Velan Inc. (TSX: VLN) (“Velan” or the “Company”), a world-leading
manufacturer of industrial valves, announced today its financial
results for its fourth quarter and fiscal year ended February 29,
2024. All amounts are expressed in U.S. dollars unless indicated
otherwise.
FOURTH QUARTER HIGHLIGHTS:
- Bookings1 of $132.8
million, up sharply from $87.1 million last year and $78.3 million
in the third quarter.
- Book-to-bill1 ratio
of 1.13, versus 0.76 for the same period a year ago and 0.97 in the
third quarter.
- Sales of $117.9
million, up from $115.1 million last year and up from $80.9 million
in the third quarter.
- Gross profit of
$38.4 million, or 32.6% of sales, compared to $39.9 million, or
30.4% of sales, last year.
- Net loss2 of $2.1
million compared to a net loss of $47.2 million last year.
YEAR-END HIGHLIGHTS:
- Order backlog1 of
$491.5 million, up $27.1 million from last year.
- Bookings of $374.5
million, compared to $353.2 million in fiscal 2023.
- Book-to-bill ratio
of 1.08, versus 0.95 last year.
- Sales of $346.8
million, compared to $370.4 million in fiscal 2023.
- Gross profit of
$93.2 million, or 26.9% of sales, versus $112.5 million, or 30.4%
of sales, last year.
- Net loss of $19.7
million, versus a net loss of $55.5 million in the prior year.
-
Cash and cash equivalents of $36.4 million.
FINANCIAL RESULTS(‘000s of U.S. dollars,
excluding per share amounts) |
Three-month periods ended |
Fiscal years ended |
Feb. 29, 2024 |
Feb. 28, 2023 |
Feb. 29, 2024 |
Feb. 28, 2023 |
Sales |
|
$117,894 |
|
$115,141 |
|
$346,816 |
|
$370,429 |
|
Gross profit |
|
$38,384 |
|
$39,945 |
|
$93,207 |
|
$112,465 |
|
Gross margin |
|
32.6% |
|
34.7% |
|
26.9% |
|
30.4% |
|
Net loss |
|
($2,083) |
|
($47,164) |
|
($19,737) |
|
($55,453) |
|
per share - basic and diluted |
|
($0.10) |
|
($2.18) |
|
($0.91) |
|
($2.57) |
|
Adjusted EBITDA |
|
$19,879 |
|
$16,468 |
|
$17,780 |
|
$21,092 |
|
Adjusted net income
(loss) |
|
$8,944 |
|
$8,790 |
|
($7,918) |
|
$501 |
|
per share - basic and diluted |
|
$0.41 |
|
$0.41 |
|
($0.37) |
|
$0.02 |
|
Weighted average share outstanding (‘000s) |
|
21,586 |
|
21,586 |
|
21,586 |
|
21,586 |
|
“Velan concluded fiscal 2024 with strong fourth
quarter results, marked by heightened sales volume and healthy
profit margins on improved quality of execution,” said James A.
Mannebach, Chairman and CEO of Velan. “In addition, robust bookings
during the period further increased our backlog to $491.5 million
at year-end. Given the value of orders to be shipped over the next
12 months, we expect sales growth in fiscal 2025. As a supplier of
critical equipment to essential industries, Velan is well
positioned to capture growth opportunities driven by the ongoing
energy transition and expand its reach in the flow control industry
based on an agile workforce, global presence and strong brand
recognition.”
“Fueled by a net cash position, Velan’s strong
balance sheet will allow the Company to fund its current operations
and pursue re-investment to expand its global reach. Over the
longer term, we remain committed to building shareholder value
through sales and cash flow growth,” added Rishi Sharma, Chief
Financial and Administrative Officer of Velan.
