Jamieson Wellness Inc. Reports Second Quarter 2024 Results and Raises Quarterly Dividend
Branded revenue growth of over 100% in
“We are pleased to announce consolidated revenue of
“Today, we are also announcing an 11% increase in our quarterly dividend. With all our business units meeting or exceeding our expectations, we are confident in our outlook for the year and remain committed to providing value for all our stakeholders.”
Second Quarter Highlights
-
Expanded the Company’s market leadership position in
Canada in conjunction with continued innovation and consumption growth -
More than doubled the Company’s revenues in
China , led by marketing investments and successful June promotional activity which significantly outpaced market growth - Grew the youtheory brand led by increased consumer demand, new distribution, and product innovation
- International innovations including a vitamin B12 complex and an omega turmeric product exceeded Company expectations and continued to drive demand in key growth markets
- Conducted an ESG materiality and risk assessment to identify and prioritize future sustainability initiatives
Second Quarter Financial Results Consolidated Summary
All comparisons are with the second quarter of 2023
-
Consolidated revenue increased 10.3% to
$184.8 million , driven by 17.2% growth inJamieson Brands and an expected 16.3% decline inStrategic Partners -
Gross profit increased by
$10.2 million to$65.0 million ; normalized gross profit increased by$9.4 million largely driven by higher revenues -
Gross profit margin3 increased by 250 basis points; normalized gross profit margin increased 190 basis points due to a higher mix of
Jamieson Brands sales -
EBITDA1 increased by
$2.1 million to$24.4 million , mainly driven by higher revenues and gross profit; Adjusted EBITDA1 increased by$0.5 million to$31.6 million , reflecting the impact of higher sales and increased gross profit, partially offset by higher investments in demand driving SG&A -
Net earnings was
$8.3 million ; Adjusted net earnings1 was$14.7 million , or$1.0 million higher, reflecting higher normalized earnings from operations, foreign exchange loss in the prior year, and lower interest rates in the current period -
Diluted earnings per share was
$0.20 ; Adjusted diluted earnings per share2 was$0.35
Summary of Segment Results
All comparisons are with the second quarter of 2023
-
Revenue increased 17.2% or
$22.9 million to$155.8 million Canada revenue increased by 10.1% to$80.0 million , driven by continued strong consumer consumption, pricing, and the previously noted shift in revenue due to the Q1 labour disruptionChina revenue increased 106.6% to$20.6 million on a constant currency basis, driven by the Company’s investment strategy in the country-
youtheory revenue increased 5.6% to
$44.5 million (+17% in the front half), reflecting increased consumer demand partially offset by the initial fill of a key innovation in the prior year -
International revenue increased by 34.3% to
$10.7 million on a constant currency basis, driven by innovation and the previously noted shipment timing shifts due to the Q1 labour disruption
-
Gross profit increased by
$11.6 million to$61.3 million ; normalized gross profit increased by$10.8 million mainly due to higher revenues -
Gross profit margin3 increased by 190 basis points to 39.3%; normalized gross profit margin increased by 130 basis points to 40.4%, mainly driven by significant volume growth in
China -
Adjusted EBITDA1 increased by
$2.0 million to$28.7 million , driven by higher gross profit partially offset by investments in SG&A to drive brand awareness and growth in theU.S. andChina ; Adjusted EBITDA margin2 was 18.4%, a decrease of 170 basis points due to higher SG&A as a percentage of revenue
-
Revenue was
$29.0 million , an expected decrease of 16.3% or$5.6 million as the Company prioritized the normalization of branded shipments after the Q1 labour disruption and transitioned away from a customer contract as previously announced -
Gross profit was
$3.7 million , a decrease of$1.4 million ; gross profit margin3 was 12.9%, a decrease of 190 basis points impacted by customer mix -
Adjusted EBITDA1 was
