Velan Inc. Reports Its Second Quarter 2022/23 Financial Results Showing Improvement Over Its First Quarter
October 14 2022 - 12:46PM
Velan Inc. (TSX: VLN) (the “Company”), a world-leading manufacturer
of industrial valves, announced today its financial results for its
second quarter ended August 31, 2022.
Highlights:
- As the
volatility across various macro economic factors continues across
the globe, the Company has managed to improve performance over its
first quarter by prudently managing the business while facing
headwinds in logistics, operations and their related impact on
deliveries.
- Sales for the
quarter amounted to $85.1 million, an improvement of $10.1 million
or 13.4% compared to the first quarter of the current fiscal year,
but a decrease of $16.8 million or 16.5% compared to the second
quarter of the previous fiscal year. The decrease in sales for the
quarter compared to the prior year is partly due to the continued
weakening of the euro average rate against the U.S. dollar,
stronger shipments in the prior year related to one major contract
and the timing of the delivery schedule on open orders in the
current quarter.
- During the
second quarter of the current fiscal year, the company shipped a
large order which was expected to reach its destination prior to
the closing of the quarter. As a result of logistics delays, the
final acceptance of this shipment will be completed in the third
quarter. The impact of this delayed shipment on the quarter was
$10.9 million.
- Gross profit for
the quarter amounted to $23.5 million or 27.6%, an improvement of
$3.4 million or 80 basis points compared to the first quarter of
the current fiscal year, but a decrease compared to last year’s
$31.4 million or 30.8%. The decrease in gross profit percentage for
the quarter was primarily due to the previously explained lower
sales volume which impacted the absorption of fixed production
overhead costs. The decrease was also due to the unfavourable
effect of the product mix. Finally, the gross profit was lower than
last year by $0.5 million as the Company did not receive funds from
the Canada Emergency Wage Subsidies («CEWS») program.
- Net loss1 of
$3.7 million and EBITDA2 of $1.4 million for the quarter compared
to a net income1 of $5.0 million and
EBITDA2 of $10.7 million last year. The decrease
in EBITDA2 is primarily attributable to the
previously mentioned reduction in gross profit combined with an
increase in administration costs in the quarter.
- Order
backlog2 remains strong at $477.6 million, a
decrease of $23.6 million or 4.7% since the beginning of the year
which is primarily attributable to the weakening of the euro spot
rate against the U.S. dollar and lower upstream oil and gas net new
orders (“bookings”)2 for the half year. The
portion of the current backlog2 deliverable in the
next twelve months increased to $347.2 million primarily due to the
shipment delays encountered in the quarter.
-
Bookings2 of $73.5 million for the quarter, a
decrease of $8.1 million or 9.9% compared to last year. The
decrease in bookings2 compared to last year
resulted mainly from the current geo-political uncertainties which
created slower project awards. The Company nonetheless continues to
observe a strong amount of activity ongoing. The Company’s
book-to-bill ratio2 for the half-year remains
favorable at 1.04.
- The Company’s
net cash amounted to $29.7 million at the end of the quarter, a
decrease of $23.7 million since the beginning of the fiscal year.
The decrease in net cash for the quarter is primarily attributable
to the lower EBITDA2, combined with unfavorable
non-cash working capital items. The overall available liquidity
remains strong with $137.8 million of available cash-on-hand and
facilities.
Bruno Carbonaro, CEO and President of Velan
Inc., said, “As the volatility across various macro economic
factors continues across the globe, we managed to improve our
performance over our first quarter by prudently managing our
business while facing headwinds in logistics, operations and their
related impact on deliveries. We are nonetheless not pleased with
our second quarter results and believe that our success in the
second half of the fiscal year will rely on our plant
effectiveness, with continuous improvements that will lead to
sustainable performance, and a strong performance in bookings,
targeting certain key projects that will allow us to maintain our
strong backlog. Important to note that the decrease in backlog this
fiscal year is largely related to foreign exchange conversion as
our book-to-bill ratio is positive since the beginning of the
fiscal year. Finally, we believe that our success will be possible
thanks to our highly qualified employees who have continued to show
great discipline and dedication.”