BOOKINGS
AND BACKLOG(‘000s of U.S. dollars, excluding
ratio) |
|
Three-month periods ended |
Fiscal years ended |
|
Feb. 29, 2024 |
Feb. 28, 2023 |
Feb. 29, 2024 |
Feb. 28, 2023 |
Backlog |
|
|
|
$491,525 |
|
$464,337 |
|
for delivery within the next 12 months |
|
|
|
$360,669 |
|
$307,991 |
|
Bookings |
|
$132,825 |
|
$87,085 |
|
$374,454 |
|
$353,176 |
|
Book-to-bill ratio |
|
|
1.13 |
|
|
0.76 |
|
|
1.08 |
|
|
0.95 |
|
As at February 29, 2024, the backlog stood at
$491.5 million, up $27.2 million, or 5.9%, from $464.3 million a
year earlier reflecting strong fourth quarter bookings. As at
February 29, 2024, 73.4% of the backlog, representing orders of
$360.7 million, is deliverable in the next 12 months, versus 66.3%
of last year’s backlog. Currency movements had a positive effect of
$5.6 million on the backlog during the year.
Bookings for the fourth quarter of fiscal 2024
amounted to $132.8 million, up 52.5% over bookings of $87.1 million
a year earlier. The increase is mainly attributable to strong oil
and gas bookings recorded by the Company’s Italian operations and
to higher orders recorded by North American operations, partially
offset by the timing of orders for the French subsidiary following
strong bookings in the prior year. Currency movements had a
positive effect of $3.8 million on bookings during the quarter.
As a result of bookings outpacing sales, the
Company’s book-to-bill ratio was 1.13 in the fourth quarter of
fiscal 2024, compared to 0.76 in the corresponding period of fiscal
2023.
Fiscal 2024 bookings reached $374.5 million, an
increase of $21.3 million or 6.0% compared to the previous year. As
a result of bookings outpacing sales for the fiscal year, the
Company’s book-to-bill ratio was 1.08 in fiscal 2024, compared with
0.95 in fiscal 2023.
FISCAL 2024 FOURTH QUARTER RESULTS
Sales reached $117.9 million, up $2.8 million or
2.4% from last year. The variation is mostly attributable to
stronger shipments from the Company’s International operations.
These factors were partially offset by lower shipments from North
American operations and shipping delays due to the situation in the
Red Sea. Currency movements had a $1.7 million positive effect on
sales for the quarter.
Gross profit was $38.4 million, versus $39.9
million a year ago. The variation reflects a less favorable product
mix this year compared to last due to the execution of certain low
margin projects. Last year’s gross profit also benefitted from a
favorable revaluation of the inventory provision based on new
estimates relating to changes in market demand. As a percentage of
sales, gross profit was 32.6%, versus 34.7% last year.
Administration costs reached $33.1 million,
compared to $80.8 million last year. This year’s administration
costs include a $10.0 million asbestos provision adjustment and
restructuring charges of $1.3 million mostly consisting of
severances. Last year’s costs included a $56.0 million charge to
increase the Company’s asbestos provision. Excluding these items,
administration costs totaled $21.7 million, or 18.4% of sales, in
the fourth quarter of fiscal 2024, versus $24.9 million, or 21.6%
of sales, in the fourth quarter of fiscal 2023. The decrease is
mostly due to lower expenses for the North American operations and
cost reduction initiatives throughout the Company’s operations.
EBITDA1 reached $8.5 million compared to
negative $39.5 million last year. Excluding asbestos and
restructuring costs, adjusted EBITDA was $19.9 million in the
fourth quarter of fiscal 2024, compared to $16.5 million a year
earlier. This increase reflects lower administration costs and a
$1.7 million net reduction in other expenses, mainly related to a
provision related to a commodity tax audit last year. These factors
were partially offset by a lower gross profit.
Net loss was $2.1 million, or $0.10 per share,
versus a net loss of $47.2 million, or $2.18 per share last year.
Excluding the after-tax effect of asbestos and restructuring costs,
adjusted net income was $8.9 million, or $0.41 per share, compared
to $8.8 million, or $0.41 per share, last year. The variation is
attributable to higher adjusted EBITDA partially offset by higher
net finance costs and income tax expense.
