TORONTO--(BUSINESS WIRE)--
Jamieson Wellness Inc. (“Jamieson Wellness” or the “Company”) (TSX:
JWEL) today reported financial results for its second quarter and six
months ended June 30, 2017. All amounts are expressed in Canadian
dollars. Certain metrics, including those expressed on an adjusted
basis, are non-IFRS measures. See “Non-IFRS Financial Measures” below.
Highlights and Summary of Second Quarter 2017 Results versus Second
Quarter 2016 Results
-
Revenue increased 6.3% to $71.3 million and 20.4% after taking into
account a new tolling arrangement entered into with a Strategic
Partners customer;
-
Adjusted EBITDA increased 25.0% to $15.1 million;
-
Net loss was $7.0 million in the second quarter and Adjusted Net
Income was $7.9 million;
-
The Company reaffirmed its outlook for 2017, expecting pro forma
revenue(1) in the range of $303 to $310 million and pro
forma Adjusted EBITDA(1) of $62 million in 2017.
“We have just completed an historic period in our 95 year history,
marked by last month’s initial public offering on the Toronto Stock
Exchange,” said Mark Hornick, President and Chief Executive Officer of
Jamieson Wellness. “We believe we are well positioned to fulfill our
mission of improving the world’s health and wellness. Our strong
positioning is evident in our second quarter results, where we generated
20% pro forma revenue growth and 25% Adjusted EBITDA growth compared to
the second quarter of 2016. We believe the strength of our brands, our
scalable global platform, commitment to quality and innovation and
strong industry trends will support continued growth. We remain
confident in our 2017 financial outlook.”
Second Quarter 2017 Results
Revenue increased 6.3% to $71.3 million in the second quarter of 2017
from $67.0 million in the second quarter of 2016 and was driven by a
20.5% increase in Jamieson Brands revenue to $56.6 million, partially
offset by a 26.9% decrease in Strategic Partners revenue to $14.6
million. The increase in the Jamieson Brands revenue was primarily
driven by the acquisition of Body Plus. The decline in Strategic
Partners revenue was in line with the Company’s expectation and was
driven by a switch to a tolling from a turnkey arrangement for certain
high volume products with a major Strategic Partners customer during
2016. The switch to tolling reduces the Company’s inventory risk and
working capital requirements while allowing the Company to maintain
consistent profitability. If this arrangement had been in place at the
beginning of the second quarter of 2016, the Strategic Partners revenue
increased 19.7% quarter to quarter while total Company revenue quarter
to quarter increased 20.4%.
Gross profit increased 18.4% to $25.3 million in the second quarter of
2017 from $21.4 million in the second quarter of 2016 and gross profit
margin increased 360 basis points to 35.5% from 31.9% in the same
respective periods. The increase in the gross profit margin was
primarily driven by growth in Jamieson Brands revenues and the above
mentioned switch to tolling within the Company’s Strategic Partners
segment.
Selling, general and administrative expenses increased 10.7% to $13.2
million in the second quarter of 2017 from $11.9 million in the second
quarter of 2016. The increase was primarily due to the acquisition of
Body Plus and Sonoma, partially offset by a shift in the timing of
certain marketing expenses based on the Company’s innovation calendar in
2017.
Operating income increased 29.8% to $10.7 million in the second quarter
2017 from $8.2 million in the second quarter of 2016 and operating
margin increased 270 basis points to 15.0% from 12.3% in the same
respective periods.
Interest income and other financing costs were $8.1 million of income in
the second quarter of 2017 compared to $5.7 million of expense in the
second quarter of 2016. The change was primarily driven by interest
forgiveness in relation to the Company’s note payable to Jamieson Finco
LP, which was discharged as part of the Company’s recent pre-IPO
reorganization and lower interest rates on the Company’s new credit
facility entered into in January 2017.
Net loss for the second quarter 2017 was $7.0 million and this compared
to net income of $1.8 million in the second quarter of 2016. The net
loss for the second quarter 2017 included $13.4 million of accretion on
the Company’s redeemable preferred shares and other expenses associated
with the Company’s initial public offering, Adjusted Net Income
increased 167.3% to $7.9 million in the second quarter 2017 from $2.9
million in the second quarter of 2016.