Financial Highlights:
|
Three-month periods ended |
Six-month periods ended |
|
(thousands of U.S. dollars, excluding per share amounts) |
August 31,2022 |
August 31,2021 |
August 31,2022 |
August 31,2021 |
|
|
|
|
|
|
| Sales |
$85,054 |
$101,893 |
$160,059 |
$176,422 |
| Gross profit |
23,482 |
31,391 |
43,555 |
51,385 |
| Gross profit % |
27.6% |
30.8% |
27.2% |
29.1% |
| Net income (loss)1 |
(3,676) |
5,015 |
(11,028) |
(58) |
| Net income (loss)1 per share –
basic and diluted |
(0.17) |
0.23 |
(0.51) |
(0.00) |
| EBITDA2 |
1,365 |
10,657 |
(1,513) |
9,716 |
| EBITDA2 per share – basic and
diluted |
0.06 |
0.49 |
(0.07) |
0.45 |
Second Quarter Fiscal 2023 (unless otherwise
noted, all amounts are in U.S. dollars and all comparisons are to
the second quarter of fiscal 2022):
- Sales amounted
to $85.1 million for the quarter, decreasing by $16.8 million or
16.5% compared to the same quarter last year. The negative effect
of the weakening of the euro average rate against the U.S. dollar
on sales for the quarter amounted to $6.0 million compared to the
second quarter of last fiscal year. The decrease in sales for the
quarter is primarily attributable to the delivery of significant
orders by the Company’s Italian operations destined to the upstream
oil and gas sector in the prior fiscal year. The decrease is also
attributable to the timing of delivery dates on open orders caused
by lower bookings recorded in the second half of the previous year.
The Company still faced, in the current quarter, supply chain
delays as well as customer related issues which had a negative
effect on sales.
- Bookings2 for
the quarter amounted to $73.5 million, a decrease of $8.1 million
or 9.9% compared to the second quarter of last year. The effect of
the weakening of the euro average rate against the U.S. dollar on
order bookings2 for the Company’s European operations resulted in a
negative impact of $4.5 million in the second quarter compared to
the prior year. Additionally, the decrease for the quarter is
primarily attributable to lower orders recorded in the Company’s
Italian and German operations. The decrease for the quarter is also
attributable to the disposal of the Company’s Korean foundry at the
end of the previous fiscal year. The Korean foundry had recorded
$1.5 million of bookings2 in the second quarter of the previous
fiscal year. Finally, the decrease for the quarter was partially
offset by an increase in the Company’s MRO bookings2 compared to
last year.
- Gross profit for
the quarter amounted to $23.5 million, a decrease of $7.9 million
or 25.2%. The gross profit percentage for the quarter of 27.6% was
a decrease of 320 basis points compared to last year’s second
quarter. The decrease in gross profit percentage for the quarter is
primarily attributable to the lower sales volume which impacted the
absorption of fixed production overhead costs. The decrease in
gross profit percentage was also due to the unfavorable effect of
the product mix delivered. Additionally, The Company’s gross profit
for the quarter was negatively impacted by less favorable foreign
exchange movements, when compared to similar movements from the
previous year, which were primarily made up of unrealized foreign
exchange translations related to the fluctuation of the U.S. dollar
against the euro and Canadian dollar. The gross profit in the prior
year was positively impacted by the recording of $0.5 million for
the quarter of CEWS while the Company was not eligible for such
subsidies in the current fiscal year. The subsidies were allocated
between cost of sales and administration costs. Prior year’s gross
profit percentage without CEWS would have been 30.2% for the
quarter.
- Administration
costs for the quarter amounted to $24.7 million, an increase of
$0.7 million or 2.9%. The increase in administration costs for the
quarter is primarily attributable to the reassessment of the
Company’s long-term legal provision. The increase is also due to
higher outbound freight costs caused by the current global supply
chain issues which are impacting freight costs and shipping delays.
The administration costs in the prior year benefited from the
recording of $0.5 million for the quarter of CEWS while the Company
was not eligible for such subsidies in the current quarter. The
subsidies were allocated between cost of sales and administration
costs. The increase for the quarter was partially offset by lower
sales commissions recorded on the delivery of large orders over the
course of the quarter and a general reduction of the remaining
administration costs.