$2.9 million , a decrease of$1.5 million ; Adjusted EBITDA margin2 was 9.9%, a decrease of 280 basis points
Balance Sheet and Cash Flow
All comparisons are with the second quarter of 2023
-
As at
June 30, 2024 , the Company had approximately$190.1 million in cash and available revolving and swingline facilities and net debt1 of$309.9 million -
The Company generated
$6.9 million in cash from operations compared to$11.7 million generated in Q2 2023 -
Cash from operating activities before working capital considerations of
$17.1 million increased by$4.4 million mainly due to higher gross profit -
Cash used in working capital increased by
$9.3 million driven by timing of accounts receivable collections, partially offset by the drawdown of inventory
1 This is a non-IFRS financial measure. See the “Non-IFRS and Other Financial Measures” section of this press release for more information on each non-IFRS financial measure. |
2 This is a non-IFRS ratio. See the “Non-IFRS and Other Financial Measures” section of this press release for more information on each non-IFRS ratio. |
3 This is a supplementary financial measure. See the “Non-IFRS and Other Financial Measures” section of this press release for more information on each supplementary financial measure. |
Maintaining Outlook for Fiscal 2024 and 2025
The Company is maintaining its outlook for the 2024 fiscal year and continues to anticipate the following:
-
Revenue in a range of
$720.0 to$760.0 million , which represents annual growth of 6.5% to 12.5% -
Adjusted EBITDA in a range of
$138.0 to$144.0 million -
Adjusted diluted earnings per share in a range of
$1.55 to$1.65
In fiscal 2025, the Company continues to anticipate the following:
-
The return of low double-digit growth with Adjusted EBITDA of between
$155.0 and$165.0 million -
Profitability driven by
Jamieson Brands andStrategic Partners volume growth, and manufacturing efficiencies -
SG&A and marketing investments consistent with
Jamieson Brands revenue growth rates
For additional details on the Company’s fiscal 2024 and 2025 outlook, including guidance for the third quarter of 2024, refer to the “Outlook” section in the management’s discussion and analysis of financial condition and results of operations (“MD&A”) for the three and six months ended
Declaration of Second Quarter Dividend
The board of directors of the Company authorized a
-
$0.21 per common share, or approximately$8.8 million in the aggregate -
Paid on
September 13, 2024 to all common shareholders of record at the close of business onAugust 30, 2024 -
The Company has designated this dividend as an “eligible dividend” for the purposes of the Income Tax Act (
Canada )
Consolidated Financial Statements and Management’s Discussion and Analysis
The Company’s unaudited condensed consolidated interim financial statements and accompanying notes as at and for the three and six months ended
Conference Call
Management will host a conference call to discuss the Company’s second quarter 2024 results at
-
By phone: 1-800-717-1738 from
Canada and theU.S. or 1-646-307-1865 from international locations - Online: https://investors.jamiesonwellness.com or https://viavid.webcasts.com/starthere.jsp?ei=1679583&tp_key=b72d7910d4
About
Jamieson Wellness’ head office is located at 1 Adelaide Street East Suite 2200,
Forward-Looking Information
This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes, but is not limited to, statements related to the Company’s anticipated results and its outlook for its 2024 revenue, Adjusted EBITDA and Adjusted diluted earnings per share. Words such as “expect”, “anticipate”, “intend”, “may”, “will”, “estimate” and variations of such words and similar expressions are intended to identify such forward-looking information. This information reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the Company’s Annual Information Form dated
The Company cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect the Company’s results. Readers are urged to consider the risks, uncertainties and assumptions associated with these statements carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See “Forward-looking Information” and “Risk Factors” within the MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements.
