- MAV delivers revenue of
$108.5 million in 2019 and$30.8 million in Q4 2019, up 15% and 6%, respectively, over the prior year - Full-year Adjusted EBITDA increases to
$29.5 million and Q4 2019 Adjusted EBITDA to$8.5 million , up 12.5% and 15.4% over the prior year - 2019 Adjusted Net Income increases to
$11.4 million and Net Income to$4.1 million - 2019 Adjusted Free Cash Flow of
$9.8 million and Free Cash Flow of$7.6 million - Expanded and diversified brand portfolio with acquisition of 'The Mane Choice'
VAUGHAN, ON,
"
"As we look ahead, we must now consider new risks and challenges to our business posed by the COVID-19 public health crisis. Our operations team is working diligently to help minimize potential supply disruptions and is closely monitoring the situation. On the demand side, like many companies, we simply don't know the extent of the impact to product sales at this point. We compete in what has historically been a recession-resilient category and the majority of our North American retail partners – in the food, drug and mass channels – are currently expected to stay open during this time period. We are hopeful these factors will help mitigate the impacts to our business during unprecedented and challenging times."
Selected Financial Highlights(1)(2)
(in thousands of US dollars except per share amounts) (unaudited) | FY 2019 | FY 2018 | Q4 2019 | Q4 2018 | |
Revenue | 108,496 | 94,039 | 30,788 | 29,032 | |
Gross profit | 51,814 | 42,817 | 13,374 | 13,451 | |
Net income (loss) for the period | 4,072 | (10,402) | (1,189) | 1,109 | |
Earnings per Share (basic) | 0.11 | (0.43) | (0.03) | 0.03 | |
EBITDA | 19,688 | 8,227 | 3,824 | 5,235 | |
Adjusted EBITDA | 29,487 | 26,200 | 8,501 | 7,365 | |
Free Cash Flow | 7,648 | (7,212) | 1,160 | 556 | |
Adjusted Free Cash Flow | 9,783 | 2,773 | 3,034 | 576 | |
Adjusted Net Income (Loss) | 11,372 | 2,989 | 2,295 | 2,696 | |
Adjusted Earnings per Share (basic) | 0.31 | 0.12 | 0.06 | 0.07 |
(1) | See "Non-IFRS Measures" | |||
(2) | The financial results of the Company for FY 2018 include the results of | |||
(3) | Basic Earnings per Share and Adjusted Earnings per Share calculations do not include the impact of 2,463,963 shares issuable upon the exchange of the units issued as part of The Mane Choice acquisition. |
Q4 2019 Business and Financial Review
In Q4 2019,
Q4 2019 gross profit, as reported, was
Q4 2019 Adjusted EBITDA increased by 15.4% to
In Q4 2019, the Company reported a net loss of
Free Cash Flow increased to
2020 Outlook
Due to uncertainty related to the rapidly evolving COVID-19 pandemic,
The Company's products are manufactured in
Q4 2019 Financial Statements and Management's Discussion and Analysis
The financial information contained herein is unaudited and has been prepared by management. The Company's audited annual consolidated financial statements as at
Also included on the Company's investor relations website are the simplified unaudited consolidated financial statements as at
Conference Call & Webcast
About
Non‑IFRS Measures
This press release makes reference to certain non‑IFRS measures. 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 our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non‑IFRS measures including "Adjusted EBITDA", "Adjusted Free Cash Flow", "Adjusted Net Income", "Free Cash Flow" and "Net debt-to-Adjusted EBITDA". These non‑IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We also believe that securities analysts, investors and other interested parties frequently use non‑IFRS measures in the evaluation of issuers. Our management also uses non‑IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and to determine components of management compensation. Definitions and reconciliations of non-IFRS measures to the relevant reported measures can be found in our MD&A. Such reconciliations can also be found in this press release under the headings "Q4 2019 Compared to Q4 2018".
"Adjusted EBITDA" represents, for the applicable period, EBITDA as adjusted to add back or deduct, as applicable, certain expenses, costs, charges or benefits incurred in such period which in management's view are not indicative of continuing operations, including: (i) integration, restructuring, and other costs; (ii) shareholder fees and related costs; (iii) purchase accounting adjustments; (iv) share‑based compensation; and (v) unrealized foreign exchange (gain) loss.
"Adjusted Free Cash Flow" is calculated as free cash flow adjusted to add back acquisition related costs which are included in cash provided by operating activities. We believe Adjusted free cash flow is a useful measure to assess the Company's ability to repay debt, finance strategic business acquisitions and investments, pay dividends and repurchase shares. It also facilitates period-to-period comparisons.
"Adjusted Net Income" represents, for the applicable period, net income (loss) and comprehensive income (loss) as adjusted to add back or deduct, as applicable, certain expenses, costs, charges or benefits incurred in such period which in management's view are not indicative of continuing operations, including: (i) integration, restructuring, and other costs; (ii) shareholder fees and related costs; (iii) purchase accounting adjustments; (iv) share‑based compensation; (v) unrealized foreign exchange (gain) loss; and (vi) tax impacts of the aforementioned adjustments (based on annual effective tax rate).
