VANCOUVER, BC, May 27, 2021 /CNW/ - good natured Products
Inc. (the "Company" or "good natured®")
(TSX-V: GDNP), a North American leader in earth-friendly
plant-based products, today announced its financial results for the
three months ended March 31, 2021 (or
"Q1 FY21").
Key Highlights:
- Revenues for Q1 FY21 increased 159% to $7.9 million compared to $3.1 million for the three months ended
March 31, 2020 (or "Q1 FY20").
- Variable gross profit, a non-GAAP measure, for Q1 FY21
increased 191% to $3.2 million, 40.8%
of sales, compared to $1.1 million,
36.3% of sales in Q1 FY20. Gross profit increased to $2.8 million, 35.3% of sales, in Q1 FY21,
compared to $1.1 million, 36.3% of
sales, in Q1 FY20.
- Selling, general and administrative expenses ("SG&A"),
excluding acquisition activity, a non-GAAP measure, for Q1 FY21
were $2.7 million compared to
$1.3 million for Q1 FY20,
representing an increase of 106%.
- The Company's adjusted EBITDA, a non-GAAP measure, for Q1 FY21
was a gain of $155,000 compared to a
loss of $308,000 for Q1 FY20.
- In Q1 FY21, the Company incurred a net loss of $1.9 million compared to a net loss of
$0.8 million in Q1 FY20.
"Our first quarter revenue growth of just under 160% sets the
stage for our recently announced acquisition of Ex-Tech Plastics
Inc. This highly strategic and accretive acquisition of Ex-Tech
Plastics Inc. positions good natured® for further strong
revenue growth and improved profitability," stated Paul Antoniadis,
CEO. "We are also extremely pleased to report our first ever
positive EBITDA quarter, as our team members and partners worked
hard through disruptions in key markets from COVID-19 variants,
extreme weather-related events in the southern US, and the external
cost inflation in our logistic and fulfillment operations. In
addition, new customer activity remains strong, and we are
confident in our outlook for organic growth, highlighted by our
recent launch of Canada's first
compostable and Microwavable To Go Containers. These growth drivers
are expected to mitigate the logistic inflationary cost pressures
we are seeing which could continue through the rest of 2021."
The Company's Q1 FY21 audited financial statements and
Management's Discussion and Analysis (MD&A) are available on
SEDAR at sedar.com.
Q1 FY21 Results Conference Call
The Company is pleased
to host a conference call to discuss its financial results for Q1
FY21, hosted by Paul Antoniadis, Executive Chair & CEO, and
Kevin Leong, Chief Financial
Officer, on May 27, 2021 at
11:00 AM Eastern / 9:00 AM Pacific time.
Date: May 27, 2021
Time: 11:00 AM EST / 8:00 AM PST
Toll-Free: 1-833-900-2239 International: +1 (236) 712-2470
Conference ID: 6694338
Participants are asked to dial in 10 minutes prior to the start of
the call.
A replay of the call will be available approximately two hours
after its completion through to June 23,
2021. The replay will be available by dialing 1-800-585-8367
or +1 (416) 621-4642.
The good natured® corporate profile can be
found at: investor.goodnaturedproducts.com
About good natured Products Inc.
good
natured® is passionately pursuing its goal of
becoming North America's leading
earth-friendly product company by offering the broadest assortment
of eco-friendly options made from plants instead of petroleum.
We're all about making it easy and affordable for business owners
and consumers to switch to better everyday products® made from
renewable materials and free from chemicals of concern.
Part of the sustainable consumer goods market, good
natured® offers over 400 products and services
through wholesale and retail channels, including our own e-commerce
stores. From plant-based home organization products to compostable
food containers, bioplastic industrial supplies and medical
packaging, we're focused on delivering a great customer experience
to make more plant-based products readily accessible to more people
as the path to deliver meaningful environmental and social
impact.
For more information: goodnaturedproducts.com
On behalf of the Company:
Paul Antoniadis – Executive Chair & CEO
Contact: 1-604-566-8466
Investor Contact:
Spencer Churchill
Investor Relations
1-877-286-0617 ext. 113
invest@goodnaturedproducts.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibilities for the adequacy or
accuracy of this release.