- Net loss1
amounted to $3.7 million or $0.17 per share compared to a net
income1 of $5.0 million or $0.23 per share last year. EBITDA2 for
the quarter amounted to $1.4 million or $0.06 per share compared to
$10.7 million or $0.49 per share last year. The unfavorable
movements in EBITDA2 for the quarter is primarily attributable to
the previously explained decrease in gross profit combined with an
increase in administration costs. A portion of the effects on the
EBITDA2 caused by the weakening of the euro against the U.S. dollar
were hedged by the company. The negative movement in the Company’s
results was primarily attributable to the previously mentioned
factors, partially offset by favorable movements in finance costs
and in income taxes for the quarter.
First Six months Fiscal 2023 (unless otherwise
noted, all amounts are in U.S. dollars and all comparisons are to
the first six months of fiscal 2022):
- Sales for the
half year totaled $160.1 million, a decrease of $16.3 or 9.3%
compared to the last fiscal year. The negative effect of the
weakening of the euro average rate against the U.S. dollar on sales
for the half year amounted to $10.5 million compared to the first
half year of the last fiscal year. The decrease for the half year
is also attributable to the timing of delivery dates on open orders
caused by lower bookings recorded in the second half of the
previous year. The Company still faced supply chain delays as well
as customer related issues which had a negative effect on sales for
the half year.
- Bookings2 for
the half year amounted to $166.9 million, a decrease of $31.0
million or 15.7% compared to the prior fiscal year. The weakening
of the euro average rate against the U.S. dollar on order bookings2
for the Company’s European operations resulted in a negative impact
of $7.8 million on the half year compared to the prior year.
Additionally, the decrease for the half year is primarily
attributable to lower upstream oil and gas and marine orders
recorded in the Company’s Italian and North American operations.
The current geo-political uncertainties have created slower project
awards resulting in lower bookings2 for the Company in the
half-year. The Company nonetheless continues to observe a strong
amount of activity ongoing. The decrease for the half year is also
attributable to the disposal of the Company’s Korean foundry at the
end of the previous fiscal year. The Korean foundry had recorded
$4.3 million of bookings2 for the six-month period of the previous
year.
- The total
backlog2 decreased by $23.6 million or 4.7% since the beginning of
the fiscal year, settling at $477.6 million at the end of the
quarter. The decrease in backlog2 is primarily attributable to the
weakening of the euro spot rate against the U.S. dollar since the
beginning of the fiscal year which represented $30.5 million for
the six-month period. The decrease since the beginning of the
fiscal year was partially offset by a positive book-to-bill ratio2
of 1.04 as a result of bookings outpacing sales for the half
year.
- Gross profit for
the half year amounted to $43.6 million, a decrease of $7.8 million
or 15.2%. The gross profit percentage for the six-month period of
27.2% represented a decrease of 190 basis points compared to the
same period last year. The decrease in gross profit percentage for
the half year is primarily attributable to the lower sales volume
which impacted the absorption of fixed production overhead costs.
The decrease in gross profit percentage was also due to the
unfavorable effect of the product mix delivered. The Company’s
gross profit for the six-month period was positively impacted by
more favorable foreign exchange movements, when compared to similar
movements from the previous year, which were primarily made up of
unrealized foreign exchange translations related to the fluctuation
of the U.S. dollar against the euro and Canadian dollar. The gross
profit in the prior year was positively impacted by the recording
of $1.1 million for the half year of CEWS while the Company was not
eligible for such subsidies in the current fiscal year. The
subsidies were allocated between cost of sales and administration
costs. Prior year’s gross profit percentage without CEWS would have
been 28.5% for the half year.
- Administration
costs for the half year amounted to $50.5 million, an increase of
$2.7 million or 5.7%. The increase in administration costs for the
half year is primarily attributable to the reassessment of the
Company’s long-term legal provision. The increase is also due to
higher outbound freight costs caused by the current global supply
chain issues which are impacting freight costs and shipping delays.