"EBITDA" represents net income (loss) and comprehensive net income (loss) for the period before: (i) income tax (recovery) expense; (ii) interest; and (iii) amortization and depreciation.
''Free Cash Flow'' represents, for the applicable period, cash provided by operating activities less cash used to purchase property and equipment. Free cash flow is a key metric that measures the Company's ability to repay debt, finance strategic business acquisitions and investments, pay dividends and repurchase shares.
"Net debt and Net debt-to-Adjusted EBITDA" net debt is calculated as long-term debt before unamortized deferred financing costs less cash as reported in the consolidated statements of financial position. Net debt-to-Adjusted EBITDA is calculated as net debt divided by Adjusted EBITDA for the four trailing quarters. Net debt is an important measure as it reflects the principal amount of debt owing by the Company as at a particular date. Net debt-to-Adjusted EBITDA is an important measure of the Company's liquidity. References to such calculation on a pro forma basis gives effect to the acquisition of The Mane Choice as if it occurred on
In addition, financial information regarding The Mane Choice set forth in this news release has not been audited, and the related pro forma information should not be considered to be what the actual financial position or other results of operations of the Company would have necessarily been had The Mane Choice acquisition been completed, as, at, or for the periods stated.
Forward-Looking Information
Certain information in this press release, including statements relating to the expected impact of the COVID-19 public health crisis on the Company's operations, the impact to the Company's food, drug and mass retailers, the impact of COVID-19 on e-commerce sales and the impact on the supply of the Company's products to its retail partners constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by
Q4 2019 Compared to Q4 2018 & F2019 Compared to F2018
(in thousands of US dollars) (unaudited) | Q4 2019 | Q4 2018 | $ Change | % Change | |||||||||||||
Consolidated statements of operations and comprehensive income (loss): | |||||||||||||||||
Revenue | 30,788 | 29,032 | 1,756 | 6.0 | % | ||||||||||||
Cost of sales | 17,414 | 15,581 | 1,833 | 11.8 | % | ||||||||||||
Gross profit | 13,374 | 13,451 | (77) | -0.6 | % | ||||||||||||
Expenses | |||||||||||||||||
Selling and administrative | 6,833 | 7,008 | (175) | -2.5 | % | ||||||||||||
Amortization and depreciation | 953 | 787 | 166 | 21.1 | % | ||||||||||||
Interest and accretion | 1,910 | 1,684 | 226 | 13.4 | % | ||||||||||||
Foreign exchange loss (gain) | 389 | (423) | 812 | nmf | |||||||||||||
Integration, restructuring, and other | 2,328 | 1,631 | 697 | 42.7 | % | ||||||||||||
12,413 | 10,687 | 1,726 | 16.2 | % | |||||||||||||
Income (loss) before income taxes | 961 | 2,764 | (1,803) | -65.2 | % | ||||||||||||
Income tax expense (recovery) | |||||||||||||||||
Current | (586) | — | (586) | nmf | |||||||||||||
Deferred | 2,736 | 1,655 | 1,081 | 65.3 | % | ||||||||||||
2,150 | 1,655 | 495 | 29.9 | % | |||||||||||||
Net income (loss) for the period | (1,189) | 1,109 | (2,298) | nmf | |||||||||||||
EBITDA (1) | 3,824 | 5,235 | (1,411) | -27.0 | % | ||||||||||||
Adjusted EBITDA (1) | 8,501 | 7,365 | 1,136 | 15.4 | % | ||||||||||||
Adjusted Net Income (1) | 2,295 | 2,696 | (401) | -14.9 | % |
(in thousands of US dollars) | Fiscal 2019 | Fiscal 2018 | $ Change | % Change | |||||||||||||
Consolidated statements of operations and comprehensive income (loss): | |||||||||||||||||
Revenue | 108,496 | 94,039 | 14,457 | 15.4 | % | ||||||||||||
Cost of sales | 56,682 | 51,222 | 5,460 | 10.7 | % | ||||||||||||
Gross profit | 51,814 | 42,817 | 8,997 | 21.0 | % | ||||||||||||
Expenses | |||||||||||||||||
Selling and administrative | 27,127 | 22,325 | 4,802 | 21.5 | % | ||||||||||||
Amortization and depreciation | 3,645 | 3,007 | 638 | 21.2 | % | ||||||||||||
Interest and accretion | 7,392 | 17,430 | (10,038) | -57.6 | % | ||||||||||||
Foreign exchange loss (gain) | 485 | (570) | 1,055 | nmf | |||||||||||||
Integration, restructuring, and other | 4,514 | 12,835 | (8,321) | -64.8 | % | ||||||||||||