YEAR-END RESULTS
For the fiscal year ended February 29, 2024,
sales amounted to $346.8 million, down from $370.4 million last
year. Gross profit was $93.2 million, or 26.9% of sales, compared
to $112.5 million, or 30.4% of sales, last year. EBITDA stood at
$5.3 million, versus negative $34.9 million a year ago, while
adjusted EBITDA reached $17.8 million compared to $21.1 million
last year. Net loss was $19.7 million, or $0.91 per share, compared
to a net loss of $55.5 million, or $2.57 per share, a year ago,
while adjusted net loss was $7.9 million, or $0.37 per share,
compared to adjusted net income of $0.5 million, or $0.02 per share
in the prior year.
FINANCIAL POSITION
As at February 29, 2024, Velan’s financial
position remained solid. The Company had cash and cash equivalents
of $36.4 million, as well as short-term investments of $5.3
million, while long-term debt, including the current portion,
amounted to $28.8 million.
OUTLOOK
Velan aims to build on the momentum gained in
the second half of fiscal 2024, concluding the year on a solid note
with a growing order backlog and a book-to-bill ratio of 1.08. As
at February 29, 2024, orders totaling $360.7 million, representing
73.4% of a total backlog of $491.5 million, are expected to be
delivered in the next 12 months. Given these orders, the Company
expects to deliver annual sales in fiscal 2025 above the level
achieved in fiscal 2024.
CONFERENCE CALL NOTICE
Financial analysts, shareholders, and other
interested individuals are invited to attend the fourth quarter
conference call to be held on Friday, May 17, 2024, at 8:00 a.m.
(EDT). The toll-free call-in number is 1-888-660-6345 or
1-289-819-1450. The material that will be referenced during the
conference call will be made available shortly before the
event on the company’s website under the Investor Relations section
(https://www.velan.com/en/company/investor_relations). A recording
of this conference call will be available for seven days at
1-289-819-1450 or 1-888-660-6345, access code 24455.
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$346.8 million in its last
reported fiscal year. The Company employs approximately 1,641
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. The
Company has also presented supplementary financial measures which
are defined at the end of this report. Reconciliation and
definition can be found below.
Adjusted net income, Adjusted net income
per share, Earnings before interest, taxes, depreciation and
amortization ("EBITDA") and Adjusted EBITDA
(thousands, except
amount per shares) |
|
Three-month period ended |
Fiscal years ended |
|
Feb. 29, 2024 |
Feb. 28, 2023 |
Feb. 29, 2024 |
Feb. 28, 2023 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
Reconciliation of net income (loss) to adjusted net income
(loss)2& adjusted net income (loss) per share |
|
|
|
|
|
Net income (loss) |
|
(2,083 |
) |
(47,164 |
) |
(19,737 |
) |
(55,453 |
) |
Adjustment for: |
|
|
|
|
|
Proposed transaction related
costs |
|
108 |
|
- |
|
900 |
|
- |
|
Restructuring costs |
|
919 |
|
- |
|
919 |
|
- |
|