The administration costs in the prior year benefited from the
recording of $0.9 million for the half year period of CEWS while
the Company was not eligible for such subsidies in the current
six-month period. The subsidies were allocated between cost of
sales and administration costs. The increase for the half year was
partially offset by lower sales commissions recorded on the
delivery of large orders over the course of the quarter.
- Net loss1 for
the half year amounted to $11.0 million or $0.51 per share compared
to $0.1 million or $0.00 per share last year. EBITDA2 for the half
year amounted to negative $1.5 million or negative $0.07 per share
compared to $9.7 million or $0.45 per share last year. The
unfavorable movements in EBITDA2 for the six-month period are
primarily attributable to the previously explained decrease in
gross profit combined with an increase in administration costs. A
portion of the effects on the EBITDA2 caused by the weakening of
the euro against the U.S. dollar were hedged by the company. The
negative movement in the Company’s results was primarily
attributable to the same factors as previously explained combined
with an unfavorable movement in income taxes, partially offset by
favorable movements in finance costs.
Dividend
For the current quarter, no dividend will be
declared. The Company will revisit the declaration of dividends in
subsequent quarters.
Conference call
Financial analysts, shareholders, and other
interested individuals are invited to attend the second quarter
conference call to be held on Friday, October 14, 2022, at 4:00
p.m. (EDT). The toll free call-in number is 1-800-908-1236, access
code 22020915. Live content to support the discussion will be
presented to participants at the following link for the duration of
the call: https://cc.callinfo.com/r/1f133bi14afpj&eom. A
recording of this conference call will be available for seven days
at 1-416-626-4100 or 1-800-558-5253, access code 22020915.
About Velan
Founded in Montreal in 1950, Velan Inc.
(www.velan.com) is one of the world’s leading manufacturers of
industrial valves, with sales of US$411.2 million in its last
reported fiscal year. The Company employs approximately 1,650
people and has manufacturing plants in 9 countries. Velan Inc. is a
public company with its shares listed on the Toronto Stock Exchange
under the symbol VLN.
Safe harbour statement
This news release may include forward-looking
statements, which generally contain words like “should”, “believe”,
“anticipate”, “plan”, “may”, “will”, “expect”, “intend”, “continue”
or “estimate” or the negatives of these terms or variations of them
or similar expressions, all of which are subject to risks and
uncertainties, which are disclosed in the Company’s filings with
the appropriate securities commissions. While these statements are
based on management’s assumptions regarding historical trends,
current conditions and expected future developments, as well as
other factors that it believes are reasonable and appropriate in
the circumstances, no forward-looking statement can be guaranteed
and actual future results may differ materially from those
expressed herein. The Company disclaims any intention or obligation
to update or revise any forward-looking statements contained herein
whether as a result of new information, future events or otherwise,
except as required by the applicable securities laws. The
forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
Non-IFRS and supplementary financial
measures
In this press release, the Company has presented
measures of performance or financial condition which are not
defined under IFRS (“non-IFRS measures”) and are, therefore,
unlikely to be comparable to similar measures presented by other
companies. These measures are used by management in assessing the
operating results and financial condition of the Company and are
reconciled with the performance measures defined under IFRS.
Company has also presented supplementary financial measures which
are defined at the end of this report. Reconciliation and
definition can be found on the next page.
Net earnings (loss) before interest,
taxes, depreciation and amortization ("EBITDA")
|
Three-month periods ended |
Six-month periods ended |
|
(thousands, except amount per shares) |
August 31,2022$ |
|
August 31,2021$ |
|
August 31,2022$ |
|
August 31,2021$ |
|
|
|
|
|
|
|
|
| Net
income (loss)1 |
(3,676 |
) |
5,015 |
|
(11,028 |
) |
(58 |
) |
| |
|
|
|
|
|
| Adjustments for: |
|
|
|
|
|
| Depreciation of property, plant
and equipment |
2,023 |
|
2,394 |
|
4,184 |
|
4,808 |
|
| Amortization of intangible
assets |
556 |
|
451 |
|
1,124 |
|
1,009 |
|
| Finance costs – net |
378 |
|
526 |
|
614 |
|
1,055 |
|
|
Income taxes |
2,084 |
|
2,271 |
|
3,593 |
|
2,902 |
|
|
|
|
|
|
|
|
| EBITDA |
1,365 |
|
10,657 |
|
(1,513 |
) |
9,716 |
|
| EBITDA per share |
|
|
|
|
|
|
- Basic and diluted |
0.06 |
|
0.49 |
|
(0.07 |
) |
0.45 |
|
|
|
|
|
|
|
|
|
|
|
The term “EBITDA” is defined as net income or
loss attributable to Subordinate and Multiple Voting Shares plus
depreciation of property, plant & equipment, plus amortization
of intangible assets, plus net finance costs plus income tax
provision. The terms “EBITDA per share” is obtained by dividing
EBITDA by the total amount of subordinate and multiple voting
shares. The forward-looking statements contained in this press
release are expressly qualified by this cautionary statement.