Adjusted EBITDA increased 25.0% to $15.1 million in the second quarter
of 2017 from $12.1 million in the second quarter of 2016 and Adjusted
EBITDA as a percentage of revenue increased 320 basis points to 21.2%
from 18.0% in the same respective periods.
Balance Sheet & Cash Flow
The Company generated $10.8 million of cash from operations during the
first six months of fiscal year 2017 compared to $6.8 million in the
same period last year. The Company’s cash and cash equivalents at June
30, 2017 were $10.8 million compared to $2.3 million on June 30, 2016.
On July 7, 2017, the Company completed an initial public offering.
Subsequent to the end of the second quarter, the Company received $232.1
million of net IPO proceeds that were used to pay dividends and return
capital to the Company’s preferred shareholders and to repay certain
indebtedness, including a portion of the Company’s term debt. Following
the payment of dividends and return of capital to the preferred
shareholders, all but one of the Company’s preferred share classes were
converted to common shares and split approximately 20.8 to 1 while the
remaining preferred share class was redeemed.
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Six months ended June 30,
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($ in 000's)
|
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2017
|
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2016
|
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$ Change
|
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% Change
|
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|
|
|
|
|
|
|
|
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|
Cash, beginning of period
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15,881
|
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|
2,325
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|
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13,556
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583.1%
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Cash flows from (used in):
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|
|
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|
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Operating activities
|
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10,821
|
|
|
6,817
|
|
|
|
4,004
|
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58.7%
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Investing activities
|
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(83,547
|
)
|
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(2,074
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)
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(81,473
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)
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(3928.3%)
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Financing activities
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67,604
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(4,743
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)
|
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72,347
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1525.3%
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Cash, end of period
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10,759
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2,325
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8,434
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362.8%
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Outlook
The Company reaffirmed its outlook for 2017 revenue and Adjusted EBITDA
that was included in its management’s discussion and analysis of
financial condition and results of operations in its final prospectus
(the “Prospectus”) dated June 29, 2017 in respect of its initial public
offering, and continues to expect pro forma revenue(1) in the
range of $303 to $310 million and pro forma Adjusted EBITDA(1)
of $62 million in 2017. This outlook is based on a forecasted CAD/USD
exchange rate of $1.35, as noted in the Prospectus. The increase in
revenue is expected to be driven by an increase in Jamieson Brands
revenue, partially offset by a decrease in Strategic Partners revenue
due to the above mentioned tolling arrangement.
With the completion of the Company’s initial public offering in early
July, both the second and third quarters of 2017 will include a number
of IPO related expenses or special charges. These IPO related and
special expenses are expected to be approximately $11.5 million
(excluding underwriting commission) for the full year and the Company’s
Adjusted EBITDA guidance excludes these expenses.
1 Pro forma 2017 revenue and Adjusted EBITDA assumes the
acquisition of Body Plus Nutritional Products Inc. (“Body Plus”) and
Sonoma Nutraceuticals Inc. (“Sonoma”) occurred on January 1, 2017 and
thus includes the estimated contribution of the acquired business for
the full 12 months of fiscal 2017. On a statutory basis and excluding
the pre-acquisition results for Body Plus and Sonoma, the Company
expects 2017 revenue of $299 to $306 million and Adjusted EBITDA of
$61.4 million.
Consolidated Financial Statements and Management’s Discussion and
Analysis
The Company’s unaudited condensed consolidated interim financial
statements and accompanying notes as at and for the three and six months
ended June 30, 2017 and related management’s discussion and analysis of
financial condition and results of operation (“MD&A”) are available
under the Company’s profile on SEDAR at www.sedar.com
and on the Investor Relation’s section of the Company’s website at https://investors.jamiesonwellness.com.
Conference Call
Management will host a conference call to discuss the Company’s second
quarter 2017 results at 5:00 p.m. ET on August 9, 2017. The call can be
accessed live over the telephone by dialing 1-877-407-9716 from Canada
and the U.S. or 1-201-493-6779 from international locations. A replay
will be available shortly after the call and can be accessed by dialing
1-844-512-2921 from Canada and the U.S. or 1-412-317-6671 from
international locations. The passcode for the replay is 13667764 and it
will be available until Wednesday, August 23, 2017.