43,163 | 55,027 | (11,864) | -21.6 | % | |||||||||||||
Income (loss) before income taxes | 8,651 | (12,210) | 20,861 | nmf | |||||||||||||
Income tax expense (recovery) | |||||||||||||||||
Current | 41 | — | 41 | nmf | |||||||||||||
Deferred | 4,538 | (1,808) | 6,346 | nmf | |||||||||||||
4,579 | (1,808) | 6,387 | nmf | ||||||||||||||
Net income (loss) for the year | 4,072 | (10,402) | 14,474 | nmf | |||||||||||||
EBITDA (1) | 19,688 | 8,227 | 11,461 | 139.3 | % | ||||||||||||
Adjusted EBITDA (1) | 29,487 | 26,200 | 3,287 | 12.5 | % | ||||||||||||
Adjusted Net Income (1) | 11,372 | 2,989 | 8,383 | 280.5 | % |
(1) See "Non-IFRS Measures"
(in thousands of US dollars) (unaudited) | Q4 2019 | Q4 2018 | Fiscal 2019 | Fiscal 2018 | |||||||||||||
Consolidated net income (loss): | (1,189) | 1,109 | 4,072 | (10,402) | |||||||||||||
Income tax expense (recovery) | 2,150 | 1,655 | 4,579 | (1,808) | |||||||||||||
Interest and accretion | 1,910 | 1,684 | 7,392 | 17,430 | |||||||||||||
Amortization and deprecation | 953 | 787 | 3,645 | 3,007 | |||||||||||||
EBITDA | 3,824 | 5,235 | 19,688 | 8,227 | |||||||||||||
Integration, restructuring, and other | (1) | 2,328 | 1,633 | 4,514 | 13,150 | ||||||||||||
Purchase accounting adjustments | (2) | 1,354 | — | 1,354 | 2,727 | ||||||||||||
Share-based compensation | (3) | 609 | 1,099 | 3,422 | 2,284 | ||||||||||||
Unrealized foreign exchange (gain) loss | 386 | (602) | 509 | (188) | |||||||||||||
Adjusted EBITDA | 8,501 | 7,365 | 29,487 | 26,200 |
(in thousands of US dollars) (unaudited) | Q4 2019 | Q4 2018 | Fiscal 2019 | Fiscal 2018 | |||||||||||||
Consolidated net income (loss): | (1,189) | 1,109 | 4,072 | (10,402) | |||||||||||||
Integration, restructuring, and other | (1) | 2,328 | 1,633 | 4,514 | 13,150 | ||||||||||||
Purchase accounting adjustments | (2) | 1,354 | — | 1,354 | 2,727 | ||||||||||||
Share-based compensation | (3) | 609 | 1,099 | 3,422 | 2,284 | ||||||||||||
Unrealized foreign exchange (gain) loss | 386 | (602) | 509 | (188) | |||||||||||||
Tax impact of the above adjustments | (1,193) | (543) | (2,499) | (4,582) | |||||||||||||
Adjusted Net Income | 2,295 | 2,696 | 11,372 | 2,989 |
(1) Refer to Note 12 to the annual audited consolidated interim financial statements for further details.
(2) In conjunction with the acquisition of
(3) Represents recognition of share-based payments, which have been accounted for as selling and administrative expenses.
(in thousands of US dollars) (unaudited) | Q4 2019 | Q4 2018 | Fiscal 2019 | Fiscal 2018 | |||||||||||||
Cash provided by (used in) operating activities | 1,382 | 657 | 10,116 | (6,903) | |||||||||||||
Less: purchase of property and equipment | (222) | (101) | (2,468) | (309) | |||||||||||||
Free cash flow | 1,160 | 556 | 7,648 | (7,212) | |||||||||||||
Add: Acquisition related costs | 1,874 | 20 | 2,135 | 9,985 | |||||||||||||
Adjusted free cash flow | 3,034 | 576 | 9,783 | 2,773 |
(in thousands of US dollars) (unaudited) | Q4 2019 | Q4 2018 | $ Change | % Change | |||||||||||||
Cash, beginning of period | 5,423 | 5,116 | 307 | 6.0 | % | ||||||||||||
Cash flows (used in) | |||||||||||||||||
Operating activities | 1,382 | 657 | 725 | 110.4 | % | ||||||||||||
Investing activities | (28,232) | 68 | (28,300) | nmf | |||||||||||||
Financing activities | 27,099 | — | 27,099 | nmf | |||||||||||||
Cash, end of period | 5,672 | 5,841 | (169) | -2.89 | % | ||||||||||||
Free cash flow (1) | 1,160 | 556 | 604 | 108.63 | % | ||||||||||||
Adjusted free cash flow (1) | 3,034 | 576 | 2,458 | 426.74 | % |
(in thousands of US dollars) | Fiscal 2019 | Fiscal 2018 | $ Change | % Change | |||||||||||||
Cash, beginning of period | 5,841 | 1,249 | 4,592 | 367.7 | % | ||||||||||||
Cash flows (used in) | |||||||||||||||||
Operating activities | 10,116 | (6,903) | 17,019 | nmf | |||||||||||||
Investing activities | (31,254) | (111,528) | 80,274 | nmf | |||||||||||||
Financing activities | 20,969 | 123,023 | (102,054) | nmf | |||||||||||||
Cash, end of period | 5,672 | 5,841 | (169) | -2.89 | % | ||||||||||||
Free cash flow (1) | 7,648 | (7,212) | 14,860 | nmf | |||||||||||||
Adjusted free cash flow (1) | 9,783 | 2,773 | 7,010 | 252.79 | % |
(1) See "Non-IFRS Measures"
SOURCE
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