|
|||||||||||
Selected Consolidated Financial Information |
|||||||||||
In thousands of Canadian dollars, except share and per share amounts |
|||||||||||
Three months ended | Six months ended | ||||||||||
|
|
||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||
Revenue |
184,806 |
|
167,577 |
|
312,844 |
|
304,302 |
|
|||
Cost of sales |
119,778 |
|
112,711 |
|
205,031 |
|
200,920 |
|
|||
Gross profit |
65,028 |
|
54,866 |
|
107,813 |
|
103,382 |
|
|||
Gross profit margin |
35.2 |
% |
32.7 |
% |
34.5 |
% |
34.0 |
% |
|||
Selling, general and administrative expenses |
43,867 |
|
34,832 |
|
83,425 |
|
67,224 |
|
|||
Share-based compensation |
1,744 |
|
1,425 |
|
3,493 |
|
2,921 |
|
|||
Earnings from operations |
19,417 |
|
18,609 |
|
20,895 |
|
33,237 |
|
|||
Operating margin |
10.5 |
% |
11.1 |
% |
6.7 |
% |
10.9 |
% |
|||
Foreign exchange (gain)/ loss |
(180 |
) |
1,482 |
|
(951 |
) |
1,645 |
|
|||
Interest expense and other financing costs |
4,647 |
|
6,008 |
|
9,520 |
|
12,310 |
|
|||
Accretion on preferred shares |
2,121 |
|
827 |
|
4,340 |
|
827 |
|
|||
Earnings before income taxes |
12,829 |
|
10,292 |
|
7,986 |
|
18,455 |
|
|||
Provision for income taxes |
4,516 |
|
3,088 |
|
3,392 |
|
4,186 |
|
|||
Net earnings |
8,313 |
|
7,204 |
|
4,594 |
|
14,269 |
|
|||
Net earnings attributable to: | |||||||||||
Shareholders |
8,653 |
|
8,186 |
|
4,540 |
|
15,251 |
|
|||
Non-controlling interests |
(340 |
) |
(982 |
) |
54 |
|
(982 |
) |
|||
8,313 |
|
7,204 |
|
4,594 |
|
14,269 |
|
||||
Adjusted net earnings |
14,654 |
|
13,632 |
|
18,569 |
|
22,478 |
|
|||
EBITDA |
24,358 |
|
22,277 |
|
31,507 |
|
41,583 |
|
|||
Adjusted EBITDA |
31,555 |
|
31,056 |
|
47,652 |
|
55,564 |
|
|||
Adjusted EBITDA margin |
17.1 |
% |
18.5 |
% |
15.2 |
% |
18.3 |
% |
|||
Weighted average number of shares | |||||||||||
Basic |
41,456,594 |
|
41,943,971 |
|
41,468,227 |
|
41,860,444 |
|
|||
Diluted |
41,456,594 |
|
42,890,029 |
|
42,304,411 |
|
42,745,685 |
|
|||
Earnings per share attributable to common shareholders: | |||||||||||
Basic, earnings per share |
0.20 |
|
0.17 |
|
0.11 |
|
0.34 |
|
|||
Diluted, earnings per share |
0.20 |
|
0.17 |
|
0.11 |
|
0.33 |
|
|||
Adjusted diluted, earnings per share |
0.35 |
|
0.32 |
|
0.44 |
|
0.53 |
|
|
|||
Consolidated Statements of Financial Position |
|||
In thousands of Canadian dollars |
|||
|
|
||
Assets | |||
Current assets | |||
Cash |
22,711 |
36,863 |
|
Accounts receivable |
146,502 |
164,499 |
|
Inventories |
190,602 |
182,456 |
|
Derivatives |
1,150 |
3,707 |
|
Prepaid expenses and other current assets |
6,501 |
5,335 |
|
Income taxes recoverable |
5,775 |
- |
|
373,241 |
392,860 |
||
Non-current assets | |||
Property, plant and equipment |
103,234 |
106,903 |
|
|
279,604 |
274,411 |
|
Intangible assets |
370,035 |
366,521 |
|
Deferred income tax |
3,683 |
2,879 |
|
Total assets |
1,129,797 |
1,143,574 |
|
Liabilities | |||
Current liabilities | |||
Accounts payable and accrued liabilities |
109,393 |
135,520 |
|
Income taxes payable |
1,933 |
2,263 |
|
Derivatives |
127 |
- |
|
Current portion of other long-term liabilities |
4,791 |
7,546 |
|
116,244 |
145,329 |
||
Long-term liabilities | |||
Long-term debt |
332,587 |
325,000 |
|
Post-retirement benefits |
1,137 |
1,078 |
|
Deferred income tax |
60,301 |
60,532 |
|
Redeemable preferred shares |
93,749 |
89,409 |
|
Other long-term liabilities |
41,509 |
41,031 |
|
Total liabilities |
645,527 |
662,379 |
|
Equity | |||
Share capital |
313,799 |
312,593 |
|
Warrants |
14,705 |
14,705 |
|
Contributed surplus |
22,366 |
19,089 |
|
Retained earnings |
69,466 |
80,654 |
|
Accumulated other comprehensive income |
21,341 |
11,892 |
|
Total shareholders' equity |
441,677 |
438,933 |
|
Non-controlling interests |
42,593 |
42,262 |
|
Total equity |
484,270 |
481,195 |
|
Total liabilities and equity |
1,129,797 |
1,143,574 |
Non-IFRS and Other Financial Measures
This press release makes reference to certain financial measures, including non-IFRS financial measures that are historical, non-IFRS measures that are forward-looking, non-GAAP ratios and supplementary financial measures. Management uses these financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing the Company’s business performance and trends. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. The Company uses the following non-IFRS financial measures: “EBITDA”, “Adjusted EBITDA” and “Adjusted net earnings”, the most directly comparable financial measure for each that is disclosed in its financial statements being net earnings, “normalized gross profit”, “normalized SG&A”, “normalized earnings from operations”, “cash from operating activities before working capital considerations” and “net debt”, the most directly comparable financial measures for each that is disclosed in its financial statements being gross profit, SG&A, earnings from operations, cash flows from operating activities, and long-term debt, respectively, the following non-IFRS ratios: “Adjusted EBITDA margin”, “Adjusted diluted earnings per share”, “normalized gross profit margin”, “normalized operating margin”, and the following supplementary financial measures: “gross profit margin” and “operating margin” to provide supplemental measures of the Company’s operating performance and thus highlight trends in the Company’s core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. For an explanation of the composition of each such measure and the usefulness and additional uses of each by management, see the “How we Assess the Performance of our Business” section of the MD&A, which is incorporated by reference. See below for a quantitative reconciliation of each non-IFRS financial measure to its most directly comparable financial measure disclosed in the Company’s financial statements to which the measure relates.
