Kelso Technologies Inc. Financial Results for the Year Ended December 31, 2024
WEST KELOWNA, British Columbia and BONHAM, Texas, March 25, 2025 (GLOBE NEWSWIRE) -- Kelso Technologies Inc. ("Kelso" or the "Company"),(TSX:KLS) reports that the Company has released the audited consolidated financial statements and Management Discussion and Analysis for the year ended December 31, 2024.
The audited year-end 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 audited consolidated financial statements and MD&A for the year ended December 31, 2024 were approved by the Board of Directors on March 25, 2025.
HIGHLIGHTS:
Kelso sustains a gross profit margin of 44%, exceeding industry averages, attributable to maintaining production efficiency and effectiveness through per order-based pricing models.
For FY2024, revenue decreased by approximately 2% to $10.68 million compared to $10.82 million in FY2023. Despite a decline in year-over-year revenue, Kelso successfully increased its gross profit to $4.69 million from $4.58 million in FY2023, primarily due to management's implementation of effective expense reduction strategies.
In FY2024, the Company optimized its balance sheet by reassessing inventory levels and the carrying value of KXI HD system (KXI). Consequently, the company incurred a significant loss of $4.6 million in FY2024 due to one-time expenses and write-offs.
The persistent weakness in tank car demand in FY2024 presented significant challenges for the Company. Management remains committed to achieving sustainable revenue growth despite these market conditions.
For FY2025, the company expects sales growth to be flat or slightly positive, ranging from 0% to 5%, compared to fiscal year 2024. The primary focus for FY2025 will be in maintaining cost discipline as the company prepares for the projected increase in new tank car builds starting in 2026/2027. This strategy aims to position the company to take advantage of the anticipated demand and optimize profitability.
Frank Busch was appointed Chief Executive Officer.
Management is continuing to focus its attention on increasing shareholder value by reducing expenses associated with KXI. We recognize the potential value of the underlying technology and are actively exploring strategic options to maximize its future. Specifically, we are pursuing potential joint venture partnerships and assessing the value of the project's core technology.
SUMMARY OF FINANCIAL PERFORMANCE
Year Ended December 31
2024
2023
2022
Revenues
$10,680,468
$10,819,916
$10,931,188
Gross Profit
$4,693,632
$4,582,447
$4,908,996
Gross profit margin
44%
42%
45%
Expenses including non-cash items
$9,315,929
$6,684,333
$6,264,413
Net income (loss)
($4,622,297)
($2,101,886)
($1,355,417)
Basic earnings (loss) per share - continuing ops
($0.03)
($0.00)
$0.00
Basic earnings (loss) per share - discontinued ops
($0.06)
($0.04)
($0.03)
Non-cash expenses
$3,136,518
$1,085,924
$1,105,811
Adjusted EBITDA (loss) *
($1,249,326)
($845,487)
($83,575)
Liquidity and Capital Resources
Working capital
$2,125,386
$5,026,580
$7,000,568
Cash
$153,147
$1,433,838
$2,712,446
Accounts receivable
$1,091,303
$1,065,411
$1,381,979
Net Equity
$4,229,030
$8,720,248
$10,781,672
Total assets
$6,570,345
$9,703,271
$12,147,143
Common shares outstanding
54,551,139
54,337,995
54,320,086
* Reconciliation of Net Income (Loss) to Adjusted EBITDA
Year Ended December 31
2024
2023
2022
Net Income (Loss)
($4,622,297)
($2,101,886)
($1,355,417)
