- Net revenue of
$29.5 million , decreased from$34.2 million in the prior year. - Gross profit of
$6.8M , decrease from$11.2 million in the prior year. - Selling, marketing and administration expenses of
$4.0 million , reduced from$4.9 million in the prior year. - EBITDA* of
$5.1 million , decreased from$8.0 million in the prior year.
- Net revenue of
$50.7 million , decreased from$56.7 million in the prior year. - Gross profit of
$10.8 million , decreased from$16.2 million in the prior year. - Selling, marketing and administration expenses of
$7.6 million , reduced from$8.5 million the prior year. - EBITDA* of
$7.7 million , decreased from$11.2 million in the prior year.
Owner brand sales volume in the quarter grew by 1.4%, while the industry, as a whole, was down by 0.9%. Volumes of the domestic mainstream Laker brand increased by 9.3% versus the prior year, signalling trade-down behaviours within the category as a result of inflationary pressures. The Company expects consumers to continue to trade-down, which will benefit the Laker brand, as they continue to feel inflationary pressures. LandShark® also grew by 7.2% which maintained the performance trend in the first quarter and significantly out paced the domestic premium category. Owner brands continued to gain market share at
A few large co-manufacturing customers that supply their own raw materials were impacted by ongoing supply chain delays in the quarter, which resulted in contract volumes either partially lost or shifted to upcoming months. Service revenue decreased by
Gross profit performance declined in the quarter due to lower co-manufacturing volumes, inflationary cost pressures, supply chain challenges and increased operational fixed costs.
"We know our customers are facing significant financial pressures right now. We feel it too, as we continue to experience inflationary cost escalation of our own, and encounter supply chain delays which affects both our co-manufacturing and owner brand manufacturing," said
Moving forward,
"We have a strong and experienced team that is focused on reaching our goals. I am confident that we will finish this fiscal year strong despite the ongoing challenges," Croft said.
The Board of Directors approved a quarterly dividend of
The following financial information should be read in conjunction with the audited annual financial statements of the Company prepared under IFRS for the year ended
Reconciliation of Net Earnings (loss) to EBITDA* | ||||
Quarter ended (unaudited) | Fiscal year-to-date ended (unaudited) | |||
(in thousands of dollars) | ||||
Net income (loss) | $ 730 | $ 4,155 | $ (254) | $ 4,054 |
Add (deduct): | ||||
Income tax recovery (provision) | 254 | 1,450 | (111) | 1,414 |
Gain on misappropriated funds | - | (900) | - | (900) |
Depreciation and amortization | 2,963 | 2,634 | 5,968 | 4,984 |
Gain on disposal of property, plant and equipment, and right-of-use assets | (3) | (5) | (3) | (22) |
Share-based payments | 302 | 270 | 508 | 409 |
Finance costs | 746 | 662 | 1,451 | 1,334 |
Unrealized gain (loss) on foreign exchange contracts | 86 | (265) | 135 | (26) |
Subtotal | 4,348 | 3,846 | 7,948 | 7,193 |
EBITDA * | 5,078 | 8,001 | 7,694 | 11,247 |
As at
(Not audited or reviewed by the Company's external auditor)
ASSETS | |||
Current assets | |||
Accounts receivable and contract assets | $ 15,652,911 | $ 15,526,799 | |
Inventories | 18,684,118 | 15,841,135 | |
Prepaid expenses | 1,209,878 | 754,088 | |
35,546,907 | 32,122,022 | ||
Non-current assets | |||
Property, plant and equipment | 51,077,825 | 51,930,553 | |
Right-of-use assets | 31,264,860 | 32,067,772 | |
Intangible assets | 15,214,583 | 14,846,687 | |
Construction deposits | 62,939 | 466,818 | |
97,620,207 | 99,311,830 | ||
TOTAL ASSETS | 133,167,114 | 131,433,852 | |
LIABILITIES AND EQUITY | |||
Current liabilities | |||
Bank indebtedness | 14,674,424 | 16,861,218 | |
Accounts payable and accrued liabilities | 17,930,970 | 14,062,415 | |
Dividends payable | 1,091,709 | - | |
Current portion of lease liabilities | 3,605,614 | 4,134,584 | |
Current portion of long-term debt | 6,445,013 | 5,327,821 | |
43,747,730 | 40,386,038 | ||
Non-current liabilities | |||
Provisions | 1,248,978 | 1,211,324 | |
Lease liabilities | 24,583,353 | 25,535,180 | |
Long-term debt | 23,042,931 | 21,751,775 | |
Deferred income tax liability | 5,714,559 | 5,825,398 | |
54,589,821 | 54,323,677 | ||
TOTAL LIABILITIES | 98,337,551 | 94,709,715 | |
Equity | |||
Share capital | 40,706,416 | 40,618,496 | |
Share-based payments reserves | 2,901,972 | 2,447,275 | |
Deficit | (8,778,825) | (6,341,634) | |
TOTAL EQUITY | 34,829,563 | 36,724,137 | |
TOTAL LIABILITIES AND EQUITY | $ 133,167,114 | $ 131,433,852 |
For the quarters ended
(Not audited or reviewed by the Company's external auditor)
Quarter ended | Fiscal year-to-date ended | ||||
July 31, 2022 | July 31, 2022 | August 1, 2021 | |||
Revenue | $ 29,497,602 | $ 34,201,669 | $ 50,742,251 | $ 56,685,854 | |
Cost of sales | 22,663,144 | 23,042,956 | 39,947,871 | 40,530,338 | |
