TORONTO, Nov. 23,
2023 /CNW/ - Grey Wolf Animal Health Corp. (TSXV:
WOLF) ("Grey Wolf" or the "Company"), a Canadian diversified animal
health company, today announced financial results for the quarter
and nine months ended September 30,
2023.
Highlights
- Revenue for the quarter increased year over year by 12.4% to
$6.5 million. Revenue increased by
12.5% to $19.3 million for the first
nine months of the year.
- Gross profit increased year over year by 8.3% to $3.2 million for the quarter and 11.3% to
$9.8 million for the first nine
months of the year.
- Adjusted EBITDA1 increased 25.8% to just under
$1.0 million for the quarter compared
to $0.8 million for the same period
in 2022. Adjusted EBITDA1 for the first nine months of
the year was $3.0 million compared to
$2.8 million in the prior year or an
increase of 8.3%.
"The third quarter of 2023 was another solid quarter for Grey
Wolf. We saw total revenue grow by 12.4% to $6.5 million driven by organic growth within our
product portfolio. On a year-to-date basis, gross margins
have remained consistent compared to the prior year. In addition,
Adjusted EBITDA1 increased by $0.2 million for the quarter and nine months
largely as a result of improved operating income." said
Angela Cechetto, Chief Executive
Officer. "Furthermore, revenue, gross profit, Adjusted
EBITDA1 and cash have all increased year over year
for the third quarter and nine months ending September 30, 2023. Additionally, we
continued to pay down our debt and are poised for future
growth."
Key Financial Data and Comparative Results
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Sep 30,
2023
|
Sep 30,
2022
|
|
|
|
|
|
Revenue
|
6,527,122
|
5,809,083
|
19,252,899
|
17,107,136
|
Gross profit
|
3,211,376
|
2,965,497
|
9,758,391
|
8,765,661
|
Gross profit
%
|
49.2 %
|
51.0 %
|
50.7 %
|
51.2 %
|
Total operating
expenses
|
2,664,678
|
2,977,165
|
8,042,806
|
8,975,023
|
Operating income (loss)
for the period
|
546,698
|
(11,668)
|
1,715,585
|
(203,362)
|
|
|
|
|
|
Income tax expense
(recovery)
|
136,729
|
(74,410)
|
435,566
|
(242,029)
|
Net income (loss) for
the period
|
282,509
|
(1,143,808)
|
893,464
|
(3,253,382)
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
Basic and
diluted
|
0.010
|
(0.080)
|
0.030
|
(0.220)
|
|
|
|
|
|
EBITDA
|
896,203
|
(1,101)
|
2,775,292
|
159,416
|
Adjusted
EBITDA
|
969,252
|
775,203
|
2,977,143
|
2,749,203
|
|
|
|
|
|
|
Sep 30,
2023
|
Dec 31,
2022
|
|
|
|
|
|
|
|
Total assets
|
40,082,263
|
39,309,105
|
|
|
Total
liabilities
|
14,766,973
|
15,061,717
|
|
|
Results of Operations for the Three and Nine Months ended
September 30, 2023
Revenue for the three- and nine-month period ended September 30, 2023, increased 12.4% to
$6.5 million and 12.5% to
$19.3 million, respectively, over the
same period in 2022. This increase was due to organic revenue
growth in both the Animal Health and Pharmacy business units.
Gross margins for the three- and nine-month period ended
September 30, 2023, decreased
slightly to 49.2% compared to 51.0% and 50.7% compared to 51.2%,
respectively, over the same period in 2022. Gross margins were
impacted by reduced margins in the Pharmacy business and product
mix in the Animal Health business.
Total expenses for the three- and nine-month period ended
September 30, 2023, decreased 10.5%
to $2.7 million and 10.4% to
$8.0 million, respectively, over the
same period in 2022. The decrease in total expenses was largely
related to costs associated with the Qualifying Transaction during
the same periods in 2022 offset by costs noted below. During the
three-month period, there was an increase in salary, bonus, and
benefits related to operational growth as compared to the same
period in 2022. Travel, meals, and business expenses increased in
2023 as the sales and marketing team increased attendance at
conventions, trade shows and customer visits. Finally, there was an
increase in professional fees and outside services related to
corporate costs as the company now operates as a public entity.
Adjusted EBITDA1 for the three- and nine-months ended
September 30, 2023, increased by
$0.2 million to $1.0 million and $0.2
million to $3.0 million,
respectively, when compared to the corresponding period in
2022.
Cash and cash equivalents were $8.0
million as at September 30,
2023 compared to $6.9 million
at December 31, 2022. The Company generated cash from
operations of $2.1 million in the
first nine months of 2023 primarily as a result of revenue growth
in both the Animal Health and Pharmacy businesses. This was offset
by the use of $0.4 million of the
Company's cash resources from changes in working capital and the
repayment of borrowings of $0.7
million. As at September 30,
2023, the Company had outstanding borrowings of $9.4 million, of which $1.1 million are current and $8.3 million are non-current. The Company's debt
is a fixed rate term loan with an average interest rate of 4.7%
until September 2026.
