TORONTO, Nov. 23, 2020 /CNW/ - Mimi's Rock Corp.
(TSXV:MIMI, OTCQB:MIMNF) (the "Company"), an online dietary
supplement and wellness company, today announced its financial
results for the three and nine months ended September 30, 2020.
Highlights
- $9.8 million of revenue and
$1.2 million of EBITDA in Q3
2020
- YTD 2020 revenues $31.2 million;
up from $27.7M same period last
year
"We are pleased to report strong Q3 2020 results, which saw us
grow our revenue by 12% over the same quarter last year, despite
the fact that Amazon's Prime Day event shifted out of the quarter
this year, into Q4 2020. Even without the expected boost from
Prime Day, we saw an EBITDA lift of 29% over Q3 2019. We look
forward to a strong Q4 2020, which will for the first time include
both the Prime Day and Black Friday/Cyber Monday events" said
David Kohler, CEO.
Net Income and EBITDA for the Three Months Ended September 30, 2020
For the three months ended September 30,
2020, the Company earned net income of $545,612 ($0.01
earnings per share), compared to a net loss of $243,156 ($0.00 per
share) for the three months ended September
30, 2019. For the three months ended September 30, 2020, EBITDA was $1,242,935, compared to $626,540 for the same period in 2019.
Adjusted EBITDA, which excludes non-cash share-based compensation
expense, listing expenses, foreign exchange gain (loss) and
investment income, was $1,165,758 for
the three months ended September 30,
2020, compared to Adjusted EBITDA of $902,776 for the same three-month period in
2019.
Third quarter 2020 performance was muted somewhat by Amazon's
decision to delay the Prime Day event period to the fourth quarter
this year as opposed to its traditional third quarter event
timeline. Results for the comparative third quarter in 2019
include the Prime Day event as it typically occurs in July.
The Company's skin care businesses, All Natural and Maritime
Naturals generally performed well, as we had expected.
Revenues and Gross Profit
Revenues were $9,774,906 for the
three months ended September 30,
2020, compared to revenues of $8,755,114 for the three-month period ended
September 30, 2019. Revenues in
the comparative 2019 period represent revenues from the DTI
business only, as the skin care businesses, All Natural and
Maritime Naturals, were acquired in December 2019. As a
significant portion of the Company's sales are generated through
the Amazon marketplace, the Amazon Prime Day sales event, typically
held in July, is generally the Company's best sales week of the
year. As a result of complications surrounding COVID-19,
Amazon made the decision to move Prime Day 2020 to October.
As such, revenues for DTI in Q3 2020 were impacted due to lower
promotional activity and some customers delaying purchases.
Despite these effects, consolidated revenues increased
approximately $1 million above the
same period in 2019, due to the addition of the acquired skin care
businesses. While unexpected events related to the pandemic
have caused the fluctuation in sales revenues on a
period-over-period basis, improvement in both the DTI and skincare
businesses are anticipated in Q4 2020 and beyond.
Gross profit for the three months ended September 30, 2020 was $6,874,719 (70.3%) compared to $6,114,962 (69.8%) for the three-month period
ended September 30, 2019. Gross
profit improved in the third quarter but the profit margin fell
slightly on a year-over-year basis, primarily due to a one-time
adjustment to margins on skincare inventory acquired. Overall
profit margins are expected to improve slightly going forward.
Selling and Marketing Expense
The Company incurred selling and marketing expenses of
$4,476,833, or approximately 45.8% of
revenue, for the three months ended September 30, 2020, compared to $4,014,971, or 45.9% of revenue, for the three
months ended September 30,
2019. The Company continues to strive to optimize
advertising spend relative to revenue. Ongoing events
continually influence ad spend strategy and efficient strategies
directly impact bottom line performance. While savings can be
enjoyed short term with lower promotional spend, sales momentum is
also an important factor in online sales. The most effective
online ad strategies combine an efficient maintenance spend to keep
repeat customers while investing strategically to attract new ones
and gain greater overall brand awareness.