Gross profit | 6,834,458 | 11,158,713 | 10,794,380 | 16,155,516 | |
Selling, marketing and administration expenses | 4,039,900 | 4,938,097 | 7,555,532 | 8,534,167 | |
Other expenses | 1,068,077 | 859,221 | 2,155,973 | 1,741,600 | |
Finance costs | 745,903 | 661,549 | 1,451,637 | 1,334,207 | |
Gain on misappropriated funds, net | - | (899,647) | - | (899,647) | |
Gain on disposal of property, plant and equipment, | (2,977) | (5,277) | (3,467) | (22,487) | |
Income (loss) before tax | 983,555 | 5,604,770 | (365,295) | 5,467,676 | |
Income tax expense (recovery) | 253,908 | 1,449,850 | (110,837) | 1,413,456 | |
Net income (loss) and comprehensive | $ 729,647 | $ 4,154,920 | $ (254,458) | $ 4,054,220 | |
Basic earnings (loss) per share | $ 0.02 | $ 0.11 | $ (0.01) | $ 0.11 | |
Diluted earnings (loss) per share | $ 0.02 | $ 0.11 | $ (0.01) | $ 0.11 |
For the quarters ended
(Not audited or reviewed by the Company's external auditor)
Quarter ended | Fiscal year-to-date ended | ||||
July 31, 2022 | July 31, 2022 | ||||
Operating activities | |||||
Net income (loss) | $ 729,647 | $ 4,154,920 | $ (254,458) | $ 4,054,220 | |
Adjustments for: | |||||
Income tax expense (recovery) | 253,908 | 1,449,850 | (110,837) | 1,413,456 | |
Finance costs | 745,903 | 661,549 | 1,451,637 | 1,334,207 | |
Depreciation and amortization of property, plant and | 2,963,293 | 2,634,216 | 5,967,671 | 4,984,194 | |
Gain on disposal of property, plant and equipment and | (2,977) | (5,277) | (3,467) | (22,487) | |
Share-based payments | 302,150 | 270,222 | 507,685 | 409,388 | |
Change in non-cash working capital | (7,282,387) | (4,029,678) | (44,416) | (6,291,168) | |
Less: | |||||
Interest paid | (686,627) | (637,018) | (1,358,130) | (1,319,696) | |
Cash provided by (used in) operating activities | (2,977,090) | 4,498,784 | 6,155,685 | 4,562,114 | |
Investing activities | |||||
Purchase of property, plant and equipment | (588,493) | (2,304,316) | (1,989,720) | (7,887,396) | |
Construction deposit paid | - | (70,586) | - | (231,236) | |
Proceeds from sale of property, plant and equipment, and | 3,551 | 5,983 | 4,584 | 23,899 | |
Purchase of intangible assets | (2,919) | (3,167) | (482,940) | (45,464) | |
Cash used in investing activities | (587,861) | (2,372,086) | (2,468,076) | (8,140,197) | |
Financing activities | |||||
Increase (decrease) in bank indebtedness | 2,062,644 | 858,990 | (2,186,794) | 5,520,891 | |
Issuance of long-term debt | 5,000,000 | 1,173,691 | 5,000,000 | 4,536,234 | |
Repayment of long-term debt | (1,339,502) | (1,321,431) | (2,591,652) | (2,637,649) | |
Repayment of lease liabilities | (1,091,951) | (887,269) | (2,853,071) | (1,986,026) | |
Dividends paid | (1,091,024) | (1,969,800) | (1,091,024) | (1,969,800) | |
Issuance of shares, net of fees | 24,783 | 29,930 | 34,932 | 115,943 | |
Stock option costs | - | (10,809) | - | (10,809) | |
Proceeds from stock option exercise, net of costs | - | - | - | 9,299 | |
Cash generated (used in) from financing activities | 3,564,951 | (2,126,698) | (3,687,609) | 3,578,083 | |
Net increase in cash | - | - | - | - | |
Cash, beginning of period | - | - | - | - | |
Cash, end of period | $ - | $ - | $ - | $ - | |
Non-cash investing and financing activities: | |||||
Acquisition of assets under lease | $ 1,170,016 | $ 745,025 | $ 1,375,726 | $ 2,277,440 |
All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements as of the date of this press release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "seek", "plan", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Company believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements, which are not guarantees and are subject to certain risks, uncertainties, and assumptions, which may cause actual performance and financial results to differ materially from such forward-looking statements. The forward-looking statements included in this press release are made only at the date of this press release and, except as required by applicable securities laws, the Company does not undertake to publicly update such forward-looking statements to reflect new information, future events or otherwise.
* EBITDA is a non-IFRS earnings measure, therefore it does not have any standardized meaning prescribed by International Financial Reporting Standards and may not be similar to measures presented by other companies. EBITDA represents earnings before interest, income taxes, depreciation, and amortization, gain(loss) on disposal of property, plant, and equipment and right-of-use assets, gain on misappropriated funds, and share-based payments. Management uses this measurement to evaluate the operating results of the Company. This measure is also important to management since it is used by the Company's lenders to evaluate the ongoing cash-generating capability of the Company and therefore the amounts those lenders are willing to lend to the Company. Investors find EBITDA to be useful information because it provides a measure of the Company's operating performance.
SOURCE
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