EnWave Reports Fourth Quarter and Annual 2022 Consolidated Financial Results
16 Décembre 2022 - 3:00PM
EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the
"Company") today reported the Company’s consolidated
financial results for the fourth quarter and fiscal year-ended
September 30, 2022.
- Reported record annual royalty
revenue of $1.35 million representing an increase of 47% over the
prior year.
- Completed the facility construction
and SQF certification at REVworx and developed a robust pipeline of
commercial tolling opportunities with global food companies.
- Maintained a consolidated gross
margin of 27% in an inflationary economic backdrop.
- Reported an Adjusted EBITDA(1) loss
of $3.4 million, largely due to input price increases and low
economies of scale in NutraDried’s segment.
- EnWave’s pipeline of prospective
new royalty-bearing license and machine sale opportunities
continues to be robust with continued adoption across the food
industry for functional and healthy snacking, as well as the rapid
drying of cannabis applications.
Consolidated Financial
Performance:
($ ‘000s) |
Three months endedSeptember
30, |
|
Year endedSeptember 30, |
|
2022 |
|
2021 |
|
Change % |
|
2022 |
|
2021 |
|
Change% |
|
|
|
|
|
|
|
|
Revenues |
4,971 |
|
6,906 |
|
(28 |
%) |
|
23,703 |
|
26,476 |
|
(10 |
%) |
Direct
costs |
4,203 |
|
4,529 |
|
(7 |
%) |
|
17,412 |
|
19,309 |
|
(10 |
%) |
Gross margin |
768 |
|
2,377 |
|
(68 |
%) |
|
6,291 |
|
7,167 |
|
(12 |
%) |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
General and administration |
1,028 |
|
1,718 |
|
(40 |
%) |
|
4,522 |
|
5,093 |
|
(11 |
%) |
Sales and marketing |
1,392 |
|
996 |
|
40 |
% |
|
5,466 |
|
4,652 |
|
17 |
% |
Research and development |
513 |
|
453 |
|
13 |
% |
|
2,175 |
|
1,876 |
|
16 |
% |
|
|
|
|
|
|
|
|
Net loss |
(2,273 |
) |
(1,138 |
) |
(100 |
%) |
|
(6,927 |
) |
(4,125 |
) |
(68 |
%) |
Adjusted EBITDA(1) |
(1,479 |
) |
(223 |
) |
(563 |
%) |
|
(3,492 |
) |
(2,165 |
) |
(61 |
%) |
Loss per share – basic and diluted |
(0.02 |
) |
(0.01 |
) |
(100 |
%) |
|
(0.06 |
) |
(0.04 |
) |
(50 |
%) |
1 Adjusted EBITDA is a non-IFRS financial
measure. Refer to the disclosure below and in the Company’s
MD&A regarding non-IFRS financial measures.
EnWave’s annual consolidated financial
statements and MD&A are available on SEDAR at www.sedar.com and
on the Company’s website www.enwave.net.
Key Financial Highlights for Q4
(expressed in ‘000s):
- The Company
reported consolidated revenue for Q4 2022 of $4,971 compared to
$6,906 in Q4 2021, a decrease of $1,935 or 28%.
- EnWave’s Q4 2022
segment revenue was $2,824 compared to $3,879 in Q4 2021, a
decrease of $1,055 or 27%. The decrease is partly due to timing of
revenue recognized on large-scale contracts. As at September 30,
2022, EnWave had two large-scale machines in its order backlog for
which the majority of revenues will be recorded in Fiscal
2023.
- Q4 2022 royalty
revenue was $290 compared to $245 in Q4 2021, an increase of $45 or
18%.
- NutraDried’s Q4
2022 segment revenue was $2,147 compared to $3,027 for Q4 2021, a
decrease of $880 largely due to lower bulk and ingredient sales for
the current period.
- Gross margin for
Q4 2022 was 15% compared to 34% for Q4 2021. In Q4 2021 a fully
fabricated large-scale machine was resold for a one-time
substantial margin that was not repeated in Q4 2022. NutraDried
experienced substantial margin compression in Q4 2022 with higher
cheese pricing increasing its cost of goods.
- EnWave generated
a Q4 2022 gross margin of 39% while NutraDried generated a negative
gross margin of 15% in the period.
- Adjusted
EBITDA(*) loss, a non-IFRS financial measure, for Q4 2022 was
$1,479 compared to $223 for Q4 2021 a decrease of $1,256. The wider
loss was largely driven by the NutraDried segment’s higher cost of
goods in Q4 2022 driven by the higher cost of cheese.
- SG&A
expenses (including R&D) were $2,933 for Q4 2022 compared to
$3,167 for Q4 2021, a decrease of $234. We reduced G&A costs as
part of a continued focus on managing non-revenue generating
spending, while increasing the investment into S&M to further
develop the market for EnWave’s proprietary REV™ technology.
Significant Corporate Accomplishments in
Q4 2022 and Subsequently:
-
Signed an equipment purchase agreement with Dole to deliver a 120kW
large-scale REV™ machine to Asia, and leased Dole two additional
10kW REV™ machines to bridge production capacity until the
large-scale 120kW machine is commissioned. Dole has developed a
line of better-for-you snack products under the brand Good Crunch™
(https://www.dolefoodservice.com/good-crunch) that are produced
using EnWave’s REV™ technology.
- Signed an
equipment purchase agreement with our Major Japanese Royalty
Partner that is a leading global snack manufacturing company to
deliver a 60kW large-scale REVTM machine. The Major Japanese
Royalty Partner plans to launch an innovative line of
better-for-you snacks in Japan using REVTM technology.