The following tables provide a quantitative reconciliation of net earnings to EBITDA, Adjusted EBITDA, and Adjusted net earnings, as well as gross profit to normalized gross profit, SG&A to normalized SG&A, earnings from operations to normalized earnings from operations and net debt, each of which are non-IFRS financial measures (see the “Non-IFRS and Other Financial Measures” of this press release for further information on each non-IFRS financial measure) for the three and six months ended
|
|||||||||||
Segment Information |
|||||||||||
In thousands of Canadian dollars, except as otherwise noted |
|||||||||||
|
|||||||||||
Three months ended |
|||||||||||
2024 |
2023 |
$ Change |
% Change |
||||||||
Revenue |
155,787 |
|
132,916 |
|
22,871 |
|
17.2 |
% |
|||
Gross profit |
61,284 |
|
49,719 |
|
11,565 |
|
23.3 |
% |
|||
|
1,414 |
|
- |
|
1,414 |
|
100.0 |
% |
|||
Amortization of fair value adjustments (2) |
165 |
|
2,315 |
|
(2,150 |
) |
(92.9 |
%) |
|||
Normalized gross profit |
62,863 |
|
52,034 |
|
10,829 |
|
20.8 |
% |
|||
Gross profit margin |
39.3 |
% |
37.4 |
% |
- |
|
1.9 |
% |
|||
Normalized gross profit margin |
40.4 |
% |
39.1 |
% |
- |
|
1.3 |
% |
|||
Share-based compensation (3) |
1,744 |
|
1,425 |
|
319 |
|
22.4 |
% |
|||
Selling, general and administrative expenses |
42,262 |
|
33,279 |
|
8,983 |
|
27.0 |
% |
|||
Acquisition and divestiture related costs (4) |
(324 |
) |
(2,307 |
) |
1,983 |
|
86.0 |
% |
|||
IT system implementation (5) |
(3,449 |
) |
(1,429 |
) |
(2,020 |
) |
(141.4 |
%) |
|||
Other |
- |
|
179 |
|
(179 |
) |
(100.0 |
%) |
|||
|
(281 |
) |
- |
|
(281 |
) |
(100.0 |
%) |
|||
Normalized selling, general and administrative expenses |
38,208 |
|
29,722 |
|
8,486 |
|
28.6 |
% |
|||
Earnings from operations |
17,278 |
|
15,015 |
|
2,263 |
|
15.1 |
% |
|||
Acquisition and divestiture related costs (4) |
489 |
|
2,307 |
|
(1,818 |
) |
(78.8 |
%) |
|||
IT system implementation (5) |
3,449 |
|
1,429 |
|
2,020 |
|
141.4 |
% |
|||
|
1,695 |
|
- |
|
1,695 |
|
100.0 |
% |
|||
Amortization of fair value adjustments (2) |
- |
|
2,315 |
|
(2,315 |
) |
(100.0 |
%) |
|||
Other |
- |
|
(179 |
) |
179 |
|
100.0 |
% |
|||
Normalized earnings from operations |
22,911 |
|
20,887 |
|
2,024 |
|
9.7 |
% |
|||
Operating margin |
11.1 |
% |
11.3 |
% |
- |
|
(0.2 |
%) |
|||
Normalized operating margin |
14.7 |
% |
15.7 |
% |
- |
|
(1.0 |
%) |
|||
Adjusted EBITDA |
28,691 |
|
26,656 |
|
2,035 |
|
7.6 |
% |
|||
Adjusted EBITDA margin |
18.4 |
% |
20.1 |
% |
- |
|
(1.7 |
%) |
|||
|
|||||||||||
Three months ended |
|||||||||||
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||
Revenue |
29,019 |
|
34,661 |
|
(5,642 |
) |
(16.3 |
%) |
|||
Gross profit |
3,744 |
|
5,147 |
|
(1,403 |
) |
(27.3 |
%) |
|||
Gross profit margin |
12.9 |
% |
14.8 |
% |
- |
|
(1.9 |
%) |
|||
Selling, general and administrative expenses |