Adjustment to asbestos provision |
|
10,000 |
|
55,954 |
|
10,000 |
|
55,954 |
|
Adjusted net income (loss) |
|
8,944 |
|
8,790 |
|
(7,918 |
) |
501 |
|
per share - basic and diluted |
|
0.41 |
|
0.41 |
|
(0.37 |
) |
0.02 |
|
|
|
|
|
|
|
Reconciliation of net income
(loss) to Adjusted EBITDA |
|
|
|
|
|
Net income (loss) |
|
(2,083 |
) |
(47,164 |
) |
(19,737 |
) |
(55,453 |
) |
Adjustments for: |
|
|
|
|
|
Depreciation of property,
plant and equipment |
|
2,472 |
|
2,452 |
|
8,930 |
|
8,722 |
|
Amortization of intangible
assets and financing costs |
|
650 |
|
608 |
|
2,296 |
|
2,272 |
|
Finance costs – net |
|
2,355 |
|
516 |
|
6,346 |
|
1,552 |
|
Income
taxes |
|
5,088 |
|
4,102 |
|
7,471 |
|
8,045 |
|
EBITDA |
|
8,482 |
|
(39,486 |
) |
5,306 |
|
(34,862 |
) |
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
Proposed transaction related
costs |
|
147 |
|
- |
|
1,224 |
|
- |
|
Restructuring costs |
|
1,250 |
|
- |
|
1,250 |
|
- |
|
Adjustment to asbestos provision |
|
10,000 |
|
55,954 |
|
10,000 |
|
55,954 |
|
Adjusted EBITDA |
|
19,879 |
|
16,468 |
|
17,780 |
|
21,092 |
|
The term “Adjusted net income (loss)” is defined
as net income or loss attributable to Subordinate and Multiple
Voting Shares plus adjustment, net of income taxes, for costs
related to the proposed transaction, restructuring, and asbestos
provision. The terms “Adjusted net income (loss) per share” is
obtained by dividing Adjusted net income (loss) by the total amount
of subordinate and multiple voting shares. The forward-looking
statements contained in this MD&A are expressly qualified by
this cautionary statement.
The term “EBITDA” is defined as adjusted net
income plus depreciation of property, plant & equipment, plus
amortization of intangible assets, plus net finance costs, plus
income tax provision. The term “Adjusted EBITDA” is defined as
EBITDA plus adjustment for costs related to the proposed
transaction, restructuring, and asbestos provision. The
forward-looking statements contained in this MD&A 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.
Contact: |
Rishi Sharma,
Chief Financial and Administrative Officer |
Martin Goulet,
M.Sc., CFA |
Velan Inc. |
MBC Capital Markets Advisors |
Tel: (438) 817-4430 |
Tel.: (514) 731-0000, ext. 229 |
_______________________1 Non-IFRS and
supplementary financial measures. Refer to the Non-IFRS and
supplementary financial measures section for definitions and
reconciliations.2 Net income or loss refer to net income or loss
attributable to Subordinate and Multiple Voting Shares.
Consolidated Statements of Financial Position |
(in thousands of U.S. dollars) |
|
|
|
|
As at |
|
|
|
February 29, |
|
February 28, |
|
|
|
2024 |
|
2023 |
|
|
|
$ |
|
$ |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
36,445 |
|
50,513 |
|
Short-term investments |
|
5,271 |
|
37 |
|
Accounts receivable |
|
119,914 |
|
121,053 |
|
Income taxes recoverable |
|
6,132 |
|
6,195 |
|
Inventories |
|
208,702 |
|
202,649 |
|
Deposits and prepaid expenses |
|
10,421 |
|
7,559 |
|
Derivative assets |
|
125 |
|
107 |
|
|
|
387,010 |
|
