Water Ways Reports 2021 Financial Results: Record Sales of CAD$20.2 Million and a 59% Increase Year Over Year

Ramat-David, ISRAEL


TORONTO, April 28, 2022 (GLOBE NEWSWIRE) -- Water Ways Technologies Inc. (TSXV: WWT) (FRA: 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 Annual Financial Statements (the "Statements") and Managements Discussion and Analysis (the "MD&A") for the year ended December 31, 2021. A comprehensive discussion of Water Ways’ financial position and results of operations is provided in the MD&A, filed on SEDAR (www.sedar.com)

Ohad Haber, President, CEO and Chairman of the Board of Water Ways, states: "2021 was a record year for Water Ways. We grew in sales in all existing territories and continue to establish ourselves as a global provider for irrigation solutions. I would like to take the opportunity to thank our devoted team for their efforts during this demanding period of work that assisted Water Ways to succeed in what was a challenging year globally".

On Tuesday, May 3, 2022, at 9 am Eastern Time, Water Ways' CFO, Dor Sneh and Ronnie Jaegermann, Director, will host a live webinar with a corporate update, earnings discussion and outlook for 2022 and beyond. An Investor question-and-answer session will follow.

Register: Water Ways Technologies: 2021 financial results

Highlights – Year ended December 31, 2021 (the following information should be read in conjunction with, and is qualified by, the Statements and the MD&A)

  • Total Revenues for the year ended December 31, 2021, increased 59% to CAD$20.3 million compared to CAD$12.7 million for the year ended December 31, 2020.
  • Service Project revenue stream increased substantially to CAD$8.7 million compared to CAD$3.1 million for the year ended December 31, 2021 and 2020, respectively, for total project revenue growth of 180%.
  • The Company installed and delivered the largest contract in its history, in Uzbekistan, resulting in revenue of over CAD$4 million.
  • All the Company's operating subsidiaries achieved record sales.
  • Strong 2021 Q4 sales CAD$4.5 million compared to CAD$3.2 million in Q4 of 2020, an increase of 41% Year over Year.
  • Adjusted EBITDA of CAD$0.2 million compared to a loss for the year ended December 31, 2021 and 2020, respectively (Company's definition of "Adjusted EBITDA" can be found in the MD&A, a non-GAAP measure with adjustments driven substantially by Share based payments).
  • As of December 31, 2021, the Company's cash and cash equivalents were CAD$3.3 million, compared to CAD$0.4 million for the year ended December 31, 2020.
  • As of December 31, 2021, total working capital was CAD$4.6 million compared to CAD$0.02 million as of December 31, 2020.
  • Share price increased 566% from CAD$0.045 in December 31, 2020 to CAD$0.30 as of December 31, 2021.
  • The Company completed an oversubscribed private placement of CAD$4.5 million in August 2021 (the "Private Placement").
  • During the third quarter, the Company's shares began trading on most German Stock Exchanges under the symbol WWT.
  • In August, the Company granted its employees and directors RSU’s and options totaling CAD$0.67 million.
  • Derivative Liability – Warrants relates to a classification under IFRS of outstanding warrants issued as part of the Private Placement 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 $5.1 million during the year ended December 31, 2021.

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

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

   For the year ended December 31,   
 (CAD in thousands) 2021 2020 Change % 
 Services Projects 8,763 3,132 179.8% 
 Products 11,492 9,585 19.9% 
 Total Revenues 20,255 12,717 59.3% 
 Cost of Sales 16,545 10,871 52.2% 
 Gross Profit 3,710 1,846 101.0% 
 Gross Profit Margin % 18.3% 14.5%   
 Operating Expenses 4,896 3,027   
 Revaluation of derivatives 5,191 -   
 Financial expense (income), net277 213   
 Taxes on Income (recovery) (6) (118)   
 Loss for the period  (6,647) (1,276)   


 (CAD in thousands) As of December 31,
 As of December 31,
 Change % 
 Balance Sheet Items:       
 Cash and Cash Equivalents 3,295 407 710.2% 
 Total Current Assets 12,279 6,992 75.6% 
 Total Assets 15,321 10,115 51.5% 
 Total Current Liabilities 7,706 6,976 10.5% 
 Total Non-Current Liabilities 8,589 2,505 242.9% 

 Adjusted EBITDA 
   For the year ended December 31 
   CAD$ in thousands  
   2021 2020 
 Operating profit (loss) -1,186 -1,161 
 Depreciation and Amortization 243 94 
 Listing Expenses 114 - 
 Share-Based Payments 667 26 
 Global Expansion & Relocation Expenses 156 - 
 Other Non recurring items 176 - 
 Total Adjustments 1,356 120 
 Adjusted EBITDA 171 -1,041 

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

For more information, please contact

Ronnie Jaegermann Dor Sneh Dr. Eva Reuter
Director CFO Investor Relations - Germany
T: +972-54-4202054 T: +972-54-6512500 +49 69 1532 5857
E: ronnie@waterwt.com E: dor@irri-altal.com E: e.reuter@dr-reuter.eu



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.