Interested parties may listen to a simultaneous webcast of the
conference call by logging on via the Investor Relations section of the
Company’s website at https://investors.jamiesonwellness.com
or directly at http://public.viavid.com/index.php?id=125725.
A replay of the webcast will be available for approximately 30 days
following the call.
About Jamieson Wellness
Jamieson Wellness is dedicated to improving the world’s health and
wellness with its portfolio of innovative natural health brands.
Established in 1922, Jamieson Vitamins is the Company’s heritage
brand and Canada’s #1 consumer health brand. Jamieson Wellness
manufactures and markets sports nutrition products and specialty
supplements under its Progressive, Precision and Iron
Vegan brands. The Company also markets products by Lorna
Vanderhaeghe Health Solutions (LVHS), the #1 women’s natural health
focused brand in Canada. For more information please visit
jamiesonwellness.com.
Jamieson Wellness’ head office is located at 2 St. Clair Avenue West,
Toronto, Ontario, Canada.
Forward-Looking Information
This press release may contain forward-looking information within the
meaning of applicable securities legislation. Such information includes,
but is not limited to, statements related to the Company’s anticipated
growth opportunities and its outlook for its 2017 revenue and Adjusted
EBITDA. Words such as “expect,” “anticipate,” “intend,” “attempt,”
“may,” “plan,” “will,” “can,” “believe,” “seek,” “estimate,” and
variations of such words and similar expressions are intended to
identify such forward-looking information. This information reflects the
Company’s current expectations regarding future events. Forward-looking
information is based on a number of assumptions and is subject to a
number of risks and uncertainties, many of which are beyond the
Company’s control, that could cause actual results and events to differ
materially from those that are disclosed in or implied by such
forward-looking information. Such risks and uncertainties include, but
are not limited to, the factors discussed under “Risk Factors” in the
Prospectus. This information is based on the Company’s reasonable
assumptions and beliefs in light of the information currently available
to it and the statements are made as of the date of this press release.
The Company does not undertake any obligation to update such
forward-looking information, whether as a result of new information,
future events or otherwise, except as expressly required by applicable
law or regulatory authority.
We caution that the list of risk factors and uncertainties is not
exhaustive and other factors could also adversely affect the Company’s
results. Readers are urged to consider the risks, uncertainties and
assumptions associated with these statements carefully in evaluating the
forward-looking information and are cautioned not to place undue
reliance on such information. See “Forward-looking Information”, “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations — Outlook” in the Prospectus for a
discussion of the uncertainties, risks and assumptions associated with
these statements.
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Jamieson Wellness Inc.
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Unaudited Condensed Consolidated Interim Statements of Operations
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In thousands of Canadian dollars, except per share data
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Three months ended June 30,
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Six months ended June 30,
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2017
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2016
|
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2017
|
|
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2016
|
|
|
|
|
|
|
|
|
|
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Revenue
|
|
71,255
|
|
|
67,016
|
|
|
136,156
|
|
|
127,373
|
|
|
Cost of sales
|
|
45,935
|
|
|
45,632
|
|
|
88,627
|
|
|
87,745
|
|
|
Gross profit
|
|
25,320
|
|
|
21,384
|
|
|
47,529
|
|
|
39,628
|
|
|
Selling, general and administrative expenses
|
|
13,183
|
|
|
11,907
|
|
|
26,624
|
|
|
24,955
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Share-based compensation
|
|
1,438
|
|
|
1,233
|
|
|
2,184
|
|
|
2,466
|
|
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Earnings from operations
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|
10,699
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|
|
8,244
|
|
|
18,721
|
|
|
12,207
|
|
|
|
|
|
|
|
|
|
|
|
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Operating margin