388,113 |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property, plant and equipment |
|
69,918 |
|
68,205 |
|
Intangible assets and goodwill |
|
16,543 |
|
16,153 |
|
Deferred income taxes |
|
5,193 |
|
4,663 |
|
Other assets |
|
729 |
|
723 |
|
|
|
|
|
|
|
|
|
92,383 |
|
89,744 |
|
|
|
|
|
|
|
Total assets |
|
479,393 |
|
477,857 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Bank indebtedness |
|
- |
|
260 |
|
Accounts payable and accrued liabilities |
|
88,230 |
|
79,408 |
|
Income taxes payable |
|
1,568 |
|
2,832 |
|
Customer deposits |
|
30,396 |
|
28,201 |
|
Provisions |
|
14,129 |
|
16,485 |
|
Derivative liabilities |
|
26 |
|
299 |
|
Current portion of long-term lease liabilities |
|
1,607 |
|
1,298 |
|
Current portion of long-term debt |
|
24,431 |
|
8,177 |
|
|
|
160,387 |
|
136,960 |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Long-term lease liabilities |
|
11,036 |
|
9,458 |
|
Long-term debt |
|
4,346 |
|
21,719 |
|
Income taxes payable |
|
2,325 |
|
933 |
|
Deferred income taxes |
|
3,462 |
|
3,966 |
|
Customer deposits |
|
35,082 |
|
27,937 |
|
Provisions |
|
74,058 |
|
70,924 |
|
Other liabilities |
|
5,438 |
|
5,125 |
|
|
|
|
|
|
|
|
|
135,747 |
|
140,062 |
|
|
|
|
|
|
|
Total liabilities |
|
296,134 |
|
277,022 |
|
|
|
|
|
|
|
Total equity |
|
183,259 |
|
200,835 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
479,393 |
|
477,857 |
|
Consolidated Statements of Loss |
(in thousands of U.S. dollars, excluding number of shares and per
share amounts) |
|
|
Three-month periods ended |
|
|
Fiscal years ended |
|
|
|
February 29, |
|
February 28, |
|
|
February 29, |
|
February 28, |
|
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
117,894 |
|
115,141 |
|
|
346,816 |
|
370,429 |
|
|
|
|
|
|
|
|
Cost of sales |
|
79,510 |
|
75,196 |
|
|
253,609 |
|
257,964 |
|
|
|
|
|
|
|
|
Gross profit |
|
38,384 |
|
39,945 |
|
|
93,207 |
|
112,465 |
|
|
|
|
|
|
|
|
Administration costs |
|
33,121 |
|
80,841 |
|
|
98,744 |
|
156,759 |
|
Other expense (income) |
|
(91 |
) |
1,700 |
|
|
448 |
|
1,568 |
|
|
|
|
|
|
|
|
Operating profit (loss) |
|
5,354 |
|
(42,596 |
) |
|
(5,985 |
) |
(45,862 |
) |
|
|
|
|
|
|
|
Finance income |
|
64 |
|
240 |
|
|
459 |
|
467 |
|
Finance costs |
|
(2,419 |
) |
(758 |
) |
|
(6,805 |
) |
(2,019 |
) |
|
|
|
|
|
|
|
Finance costs – net |
|
(2,355 |
) |
(518 |
) |
|
(6,346 |
) |
(1,552 |
) |
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
2,999 |
|
(43,114 |
) |
|
(12,331 |
) |
(47,414 |
) |
|
|
|
|
|
|
|
Income tax expense |
|
5,088 |
|
4,102 |
|
|
7,471 |
|
8,045 |
|
|
|
|
|
|
|
|
Net loss for the period |
|
(2,089 |
) |
(47,216 |
) |
|
(19,802 |
) |
(55,459 |
) |
|
|
|
|
|
|
|
Net income (loss) attributable to: |
|
|
|
|
|
|
Subordinate Voting Shares and Multiple Voting
Shares |
|
(2,083 |
) |
(47,164 |
) |
|
(19,737 |
) |
(55,453 |
) |
Non-controlling interest |
|
(6 |
) |
(52 |
) |
|
(65 |
) |
(6 |
) |
|
|
|
|
|
|
|
Net loss for the period |
|
(2,089 |
) |
(47,216 |
) |
|
(19,802 |
) |
(55,459 |
) |
|
|
|
|
|
|
|
Net loss per Subordinate and Multiple Voting
Share |
|
|
|
|
|
|
Basic and diluted |
