Name: VISION ENERGY Corp Q1 2019 Earnings Call
Start: 2019-05-16T00:00:00.000Z

Executive Summary

Q1 2019 revenue was $1.704M and net loss was $(143,638), with diluted EPS of $(0.02); management emphasized that subsidiaries were profitable while corporate/non-cash items weighed on results .
Sequentially vs Q3 2018, net loss improved from $(267,328) to $(143,638), while revenue softened from $1.839M to $1.704M, reflecting normal seasonality and project timing .
Pipeline momentum increased: the bid list rose to ~$33M from ~$27M in the prior quarter, which management cited as an activity indicator and a catalyst for the balance of the year .
Liquidity remains tight (cash $328k; working capital deficit $(48k)), and the company executed financing actions (10% convertible debentures; equity purchase agreement up to $450k) to support operations .
No formal numerical guidance or Wall Street consensus estimates were available; management’s tone was constructive on “strong” projections for the year, but comparisons to sell-side estimates are unavailable .

What Went Well and What Went Wrong

“The subsidiaries were profitable and performed well,” despite seasonally softer Q1; management highlighted rising bid activity and confidence in achieving “consistent operational profitability, exclusive of non-cash charges” .
Gross profit increased year over year to $507,835 (vs $485,294 in Q1 2018), underpinning stable project execution despite a slight topline decline .
Segment mix showed positive contribution from non-renewable systems integration: operating income of $37,094 in Q1 2019, offsetting losses in renewable integration .

Revenue dipped slightly year over year ($1.704M vs $1.726M), and net loss widened to $(143,638) vs $(110,969), driven by higher G&A, audit/legal, and related-party interest expense .
Liquidity pressure persisted: working capital deficit of $(48,401) at quarter-end and increased reliance on debt/leasing and a line of credit .
Internal control weaknesses were disclosed (insufficient accounting personnel and lack of written policies), elevating reporting risk until remediation .

Metric	Q1 2018	Q3 2018	Q1 2019
Revenue ($USD)	$1,726,324	$1,839,491	$1,704,273
Gross Profit ($USD)	$485,294	$391,803	$507,835
Operating Income (Loss) ($USD)	$(89,390)	$(234,822)	$(118,717)
Net Income (Loss) ($USD)	$(110,969)	$(267,328)	$(143,638)
Diluted EPS ($USD)	$(0.02)	$(0.04)	$(0.02)

Segment breakdown (revenue and operating profit/loss):

Segment Metric	Q1 2018	Q1 2019
Renewable systems integration revenue ($USD)	$31,789	$49,514
Non-renewable systems integration revenue ($USD)	$1,694,535	$1,654,759
Renewable systems integration operating (loss) ($USD)	$(161,520)	$(155,811)
Non-renewable systems integration operating income ($USD)	$72,130	$37,094

Key KPIs and balance sheet indicators:

KPI	Dec 31, 2018	Mar 31, 2019
Cash and cash equivalents ($USD)	$359,134	$328,439
Total assets ($USD)	$3,524,507	$3,659,042
Contract backlog ($USD)	$583,392	$436,239
Working capital ($USD)	—	$(48,401)
Funds available under Thermo LOC ($USD)	—	$120,848
Bid list (pipeline) ($USD Millions)	~$27.0	~$33.0

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2019	None provided	None provided	Maintained (no formal guidance)
Operational profitability (ex non-cash charges)	FY2019	Goal stated qualitatively	Goal reiterated	Maintained
Bid list / pipeline	FY2019	~$27M (prior quarter)	~$33M (current quarter)	Raised

Topic	Previous Mentions (Q3 2018, FY2018)	Current Period (Q1 2019)	Trend
APAC renewable push (Pride Group)	Investment to expand renewable effort in Australia; active quoting; backlog noted ; established revenue-producing renewable division; selected as Queensland panel member	Confidence in expanding clean energy opportunities; increased bid activity	Expanding presence and opportunity set
Financing strategy	Secured Thermo growth lending facility	Issued 10% convertible debentures; amended prior debentures to 10% and $0.50 conversion; signed equity purchase agreement up to $450k	Active use of debt/equity lines to fund operations
Backlog/pipeline	Backlog $715,595 at 9/30/2018; proposals $12.75M	Backlog $436,239 at 3/31/2019; bid list up to ~$33M	Backlog down; pipeline up (more bids vs completed work)
Segment mix	Predominantly non-renewable revenue base	Renewable revenue modest ($49.5k); non-renewable remains primary	Renewable contribution growing from low base
Internal controls	—	Material weaknesses disclosed (personnel, policies)	Risk acknowledged; remediation needed

“The first quarter is typically our slowest quarter of the year however, the subsidiaries were profitable and performed well… The balance of the year projections are strong and we have increased our overall bid list from $27 million in the previous quarter to $33 million this quarter…” — Andrew Hidalgo, CEO .
“We believe our goal of maintaining consistent operational profitability, exclusive of non-cash charges, is within reach… we feel our financial condition remains solid with $328,439 in cash and $3,659,042 in assets as of March 31, 2019.” — Andrew Hidalgo, CEO .
“Fiscal year 2018 was a significant year… achieved many milestones… growth lending facility with Thermo; established a revenue producing renewable energy division in Australia.” — FY2018 release .
“We committed to investing in the expansion of the renewable energy effort at our Pride Group subsidiary in Australia… We believe this investment will be the key to launching our renewable energy efforts in the Asia-Pacific region.” — Q3 2018 release .

Not applicable—results were furnished via 8‑K; no earnings call transcript is included among filings reviewed for the period .

No S&P Global Wall Street consensus estimates available for Q1 2019 (GetEstimates mapping unavailable for VENG); therefore, estimate comparisons and beat/miss analysis are not presented.

Margin resilience: Gross profit improved year over year despite a slight revenue decline, indicating stable project execution and mix .
Liquidity remains constrained: working capital deficit and modest cash balance heighten reliance on debt lines and equity facilities; monitor financing cadence and covenants (Thermo LOC, convertibles) .
Pipeline strength vs backlog: bid list expanded to ~$33M even as backlog decreased; conversion of bids into booked backlog and revenue is the near‑term execution focus .
Segment dynamics: non‑renewable integration continues to drive results; renewable revenue is growing from a low base—watch for APAC wins and HC‑1 deployments to inflect renewable contribution .
Expense and financing drag: higher G&A (audit/legal/stock-based costs) and related‑party interest weighed on EPS; any cost discipline and refinancing could leverage margins .
Control remediation is important: disclosed material weaknesses in internal controls increase reporting/operational risk; remediation progress is a monitoring item .
Without formal guidance or sell-side coverage, near‑term stock moves likely hinge on contract awards, backlog growth, and financing developments communicated via 8‑Ks .