TORONTO--(BUSINESS WIRE)--
Jamieson Wellness Inc. (“Jamieson Wellness” or the “Company”) (TSX:
JWEL) today reported financial results for its third quarter and nine
months ended September 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 Third Quarter 2017 Results versus Third
Quarter 2016 Results
-
Revenue increased 45.0% to $80.1 million;
-
Adjusted EBITDA increased 42.9% to $16.1 million;
-
Net income was $1.1 million and Adjusted Net Income increased 210.2%
to $7.8 million;
-
The Company reiterated its outlook for 2017 pro forma Adjusted EBITDA
of $62 (1) million and narrowed its outlook range for 2017
pro forma revenue (1) to $303 to $307 million, including an
estimated $2.0 million impact due to the translation of foreign
denominated revenues into Canadian dollars.
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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 $303 million and
Adjusted EBITDA of $61.4 million.
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“We delivered strong third quarter results, including robust revenue
growth in the core Jamieson Brands segment, good performance of our
recent acquisitions and favorable margin expansion,” said Mark Hornick,
President and Chief Executive Officer of Jamieson Wellness. “We are also
excited about our newest product innovation, Cold Fighter. Cold Fighter
has enjoyed a great reception from the trade and has launched in time
for cold and flu season. Additionally, our market-leading quality and
innovation rises to a new level with the introduction of the TRU-ID
certification program. Our Jamieson herbal products have qualified for
this leading-edge global 3rd party certification, which will
further ensure our consumers can have continued confidence in the
superior quality and purity of Jamieson’s herbal ingredients.”
Third Quarter 2017 Results
Revenue increased 45.0% to $80.1 million in the third quarter of 2017
from $55.3 million in the third quarter of 2016 and was driven by a
34.9% increase in Jamieson Brands revenue to $61.9 million and a
94.6% increase in Strategic Partners revenue to $18.3 million. The
increase in the Jamieson Brands revenue was primarily driven by the
acquisition of Body Plus and 12.2% organic growth of Jamieson Brands’
domestic and international volumes. The increase in Strategic Partners
revenue was driven by timing and additional volumes from strong consumer
demand and the acquisition of Sonoma.
Gross profit increased 51.2% to $26.4 million in the third quarter of
2017 from $17.5 million in the third quarter of 2016 and gross profit
margin increased 140 basis points to 33.0% from 31.6% in the same
respective periods. The increase in the gross profit margin was
primarily driven by higher volumes and improved manufacturing
efficiencies in the legacy Jamieson Brands segment combined with higher
inherent margins from Body Plus and Sonoma.
Selling, general and administrative expenses (“SG&A”) increased 43.2% to
$12.7 million in the third quarter of 2017 from $8.9 million in the
third quarter of 2016. As a percentage of revenue, SG&A decreased 20
basis points to 15.9% from 16.1% in the prior year period and included
$0.4 million in public company costs.
Operating income increased 53.1% to $11.3 million in the third quarter
of 2017 from $7.4 million in the third quarter of 2016 and operating
margin increased 80 basis points to 14.1% from 13.3% in the same
respective periods.
Interest expense and other financing costs were $2.4 million in the
third quarter of 2017 compared to $5.7 million in the third quarter of
2016. The change was driven by lower borrowings including discharge of
the note payable to Jamieson Finco LP in the Company’s recent pre-IPO
reorganization and lower interest rates on the Company’s new credit
facility entered into in January 2017.
Net income for the third quarter of 2017 was $1.1 million compared to
net income of $8.3 million in the third quarter of 2016. Net income for
the third quarter of 2017 included $2.6 million of public offering
costs, $2.2 million of purchase consideration recorded in other
expenses, $1.7 million of accelerated options vesting included in
share-based compensation, $0.3 million of amortization of fair value
adjustments, and $0.3 million of other non-recurring consulting and
acquisition costs. Net income in the third quarter of 2016 included a
$7.5 million gain associated with a reduction in preferred share
obligations.
Adjusted Net Income, which excludes all non-operating expenses,
increased 210.2% to $7.8 million in the third quarter of 2017 from $2.5
million in the third quarter of 2016. The increase in Adjusted Net
Income primarily reflects higher sales volumes along with increased
gross profit margin, leverage on SG&A and lower interest costs.
Adjusted EBITDA increased 42.9% to $16.1 million in the third quarter of
2017 from $11.3 million in the third quarter of 2016 and Adjusted EBITDA
as a percentage of revenue was 20.1%, slightly lower than 20.4% in the
same respective period. The growth in Adjusted EBITDA reflects higher
sales volumes coupled with increased gross profit margin and lower SG&A
as a percentage of revenue.