- Obtained Safe
Quality Food certification for the REVworx toll drying facility and
completed a number of test production runs for prospective
customers.
- Signed 4 new
technology evaluation agreements with companies operating in the
global food and cannabis industries. Under these agreements the
prospective licensees will develop new products using REV™
technology and have been granted an option to obtain a
royalty-bearing commercial license.
Conference Call:
EnWave’s executive management will be holding a
conference call to discuss its 2022 Fourth Quarter and 2022 Annual
Financial Results and the Company’s state of affairs. Prepared
remarks will be given followed by a question-and-answer session for
shareholders.
Date: |
December 16, 2022 |
Time: |
7:00am PST / 10:00am EST |
Participant Access: |
1-877-407-2988 (toll free number) |
Webcast: |
https://event.choruscall.com/mediaframe/webcast.html?webcastid=Byr4fLNc |
(*) Non-IFRS Financial
Measures:
This news release refers to Adjusted EBITDA
which is a non-IFRS financial measure. We define Adjusted EBITDA as
earnings before deducting amortization and depreciation,
stock-based compensation, foreign exchange gain or loss, finance
expense or income, income tax expense or recovery, non-recurring
impairment, restructuring and/or severance charges, and government
assistance. This measure is not necessarily comparable to similarly
titled measures used by other companies and should not be construed
as an alternative to net income or cash flow from operating
activities as determined in accordance with IFRS. Please refer to
the reconciliation between Adjusted EBITDA and the most comparable
IFRS financial measure reported in the Company’s consolidated
financial statements.
|
Three months ended September 30, |
Years endedSeptember 30, |
($ ‘000s) |
2022 |
|
|
2021 |
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Net (loss) income after income
tax |
(2,273 |
) |
|
(1,138 |
) |
(6,927 |
) |
|
(4,125 |
) |
Amortization and depreciation |
718 |
|
|
610 |
|
2,548 |
|
|
2,513 |
|
Stock-based compensation |
212 |
|
|
187 |
|
1,132 |
|
|
824 |
|
Foreign exchange loss |
(114 |
) |
|
(19 |
) |
(96 |
) |
|
(15 |
) |
Finance expense (income), net |
6 |
|
|
(8 |
) |
26 |
|
|
(7 |
) |
Income tax recovery |
(28 |
) |
|
451 |
|
(28 |
) |
|
(707 |
) |
Non-recurring impairment and restructuring costs |
- |
|
|
- |
|
- |
|
|
691 |
|
Government assistance |
- |
|
|
(306 |
) |
(147 |
) |
|
(1,339 |
) |
Adjusted EBITDA |
(1,479 |
) |
|
(223 |
) |
(3,492 |
) |
|
(2,165 |
) |
Non-IFRS financial measures should be considered
together with other data prepared in accordance with IFRS to enable
investors to evaluate the Company's operating results, underlying
performance and prospects in a manner similar to EnWave’s
management. Accordingly, these non-IFRS financial measures are
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. For more information,
please refer to the Non-IFRS Financial Measures section in the
Company’s MD&A available on www.sedar.com.
About EnWave
EnWave is a global leader in the innovation and
application of vacuum microwave dehydration. From its headquarters
in Vancouver, BC, EnWave has developed a robust intellectual
property portfolio, perfected its Radiant Energy Vacuum (REV™)
technology, and transformed an innovative idea into a proven,
consistent, and scalable drying solution for the food,
pharmaceutical and cannabis industries that vastly outperforms
traditional drying methods in efficiency, capacity, product
quality, and cost. With more than forty-five
royalty-generating partners spanning twenty countries and five
continents, EnWave’s licensed partners are creating profitable,
never-before-seen snacks and ingredients, improving the quality and
consistency of their existing offerings, running leaner and getting
to market faster with the company’s patented technology, licensed
machinery, and expert guidance.
In addition, EnWave established a Limited
Liability Corporation, NutraDried Food Company, LLC, to
manufacture, market and sell REV-dried snack products within North
America, including the popular Moon Cheese® brand, and serve as a
co-manufacturer for third parties.
EnWave’s strategy is to sign royalty-bearing
commercial licenses with food and cannabis producers who want to
dry better, faster and more economical than freeze drying, rack
drying and air drying, and enjoy the following benefits:
- Food and ingredients companies can
produce exciting new products, reach optimal moisture levels up to
seven times faster, and improve product taste, texture, color and
nutritional value.
- Cannabis producers can dry four to
six times faster, retain 20% more terpenes and 25% more
cannabinoids, and achieve at least a 3-log reduction in
crop-destroying microbes.
Learn more at EnWave.net.
EnWave Corporation
Mr. Brent Charleton, CFAPresident and CEO
For further information:
Brent Charleton, CFA, President and CEO at +1 (778)
378-9616E-mail: bcharleton@enwave.net
Dylan Murray, CPA, CA, CFO at +1 (778) 870-0729E-mail:
dmurray@enwave.net
Safe Harbour for Forward-Looking Information
Statements: This press release may contain forward-looking
information based on management's expectations, estimates and
projections. All statements that address expectations or
projections about the future, including statements about the
Company's strategy for growth, product development, market
position, expected expenditures, and the expected synergies
following the closing are forward-looking statements. All
third-party claims referred to in this release are not guaranteed
to be accurate. All third-party references to market information in
this release are not guaranteed to be accurate as the Company did
not conduct the original primary research. These statements are not
a guarantee of future performance and involve a number of risks,
uncertainties and assumptions. Although the Company has attempted
to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no
assurance that such 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.
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 release.
EnWave (TSXV:ENW)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
EnWave (TSXV:ENW)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024