1,605 |
|
1,553 |
|
52 |
|
3.3 |
% |
|||
Earnings from operations |
2,139 |
|
3,594 |
|
(1,455 |
) |
(40.5 |
%) |
|||
Operating margin |
7.4 |
% |
10.4 |
% |
- |
|
(3.0 |
%) |
|||
Adjusted EBITDA |
2,864 |
|
4,400 |
|
(1,536 |
) |
(34.9 |
%) |
|||
Adjusted EBITDA margin |
9.9 |
% |
12.7 |
% |
- |
|
(2.8 |
%) |
|
|||||||||||
Six months ended |
|||||||||||
2024 |
2023 |
$ Change |
% Change |
||||||||
Revenue |
271,135 |
|
241,026 |
|
30,109 |
|
12.5 |
% |
|||
Gross profit |
102,414 |
|
93,520 |
|
8,894 |
|
9.5 |
% |
|||
|
4,667 |
|
- |
|
4,667 |
|
100.0 |
% |
|||
Amortization of fair value adjustments (2) |
- |
|
2,315 |
|
(2,315 |
) |
(100.0 |
%) |
|||
Acquisition and divestiture related costs (4) |
165 |
|
- |
|
165 |
|
100.0 |
% |
|||
Normalized gross profit |
107,246 |
|
95,835 |
|
11,411 |
|
11.9 |
% |
|||
Gross profit margin |
37.8 |
% |
38.8 |
% |
- |
|
(1.0 |
%) |
|||
Normalized gross profit margin |
39.6 |
% |
39.8 |
% |
- |
|
(0.2 |
%) |
|||
Share-based compensation (1) |
3,493 |
|
2,921 |
|
572 |
|
19.6 |
% |
|||
Selling, general and administrative expenses |
80,323 |
|
63,942 |
|
16,381 |
|
25.6 |
% |
|||
Acquisition and divestiture related costs (4) |
(324 |
) |
(5,108 |
) |
4,784 |
|
93.7 |
% |
|||
IT system implementation (5) |
(6,429 |
) |
(2,099 |
) |
(4,330 |
) |
(206.3 |
%) |
|||
|
(1,721 |
) |
- |
|
(1,721 |
) |
(100.0 |
%) |
|||
Other |
(297 |
) |
179 |
|
(476 |
) |
(265.9 |
%) |
|||
Normalized selling, general and administrative expenses |
71,552 |
|
56,914 |
|
14,638 |
|
25.7 |
% |
|||
Earnings from operations |
18,598 |
|
26,657 |
|
(8,059 |
) |
(30.2 |
%) |
|||
Acquisition and divestiture related costs (4) |
489 |
|
5,108 |
|
(4,619 |
) |
(90.4 |
%) |
|||
IT system implementation (5) |
6,429 |
|
2,099 |
|
4,330 |
|
206.3 |
% |
|||
|
6,388 |
|
- |
|
6,388 |
|
(100.0 |
%) |
|||
Amortization of fair value adjustments (2) |
- |
|
2,315 |
|
(2,315 |
) |
(100.0 |
%) |
|||
Other |
297 |
|
(179 |
) |
476 |
|
265.9 |
% |
|||
Normalized earnings from operations |
32,201 |
|
36,000 |
|
(3,799 |
) |
(10.6 |
%) |
|||
Operating margin |
6.9 |
% |
11.1 |
% |
- |
|
(4.2 |
%) |
|||
Normalized operating margin |
11.9 |
% |
14.9 |
% |
- |
|
(3.0 |
%) |
|||
Adjusted EBITDA |
43,815 |
|
47,307 |
|
(3,492 |
) |
(7.4 |
%) |
|||
Adjusted EBITDA margin |
16.2 |
% |
19.6 |
% |
- |
|
(3.4 |
%) |
|||
|
|||||||||||
Six months ended |
|||||||||||
2024 |
|
2023 |
|
$ Change |
|
% Change |
|||||
Revenue |
41,709 |
|
63,276 |
|
(21,567 |
) |
(34.1 |
%) |
|||
Gross profit |
5,399 |
|
9,862 |
|
(4,463 |
) |
(45.3 |
%) |
|||
Gross profit margin |
12.9 |
% |
15.6 |
% |
- |
|
(2.7 |
%) |
|||
Selling, general and administrative expenses |
3,102 |
|
3,282 |
|
(180 |
) |
(5.5 |
%) |
|||
Other |
- |
|
(72 |
) |
72 |
|
100.0 |
% |
|||
Normalized selling, general and administrative expenses |
3,102 |
|
3,210 |
|
(108 |
) |
(3.4 |
%) |
|||