Balance Sheet & Cash Flow
The Company generated $0.3 million of cash from operations during the
first nine months of fiscal year 2017 compared to $16.6 million in the
same period last year. The Company’s cash and cash equivalents at
September 30, 2017 were $1.2 million compared to $15.9 million on
December 31, 2016. On August 22, 2017, the Company declared its first
quarterly dividend of $0.08 per common share to holders of record as of
September 1, 2017 and paid such dividend on September 15, 2017. The
dividend payment was approximately $3.0 million in the aggregate.
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Nine months ended
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|
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September 30
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($ in 000's)
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
Cash, beginning of period
|
|
15,881
|
|
|
2,325
|
|
|
13,556
|
|
|
583.1
|
%
|
|
Cash flows from (used in):
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
293
|
|
|
16,551
|
|
|
(16,258
|
)
|
|
(98.2
|
%)
|
|
Investing activities
|
|
(85,072
|
)
|
|
(3,311
|
)
|
|
(81,761
|
)
|
|
(2469.4
|
%)
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|
Financing activities
|
|
70,094
|
|
|
(5,743
|
)
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|
75,837
|
|
|
1320.5
|
%
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|
Cash, end of period
|
|
1,196
|
|
|
9,822
|
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|
(8,626
|
)
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|
(87.8
|
%)
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Outlook
The Company maintains its outlook for 2017 Adjusted EBITDA while
narrowing its revenue outlook, which includes the impact of the
strengthening Canadian Dollar. The Company continues to expect pro forma
Adjusted EBITDA(1) of $62 million and now anticipates pro
forma revenue(1) in the range of $303 to $307 million in
2017. This outlook is based on a revised forecasted CAD/USD exchange
rate of $1.25 compared to our previous estimate of $1.35.
The Adjusted EBITDA outlook above excludes approximately $13.1 million
of non-recurring and special expenses related to the Company’s initial
public offering and secondary offering.
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1 Pro forma 2017 revenue and Adjusted EBITDA assumes the
acquisition of Body Plus and 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 $303 million and Adjusted
EBITDA of $61.4 million.
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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 nine
months ended September 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 third
quarter 2017 results at 5:00 p.m. ET on November 9, 2017. The call can
be accessed live over the telephone by dialing 1-877-425-9470 from
Canada and the U.S. or 1-201-389-0878 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 13672402 and it
will be available until Thursday, November 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=126813.
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
Company’s final prospectus (“Prospectus”) dated June 29, 2017 in respect
of its initial public offering. 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
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Nine months ended
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|
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September 30
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September 30
|
|
|
|
2017
|
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2016
|
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2017
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2016
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|
|
|
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|
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|
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|
Revenue
|
|
80,145
|
|
|
55,263
|
|
|
216,301
|
|
|
182,636
|
|
|
Cost of sales
|
|
53,722
|
|
|
37,783
|
|
|
142,349
|
|
|
125,528
|
|
|
Gross profit
|
|
26,423
|
|
|
17,480
|
|
|
73,952
|
|
|
57,108
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin
|
|
33.0
|
%
|
|
31.6
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%
|
|
34.2
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%
|
|
31.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
12,713
|
|
|
8,875
|
|
|
39,337
|
