter, which will help improve our overall business and margin profile and further strengthen our brand presence in Brazil.

“I am encouraged with the progress that we’ve made towards our objective of achieving Adjusted EBITDA positive results for this fiscal year,” said Monty Balderston, Chief Financial Officer at Greenlane. “As part of management’s ongoing evaluation of its operations and strategic plan, we’ve exited non-core parts of our business to increase the focus on the growth of Greenlane’s core, including our Cascade products and services.”

The Market Outlook

In April, The Transport Project (TTP), a national coalition of roughly 200 fleets, vehicle and engine manufacturers and dealers, servicers and suppliers, and fuel producers dedicated to the decarbonization of North America’s transportation sector and the Coalition for Renewable Natural Gas (RNG Coalition) reported that 79% of all on-road fuel used in natural gas vehicles in calendar year 2023 was renewable natural gas (RNG). This volume surpassed the previous year’s record-breaking level as RNG use as a transportation fuel grew 16% over 2022 volumes, up 92% from 2019 levels.

A new report by Guidehouse has revealed that Europe could produce 111 billion cubic metres (bcm) of biomethane by 2040. This amount represents over 30% of the EU gas consumption in 2022. Via the REPowerEU plan, the European Commission has set a target to produce 35 bcm of biomethane annually in the EU by 2030, representing a ten-fold increase in current levels of biomethane production.

Live Conference Call

The public is invited to listen to the conference call in real time by telephone. To access the conference call by telephone, please dial: 1-844-763-8274 (North America toll-free) or +1-647-484-8814. Callers should dial in 5-10 minutes prior to the scheduled start time and ask to join the Greenlane Renewables conference call. For expedited access to the conference call, attendees can click HERE to use a registration link prior to the call.

Shortly after the conference call, the replay will be archived on the Greenlane’s website and replay will be available in streaming audio and a downloadable audio file.


Management evaluates the Company’s performance using a variety of measures, including “Gross Margin before amortization”, “Adjusted EBITDA” and “Sales Order Backlog”. The specified financial measures, including non-IFRS measures and supplementary financial measures should not be considered as an alternative to or more meaningful than revenue, gross profit or net income. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. The Company believes these specified financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company. Management uses these specified financial measures to exclude the impact of certain expenses and income that must be recognized under IFRS when analyzing consolidated underlying operating performance, as the excluded items are not necessarily reflective of the Company’s underlying operating performance and make comparisons of underlying financial performance between periods difficult. From time to time, the Company may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring.

Note 1 - Gross Margin before amortization is a non-IFRS measure and is defined by the Company as gross profit before amortization of intangible assets and property and equipment.

Note 2 - Adjusted EBITDA is a non-IFRS measure and is defined by the Company as earnings before interest, taxes, foreign exchange, depreciation and amortization, as well as adjustments for other income (expense), value assigned to options and RSU’s granted, impairment of intangible assets and goodwill, impairment of notes receivable, strategic initiatives, transaction costs and non-recurring items.

Reconciliation of net loss and comprehensive loss to Adjusted EBITDA from continuing operations:

(in $000s) Three months ended March 31,
2024 2023
Net loss and comprehensive loss (796) (1,986)
Add (deduct):    
Exchange difference on translating foreign operations (22) (176)
Provisions for income taxes 256 82
Foreign exchange gain (131) (237)
Other (income)  loss (252) 21
Finance income (104) (208)
Finance expense 35 16
Share-based compensation 200 335
Amortization of office equipment 53 88
Amortization of property and equipment 86 36
Amortization of intangible assets 138 473
Adjusted EBITDA from continuing operations (537) (1,536)

Reconciliation of net loss and comprehensive loss to Adjusted EBITDA from discontinued operations:

(in $000s) Three months ended March 31,
2024 2023
Net loss and comprehensive loss (477) (73)
Add (deduct):    
Exchange difference on translating foreign operations - (25)
Foreign exchange loss (gain) 20 (49)
Finance expense 1 2
Impairment loss of inventory and property and equipment 342 -
Amortization of office equipment 20 23
Adjusted EBITDA from discontinued operations (94) (122)

Note 3 - Greenlane provides regular updates on its upgrader system sales opportunities that successfully convert into contractual agreements in its reported sales order backlog (“Sales Order Backlog”). Sales Order Backlog is a supplementary financial measure that refers to the balance of unrecognized revenue from contracted biogas upgrading system supply projects. The Company’s Sales Order Backlog is a snapshot in time which varies from period-to-period. The Sales Order Backlog increases by the value of new system sales contracts and is drawn down over time as projects progress towards completion with amounts recognized in revenue (by reference to the stage of completion of each contract). A typical biogas upgrading system sales contract has six stages of completion and a duration of nine to 24 months, and therefore annual and quarterly operating results will fluctuate as a result of the timing of contract related work. Note that Sales Order Backlog does not include Cascade H2S sales, service revenue, or revenue from the Company’s agreement with ZEG Biogás.