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|
15.0
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%
|
|
12.3
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%
|
|
13.7
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%
|
|
9.6
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%
|
|
|
|
|
|
|
|
|
|
|
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Foreign exchange (gain) loss
|
|
186
|
|
|
(72
|
)
|
|
418
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|
|
21
|
|
|
Termination benefits and related costs
|
|
-
|
|
|
425
|
|
|
2,499
|
|
|
1,034
|
|
|
Acquisition costs
|
|
446
|
|
|
-
|
|
|
2,303
|
|
|
-
|
|
|
Other expenses
|
|
8,874
|
|
|
22
|
|
|
10,808
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|
|
30
|
|
|
Preferred share accretion
|
|
13,411
|
|
|
(575
|
)
|
|
28,796
|
|
|
13,817
|
|
|
Interest (income) expense and other financing costs
|
|
(8,084
|
)
|
|
5,718
|
|
|
228
|
|
|
11,505
|
|
|
Income (loss) before income taxes
|
|
(4,134
|
)
|
|
2,726
|
|
|
(26,331
|
)
|
|
(14,200
|
)
|
|
Provision for income taxes
|
|
2,824
|
|
|
903
|
|
|
2,278
|
|
|
557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
(6,958
|
)
|
|
1,823
|
|
|
(28,609
|
)
|
|
(14,757
|
)
|
|
Adjusted net income
|
|
7,870
|
|
|
2,944
|
|
|
10,040
|
|
|
3,297
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
3,255
|
|
|
9,769
|
|
|
6,860
|
|
|
15,049
|
|
|
Adjusted EBITDA
|
|
15,071
|
|
|
12,060
|
|
|
26,495
|
|
|
20,775
|
|
|
|
|
|
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|
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Earnings per share attributable to common shareholders:
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|
|
|
|
|
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Basic, earnings (loss) per share
|
|
(13.37
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)
|
|
3.50
|
|
|
(54.99
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)
|
|
(28.37
|
)
|
|
Diluted, earnings (loss) per share
|
|
(13.37
|
)
|
|
0.07
|
|
|
(54.99
|
)
|
|
(28.37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
|
|
|
|
|
|
|
Basic
|
|
520,253
|
|
|
520,253
|
|
|
520,253
|
|
|
520,253
|
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|
Diluted
|
|
520,253
|
|
|
24,392,609
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|
|
520,253
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|
|
520,253
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|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
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|
|
|
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|
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|
|
Jamieson Wellness Inc.
|
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Unaudited Condensed Consolidated Interim Statement of Financial
Position
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|
In thousands of Canadian dollars
|
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|
|
|
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
Assets
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash
|
|
10,759
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|
15,881
|
|
Accounts receivable
|
|
52,695
|
|
52,888
|
|
Inventories
|
|
60,614
|
|
36,417
|
|
Prepaid expenses and other current assets
|
|
2,038
|
|
1,787
|
|
|
|
126,106
|
|
106,973
|
|
Non-current assets
|
|
|
|
|
|
Property, plant and equipment
|
|
44,036
|
|
43,901
|
|
Goodwill
|
|
126,455
|
|
94,653
|
|
Intangible assets
|
|
206,003
|
|
157,888
|
|
Deferred income tax
|
|
2,545
|
|
1,764
|
|
Total Assets
|
|
505,145
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|
405,179
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Redeemable preferred shares
|
|
334,157
|
|
197,901
|
|
Accounts payable and accrued liabilities
|
|
61,766
|
|
51,077
|
|
Income taxes payable
|
|
5,435
|
|
2,688
|
|
Derivatives
|
|
1,403
|
|
92
|
|
Current portion of long-term debt
|
|
9,750
|
|
-
|
|
|
|
412,511
|
|
251,758
|
|
Long-term liabilities
|
|
|
|
|
|
Long-term debt
|
|
213,045
|
|
152,777
|
|
Note to Jamieson Finco LP
|
|
-
|
|
107,255
|
|
Post-retirement benefits
|
|
4,036
|
|
3,797
|
|
Deferred income tax
|
|
56,029
|
|
41,194
|
|
Total Liabilities
|
|
685,621
|
|
556,781
|
|
Shareholders' deficiency
|
|
|
|
|
|
Share capital
|
|
400
|
|
400
|
|
Contributed surplus
|
|
3,297
|
|
2,598
|
|
Deficit
|
|
(182,333)
|
|
(153,724)
|
|
Accumulated other comprehensive loss
|
|
(1,840)
|
|
(876)
|
|
Total Shareholders' deficiency
|
|
(180,476)
|
|
(151,602)
|
|
Total Liabilities and Shareholders' deficiency
|
|
505,145
|
|
405,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jamieson Wellness Inc.
