~Improvement in Q1 Adjusted EBITDA with 2024 positive EBITDA goal remaining intact~ VANCOUVER, BC, May 9, 2024 /CNW/ - Greenlane Renewables Inc. ("Greenlane'' or the "Company") (TSX:GRN) (FSE: 52G) (OTC:GRNWF) today announced its financial results for the first quarter ended March 31, 2024. For further information on these results please see the Company's Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis filed under the Company's profile on SEDAR+ at www.sedarplus.ca. All amounts reported are in Canadian dollars and in accordance with International Financial Reporting Standards ("IFRS") unless otherwise stated. First Quarter Highlights Include: Revenue of $18.1 million; Gross profit of $4.6 million, Gross Margin1 before amortization of $4.8 million (27% of revenue); Adjusted EBITDA2 loss of $0.5 million; Net loss and comprehensive loss of $0.8 million, Sales Order Backlog3 of $24 million as at March 31, 2024; and Cash and cash equivalents of $7.2 million and no debt, other than payables, advance payment / performance bonding and standby letters of credit resulting from normal course operations, as at March 31, 2024. Subsequent to March 31, 2024, the Company sold Greenlane Renewables UK Limited that carried on the Company's UK and EU-based legacy aftercare services business. For Q1 2024, the business generated revenue of $0.5 million and realized an Adjusted EBITDA loss of $0.1 million. This transaction triggered a restatement of our financial statements to reflect this business as discontinued operations. "We recognized a significant improvement in Adjusted EBITDA with a reduced loss of $0.5 million in Q1 2024 compared to a loss of $1.7 million in Q4 2023," said Ian Kane, President & CEO of Greenlane. "We continue to drive toward our goal of positive Adjusted EBITDA this year, which also requires us to refill our sales pipeline. We have significant sales activities ongoing and look to convert them into purchase orders as soon as possible. With respect to our collaborative agreement with ZEG Biogás in Brazil announced a year ago, we started to recognize royalty revenue this quarter, which will help improve our overall business and margin profile and further strengthen our brand presence in Brazil. "I am encouraged with the progress that we've made towards our objective of achieving Adjusted EBITDA positive results for this fiscal year," said Monty Balderston, Chief Financial Officer at Greenlane. "As part of management's ongoing evaluation of its operations and strategic plan, we've exited non-core parts of our business to increase the focus on the growth of Greenlane's core, including our Cascade products and services." The Market Outlook In April, The Transport Project (TTP), a national coalition of roughly 200 fleets, vehicle and engine manufacturers and dealers, servicers and suppliers, and fuel producers dedicated to the decarbonization of North America's transportation sector and the Coalition for Renewable Natural Gas (RNG Coalition) reported that 79% of all on-road fuel used in natural gas vehicles in calendar year 2023 was renewable natural gas (RNG). This volume surpassed the previous year's record-breaking level as RNG use as a transportation fuel grew 16% over 2022 volumes, up 92% from 2019 levels. A new report by Guidehouse has revealed that Europe could produce 111 billion cubic metres (bcm) of biomethane by 2040. This amount represents over 30% of the EU gas consumption in 2022. Via the REPowerEU plan, the European Commission has set a target to produce 35 bcm of biomethane annually in the EU by 2030, representing a ten-fold increase in current levels of biomethane production. Live Conference CallThe public is invited to listen to the conference call in real time by telephone. To access the conference call by telephone, please dial: 1-844-763-8274 (North America toll-free) or +1-647-484-8814. Callers should dial in 5-10 minutes prior to the scheduled start time and ask to join the Greenlane Renewables conference call. For expedited access to the conference call, attendees can click HERE to use a registration link prior to the call. Shortly after the conference call, the replay will be archived on the Greenlane's website and replay will be available in streaming audio and a downloadable audio file. SPECIFIED FINANCIAL MEASURES Management evaluates the Company's performance using a variety of measures, including "Gross Margin before amortization", "Adjusted EBITDA" and "Sales Order Backlog". The specified financial measures, including non-IFRS measures and supplementary financial measures should not be considered as an alternative to or more meaningful than revenue, gross profit or net income. These measures do not have a standardized meaning prescribed by IFRS and therefore they may ...