Kelso Technologies says company demonstrated 'stronger sales' in 2019
Kelso Technologies 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 $500,000 in 2017 to in excess of $1,000,000 per month in 2018 to over $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. The company said, :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 $100M 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 $21M at the end of 2018 to over $34M 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 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."