About Greenlane Renewables

Greenlane is driving change: accelerating the energy transition to a net-zero emissions economy. We are cleaning up two of the largest and most difficult to decarbonize sectors of the global energy system: the natural gas grid and commercial transportation. As a pioneer and leading specialist in biogas upgrading, we have been actively contributing to the decarbonization of our planet for over 35 years. The systems we provide transform biogas generated from organic waste into high-value grid-ready renewable natural gas (“RNG”). Our systems produce clean, low-carbon and carbon-negative RNG from organic waste sources including agriculture (such as dairy and hog manure), water resource recovery facilities, food waste, landfills, and sugar mills. Greenlane is the only biogas upgrading company offering and actively deploying the three main upgrading technologies: waterwash, pressure swing adsorption, and membrane separation, plus proprietary biogas desulfurization technology. Greenlane has delivered over 145 biogas upgrading systems into 19 countries, including some of the largest RNG production facilities in the world, and over 160 biogas desulfurization units. For further information, please visit www.greenlanerenewables.com.

For more information please contact:
Incite Capital Markets
Eric Negraeff / Darren Seed
Greenlane Renewables Inc.
Ian Kane, CEO
Ph: 604.493.2004
Email: IR@greenlanerenewables.com

Forward Looking Information Advisory –

This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as “may”, “expect”, “likely”, “could”, “plan”, “will” or “is/are expected to”, “goal”, “objectives”, “future”, “shifting toward”, “potential”, “proposed”, “estimate”, “believe”, “continue to”, “look to”, “ongoing”, “remains” or “continually” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen or that current events or conditions will continue, be ongoing or be repeated. The forward-looking information contained in this press release, includes, but is not limited to: that the Company continues to drive toward its goal of positive Adjusted EBITDA this year: that the Company has significant sales activities ongoing and looks to convert them into purchase orders; that the agreement with ZEG Biogás will help improve the Company’s overall business and margin profile and further strengthen its brand presence in Brazil; that Europe could produce 111 billion cubic metres (bcm) of biomethane by 2040 and that the European Commission has set a target to produce 35 bcm of biomethane annually in the EU by 2030; that favourable legislative initiatives will have a positive impact on the pace of growth and the availability of financing in the RNG industry and will generate sales opportunities for Greenlane, as well as other considerations that are believed to be appropriate in the circumstances. While management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond Greenlane’s control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation: risks relating to Greenlane’s financial performance, including that Greenlane may not be able to convert sales opportunities into contracts as expected, Greenlane may face impediments in delivering and advancing projects to be able to timely realize revenue reducing the sales backlog; risks relating to the collaboration with ZEG Biogás not resulting in the anticipated revenue or service contracts; RNG initiatives and projects of natural gas utilities being changed, delayed or canceled, the state of competition in the RNG industry, Greenlane’s position as a leading biogas upgrading and project development solutions provider. Additional risk factors can also be found in the Company's Management Discussion and Analysis, its Annual Information Form and its base shelf prospectus dated January 4, 2024, all of which have been filed under the Company's SEDAR profile at www.sedarplus.ca. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

FINANCIAL OUTLOOK INFORMATION – This news release contains “financial outlook information” regarding Greenlane’s prospective revenue and results, which is subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above. Revenue and other estimates contained in this news release were made by Greenlane management as of the date of this news release and are provided for the purpose of describing anticipated changes, and are not an estimate of profitability or any other measure of financial performance. Investors are cautioned that the financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein. The Company’s revenues are largely derived from a relatively small number of biogas upgrader orders accounted for on a stage of completion basis over typically a nine to eighteen-month period. Timing of new contract awards varies due to customer-related factors such as finalizing technical specifications and securing project funding, permits and RNG off-take and feedstock agreements. Some contracts contain termination provisions that allow the customer to terminate with no penalty or with minimum prescribed threshold payments based on the length of time since the contract was entered into. Some projects have built-in pause periods to allow customers to complete concurrent activities such as civil work. As a result, the Company’s revenue varies from month to month and quarter-to-quarter. THE COMPANY QUALIFIES ALL THE FORWARD LOOKING STATEMENTS AND FINANCIAL OUTLOOK INFORMATION CONTAINED IN THIS NEWS RELEASE BY THE FOREGOING CAUTIONARY STATEMENTS.

Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this news release.