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TORONTO, Aug. 30, 2023 (GLOBE NEWSWIRE) -- Water Ways Technologies Inc. (TSXV: WWT) (FRA: WWT) ("Water Ways" or the "Company"), a global provider of Israeli-based agriculture technology, providing water irrigation solutions to agricultural producers, announces the filing of its Interim Financial Statements (the "Statements") and Managements Discussion and Analysis (the "MD&A") for the three and six months period ended June 30, 2023. A comprehensive discussion of Water Ways’ financial position and results of operations is provided in the MD&A, filed on SEDAR (www.sedar.com).
Mr. Ohad Haber, CEO and Chairman of the Board of Water Ways states: "The second quarter of 2023 continued the shift of our core business to Canada. The quarter was challenging for the Company and we hope to end the year with a slight increase of sales over 2022."
On Monday, September 4, 2023, at 9 am Eastern Time, Water Ways' CEO, Ohad Haber, CFO, Dor Sneh and Ronnie Jaegermann, Director, will host a live webinar with a corporate update, earnings discussion and outlook for 2023 and beyond. An Investor question-and-answer session will follow.
Register: Water Ways Technologies: Q2 2023 financial results
Highlights – H1 and Q2, 2023 (the following information should be read in conjunction with, and is qualified by, the Statements and the MD&A)
- Company's sales were CAD$6.4M for the six months period ended June 30, 2023, compared to CAD$9.5M for the six months period ended June 30, 2022. The decline in revenues can primarily be attributed to three factors. Firstly, the company's strategic decision to discontinue working with unprofitable and unstable customers and territories played a significant role. Instead, the company shifted its focus to developed countries. This deliberate change in focus and customer restructuring ultimately resulted in a decrease in the company's revenues. Secondly, the reduction in revenues can also be attributed to the effects of stagnation and inflation. These factors greatly impacted customers, making it more difficult for them to invest in projects and capital good. Consequently, customers are encountering challenges in acquiring goods for inventory, a situation different from previous years. Additionally, they are facing obstacles in financing their projects due to the impact on interest rates and borrowing costs. Thirdly, global climate changes, especially in Canada, have contributed to lower-than-expected sales of Silage products. The Company expects these sales to be recognized in Q3.
- Company's Gross Margin was 17.3% for the six months period ended June 30, 2023, compared to a Gross Margin of 17.3% for the six months period ended June 30, 2022.
- Company reduced its Marketing and General and Administrative expenses by 11% for the six months period ended June 30, 2023, compared with June 30, 2022.
- Derivative Liability – Warrants and Convertible Debentures relates to a classification under IFRS of outstanding warrants issued as part of private placements of Convertible Debentures units and equity units which closed in the fiscal year 2021, 2022 and 2023, as a non-cash liability that arises due to the difference in operational currency and functional currency. This liability is revalued each period by an independent third party. The revaluation is at fair value through profit and loss.
Water Ways Technologies Financial Results Summary (CAD$ in thousands)
The following tables set forth the highlights of the consolidated financial information of the Company and should be read in conjunction with the Statements and the notes thereto.
| (CAD in thousands) | As of June 30, 2023 | As of December 31, 2022 | ||||||
| Balance Sheet Items: | ||||||||
| Cash and Cash Equivalents | 608 | 1,441 | ||||||
| Total Current Assets | 9,399 | 9,332 | ||||||
| Total Assets | 12,350 | 12,501 | ||||||
| Total Current Liabilities | 6,857 | 6,444 | ||||||
| Total Non-Current Liabilities | 2,762 | 3,649 | ||||||
| (CAD in thousands) | For the six months period ended June 30, | |||||||
| 2023 | 2022 | |||||||
| Revenues: | ||||||||
| Services Projects | 1,531 | 2,506 | ||||||
| Products | 4,885 | 6,975 | ||||||
| Total Revenues | 6,416 | 9,482 | ||||||
| Cost of Sales | 5,307 | 7,844 | ||||||
| Gross Profit | 1,109 | 1,638 | ||||||
| Gross Profit Margin % | 17.3% | 17.3% | ||||||
| Operating Expenses | 1,732 | 1,938 | ||||||
| Revaluation of derivatives - income | (821 | ) | (4,219 | ) | ||||
| Financial expense (income), net | 173 | (90 | ) | |||||
| Taxes on Income (recovery) | (9 | ) | 46 | |||||
| Profit for the period | 35 | 3,963 | ||||||
About Water Ways Technologies Inc.
WWT through its subsidiaries, is a global provider of Israeli-based agriculture technology, providing water irrigation solutions to agricultural producers. WWT competes in the global irrigation water systems market with a focus on developing solutions with commercial applications in the micro and precision irrigation segments of the overall market. At present, WWT’s main revenue streams are derived from the following business units: (i) Projects Business Unit; and (ii) Component and Equipment Sales Unit. WWT is capitalizing on the opportunities presented by micro and smart irrigation, while also making a positive mark on society by making these technologies more widely available, especially in developing markets such as Africa and Latin America and developed markets such as China and Canada. WWT’s irrigation projects include vineyards, Cotton fields, Apple and Orange orchards, Blueberry, Medical Cannabis growers, fresh produce cooling rooms and more, in over fifteen countries.
For more information, please contact
| Ronnie Jaegermann | Dor Sneh | Dr. Eva Reuter |
| Director | CFO | Investor Relations - Germany |
| T: +972-54-4202054 | T: +972-54-6512500 | +49 69 1532 5857 |
| E: ronnie@waterwt.com | E: dor@irri-altal.com | E: e.reuter@dr-reuter.eu |
| https://www.water-ways-technologies.com/ | ||
| https://www.hg-wwt.com/ | ||
| Twitter: @WaterWaysTechn1 | ||
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to Water Ways. All statements other than statements of historical fact may be forward-looking information. Such statements reflect Water Ways' current views and intentions with respect to future events, and current information available to Water Ways, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Should any factor affect Water Ways in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Water Ways does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and Water Ways undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. Water Ways' results and forward-looking information and calculations may be affected by fluctuations in exchange rates and its own share prices. All figures are in Canadian dollars unless otherwise indicated.