|
(0.09 |
) |
(2.18 |
) |
|
(0.91 |
) |
(2.57 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per Subordinate and
Multiple |
|
- |
|
- |
|
|
0.02 |
|
0.02 |
|
Voting Share |
|
(CA$ - |
) |
(CA$ - |
) |
|
(CA$0.03 |
) |
(CA$0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Fiscal years ended |
|
|
|
February 29, |
|
February 28, |
|
|
February 29, |
|
February 28, |
|
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period |
|
(2,089 |
) |
(47,216 |
) |
|
(19,802 |
) |
(55,459 |
) |
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
Foreign currency translation |
|
(719 |
) |
1,423 |
|
|
2,516 |
|
(8,985 |
) |
|
|
|
|
|
|
|
Comprehensive loss |
|
(2,808 |
) |
(45,793 |
) |
|
(17,286 |
) |
(64,444 |
) |
|
|
|
|
|
|
|
Comprehensive income (loss) attributable to: |
|
|
|
|
|
|
Subordinate Voting Shares and Multiple Voting Shares |
|
(2,802 |
) |
(45,741 |
) |
|
(17,221 |
) |
(64,438 |
) |
Non-controlling interest |
|
(6 |
) |
(52 |
) |
|
(65 |
) |
(6 |
) |
|
|
|
|
|
|
|
Comprehensive loss |
|
(2,808 |
) |
(45,793 |
) |
|
(17,286 |
) |
(64,444 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss is composed solely of items that may be
reclassified subsequently to the consolidated statement of
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 |
|
Contributedsurplus |
|
Accumulatedothercomprehensiveloss |
Retainedearnings |
Total |
Non-controllinginterest |
Total equity |
|
|
|
|
|
|
|
|
|
|
|
Balance - February 28, 2022 |
|
72,695 |
|
6,260 |
|
(32,126 |
) |
217,995 |
|
264,824 |
|
686 |
|
265,510 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the year |
|
- |
|
- |
|
- |
|
(55,453 |
) |
(55,453 |
) |
(6 |
) |
(55,459 |
) |
Other comprehensive loss |
|
- |
|
- |
|
(8,985 |
) |
- |
|
(8,985 |
) |
- |
|
(8,985 |
) |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
- |
|
- |
|
(8,985 |
) |
(55,453 |
) |
(64,438 |
) |
(6 |
) |
(64,444 |
) |
|
|
|
|
|
|
|
|
|
|
|
Acquisition of non-controlling interests |
|
- |
|
- |
|
- |
|
- |
|
- |
|
266 |
|
266 |
|
Other |
|
- |
|
- |
|
(97 |
) |
97 |
|
- |
|
- |
|
- |
|
Dividends |
|
|
|
|
|
|
|
|
|
|
Multiple Voting Shares |
|
- |
|
- |
|
- |
|
(366 |
) |
(366 |
) |
- |
|
(366 |
) |
Subordinate Voting Shares |
|
- |
|
- |
|
- |
|
(131 |
) |
(131 |
) |
- |
|
(131 |
) |
|
|
|
|
|
|
|
|
|
|
|
Balance - February 28, 2023 |
|
72,695 |
|
6,260 |
|
(41,208 |
) |
162,142 |
|
199,889 |
|
946 |
|
200,835 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the year |
|
- |
|
- |
|
- |
|
(19,737 |
) |
(19,737 |
) |
(65 |
) |
(19,802 |
) |
Other comprehensive loss |
|
- |
|
- |
|
2,516 |
|
- |
|
2,516 |
|
- |
|
2,516 |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
- |
|
- |
|
2,516 |
|
(19,737 |
) |
(17,221 |
) |
(65 |
) |
(17,286 |
) |
|
|
|
|
|
|
|
|
|
|
|
Acquisition of non-controlling interests |
|
- |
|
- |
|
- |
|
- |
|
- |
|
201 |
|
201 |
|
Dividends |
|
|
|
|
|
|
|
|
|
|
Multiple Voting Shares |
|
- |
|
- |
|
- |
|
(354 |
) |
(354 |
) |
- |
|
(354 |
) |
Subordinate Voting Shares |
|
- |
|
- |
|
- |
|
(137 |
) |
(137 |
) |
- |
|
(137 |
) |