Earnings from operations |
2,297 |
|
6,580 |
|
(4,283 |
) |
(65.1 |
%) |
|||
Other |
- |
|
72 |
|
(72 |
) |
(100.0 |
%) |
|||
Normalized earnings from operations |
2,297 |
|
6,652 |
|
(4,355 |
) |
(65.5 |
%) |
|||
Operating margin |
5.5 |
% |
10.4 |
% |
- |
|
(4.9 |
%) |
|||
Normalized operating margin |
5.5 |
% |
10.5 |
% |
- |
|
(5.0 |
%) |
|||
Adjusted EBITDA |
3,837 |
|
8,257 |
|
(4,420 |
) |
(53.5 |
%) |
|||
Adjusted EBITDA margin |
9.2 |
% |
13.0 |
% |
- |
|
(3.8 |
%) |
Reconciliation of Non-IFRS Financial Measures |
|||||||||||
In thousands of Canadian dollars |
|||||||||||
Three months ended | Six months ended | ||||||||||
|
|
||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||
Net earnings: |
8,313 |
|
7,204 |
|
4,594 |
|
14,269 |
|
|||
Add: | |||||||||||
Provision for (recovery of) income taxes |
4,516 |
|
3,088 |
|
3,392 |
|
4,186 |
|
|||
Interest expense and other financing costs |
4,647 |
|
6,008 |
|
9,520 |
|
12,310 |
|
|||
Accretion on preferred shares |
2,121 |
|
827 |
|
4,340 |
|
827 |
|
|||
Depreciation of property, plant, and equipment |
3,236 |
|
3,659 |
|
6,752 |
|
7,126 |
|
|||
Amortization of intangible assets |
1,525 |
|
1,491 |
|
2,909 |
|
2,865 |
|
|||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) |
24,358 |
|
22,277 |
|
31,507 |
|
41,583 |
|
|||
Share-based compensation (3) |
1,744 |
|
1,425 |
|
3,493 |
|
2,921 |
|
|||
Foreign exchange loss/(gain) |
(180 |
) |
1,482 |
|
(951 |
) |
1,645 |
|
|||
Acquisition and divestiture related costs (4) |
489 |
|
2,307 |
|
489 |
|
5,108 |
|
|||
|
1,695 |
|
- |
|
6,388 |
|
- |
|
|||
IT system implementation (5) |
3,449 |
|
1,429 |
|
6,429 |
|
2,099 |
|
|||
Amortization of fair value adjustments (2) |
- |
|
2,315 |
|
- |
|
2,315 |
|
|||
Other |
- |
|
(179 |
) |
297 |
|
(107 |
) |
|||
Adjusted EBITDA |
31,555 |
|
31,056 |
|
47,652 |
|
55,564 |
|
|||
Provision for income taxes |
(4,516 |
) |
(3,088 |
) |
(3,392 |
) |
(4,186 |
) |
|||
Interest expense and other financing costs |
(4,647 |
) |
(6,008 |
) |
(9,520 |
) |
(12,310 |
) |
|||
Depreciation of property, plant, and equipment |
(3,236 |
) |
(3,659 |
) |
(6,752 |
) |
(7,126 |
) |
|||
Amortization of intangible assets |
(1,525 |
) |
(1,491 |
) |
(2,909 |
) |
(2,865 |
) |
|||
Share-based compensation (3) |
(1,622 |
) |
(1,303 |
) |
(3,249 |
) |
(2,757 |
) |
|||
Tax deduction from vesting of certain share-based awards |
- |
|
- |
|
- |
|
(1,022 |
) |
|||
Tax effect of normalization adjustments |
(1,355 |
) |
(1,875 |
) |
(3,261 |
) |
(2,820 |
) |
|||
Adjusted net earnings |
14,654 |
|
13,632 |
|
18,569 |
|
22,478 |
|
|||
Three months ended | Six months ended | ||||||||||
|
|
||||||||||
2024 |
2023 |
2024 |
2022 |
||||||||
Gross profit |
65,028 |
|
54,866 |
|
107,813 |
|
103,382 |
|
|||
|
1,414 |
|
- |
|
4,667 |
|
- |
|
|||
Amortization of fair value adjustments (2) |
- |
|
- |
|
- |
|
2,315 |
