Questions on the backlog

No such message found

A World leader in advanced plasma processes

Being commercialized in multiple applications around the world including plasma torches, Industrial 3D printing powders, aluminum & zinc dross recovery, waste management and defence - 4 US aircraft carriers

Reply New Message

Prev Message Back To Forum Threaded View Next Message

DHOD

Rank: Treasurer [?]

Points: 654 [?]

Votes: 14 Score: 4.6 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Questions on the backlog

posted on Jun 16, 2020 12:07AM

Hi Peter,

Thanks for getting the earnings out on time tonight. They are packed full of great info and I appreciate the detailed outlook section.

I would like to know if you can comment more on the backlog.

In Q3 2019 "PYROGENESIS ANNOUNCES Q3, 2019 RESULTS: REVENUES $2.1MM, GROSS MARGIN 45%, CURRENT BACKLOG $29.5MM"

The backlog was 29.5mm. In todays ER the backlog is mentioned in 2 places that it is now 30.27mm AS OF THIS WRITING meaning as of right now not as of the end of 2019.

So i'm wondering whats going on there that revenues didn't substantially increase in Q4 of 2019 and the backlog hasn't really changed but the NR does say the backlog is as of right now not as of the end of 2019.

So since revenues didnt substantially increase at the end of 2019, I interpret that to mean one of 2 things has to be happening:

1. The backlog hasn't changed and whatever is in it is still yet to be delivered on and we don't have a clear picture of when that pipeline will come to fruition. (Is it 6 months out, or 6 years out? We don't have any clear picture)

2. The backlog was added to significantly in 2020 but also a large amount was delivered on so far in 2020 for example with DROSRITE / boring and the end result was a net zero change but a lot of revenue is coming in 2020 in the Q1 interim on July 15th.

I really wish you could be more transparent on the backlog. For about a year now its been roughly 30 mil and hasn't really changed but we have no idea how much has been added to that pipeline and how much has been delivered on to get a sense of whats been delivered on and when the rest will come. Revenues don't seem to show so far that much has come out of it in the last 6-8 months.

But to be fair we have no idea whats happened exactly for the last 5.5 months other than revenues from DROSRITE have started arriving, the boring contracts, and an as yet unknown firm value on the modelling contract potential.