Non-GAAP financial measures
We have included in this press release a discussion of the
Company's variable gross profit, SG&A excluding acquisition
costs, and adjusted EBITDA, all non-GAAP measures, for Q1 FY21 and
Q1 FY20 to provide, what management believes, is a meaningful
comparison of the Company's performance in Q1 FY21. In this news
release, variable gross profit is gross profit excluding fixed
production costs such as depreciation, repairs and maintenance,
utilities and similar overhead items and adjusted EBITDA is
earnings before interest and finance costs, taxes, depreciation and
amortization, other non–cash items and one–time gains and losses.
Variable gross profit, SG&A excluding acquisition costs and
Adjusted EBITDA do not have standardized meanings, and therefore
may not be comparable to similar measures presented by other
issuers. The use of the adjusted EBITDA by management allows for
evaluation of the Company's principal business activities as
certain non–core items such as interest and finance costs, taxes,
depreciation and amortization, and other non–cash items and
one–time gains and losses are removed.
The following table provides a reconciliation of gross
profit, as disclosed in the Company's Q1 FY21 financial statements
to variable gross profit:
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
Mar. 31,
2021
|
Mar. 31,
2020
|
Product
Revenue
|
|
|
|
$
|
7,900
|
$
|
3,052
|
Cost of product
revenue
|
|
|
|
|
|
|
|
Variable cost of
product
|
|
|
|
|
(4,678)
|
|
(1,944)
|
Variable gross
profit
|
|
|
|
$
|
3,222
|
$
|
1,108
|
Fixed factory
overhead
|
|
|
|
|
298
|
|
-
|
Depreciation
|
|
|
|
|
135
|
|
-
|
Gross
profit
|
|
|
|
$
|
2,789
|
$
|
1,108
|
The following table provides a reconciliation of net loss, as
disclosed in the Company's Q1 FY21 financial statements to adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
Mar. 31,
2021
|
Mar. 31,
2020
|
Income (loss) for the
period:
|
|
|
|
|
$
|
(1,903)
|
$
|
(806)
|
Share-based
compensation
|
|
|
|
|
|
270
|
|
10
|
Depreciation included
in COGS
|
|
|
|
|
|
135
|
|
-
|
Depreciation and
amortization
|
|
|
|
|
|
236
|
|
42
|
Financing
costs
|
|
|
|
|
|
1,034
|
|
918
|
Foreign exchange
(gain)
|
|
|
|
|
|
71
|
|
(639)
|
Loss on debenture
conversion and redemption
|
|
|
|
|
|
166
|
|
132
|
Loss (Gain) on
interest-free loan
|
|
|
|
|
|
-
|
|
(46)
|
Acquisition related
activity
|
|
|
|
|
|
146
|
|
161
|
Deferred income
taxes
|
|
|
|
|
|
-
|
|
(80)
|
Adjusted EBITDA
profit (loss)
|
|
|
|
|
$
|
155
|
$
|
(308)
|
Adjusted EBITDA as a
% of Revenue
|
|
|
|
|
|
2%
|
|
(10%)
|
Cautionary Statement Regarding Forward-Looking
Information
This news release contains forward-looking information within
the meaning of securities laws including statements related to
expected benefits from the acquisition of Ex-Tech Plastics Inc.,
Company plans for 2021 and managements outlook for 2021. By their
nature, forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements.
When relying on the Company's forward-looking statements and
information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. The Company has assumed that the material
factors referred to in the previous paragraph will not cause such
forward-looking statements and information to differ materially
from actual results or events. However, there can be no assurance
that such assumptions will reflect the actual outcome of such items
or factors.
Other than as required under securities laws, we do not
undertake to update this information at any particular
time.
Forward-looking information contained in this news release is
based on our current estimates, expectations and projections
regarding, among other things, sales volume and pricing which we
believe are reasonable as of the current date. The reader should
not place undue importance on forward-looking information and
should not rely upon this information as of any other date. All
forward-looking information contained in this news release is
expressly qualified in its entirety by this cautionary
statement.
SOURCE Good Natured Products