Kelso Technologies Inc. – Rail Operations in Review
January 15 2020 - 9:00AM
Kelso Technologies Inc. (“Kelso” or the “Company”), (TSX: KLS),
(NYSE American: KIQ) reports that the Company demonstrated stronger
sales in 2019 – a trend that began in 2018 and continued to improve
in 2019. Financial health improved significantly due to
increases in revenue from a wide range of rail service valves,
specialty products and services.
Average monthly revenue increased from
approximately US$500,000 in 2017 (recession year) to in excess of
US$1,000,000 per month in 2018 to over US$1,650,000 per month for
the nine months ended September 30, 2019. This run rate held
steady during the fourth quarter of 2019 - an annual increase of
over 60%. This change can be attributed to our improved
relationships with stakeholders that fuel “customer driven” product
designs and related sales – practices that are beginning to
generate multiple equipment orders per tank car.
Our value proposition for customers going into
2020 is to continue to produce and timely deliver precision milled
equipment that features quality craftsmanship and long-term
reliable performance. Our products have proven to
significantly diminish the expensive and complex logistics of
repairing tank cars in service – a benefit that is expected to
generate sales growth in future periods. During 2019 Kelso
reached a key revenue milestone of US$100 million in sales since
2012. This represents approximately 65,000 Kelso valves in
service that have had an exceptional reliability service record
with no material failures or warranty repairs.
At December 31, 2019 market capitalization
improved from US$21 million (CDN$27 million) at the end of 2018 to
over US$34 million (CDN$44 million) at the end of 2019 – an
increase of over 60%. Our financial health remains good and
given current economic conditions the Company is capable of running
debt free with no immediate need for equity financing.
James R. Bond, CEO of the Company comments:
“Kelso has evolved into a well-rounded organization focused on
better understanding our customers’ technology needs. Our
commitment is to do business the right way for all our stakeholders
with strong fundamental performance that generates positive cash
flows and EBITDA returns. In 2020 we continue to build on our
sales initiatives, R&D activities and operational momentum
experiences in 2019. Our goal is to maintain a healthy debt
free financial position while focusing on optimizing our business
operations in both Canada and the USA. Our priorities are to
diligently seek sales opportunities for new products in rail,
trucking, marine and wilderness transportation technologies.
Although there will be many business challenges ahead our future
expectations remain optimistic for 2020.”
Fully detailed annual audited financial
statements and Management Discussion and Analysis for the year
ended December 31, 2019 will be released on or before March 30,
2020 as required by Securities regulations. Any financial
numbers listed in this news release for the year 2019 are unaudited
and are subject to change. Readers are cautioned that
financial numbers for the year 2019 included in this news release
are indicative only.
About Kelso Technologies
Kelso is an engineering product development
company that specializes in the development, production and
distribution of proprietary service equipment used in
transportation applications. Our reputation has been earned
as a developer and reliable supplier of unique high-performance
rail tank car equipment for the handling and containment of
hazardous and non-hazardous commodities during transport. All
Kelso products are developed with emphasis on economic and
operational advantages to customers while mitigating the impact of
human error and environmental issues. The Company offers
specialized rail service equipment, truck tanker equipment, fuel
loading systems, marine applications, first responder emergency
response kits and outback suspension systems for motor vehicles
being used in rugged wilderness terrains.
For a more complete business and financial
profile of the Company, please view the Company's website at
www.kelsotech.com and public documents posted under the Company’s
profile on www.sedar.com in Canada and on EDGAR at www.sec.gov in
the United States.
On behalf of the Board of
Directors,
James R. Bond, CEO and President
Legal Notice Regarding Forward-Looking
Statements: This news release contains “forward-looking
statements” within the meaning of applicable securities
legislation. Forward-looking statements are indicated expectations
or intentions. Forward-looking statements in this news release
include that our policies will continue to fuel multiple equipment
orders per tank car; that our value proposition for customers going
into 2020 is to continue to produce and timely deliver precision
milled equipment that features quality craftsmanship and long-term
reliable performance; that we expect to generate sales growth in
future periods; that Kelso valves will continue to deliver an
exceptional reliability service record; that the Company is capable
of running debt free with no immediate need for equity financing;
that our goal is to maintain a healthy debt free financial position
while focusing on optimizing our business operations in both Canada
and the USA; that we can maintain our commitment to strong
fundamental performance generating positive cash flows and EBITDA
returns; that we can capitalize on sales opportunities for new
products in rail, trucking, marine and wilderness transportation
technologies; and that although there will be many business
challenges ahead our expectations remain optimistic for 2020.
Although Kelso believes its anticipated future results, performance
or achievements expressed or implied by the forward-looking
statements and information are based upon reasonable assumptions
and expectations, they can give no assurance that such expectations
will prove to be correct. The reader should not place undue
reliance on forward-looking statements and information as such
statements and information involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Kelso to differ materially from
anticipated future results, performance or achievement expressed or
implied by such forward-looking statements and information,
including without limitation the risk that railroad safety
regulations may be delayed or cancelled; the Company’s products may
not provide the intended economic or operational advantages; we may
be unable to grow and sustain anticipated revenue streams because
of competition or decreased interest in our products; orders may be
cancelled and competitors may enter the market with new product
offerings which could capture some of our market share; costs of
production may increase affecting our EBITDA; we may have to incur
debt to keep up with costs and/or technological or product
development expenses; and our new equipment offerings may not
capture market share as well as expected. Except as required
by law, the Company does not intend to update the forward-looking
information and forward-looking statements contained in this news
release.
For further information, please contact:
James R. Bond, CEO and President
Email: bond@kelsotech.com
Richard Lee, Chief Financial Officer
Email: lee@kelsotech.com
Corporate Address:
13966 - 18B Avenue
South Surrey, BC V4A 8J1
www.kelsotech.com
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