Definitions of supplementary financial
measures
The term “Net new orders” or “bookings” is
defined as firm orders, net of cancellations, recorded by the
Company during a period. Bookings are impacted by the fluctuation
of foreign exchange rates for a given period. The measure provides
an indication of the Company’s sales operation performance for a
given period as well as well as an expectation of future sales and
cash flows to be achieved on these orders.
The term “backlog” is defined as the buildup of
all outstanding bookings to be delivered by the Company. The
Company’s backlog is impacted by the fluctuation of foreign
exchange rates for a given period. The measure provides an
indication of the future operational challenges of the Company as
well as an expectation of future sales and cash flows to be
achieved on these orders.
The term “book-to-bill” is obtained by dividing
bookings by sales. The measure provides an indication of the
Company’s performance and outlook for a given period.
The forward-looking statements contained in this
press release are expressly qualified by this cautionary
statement.
_____________________________1 Net earnings or loss refer to net
income or loss attributable to Subordinate and Multiple Voting
Shares.2 Non-IFRS and supplementary financial measures – See
explanation above.
| |
|
|
| |
|
|
| Consolidated
Statements of Financial Position |
|
|
| (in
thousands of U.S. dollars) |
|
|
| |
|
As
at |
| |
August 31, |
February 28, |
| |
2022 |
2022 |
|
|
$ |
$ |
|
Assets |
|
|
| |
|
|
|
Current assets |
|
|
| Cash and
cash equivalents |
32,938 |
54,015 |
| Short-term
investments |
9,097 |
8,726 |
| Accounts
receivable |
109,106 |
115,834 |
| Income taxes
recoverable |
5,570 |
2,955 |
|
Inventories |
216,666 |
223,198 |
| Deposits and
prepaid expenses |
6,078 |
6,877 |
|
Derivative assets |
694 |
553 |
| |
380,149 |
412,158 |
| |
|
|
|
Non-current assets |
|
|
| Property,
plant and equipment |
68,403 |
73,906 |
| Intangible
assets and goodwill |
15,605 |
16,693 |
| Deferred
income taxes |
3,665 |
4,774 |
|
Other assets |
699 |
897 |
| |
|
|
|
|
88,372 |
96,270 |
| |
|
|
|
Total assets |
468,521 |
508,428 |
| |
|
|
|
Liabilities |
|
|
| |
|
|
|
Current liabilities |
|
|
| Bank
indebtedness |
3,213 |
550 |
| Accounts
payable and accrued liabilities |
69,517 |
80,503 |
| Income taxes
payable |
1,985 |
3,806 |
| Customer
deposits |
47,306 |
41,344 |
|
Provisions |
15,204 |
18,444 |
| Derivative
liabilities |
284 |
560 |
| Current
portion of long-term lease liabilities |
1,274 |
1,360 |
|
Current portion of long-term debt |
7,744 |
8,111 |
| |
146,527 |
154,678 |
| |
|
|
|
Non-current liabilities |
|
|
| Long-term
lease liabilities |
9,536 |
11,073 |
| Long-term
debt |
21,980 |
22,927 |
| Income taxes
payable |
1,079 |
1,244 |
| Deferred
income taxes |
4,178 |
4,025 |
| Customer
deposits |
