PyroGenesis Announces 2015 Results

Revenues of $6.2MM; Gross Margin Exceeds 27%; Current Backlog $14.5MM; Shareholder's Equity $0.6MM

MONTREAL, QUEBEC--(Marketwired - April 29, 2016) - PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX VENTURE:PYR) (OTCQB:PYRNF), a TSX Venture 50® clean-tech company (the "Company" or "PyroGenesis") that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, announced today its financial and operational results for the fourth quarter and the fiscal year ended December 31, 2015.

"Despite increased revenues year over year and healthy, albeit weaker, margins over the same period, fiscal 2015 results reflect, in part, the impact of the Company's decision to enter the Additive Manufacturing industry and, as such, may not reflect what may have been expected had the Company decided not to pursue this opportunity," said P. Peter Pascali, President and CEO of PyroGenesis. "As noted below in the Outlook, and as announced in recent press releases, PyroGenesis has positioned itself to start producing, in 2016, titanium powders which are highly sought after in the 3D printing market. We look forward to 2016 and, in particular the coming months, as this strategy takes shape. A summary of the 2015 results are discussed below."

Highlights

Fiscal 2015 was a year in which PyroGenesis posted:

• Increased Revenues by 8% to $6,242,003 year over year;
• Gross margins (before amortization of intangible assets) decreased to 27.1%. Same margins decrease to 31% for 2014-Q4;
• An EBITDA loss of $2.6MM;
• An Adjusted EBITDA loss of $473,401 in Q4, 2015;
• Shareholder's equity at year-end 2015: $615,571;
• A backlog of $14.5MM at December 31, 2015.

Financial Summary

Revenues

The Company posted revenues of $2,228,782 in the fourth quarter of 2015 ("Q4, 2015"), representing an increase of 25% compared with $1,784,676 recorded in the fourth quarter of 2014 ("Q4, 2014"). Revenue recorded in Fiscal 2015 was generated primarily from (i) work completed under PyroGenesis' project to design, manufacture and supply ten plasma-based powder production systems for 3D printing to an Asian client, (ii) advances made on two R&D projects incorporating novel plasma based technologies in the oil and gas industrial sector, (iii) the manufacture and supply of PyroGenesis' first DROSRITE™ Furnace System to a North American automobile parts manufacturer, (iv) work completed on the second, and final, phase to design, manufacture and deliver a fully automated plasma torch system comprised of eight air plasma torches to be used for waste gasification for a client in Asia, and (v) progress made on various contracts in the defense sector, specifically: (a) the design, manufacture and preliminary field testing of Tactical PACWADS, the first mobile plasma system for destruction of chemical warfare agents under contract with an international military consortium, and (b) support services related to PAWDS-Marine systems supplied to the US Navy, including training sailors in the operation and maintenance of the system.