|
|
33,830
|
|
|
Share-based compensation
|
|
2,429
|
|
|
1,235
|
|
|
4,613
|
|
|
3,701
|
|
|
Earnings from operations
|
|
11,281
|
|
|
7,370
|
|
|
30,002
|
|
|
19,577
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Operating margin
|
|
14.1
|
%
|
|
13.3
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%
|
|
13.9
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%
|
|
10.7
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%
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange (gain) loss
|
|
(203
|
)
|
|
(59
|
)
|
|
215
|
|
|
(38
|
)
|
|
Termination benefits and related costs
|
|
-
|
|
|
152
|
|
|
2,499
|
|
|
1,186
|
|
|
Public offering costs
|
|
2,636
|
|
|
-
|
|
|
9,520
|
|
|
-
|
|
|
Acquisition costs
|
|
140
|
|
|
-
|
|
|
2,443
|
|
|
-
|
|
|
Other expenses
|
|
2,506
|
|
|
-
|
|
|
6,430
|
|
|
30
|
|
|
Preferred share accretion
|
|
-
|
|
|
(7,506
|
)
|
|
28,796
|
|
|
6,311
|
|
|
Interest expense and other financing costs
|
|
2,365
|
|
|
5,735
|
|
|
2,593
|
|
|
17,240
|
|
|
Income (loss) before income taxes
|
|
3,837
|
|
|
9,048
|
|
|
(22,494
|
)
|
|
(5,152
|
)
|
|
Provision for income taxes
|
|
2,748
|
|
|
735
|
|
|
5,026
|
|
|
1,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
1,089
|
|
|
8,313
|
|
|
(27,520
|
)
|
|
(6,444
|
)
|
|
Adjusted net income
|
|
7,793
|
|
|
2,512
|
|
|
17,833
|
|
|
5,809
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
8,346
|
|
|
8,988
|
|
|
15,206
|
|
|
24,037
|
|
|
Adjusted EBITDA
|
|
16,134
|
|
|
11,292
|
|
|
42,629
|
|
|
32,067
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
20.1
|
%
|
|
20.4
|
%
|
|
19.7
|
%
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
1,089
|
|
|
8,313
|
|
|
(27,520
|
)
|
|
(6,444
|
)
|
|
Preferred share dividend
|
|
(9,605
|
)
|
|
-
|
|
|
(9,605
|
)
|
|
-
|
|
|
Basic, net income (loss) attributable to common shareholders:
|
|
(8,516
|
)
|
|
8,313
|
|
|
(37,125
|
)
|
|
(6,444
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Preferred share accretion
|
|
-
|
|
|
(7,506
|
)
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted, net income (loss) attributable to common shareholders:
|
|
(8,516
|
)
|
|
807
|
|
|
(37,125
|
)
|
|
(6,444
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
|
|
|
|
|
|
|
Basic
|
|
35,322,657
|
|
|
520,253
|
|
|
12,247,370
|
|
|
520,253
|
|
|
Diluted
|
|
35,322,657
|
|
|
22,917,648
|
|
|
12,247,370
|
|
|
520,253
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
Basic, earnings (loss) per share
|
|
(0.24
|
)
|
|
15.98
|
|
|
(3.03
|
)
|
|
(12.39
|
)
|
|
Diluted, earnings (loss) per share
|
|
(0.24
|
)
|
|
0.04
|
|
|
(3.03
|
)
|
|
(12.39
|
)
|
|
|
|
|
|
Jamieson Wellness Inc.
|
|
Unaudited Condensed Consolidated Interim Statement of Financial
Position
|
|
In thousands of Canadian dollars
|
|
|
|
|
|
September
|
|
December
|
|
|
|
30, 2017
|
|
31, 2016
|
|
Assets
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash
|
|
1,196
|
|
|
15,881
|
|
|
Accounts receivable
|
|
76,893
|
|
|
52,888
|
|
|
Inventories
|
|
62,337
|
|
|
36,417
|
|
|
Prepaid expenses and other current assets
|
|
2,059
|
|
|
1,787
|
|
|
|
|
142,485
|
|
|
106,973
|
|
|
Non-current assets
|
|
|
|
|
|
Property, plant and equipment
|
|
44,305
|
|
|
43,901
|
|
|
Goodwill
|
|
126,455
|
|
|
94,653
|
|
|
Intangible assets
|
|
205,115
|
|
|
157,888
|
|
|
Deferred income tax
|
|
2,897
|
|
|
1,764
|
|
|
Total Assets
|
|
521,257
|
|
|
405,179
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Redeemable preferred shares
|
|
-
|
|
|
197,901
|
|
|
Accounts payable and accrued liabilities
|
|
67,738
|
|
|
51,077
|
|
|
Income taxes payable
|
|
4,856
|
|
|
2,688
|
|
|
Derivatives
|
|
2,081
|
|
|
92
|
|
|
Current portion of long-term debt
|
|
9,750
|
|
|
-
|
|
|
|
|
84,425
|
|
|
251,758
|
|
|
Long-term liabilities
|
|
|
|
|
|
Long-term debt
|
|
161,753
|
|
|
152,777
|
|
|
Note to Jamieson Finco LP
|
|
-
|
|
|
107,255
|
|
|
Post-retirement benefits
|
|
4,156
|
|
|
3,797
|
|
|
Deferred income tax
|
|
53,003
|
|
|
41,194
|
|
|
Total Liabilities
|
|
303,337
|
|
|
556,781
|
|
|
Shareholders' equity (deficiency)
|
|
|
|
|
|
Share capital
|
|
234,734
|
|
|
400
|
|
|
Contributed surplus
|
|
5,725
|
|
|
2,598
|
|
|
Deficit
|
|
(20,200
|
)
|
|
(153,724
|
)
|
|
Accumulated other comprehensive loss
|
|
(2,339
|
)
|
|
(876
|
)
|
|
Total Shareholders' equity (deficiency)
|
|
217,920
|
|
|
(151,602
|
)
|
|
Total Liabilities and Shareholders' equity
|
|
521,257
|
|
|
405,179
|
|
|
|
|
|
|
Jamieson Wellness Inc.
