Sky Quarry Provides Third Quarter 2024 Corporate Update and Financial Results
Began Trading on NASDAQ Under Ticker Symbol 'SKYQ'
Closed $6.7 Million Public Offering
WOODS CROSS, Utah, Nov. 15, 2024 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry " or the "Company"), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, has reported its financial and operational results for the third quarter ended September 30, 2024.
Key Financial and Operational Highlights
-- Q3 2024 Revenue of $4.8 million and $19.2 million for the nine months
ended September 30, 2024.
-- Began trading publicly on the Nasdaq Capital Market under the ticker
symbol "SKYQ" on October 10, 2024 and rang the Nasdaq closing bell on
October 25, 2024.
-- Closed a public offering of $6.7 million through the sale of 1,118,005
shares of its Common Stock priced at $6.00 per share.
-- Completed refurbishment at Foreland refinery including an overhaul of the
primary and secondary boilers, and completion of 24 work packages.
-- Entered into an exploratory relationship with Atlas Roofing Corporation
to assess and develop mutually beneficial processes for asphalt shingle
recycling.
-- Announced the appointments of Darryl Delwo, CPA, a seasoned finance and
accounting executive, as Chief Financial Officer, and Cyla Apache as Vice
President of Finance.
-- Announced the launch of European financing effort across several
countries, driven by the continent's significant focus on sustainable
investing.
-- Announced the expansion and near-completion of its first Waste Asphalt
Shingle Modular Facility.
Management Commentary
"The third quarter was a transformative validation for Sky Quarry with our successful listing on the Nasdaq Stock Market and the closing of a $6.7 million public offering to fund our strategy to revolutionize the waste asphalt shingle recycling industry," said David Sealock, Chief Executive Officer of Sky Quarry. "Being listed on a national exchange increases corporate visibility, improves liquidity, and raises awareness of Sky Quarry in the financial markets. The quarter was marked by a decrease in revenue due to a combination of reduction in WTI pricing and refurbishment of the Foreland refinery. WTI pricing fell from $87 per barrel on April 5, 2024, to $67 per barrel on September 10, 2024, which corresponded with reduced pricing in the end products.
"The refurbishment at our Foreland refinery included an overhaul of the primary and secondary boilers, and completion of 24 work packages. This significant and extensive project, conducted once every decade, not only aims to enhance air quality and water recycling but also establishes the foundation for increased operational efficiency and the potential to raise production levels moving forward. Our fully integrated operation spans from extraction to refining. This vertical integration enhances efficiency and control over the entire production process. As well, our adaptable infrastructure enables us to rapidly scale operations, fortify feedstock supply chains, explore diverse revenue avenues, including regional sales, ensuring sustained growth and market leadership.
"During the quarter we partnered with Atlas Roofing Corporation, an innovative, customer-oriented manufacturer of residential and commercial building materials. Under the partnership, we will collaborate with Atlas to explore the use of Sky Quarry's closed loop recycling process and proprietary shingle extraction technology to recover both material and oil from Atlas' waste shingles. As a leader in the building products industry, Atlas is an ideal partner to demonstrate our groundbreaking application capable of separating waste shingles into clean oil and other valuable materials.
"Operationally, in tandem with our Nasdaq listing, we strengthened our finance leadership with the appointment of Darryl Delwo as Chief Financial Officer. Darryl is a veteran financial executive and will lead us in our next phase of company growth as a listed public company.
"Looking ahead, we expect strong growth as our refinery asset improvements increase production, and our direct consumer sales and marketing efforts continue to perform. Our refinery generated over $50 million in revenue in 2023. Our Eagle Springs refinery is expected to be refining blended sustainable oil in 2025, capturing the premium value that sustainable refined products will demand. With the heavy oil produced at PR Spring set to be refined at the Eagle Springs refinery, our broadened capabilities, and fortified position in the oil and energy industries, we anticipate even greater production levels and a return to increased revenue and cash flow in the coming quarters," concluded Sealock.
Third Quarter 2024 Financial Results
Revenues were $4.8 million for the three months ended September 30, 2024, compared to $14.4 million for the comparable period in 2023, representing a decrease of 66%. The decrease in sales were the direct result of a combination of reduction in WTI pricing and refurbishment of the Company's Foreland refinery. For the nine months ended September 30, 2024, revenues were $19.2 million, compared to $39.1 million in the prior year period, a decrease of 51%.
Gross profit was $0.3 million, or 6.5% of revenues, for the three-month period ended September 30, 2024, compared to $2.8 million, or 19.1% of revenues for the comparable period in 2023.
Total operating expenses for the three-month period ended September 30, 2024, were $1.5 million compared to $1.4 million for the comparable period in 2023, a marginal decline.
Net loss for the third quarter of 2024 was $4.4 million, compared to a net loss of $0.6 million for the third quarter of 2023.
Net cash used in operating activities for the nine months ended September 30, 2024, was $4.6 million, compared to net cash provided by operating activities of $2.5 million for the nine months ended September 30, 2023.
Cash and cash equivalents totaled $0.3 million as of September 30, 2024, compared to $0.3 million as of December 31, 2023. On October 9, 2024, the company closed a public offering with gross proceeds of approximately $6.7 million.
The Company would like to note that it has communicated with Yahoo Finance, and Apple Stocks regarding their communicated Market Capitalization*, which is being reported incorrectly.
*The correct Market Capitalization was $36.47 million based on 18.8 million shares of common stock issued and outstanding and a closing stock price of $1.94 per share as of the market close on Wednesday, November 13, 2024.
About Sky Quarry Inc.
Sky Quarry Inc. (NASDAQ: SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit www.skyquarry.com.
Forward-Looking Statements
This press release may include "forward-looking statements." All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as "expect," "look forward to," "anticipate," "intend," "plan," "believe," "seek," "estimate," "will," "project," or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company's other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the Company's Form 1-A offering statement filed with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained.
Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
SKYQ@mzgroup.us
www.mzgroup.us
Company Website
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