Grey Wolf's financial statements and accompanying Management
Discussion and Analysis for the three- and nine-months ended
September 30, 2023 are available
under the Company's profile on www.sedar.com.
1Non-IFRS Measures
Management uses both IFRS and Non-IFRS Measures to assess the
financial and operating performance of the Company's operations.
These Non-IFRS Measures are not recognized measures under IFRS, do
not have a standardized meaning under IFRS and are unlikely to be
comparable to similar measures presented by other companies. The
Non-IFRS Measures referenced in this press release includes
Adjusted EBITDA. The Company defines Adjusted EBITDA as earnings
before financing and special transaction costs (including, for
greater certainty, fees related to the Qualifying Transaction),
interest income, interest and accretion expenses, income taxes,
depreciation of property and equipment, depreciation of right of
use assets, amortization of intangible assets, share-based
compensation, change in fair value of embedded derivatives, foreign
exchange gains or losses, and other income. The Company considers
Adjusted EBITDA as an additional metric in assessing business
performance and an important measure of operating performance and
cash flow, providing useful information to help analyze and compare
profitability between companies for investors and analysts.
The following table provides a summary of the differences
between Grey Wolf's consolidated IFRS and Non-IFRS financial
measures, which are reconciled below:
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Sep 30,
2023
|
Sep 30,
2022
|
|
|
|
|
|
Net income (loss)
for the period
|
282,509
|
(1,143,808)
|
893,464
|
(3,253,382)
|
|
|
|
|
|
Interest
income
|
(35,382)
|
-
|
(95,855)
|
-
|
Interest and accretion
expense
|
147,939
|
852,968
|
454,997
|
2,465,490
|
Income taxes
|
136,729
|
(74,410)
|
435,566
|
(242,029)
|
Depreciation of
property and equipment
|
71,754
|
70,676
|
209,159
|
210,349
|
Depreciation of right
of use assets
|
48,904
|
49,723
|
146,711
|
139,405
|
Amortization of
intangible assets
|
243,750
|
243,750
|
731,250
|
839,583
|
|
|
|
|
|
EBITDA
|
896,203
|
(1,101)
|
2,775,292
|
159,416
|
|
|
|
|
|
Adjustments
|
|
|
|
|
Share-based
compensation
|
58,146
|
47,711
|
174,438
|
143,133
|
Change in fair value of
embedded derivatives
|
-
|
324,327
|
-
|
797,027
|
Foreign exchange loss
(gain)
|
14,903
|
29,255
|
27,413
|
33,532
|
Other income
|
-
|
-
|
-
|
(10,000)
|
Financing and special
transaction costs
|
-
|
375,011
|
-
|
1,626,095
|
|
|
|
|
|
Adjusted
EBITDA
|
969,252
|
775,203
|
2,977,143
|
2,749,203
|
About Grey Wolf Animal Health Corp.
Grey Wolf Animal Health Corp., headquartered in Toronto, Canada, is a diversified animal
health company founded by a veterinarian to bring to market a
broad portfolio of products that meets the unmet needs of
veterinarians, clinics and pets. The Company's strategy is to
in-license, acquire or develop innovative prescription and
non-prescription products for commercialization in the veterinarian
channel in Canada. For additional
information, please visit: www.greywolfah.com.
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.
Forward Looking Statements
Certain information included in this press release contains
forward-looking information with the meaning of applicable Canadian
securities laws. This information includes statements concerning
the Company's objectives, its strategies to achieve those
objectives, as well as statements with respect to management's
beliefs, plans, estimates, and intentions, and similar statements
concerning anticipated future events, results, circumstances,
performance or expectations that are not historical facts.
Forward-looking information generally can be identified by the use
of forward-looking terminology such as "outlook", "objective",
"may", "will", "would", "expect", "intend", "estimate",
"anticipate", "believe", "should", "plan", "continue", or similar
expressions suggesting future outcomes or events or the negative
thereof. Such forward-looking information reflects management's
beliefs and is based on information currently available. All
forward-looking information in this press release is qualified by
the following cautionary statements.
Forward-looking information necessarily involve known and
unknown risks and uncertainties, which may be general or specific
and which give rise to the possibility that expectations,
forecasts, predictions, projections or conclusions will not prove
to be accurate, assumptions may not be correct and objectives,
strategic goals and priorities may not be achieved. A variety of
factors, many of which are beyond the Company's control, affect the
operations, performance and results of the Company and its
subsidiaries, and cause actual results to differ materially from
current expectations of estimated or anticipated events or
results.
A more detailed assessment of the risks that could cause
actual results to materially differ than current expectations is
contained in the Risk Factors section of Grey Wolf's Management
Discussion and Analysis for the three and nine months ended
September 30, 2023. The
forward-looking information included in this press release is made
as of the date hereof and should not be relied upon as representing
the Company's views as of any date subsequent to the date hereof.
Management undertakes no obligation, except as required by
applicable law, to publicly update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise.
SOURCE Grey Wolf Animal Health Corp.