|
|
|
|
Segment Information
|
|
|
|
|
|
|
|
|
|
|
|
Jamieson Brands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in 000's)
|
|
Three months ended June 30,
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
$ Change
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
56,647
|
|
|
47,024
|
|
|
9,623
|
|
|
20.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
21,810
|
|
|
18,857
|
|
|
2,953
|
|
|
15.7
|
%
|
|
|
Gross profit margin
|
|
38.5
|
%
|
|
40.1
|
%
|
|
-
|
|
|
(1.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
8,602
|
|
|
6,849
|
|
|
1,753
|
|
|
25.6
|
%
|
|
|
Operating margin
|
|
15.2
|
%
|
|
14.6
|
%
|
|
-
|
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Partners and Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in 000's)
|
|
Three months ended June 30,
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
$ Change
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Revenue
|
|
25,947
|
|
|
25,443
|
|
|
504
|
|
|
2.0
|
%
|
|
|
Less: Intercompany eliminations
|
|
(11,339
|
)
|
|
(5,451
|
)
|
|
(5,888
|
)
|
|
(108.0
|
%)
|
|
|
Revenue
|
|
14,608
|
|
|
19,992
|
|
|
(5,384
|
)
|
|
(26.9
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
3,510
|
|
|
2,527
|
|
|
983
|
|
|
38.9
|
%
|
|
|
Gross profit margin
|
|
24.0
|
%
|
|
12.6
|
%
|
|
-
|
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
2,097
|
|
|
1,395
|
|
|
702
|
|
|
50.3
|
%
|
|
|
Operating margin
|
|
14.4
|
%
|
|
7.0
|
%
|
|
-
|
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jamieson Brands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in 000's)
|
|
Six months ended June 30,
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
$ Change
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
109,567
|
|
|
91,426
|
|
|
18,141
|
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
41,191
|
|
|
34,852
|
|
|
6,339
|
|
|
18.2
|
%
|
|
|
Gross profit margin
|
|
37.6
|
%
|
|
38.1
|
%
|
|
-
|
|
|
(0.5
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
15,235
|
|
|
9,779
|
|
|
5,456
|
|
|
55.8
|
%
|
|
|
Operating margin
|
|
13.9
|
%
|
|
10.7
|
%
|
|
-
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Partners and Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in 000's)
|
|
Six months ended June 30,
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
$ Change
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Revenue
|
|
46,512
|
|
|
46,750
|
|
|
(238
|
)
|
|
(0.5
|
%)
|
|
|
Less: Intercompany eliminations
|
|
(19,923
|
)
|
|
(10,803
|
)
|
|
(9,120
|
)
|
|
(84.4
|
%)
|
|
|
Revenue
|
|
26,589
|
|
|
35,947
|
|
|
(9,358
|
)
|
|
(26.0
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
6,338
|
|
|
4,776
|
|
|
1,562
|
|
|
32.7
|
%
|
|
|
Gross profit margin
|
|
23.8
|
%
|
|
13.3
|
%
|
|
-
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
3,486
|
|
|
2,428
|
|
|
1,058
|
|
|
43.6
|
%
|
|
|
Operating margin
|
|
13.1
|
%
|
|
6.8
|
%
|
|
-
|
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-IFRS Financial Measures
This press release makes reference to certain non-IFRS measures.
Management uses these non-IFRS financial measures for purposes of
comparison to prior periods and development of future projections and
earnings growth prospects. This information is also used by management
to measure the profitability of ongoing operations and in analyzing the
Company’s business performance and trends. These measures are not
recognized measures under IFRS, do not have a standardized meaning
prescribed by IFRS and are therefore unlikely to be comparable to
similar measures presented by other companies. Rather, these measures
are provided as additional information to complement those IFRS measures
by providing further understanding of the Company’s results of
operations from management’s perspective. Accordingly, they should not
be considered in isolation nor as a substitute for analysis of the
Company’s financial information reported under IFRS. We use non-IFRS
measures including “EBITDA”, “Adjusted EBITDA”, “Adjusted Net Income”
and “gross profit” to provide supplemental measures of the Company’s
operating performance and thus highlight trends in the Company’s core
business that may not otherwise be apparent when relying solely on IFRS
financial measures. Management also uses non-IFRS measures in order to
prepare annual operating budgets and to determine components of
management compensation. Definitions of non-IFRS measures can be found
in our MD&A.