|
|
|
|
Segment Information
|
|
|
|
Jamieson Brands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
($ in 000's)
|
|
September 30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
61,889
|
|
|
45,882
|
|
|
16,007
|
|
|
34.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
23,263
|
|
|
16,743
|
|
|
6,520
|
|
|
38.9
|
%
|
|
Gross profit margin
|
|
37.6
|
%
|
|
36.5
|
%
|
|
-
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
9,628
|
|
|
7,735
|
|
|
1,893
|
|
|
24.5
|
%
|
|
Operating margin
|
|
15.6
|
%
|
|
16.9
|
%
|
|
-
|
|
|
(1.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
14,157
|
|
|
11,301
|
|
|
2,856
|
|
|
25.3
|
%
|
|
Adjusted EBITDA margin
|
|
22.9
|
%
|
|
24.6
|
%
|
|
-
|
|
|
(1.7
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Partners and Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
($ in 000's)
|
|
September 30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
Gross Revenue
|
|
33,334
|
|
|
13,970
|
|
|
19,364
|
|
|
138.6
|
%
|
|
Less: Intercompany eliminations
|
|
(15,078
|
)
|
|
(4,589
|
)
|
|
(10,489
|
)
|
|
(228.6
|
%)
|
|
Revenue
|
|
18,256
|
|
|
9,381
|
|
|
8,875
|
|
|
94.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
3,160
|
|
|
737
|
|
|
2,423
|
|
|
328.8
|
%
|
|
Gross profit margin
|
|
17.3
|
%
|
|
7.9
|
%
|
|
-
|
|
|
9.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
1,653
|
|
|
(365
|
)
|
|
2,018
|
|
|
552.9
|
%
|
|
Operating margin
|
|
9.1
|
%
|
|
(3.9
|
%)
|
|
-
|
|
|
13.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
1,977
|
|
|
(9
|
)
|
|
1,986
|
|
|
-
|
|
|
Adjusted EBITDA margin
|
|
10.8
|
%
|
|
(0.1
|
%)
|
|
-
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jamieson Brands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
|
($ in 000's)
|
|
September 30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
171,456
|
|
|
137,308
|
|
|
34,148
|
|
|
24.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
64,452
|
|
|
51,595
|
|
|
12,857
|
|
|
24.9
|
%
|
|
Gross profit margin
|
|
37.6
|
%
|
|
37.6
|
%
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
24,863
|
|
|
17,514
|
|
|
7,349
|
|
|
42.0
|
%
|
|
Operating margin
|
|
14.5
|
%
|
|
12.8
|
%
|
|
-
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
36,526
|
|
|
28,950
|
|
|
7,576
|
|
|
26.2
|
%
|
|
Adjusted EBITDA margin
|
|
21.3
|
%
|
|
21.1
|
%
|
|
-
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Partners and Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
|
($ in 000's)
|
|
September 30,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
Gross Revenue
|
|
79,846
|
|
|
60,720
|
|
|
19,126
|
|
|
31.5
|
%
|
|
Less: Intercompany eliminations
|
|
(35,001
|
)
|
|
(15,392
|
)
|
|
(19,609
|
)
|
|
(127.4
|
%)
|
|
Revenue
|
|
44,845
|
|
|
45,328
|
|
|
(483
|
)
|
|
(1.1
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
9,500
|
|
|
5,513
|
|
|
3,987
|
|
|
72.3
|
%
|
|
Gross profit margin
|
|
21.2
|
%
|
|
12.2
|
%
|
|
-
|
|
|
9.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations
|
|
5,139
|
|
|
2,063
|
|
|
3,076
|
|
|
149.1
|
%
|
|
Operating margin
|
|
11.5
|
%
|
|
4.6
|
%
|
|
-
|
|
|
6.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
6,103
|
|
|
3,117
|
|
|
2,986
|
|
|
95.8
|
%
|
|
Adjusted EBITDA margin
|
|
13.6
|
%
|
|
6.9
|
%
|
|
-
|
|
|
6.7
|
%
|
|
|