23,547 |
30,139 |
|
Provisions |
16,204 |
13,101 |
|
Other liabilities |
5,056 |
5,731 |
| |
|
|
|
|
81,580 |
88,240 |
| |
|
|
|
Total liabilities |
228,107 |
242,918 |
| |
|
|
|
Total equity |
240,414 |
265,510 |
| |
|
|
|
Total liabilities and equity |
468,521 |
508,428 |
| |
|
|
| Consolidated
Statements of Income (loss) |
|
|
|
|
|
|
|
|
|
|
(in thousands of U.S. dollars, excluding number of shares and per
share amounts) |
|
|
|
|
|
|
| |
|
|
|
|
|
| |
Three-month
periods ended |
|
|
Six-month
periods ended |
|
| |
August 31, |
|
August 31, |
|
|
August 31, |
|
August 31, |
|
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Sales |
85,054 |
|
101,893 |
|
|
160,059 |
|
176,422 |
|
| |
|
|
|
|
|
|
Cost of sales |
61,572 |
|
70,502 |
|
|
116,504 |
|
125,037 |
|
| |
|
|
|
|
|
|
Gross profit |
23,482 |
|
31,391 |
|
|
43,555 |
|
51,385 |
|
| |
|
|
|
|
|
|
Administration costs |
24,678 |
|
23,977 |
|
|
50,490 |
|
47,756 |
|
|
Other expense (income) |
7 |
|
(79 |
) |
|
(134 |
) |
42 |
|
| |
|
|
|
|
|
|
Operating profit (loss) |
(1,203 |
) |
7,493 |
|
|
(6,801 |
) |
3,587 |
|
| |
|
|
|
|
|
| Finance
income |
78 |
|
118 |
|
|
168 |
|
290 |
|
|
Finance costs |
(456 |
) |
(644 |
) |
|
(782 |
) |
(1,345 |
) |
| |
|
|
|
|
|
|
Finance costs – net |
(378 |
) |
(526 |
) |
|
(614 |
) |
(1,055 |
) |
| |
|
|
|
|
|
|
Income (loss) before income taxes |
(1,581 |
) |
6,967 |
|
|
(7,415 |
) |
2,532 |
|
| |
|
|
|
|
|
|
Income tax expense |
2,084 |
|
2,271 |
|
|
3,593 |
|
2,902 |
|
| |
|
|
|
|
|
|
Net income (loss) for the period |
(3,665 |
) |
4,696 |
|
|
(11,008 |
) |
(370 |
) |
| |
|
|
|
|
|
| Net
income (loss) attributable to: |
|
|
|
|
|
|
Subordinate Voting Shares and Multiple Voting
Shares |
(3,676 |
) |
5,015 |
|
|
(11,028 |
) |
(58 |
) |
|
Non-controlling interest |
11 |
|
(319 |
) |
|
20 |
|
(312 |
) |
| |
|
|
|
|
|
|
Net income (loss) for the period |
(3,665 |
) |
4,696 |
|
|
(11,008 |
) |
(370 |
) |
| |
|
|
|
|
|
| Net
income (loss) per Subordinate and Multiple Voting
Share |
|
|
|
|
|
|
Basic and diluted |
(0.17 |
) |
0.23 |
|
|
(0.51 |
) |
(0.00 |
) |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Dividends declared per Subordinate and
Multiple |
- |
|
- |
|
|
0.02 |
|
- |
|
|
Voting Share |
(CA$ - ) |
(CA$ - ) |
|
(CA$0.03) |
(CA$-) |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Total weighted average number of Subordinate
and |
|
|
|
|
|
|
Multiple Voting Shares |
|
|
|
|
|
|
Basic and diluted |
21,585,635 |
|
21,585,635 |
|
|
21,585,635 |
|
21,585,635 |
|
| |
|
|
|
|
|
|
Consolidated Statements of Comprehensive Loss |
|
|
|
| (in
thousands of U.S. dollars) |
|
|
|
|
|
| |
Three-month
periods ended |
|
|
Six-month
periods ended |
|
|
|
August 31, |
|
August 31, |
|
|
August 31, |
|
August 31, |
|
| |
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Comprehensive loss |
|
|
|
|
|
| |
|
|
