Water Ways Technologies Reports Q3 2021 Financial Results: Record Nine Months Sales of CAD$15,764,000

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TORONTO, Nov. 29, 2021 (GLOBE NEWSWIRE) -- Water Ways Technologies Inc. (TSXV: 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 Financial Statements ("Statements") and Managements Discussion and Analysis ("MD&A") for the nine and three months periods ended September 30, 2021. A comprehensive discussion of Water Ways’ financial position and results of operations is provided in the MD&A.

Ohad Haber, CEO and Chairman of the Board of Water Ways states: "Our business has experienced dramatic growth on all fronts in the first nine months of 2021. We achieved records in all parts of our business and improved our gross margins. We also completed an oversubscribed private placement of CAD$4,400,000 which will fund our growth for the coming year."

On Thursday, December 2, 2021, at 11 am Eastern Time, Water Ways' CEO, Ohad Haber, Ronnie Jaegermann, Director and Dor Sneh, CFO, will host a live webinar with a corporate update, earnings discussion and the unique outlook for 2021 and beyond. An Investor question-and-answer session will follow.

Register: Water Ways Technologies: Q3 financial results

Nine and three months periods ended September 30, 2021 - Highlights (the following information should be read in conjunction with the Financial Statements and the MD&A)

• Record sales for the nine months period ended September 30, 2021, totaling CAD$15,765,000 compared to CAD$9,553,000 for the nine months period ended September 30, 2020, for total revenue growth of 65%.
• Sales for the three months period ended September 30, 2021, totaling CAD$3,637,000 compared to CAD$2,565,000 for the three months period ended September 30, 2020, for total revenue growth of 42%%.
• Service Project revenue stream increased substantially to CAD$8,014,000 compared to CAD$2,237,000 for the nine months period ended September 30, 2021 and 2020, respectively, for total project revenue growth of 258%.
• Gross profit increased by 66% to $558,000 compared to $336,000 for the nine months period ended September 30, 2021 and 2020, respectively.
• Gross profit increased by 93% to $2,941,000 compared to $1,524,000 for the nine months period ended September 30, 2021 and 2020, respectively.
• Adjusted EBITDA for the nine months period ended September 30, 2021 reached CAD$687,000 compared to an Adjusted EBITDA loss of CAD$439,000 for the nine months period ended September 30, 2020 (See below for definition of "Adjusted EBITDA", a non-GAAP measure driven substantially by Share based payments).
• Record sales of Heartnut Grove WWT Inc., the Company’s wholly owned Canadian subsidiary, increased substantially and reached CAD$4,223,000 for the nine months period ended September 30, 2021, compared to CAD$3,383,000 for nine months period ended September 30, 2020.
• Record sales of IRRI-AL TAL (Shanghai) Agriculture Technology Company Ltd., the Company’s Chinese subsidiary, increased substantially and reached CAD$1,397,000 for the nine months period ended September 30, 2021, compared to CAD$180,000 for nine months period ended September 30, 2020.
• The Company completed an oversubscribed private placement of CAD$4,444,742 in August 2021.
• During the third quarter, the Company's shares began trading on various German Stock Exchanges under the symbol WWT.
• In August, the Company provide further incentives for growth by granting its employees and directors RSU’s and options totaling CAD$667,000.
• Cash on hand as of September 30, 2021 totaled CAD$4,337,000 compared to CAD$407,000 as of December 31, 2020.
• Derivative Liability – Warrants relates to a classification under IFRS of outstanding warrants issued as part of the Private Placement Units 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 increase in share price in the period resulted in a significant non-cash finance expense through the Company’s profit and loss account. The related liability does not represent a financial obligation as there are no additional payment obligations required of the Company. The Company recorded a loss from the revaluation of derivative liability of $1,766,000 during the nine months period ended September 2021.
• The Company installed and delivered the largest contract in its history, in Uzbekistan, resulting in revenue of over CAD$4,054,000.

Water Ways Technologies Financial Results Summary (CAD$ in thousands)

The following tables set forth the highlights of the Company's consolidated financial information and should be read in conjunction with the Statements and the notes thereto:

About Water Ways Technologies
Water Ways Technologies Inc., through its subsidiaries, is a global provider of Israeli-based agriculture technology, providing water irrigation solutions to agricultural producers. Water Ways Technologies 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, Water Ways Technologies' main revenue streams are derived from the following business units: (i) Projects Business Unit; and (ii) Component and Equipment Sales Unit. Water Ways Technologies 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. Water Ways Technologies irrigation projects include vineyards, Cotton fields, Apple and Orange orchards, Blueberry, Medical Cannabis growers, fresh produce cooling rooms and more, in over 15 countries.

For more information, please contact

https://www.water-ways-technologies.com/

Twitter: @WaterWaysTechn1

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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.