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 “gross profit,” “gross profit margin,” “operating
margin,” “EBITDA,” “Adjusted EBITDA,” “Adjusted EBITDA margin,” and
“Adjusted Net Income” 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
|
|
Nine months ended
|
|
|
|
September 30
|
|
September 30
|
|
($ in 000's)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
1,089
|
|
|
8,313
|
|
|
(27,520
|
)
|
|
(6,444
|
)
|
|
Adjustments to net income (loss):
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
1,708
|
|
|
914
|
|
|
3,193
|
|
|
2,739
|
|
|
Amortization of fair value adjustments
|
|
282
|
|
|
-
|
|
|
1,694
|
|
|
-
|
|
|
Amortization of deferred financing fee
|
|
-
|
|
|
-
|
|
|
3,078
|
|
|
-
|
|
|
Foreign exchange (gain) loss
|
|
(203
|
)
|
|
(59
|
)
|
|
215
|
|
|
(38
|
)
|
|
Termination benefits and related costs
|
|
-
|
|
|
152
|
|
|
2,499
|
|
|
1,186
|
|
|
Acquisition costs
|
|
140
|
|
|
-
|
|
|
2,443
|
|
|
-
|
|
|
Purchase consideration accounted for as compensation expense
|
|
2,215
|
|
|
-
|
|
|
5,906
|
|
|
-
|
|
|
Public offering costs
|
|
2,636
|
|
|
-
|
|
|
9,520
|
|
|
-
|
|
|
Net interest forgiveness
|
|
-
|
|
|
-
|
|
|
(11,001
|
)
|
|
-
|
|
|
Preferred share accretion
|
|
-
|
|
|
(7,506
|
)
|
|
28,796
|
|
|
6,311
|
|
|
Non-recurring consulting services
|
|
289
|
|
|
792
|
|
|
289
|
|
|
2,409
|
|
|
Other
|
|
-
|
|
|
184
|
|
|
244
|
|
|
772
|
|
|
Related tax effects
|
|
(363
|
)
|
|
(278
|
)
|
|
(1,523
|
)
|
|
(1,126
|
)
|
|
Adjusted net income
|
|
7,793
|
|
|
2,512
|
|
|
17,833
|
|
|
5,809
|
|
|
|
|
|
|
Reconciliation of EBITDA and Adjusted EBITDA
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
September 30
|
|
September 30
|
|
($ in 000's)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
1,089
|
|
|
8,313
|
|
|
(27,520
|
)
|
|
(6,444
|
)
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
2,748
|
|
|
735
|
|
|
5,026
|
|
|
1,292
|
|
|
Interest expense and other financing costs
|
|
2,365
|
|
|
5,735
|
|
|
2,593
|
|
|
17,240
|
|
|
Preferred share accretion
|
|
-
|
|
|
(7,506
|
)
|
|
28,796
|
|
|
6,311
|
|
|
Depreciation of property, plant, and equipment
|
|
1,283
|
|
|
903
|
|
|
3,770
|
|
|
3,216
|
|
|
Amortization of intangible assets
|
|
861
|
|
|
808
|
|
|
2,541
|
|
|
2,422
|
|
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
Earnings before interest, taxes, depreciation, and amortization
(EBITDA)
|
|
8,346
|
|
|
8,988
|
|
|
15,206
|
|
|
24,037
|
|
|
Add EBITDA adjustments:
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
2,429
|
|
|
1,235
|
|
|
4,613
|
|
|
3,701
|
|
|
Amortization of fair value adjustments
|
|
282
|
|
|
-
|
|
|
1,694
|
|
|
-
|
|
|
Foreign exchange (gain) loss
|
|
(203
|
)
|
|
(59
|
)
|
|
215
|
|
|
(38
|
)
|
|
Termination benefits and related costs
|
|
-
|
|
|
152
|
|
|
2,499
|
|
|
1,186
|
|
|
Acquisition costs
|
|
140
|
|
|
-
|
|
|
2,443
|
|
|
-
|
|
|
Purchase consideration accounted for as compensation expense
|
|
2,215
|
|
|
-
|
|
|
5,906
|
|
|
-
|
|
|
Public offering costs
|
|
2,636
|
|
|
-
|
|
|
9,520
|
|
|
-
|
|
|
Non-recurring consulting services
|
|
289
|
|
|
792
|
|
|
289
|
|
|
2,409
|
|
|
Other
|
|
-
|
|
|
184
|
|
|
244
|
|
|
772
|
|
|
Adjusted EBITDA
|
|
16,134
|
|
|
11,292
|
|
|
42,629
|
|
|
32,067
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171109006595/en/
Source: Jamieson Wellness Inc.