Selling and marketing expenses for the period consist primarily
of fulfillment costs related to delivering products to customers,
direct online advertising placements, costs related to marketing
the Dr. Tobias, All Natural and Maritime Naturals brands, and other
promotional and awareness initiatives. The Company will
continue to actively monitor its selling and marketing expenses,
particularly direct advertising expenses, and expects that these
expenses will begin to stabilize in relation to sales revenues
going forward.
General and Administrative Expense
General and administrative expenses for the three months ended
September 30, 2020 were $1,232,128, compared to $1,197,215 for the same period in 2019.
General and administrative expenses consist primarily of salaries
and benefits, professional fees, occupancy costs, and
insurance. General and administrative expenses are
relatively comparable to the same period in 2019 due to the fact
that staff and operational costs are relatively stable.
General and administrative expenses are expected to remain
relatively fixed on an absolute basis for the foreseeable
future.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
About Mimi's Rock Corp.:
Mimi's Rock Corp. is an online dietary supplement and wellness
company which market and sells its products under the Dr. Tobias,
All Natural Advice and Maritime Naturals brand names. The Dr.
Tobias brand features over 30 products, including the top-selling
Colon 14-Day Cleanse and the #1
selling Omega 3 Fish Oil on Amazon.com. All Natural Advice and
Maritime Naturals products focus on skin and beauty care. Products
sold under the All Natural and Maritime Naturals brand names are
made in Canada and registered with
Health Canada and under the EU Cosmetics Act. All Natural Advice
has been featured on BNN as a top selling skincare brand in
Canada, and has been rated the #1
Beauty Brand on Amazon Canada for the past four years.
Please visit www.mimisrock.com or the Company's profile on
www.sedar.com for the Company's recent filings.
Forward-Looking Information
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. Often, but not always, forward-looking statements
can be identified by the use of words such as "plans", "expects",
or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or describes a "goal", or variation of
such words and phrases or state that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved. The forward-looking statements in this press
release include, but are not limited to, statements
regarding the impact of the COVID-19 pandemic on the
business and operations of the Company, the Company's
expected revenues, the expected increase in quarterly revenues and
Adjusted EBITDA. Please refer to the Company's 2019 Annual
Financial Statements and MD&A for more details on the Company's
calculation of EBITDA and Adjusted EBITDA.
All forward-looking statements reflect the Company's beliefs and
assumptions based on information available at the time the
statements were made. Actual results or events may differ
from those predicted in these forward-looking statements. All
of the Company's forward-looking statements are qualified by the
assumptions that are stated or inherent in such forward-looking
statements, including the assumptions listed below. Although
the Company believes that these assumptions are reasonable, this
list is not exhaustive of factors that may affect any of the
forward-looking statements.
Forward-looking statements involve known and unknown risks,
future events, conditions, uncertainties and other factors which
may cause the actual results, performance or achievements to be
materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or
implied by the forward-looking statements, including risks relating
to: the Company's reliance on strength of reputation and brands,
third-party manufacturing, transportation and distribution, the
Company's ability to protect its intellectual property, the
Company's reliance on e-commerce sites, disruption or breaches in
information technology systems, the successful integration
subsequent to acquisitions, litigation, volatility in the market
price, the inability to successfully implement growth strategy on a
timely basis, difficulty expanding sales in targeted international
markets, changes in general economic conditions, the Company's
ability to service its debt obligations, management of growth,
reliance on management, conflicts of interest, local and foreign
tax matters, liquidity, currency and other financial risks,
potential product liability or other regulatory claims, product
recalls, the need to develop and innovate products, changes in
legal and regulatory standards, competition, operating risk and
insurance coverage, natural disasters, unusual weather and
geo-political events, the effect of COVID-19 on operations, and
other risks relating to the business and industry of the Company
that are detailed from time to time in the Company's filings with
the Canadian provincial securities regulators.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be
no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. All forward-looking information
contained in this press release is given as of the date hereof and
is based upon the opinions and estimates of management and
information available to management as at the date hereof.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events, or otherwise, except in accordance with
applicable securities laws.
SOURCE Mimi's Rock Corp.