|
|||
Acquisition and divestiture related costs (4) |
165 |
|
2,315 |
|
165 |
|
- |
|
|||
Normalized gross profit |
66,607 |
|
57,181 |
|
112,645 |
|
105,697 |
|
|||
Normalized gross profit margin |
36.0 |
% |
34.1 |
% |
36.0 |
% |
34.7 |
% |
|||
Selling, general and administrative expenses |
43,867 |
|
34,832 |
|
83,425 |
|
67,224 |
|
|||
Acquisition and divestiture related costs (4) |
(324 |
) |
(2,307 |
) |
(324 |
) |
(5,108 |
) |
|||
IT system implementation (5) |
(3,449 |
) |
(1,429 |
) |
(6,429 |
) |
(2,099 |
) |
|||
|
(281 |
) |
- |
|
(1,721 |
) |
- |
|
|||
Other |
- |
|
179 |
|
(297 |
) |
107 |
|
|||
Normalized selling, general and administrative expenses |
39,813 |
|
31,275 |
|
74,654 |
|
60,124 |
|
|||
Earnings from operations |
19,417 |
|
18,609 |
|
20,895 |
|
33,237 |
|
|||
Acquisition and divestiture related costs (4) |
489 |
|
2,307 |
|
489 |
|
5,108 |
|
|||
IT system implementation (5) |
3,449 |
|
1,429 |
|
6,429 |
|
2,099 |
|
|||
|
1,695 |
|
- |
|
6,388 |
|
- |
|
|||
Amortization of fair value adjustments (2) |
- |
|
2,315 |
|
- |
|
2,315 |
|
|||
Other |
- |
|
(179 |
) |
297 |
|
(107 |
) |
|||
Normalized earnings from operations |
25,050 |
|
24,481 |
|
34,498 |
|
42,652 |
|
|||
Normalized operating margin |
13.6 |
% |
14.6 |
% |
11.0 |
% |
14.0 |
% |
(1) |
These expenses are mainly comprised of third-party legal, security fees, unavoidable facility expenditures, customer fines and penalties, along with freight charges to expedite shipments to customers as it relates to a labour disruption in Q1 2024. |
|
|
||
(2) |
This cost represents the post-closing amortization of the fair value increase of acquired inventories related to the |
|
|
||
(3) |
The Company’s share-based compensation expense pertains to the long-term incentive plan (the “LTIP”) (refer to “Share-based compensation”), with stock options, performance-based share units (“PSUs”), time-based restricted share units (“RSUs”), and deferred share units (“DSUs”) expenses, along with associated payroll taxes. |
|
|
||
(4) |
Current period mainly pertains to legal, consulting and integration costs associated with the acquisition and integration of a former distributor partner in |
|
|
||
(5) |
Mainly pertains to development costs associated with IT system implementation to augment the system infrastructure. Unlike other system improvement projects with costs capitalized, due to their cloud-based nature, these system implementation costs are expensed accordingly. |
Reconciliation of Net Debt |
|||||
In thousands of Canadian dollars |
|||||
($ in 000's) |
As at |
As at |
|||
2024 |
2023 |
||||
Long-term debt |
332,587 |
|
325,000 |
|
|
Cash |
(22,711 |
) |
(36,863 |
) |
|
Net debt |
309,876 |
|
288,137 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808846366/en/
Investor and Media Contact Information:
416-960-0052
rwinker@jamiesonlabs.com
Source: