Titan Logix (TLA) Q3 2024 earnings summary

Executive summary

• Q3 FY2024 revenue and core operating performance improved on strong crude-oil demand; diversification advanced with two completed Refined Fuels pilots and four more expected in Q4.

• Nine-month net loss reflected higher product R&D spending and non-cash unrealized losses on Bri-Chem shares, despite higher revenue and Operating EBITDA.

Financial highlights

• Revenue rose 18% YoY to $1,925,730 in Q3 and 12% to $5,190,567 for nine months.

• Q3 gross profit was $1,003,660, or 52% of revenue, versus $777,794, or 48%; nine-month gross profit was $2,606,225, or 50%, versus $2,413,567, or 52%.

• Q3 net loss narrowed to $218,462 from $412,271; nine-month net loss was $378,360 versus net earnings of $92,651.

• Q3 Operating EBITDA increased to $410,344 from $125,373; nine-month Operating EBITDA rose to $891,712 from $719,648.

• Nine-month results included a $727,500 unrealized loss on Bri-Chem shares, versus $533,500 in the prior-year period.

Outlook and guidance

• Similar TD100 series demand is expected in the upcoming quarter; four additional Refined Fuels pilot trials are expected in Q4.

• Each Refined Fuels pilot is expected to run 3–5 months, equip 1–5 trucks with TD100 systems and RCM, and potentially lead to recurring revenue through fleet specifications.

• Long-term strategy targets 20 successful Refined Fuels pilot trials annually; management expects successful pilots to support future revenue targets.