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Net Income
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30
|
|
June 30
|
|
($ in 000's)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
(6,958)
|
|
1,823
|
|
(28,609)
|
|
(14,757)
|
|
Adjustments to net income (loss):
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
1,044
|
|
913
|
|
1,485
|
|
1,825
|
|
Amortization of fair value adjustments
|
|
847
|
|
-
|
|
1,412
|
|
-
|
|
Amortization of deferred financing fee
|
|
-
|
|
-
|
|
3,078
|
|
-
|
|
Foreign exchange (gain) loss
|
|
186
|
|
(72)
|
|
418
|
|
21
|
|
Termination benefits and related costs
|
|
-
|
|
425
|
|
2,499
|
|
1,034
|
|
Acquisition costs
|
|
446
|
|
-
|
|
2,303
|
|
-
|
|
Purchase consideration accounted for as compensation expense
|
|
2,215
|
|
-
|
|
3,691
|
|
-
|
|
Public offering costs
|
|
6,653
|
|
-
|
|
6,884
|
|
-
|
|
Net interest forgiveness
|
|
(11,001)
|
|
-
|
|
(11,001)
|
|
-
|
|
Preferred share accretion
|
|
13,411
|
|
(575)
|
|
28,796
|
|
13,817
|
|
Non-recurring consulting services
|
|
-
|
|
455
|
|
-
|
|
1,617
|
|
Other
|
|
31
|
|
250
|
|
244
|
|
588
|
|
Related tax effects
|
|
996
|
|
(275)
|
|
(1,160)
|
|
(848)
|
|
Adjusted net income
|
|
7,870
|
|
2,944
|
|
10,040
|
|
3,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30
|
|
June 30
|
|
($ in 000's)
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
(6,958
|
)
|
|
1,823
|
|
|
(28,609
|
)
|
|
(14,757
|
)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
2,824
|
|
|
903
|
|
|
2,278
|
|
|
557
|
|
|
Interest (income) expense and other financing costs
|
|
(8,084
|
)
|
|
5,718
|
|
|
228
|
|
|
11,505
|
|
|
Preferred share accretion
|
|
13,411
|
|
|
(575
|
)
|
|
28,796
|
|
|
13,817
|
|
|
Depreciation of property, plant, and equipment
|
|
1,216
|
|
|
1,093
|
|
|
2,487
|
|
|
2,313
|
|
|
Amortization of intangible assets
|
|
846
|
|
|
807
|
|
|
1,680
|
|
|
1,614
|
|
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
Earnings before interest, taxes, depreciation, and amortization
(EBITDA)
|
|
3,255
|
|
|
9,769
|
|
|
6,860
|
|
|
15,049
|
|
|
Add EBITDA adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
1,438
|
|
|
1,233
|
|
|
2,184
|
|
|
2,466
|
|
|
Amortization of fair value adjustments
|
|
847
|
|
|
-
|
|
|
1,412
|
|
|
-
|
|
|
Foreign exchange (gain) loss
|
|
186
|
|
|
(72
|
)
|
|
418
|
|
|
21
|
|
|
Termination benefits and related costs
|
|
-
|
|
|
425
|
|
|
2,499
|
|
|
1,034
|
|
|
Acquisition costs
|
|
446
|
|
|
-
|
|
|
2,303
|
|
|
-
|
|
|
Purchase consideration accounted for as compensation expense
|
|
2,215
|
|
|
-
|
|
|
3,691
|
|
|
-
|
|
|
Public offering costs
|
|
6,653
|
|
|
-
|
|
|
6,884
|
|
|
-
|
|
|
Non-recurring consulting services
|
|
-
|
|
|
455
|
|
|
-
|
|
|
1,617
|
|
|
Other
|
|
31
|
|
|
250
|
|
|
244
|
|
|
588
|
|
|
Adjusted EBITDA
|
|
15,071
|
|
|
12,060
|
|
|
26,495
|
|
|
20,775
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170809006115/en/
Source: Jamieson Wellness Inc.