Steel Products
Greenwave Posts Loss, Foresees ‘Aggressive Consolidation’ in Industry
Written by Laura Miller
August 15, 2023
Despite reporting the third highest quarterly revenues in its history, Greenwave Technology Solutions still posted a loss for the quarter ended June 30.
The Virginia-based metal recycling company had a net loss of $2.3 million on sales of $9.4 million in the quarter. The loss was an improvement from its loss of $14.1 million in the year-ago quarter on sales of $10.7 million.
Greenwave Technology Solutions
| Quarter ended June 30 | 2023 | 2022 | % Change |
|---|---|---|---|
| Net sales | $9.4 | $10.7 | -12% |
| Net earnings (loss) | ($2.3) | ($14.1) | 84% |
| Per diluted share | ($0.20) | ($4.23) | 95% |
| Six months ended June 30 | |||
| Net sales | $18.5 | $20.6 | -10% |
| Net earnings (loss) | ($6.3) | ($19.3) | 67% |
| Per diluted share | ($0.56) | ($5.78) | 90% |
“Greenwave is continuing to position itself as one of the most robust metal recycling companies on the East Coast, supplying steel and other recycled metals to some of the nation’s leading steel mills and foundries,” commented chairman and CEO Danny Meeks.
Greenwave, through its wholly owned subsidiary Empire Services, operates 13 ferrous and nonferrous metal recycling facilities in Virginia, North Carolina, and Cleveland, Ohio. The Cleveland facility was opened in April.
The company plans to “aggressively expand [its] footprint of locations by rolling up independent, profitable scrap yards,” according to its website.
“We believe there will continue to be aggressive consolidation in this industry, as demonstrated by yesterday’s buyout offer of U.S. Steel,” Meeks noted in an Aug. 15 press release.
“We continue to execute on our strategic business objective – expanding our operations, increasing volumes, and growing our revenues – and believe Greenwave is one of the most unique and compelling companies in the metal recycling industry,” he added.
During the quarter ended June 30, a downstream processing system began operating at Greenwave’s facility in Kelford, N.C.
A second automotive shredder, expected to come online in the current quarter, will double the company’s ferrous metal processing capacity, it said.
Laura Miller
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