|
|
|
| Net
income (loss) for the period |
(3,665 |
) |
4,696 |
|
|
(11,008 |
) |
(370 |
) |
| |
|
|
|
|
|
|
Other comprehensive loss |
|
|
|
|
|
|
Foreign currency translation |
(7,760 |
) |
(4,817 |
) |
|
(13,591 |
) |
(3,422 |
) |
| |
|
|
|
|
|
|
Comprehensive loss |
(11,425 |
) |
(121 |
) |
|
(24,599 |
) |
(3,792 |
) |
| |
|
|
|
|
|
|
Comprehensive income (loss) attributable to: |
|
|
|
|
|
| Subordinate
Voting Shares and Multiple Voting Shares |
(11,437 |
) |
254 |
|
|
(24,619 |
) |
(3,448 |
) |
|
Non-controlling interest |
12 |
|
(375 |
) |
|
20 |
|
(344 |
) |
|
|
|
|
|
|
|
|
Comprehensive loss |
(11,425 |
) |
(121 |
) |
|
(24,599 |
) |
(3,792 |
) |
| |
|
|
|
|
|
| |
|
|
|
|
|
| Other comprehensive
loss is composed solely of items that may be reclassified
subsequently to the consolidated statement of income (loss). |
| |
|
|
|
|
|
|
Consolidated Statements of Changes in Equity |
|
|
|
|
|
|
(in thousands of U.S. dollars, excluding number of shares) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Equity attributable to the Subordinate and Multiple Voting
shareholders |
|
|
|
|
Share capital |
Contributed surplus |
Accumulated other comprehensive loss |
Retained earnings |
Total |
Non-controlling interest |
Total equity |
| |
|
|
|
|
|
|
|
|
Balance - February 28, 2021 |
72,695 |
6,260 |
(21,007 |
) |
239,136 |
|
297,084 |
|
3,137 |
|
300,221 |
|
| |
|
|
|
|
|
|
|
| Net loss for
the period |
- |
- |
- |
|
(58 |
) |
(58 |
) |
(312 |
) |
(370 |
) |
|
Other comprehensive loss |
- |
- |
(3,390 |
) |
- |
|
(3,390 |
) |
(32 |
) |
(3,422 |
) |
| |
|
|
|
|
|
|
|
|
Comprehensive loss |
- |
- |
(3,390 |
) |
(58 |
) |
(3,448 |
) |
(344 |
) |
(3,792 |
) |
| |
|
|
|
|
|
|
|
|
Balance - August 31, 2021 |
72,695 |
6,260 |
(24,397 |
) |
239,078 |
|
293,636 |
|
2,793 |
|
296,429 |
|
| |
|
|
|
|
|
|
|
|
Balance - February 28, 2022 |
72,695 |
6,260 |
(32,223 |
) |
218,092 |
|
264,824 |
|
686 |
|
265,510 |
|
| |
|
|
|
|
|
|
|
| Net income
(loss) for the period |
- |
- |
- |
|
(11,028 |
) |
(11,028 |
) |
20 |
|
(11,008 |
) |
|
Other comprehensive loss |
- |
- |
(13,591 |
) |
- |
|
(13,591 |
) |
- |
|
(13,591 |
) |
| |
|
|
|
|
|
|
|
|
Comprehensive income (loss) |
- |
- |
(13,591 |
) |
(11,028 |
) |
(24,619 |
) |
20 |
|
(24,599 |
) |
| |
|
|
|
|
|
|
|
|
Dividends |
|
|
|
|
|
|
|
| Multiple
Voting Shares |
- |
- |
- |
|
(366 |
) |
(366 |
) |
- |
|
(366 |
) |
|
Subordinate Voting Shares |
- |
- |
- |
|
(131 |
) |
(131 |
) |
- |
|
(131 |
) |
| |
|
|
|
|
|
|
|
|
Balance - August 31, 2022 |
72,695 |
6,260 |
(45,814 |
) |
206,567 |
|
239,708 |
|
706 |
|
240,414 |
|
| |
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flow |
|
|
|
|
| (in
thousands of U.S. dollars) |
|
|
|
|
|
| |
Three-month
periods ended |
|
|
Six-month
periods ended |
|
|
|
August 31, |
|
August 31, |
|
|
August 31, |
|
August 31, |
|
| |
