Earth Alive Reports Third Quarter Results

MONTREAL, Nov. 12, 2020 (GLOBE NEWSWIRE) — Earth Alive Clean Technologies Inc. (TSXV: EAC) (“Earth Alive” or the “Company”), a Canadian soil health company that develops and manufactures advanced microbial technology products, this morning reported results for the third quarter ended September 30, 2020. All financial information is in Canadian dollars unless otherwise noted.
Business HighlightsDuring the third quarter, four ea1™ trials were completed by Earth Alive customers in Brazil and Russia, with discussions towards commercialisation continuing with these customers.In August 2020, Earth Alive received confirmation from the California Department of Food & Agriculture that it has approved Soil Activator® for sale in the state and new distributors in California have already begun to place orders for our product.In September 2020, the Company received an order for approximately $140,000 of ea1 for a large-scale trial application in South Africa, the fourth such test by this customer and a key validation step towards becoming an important multi-site dust suppressant solution provider for this global mining group. The order is expected to ship before year-end.In mid-October, the Company resumed ea1 shipments to its customer in Mexico.During the fourth quarter, ea1 will be tested by two of the Company’s customers in Chile.
Financial highlights of the Third Quarter Ended September 30, 2020Revenues for the quarter were $192,473, lower than the same period in 2019, primarily due to pandemic-related restrictions and operational curtailments at our main customers’ sites, which resulted in delays to previously planned ea1™ commercial and testing activities.Gross margin the three-month period increased to 30.3% compared to 20.8% in the same period last year, driven by improved pricing and a more favourable product mix in the Agriculture division.Revenues increased by 39.0%, to $2,112,631 for the nine-month period ended September 30, 2020 compared to $1,520,060 for the same period in 2019.Gross margin for the nine-month period increased to 30.0% in 2020 compared to 22.1% in the same period in 2019, primarily due to higher volumes and improved pricing in the Agriculture division.As at September 30, 2020, Earth Alive had $1,661,955 in working capital with a cash balance of $1,319,788, compared to $2,480,449, and $2,302,106 as at December 31, 2019.
“While third quarter revenues were weaker than expected as the impact of the seasonal slowdown was compounded by various COVID-related issues affecting our customers, I am pleased to report that business activity has picked up since the end of September and that future prospects for the Company remain strong”, said Michael Warren, President and Chief Executive Officer. “In fact, Earth Alive’s fourth quarter results are expected to show a marked improvement compared to the third quarter, with revenues between $700,000 and $800,000 and gross margin as a percentage of revenues remaining consistent with recent levels”.Earth Alive Consolidated Financial Statements and Management’s Discussion and Analysis for the third quarter ended September 30, 2020 are available on SEDAR at www.sedar.com and on our website at www.earthalivect.com.About Earth Alive Clean TechnologiesEarth Alive is a soil health company and an industry leader in microbial technologies. Earth Alive’s innovative products contribute to regenerative agriculture, natural dust suppression with minimal water use and industrial cleaning that is ecological and human friendly. For additional information, please visit: www.earthalivect.com.Forward-Looking Information: Certain information in this press release contains forward-looking information and forward-looking statements, which reflect the current view of management with respect to the Company’s objectives, plans, goals, strategies, outlook, results of operations, financial and operating performance, prospects and opportunities. Wherever used, the words “may”, “will”, “anticipate”, “intend”, “estimate”, “expect”, “plan”, “believe” and similar expressions identify forward-looking information and forward-looking statements. Forward-looking information and forward-looking statements should not be regarded as a guarantee of future events, performance or results, and will not necessarily be an accurate indication of whether, or the times at which, such events, performance or results will be achieved. All of the information in this press release containing forward-looking information or forward-looking statements is qualified by these cautionary statements. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and forward-looking statements and are cautioned not to place undue reliance on such information and statements. The Company does not undertake to update any such forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.Neither the 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.