Non-controlling interest |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Balance - February 29, 2024 |
|
72,695 |
|
6,260 |
|
(38,692 |
) |
141,914 |
|
182,177 |
|
1,082 |
|
183,259 |
|
Consolidated Statements of Cash Flow |
(in thousands of U.S. dollars) |
|
|
Three-month periods ended |
|
|
Fiscal years ended |
|
|
|
February 29, |
|
February 28, |
|
|
February 29, |
|
February 28, |
|
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
|
|
$ |
|
$ |
|
|
$ |
|
$ |
|
|
|
|
|
|
|
|
Cash flows from |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
Net loss for the period |
|
(2,089 |
) |
(47,216 |
) |
|
(19,802 |
) |
(55,459 |
) |
Adjustments to reconcile net loss to cash provided by operating
activities |
|
12,669 |
|
64,794 |
|
|
14,289 |
|
67,553 |
|
Changes in non-cash working capital items |
|
9,069 |
|
911 |
|
|
9,814 |
|
(11,572 |
) |
Cash provided by operating activities |
|
19,649 |
|
18,489 |
|
|
4,301 |
|
522 |
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Short-term investments |
|
(5,254 |
) |
9,367 |
|
|
(5,232 |
) |
8,250 |
|
Additions to property, plant and equipment |
|
(2,925 |
) |
(1,385 |
) |
|
(6,829 |
) |
(4,370 |
) |
Additions to intangible assets |
|
(1,199 |
) |
(903 |
) |
|
(2,358 |
) |
(2,219 |
) |
Proceeds on disposal of property, plant and equipment |
|
(127 |
) |
141 |
|
|
(45 |
) |
185 |
|
Net change in other assets |
|
317 |
|
(117 |
) |
|
347 |
|
(87 |
) |
Cash provided (used) by investing activities |
|
(9,198 |
) |
7,103 |
|
|
(14,127 |
) |
1,759 |
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Dividends paid to Subordinate and Multiple Voting shareholders |
|
- |
|
- |
|
|
(491 |
) |
(497 |
) |
Acquisition of non-controlling interests |
|
1 |
|
266 |
|
|
201 |
|
266 |
|
Net change in revolving credit facility |
|
- |
|
(5,373 |
) |
|
5,000 |
|
- |
|
Increase in long-term debt |
|
1,286 |
|
1,506 |
|
|
1,286 |
|
3,666 |
|
Repayment of long-term debt |
|
(1,069 |
) |
(683 |
) |
|
(8,762 |
) |
(4,398 |
) |
Repayment of long-term lease liabilities |
|
(603 |
) |
(566 |
) |
|
(1,895 |
) |
(1,657 |
) |
Cash provided (used) by financing activities |
|
(385 |
) |
(4,850 |
) |
|
(4,661 |
) |
(2,620 |
) |
|
|
|
|
|
|
|
Effect of exchange rate differences on cash |
|
17 |
|
200 |
|
|
679 |
|
(2,873 |
) |
|
|
|
|
|
|
|
Net change in cash during the period |
|
10,083 |
|
20,942 |
|
|
(13,808 |
) |
(3,212 |
) |
|
|
|
|
|
|
|
Net cash – Beginning of the period |
|
26,362 |
|
29,311 |
|
|
50,253 |
|
53,465 |
|
|
|
|
|
|
|
|
Net cash – End of the period |
|
36,445 |
|
50,253 |
|
|
36,445 |
|
50,253 |
|
|
|
|
|
|
|
|
Net cash is composed of: |
|
|
|
|
|
|
Cash and cash equivalents |
|
36,445 |
|
50,513 |
|
|
36,445 |
|
50,513 |
|
Bank indebtedness |
|
- |
|
(260 |
) |
|
- |
|
(260 |
) |
|
|
|
|
|
|
|
Net cash – End of the period |
|
36,445 |
|
50,253 |
|
|
36,445 |
|
50,253 |
|
|
|
|
|
|
|
|
Supplementary information |
|
|
|
|
|
|
Interest paid |
|
(845 |
) |
(524 |
) |
|
(1,274 |
) |
(974 |
) |
Income taxes paid |
|
(2,523 |
) |
(1,361 |
) |
|
(6,708 |
) |
(8,160 |
) |
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