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
| |
|
|
|
|
|
| Cash
flows from |
|
|
|
|
|
| |
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
| Net income
(loss) for the period |
(3,665 |
) |
4,696 |
|
|
(11,008 |
) |
(370 |
) |
| Adjustments
to reconcile net income (loss) to cash provided (used) by operating
activities |
6,072 |
|
3,645 |
|
|
4,317 |
|
6,057 |
|
| Changes in
non-cash working capital items |
(13,931 |
) |
(6,808 |
) |
|
(7,898 |
) |
(3,259 |
) |
|
Cash provided (used) by operating activities |
(11,524 |
) |
1,533 |
|
|
(14,589 |
) |
2,428 |
|
| |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
| Short-term
investments |
107 |
|
(1,232 |
) |
|
(1,181 |
) |
(1,418 |
) |
| Additions to
property, plant and equipment |
(616 |
) |
(1,830 |
) |
|
(1,536 |
) |
(3,569 |
) |
| Additions to
intangible assets |
(1,200 |
) |
(522 |
) |
|
(1,209 |
) |
(810 |
) |
| Proceeds on
disposal of property, plant and equipment |
24 |
|
- |
|
|
40 |
|
3,132 |
|
|
Net change in other assets |
14 |
|
(15 |
) |
|
28 |
|
(27 |
) |
|
Cash used by investing activities |
(1,671 |
) |
(3,599 |
) |
|
(3,858 |
) |
(2,692 |
) |
| |
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
| Dividends
paid to Subordinate and Multiple Voting shareholders |
(497 |
) |
- |
|
|
(497 |
) |
- |
|
| Net change
in revolving credit facility |
16 |
|
(3,378 |
) |
|
16 |
|
6,248 |
|
| Increase in
long-term debt |
- |
|
5,889 |
|
|
2,160 |
|
5,889 |
|
| Repayment of
long-term debt |
(2,108 |
) |
(1,379 |
) |
|
(2,677 |
) |
(4,546 |
) |
|
Repayment of long-term lease liabilities |
(362 |
) |
(444 |
) |
|
(732 |
) |
(857 |
) |
|
Cash provided (used) by financing activities |
(2,951 |
) |
688 |
|
|
(1,730 |
) |
6,734 |
|
| |
|
|
|
|
|
|
Effect of exchange rate differences on cash |
(1,781 |
) |
(1,728 |
) |
|
(3,563 |
) |
(1,292 |
) |
| |
|
|
|
|
|
| Net
change in cash during the period |
(17,927 |
) |
(3,106 |
) |
|
(23,740 |
) |
5,178 |
|
| |
|
|
|
|
|
|
Net cash – Beginning of the period |
47,652 |
|
71,237 |
|
|
53,465 |
|
62,953 |
|
| |
|
|
|
|
|
|
Net cash – End of the period |
29,725 |
|
68,131 |
|
|
29,725 |
|
68,131 |
|
| |
|
|
|
|
|
| Net cash is
composed of: |
|
|
|
|
|
| Cash and
cash equivalents |
32,938 |
|
76,448 |
|
|
32,938 |
|
76,448 |
|
|
Bank indebtedness |
(3,213 |
) |
(8,317 |
) |
|
(3,213 |
) |
(8,317 |
) |
| |
|
|
|
|
|
|
Net cash – End of the period |
29,725 |
|
68,131 |
|
|
29,725 |
|
68,131 |
|
| |
|
|
|
|
|
|
Supplementary information |
|
|
|
|
|
| Interest
paid |
15 |
|
(484 |
) |
|
(208 |
) |
(834 |
) |
| Income taxes
paid |
(2,180 |
) |
(463 |
) |
|
(3,997 |
) |
(1,584 |
) |
| |
|
|
|
|
|
For further information please contact:Bruno
Carbonaro, Chief Executive Officer and PresidentTel: (438)
817-7593orRishi Sharma, Chief Financial OfficerTel: (438)
817-4430
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