EnWave Reports 2023 Second Quarter Consolidated Interim Financial Results
26 Mai 2023 - 3:00PM
EnWave Corporation (TSX-V:ENW | FSE:E4U) (“EnWave”, or the
"Company") today reported the Company’s consolidated
interim financial results for the second quarter ended March 31,
2023.
All values in thousands and denoted in CAD
unless otherwise stated.
- Reported net income from continuing
operations of $687 and Adjusted EBITDA(1) of $1,151 for Q2 2023,
representing an increase of $2,386 and $2,190 respectively relative
to the comparable period of the prior year. The increase was
primarily due to the resale of two large scale machines and the
wind down of NutraDried in Q2 2023.
- Completed the sale of NutraDried
assets and a 100kW unit to Creations Foods U.S. incorporated for
total consideration of $2,608 USD.
- Reported revenue for Q2 2023 of
$4,635, representing an increase of $3,137 relative to the
comparable period of the prior year.
- Commissioned two large scale 120kW
units for the dehydration of fruit and vegetables in Italy and
Thailand.
Consolidated Financial
Performance:
($ ‘000s) |
Three months ended March 31, |
|
Six months ended March 31, |
|
|
2023 |
|
|
2022 |
|
Change% |
|
|
2023 |
|
|
2022 |
|
Change% |
|
|
|
|
|
|
|
|
Revenues |
|
4,635 |
|
|
1,498 |
|
209% |
|
|
7,420 |
|
|
5,564 |
|
33% |
Direct
costs |
|
(2,371) |
|
|
(935) |
|
154% |
|
|
(4,127) |
|
|
(2,724) |
|
52% |
Gross margin |
|
2,264 |
|
|
563 |
|
302% |
|
|
3,293 |
|
|
2,840 |
|
16% |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
General and administration |
|
697 |
|
|
745 |
|
(6%) |
|
|
1,252 |
|
|
1,464 |
|
(14%) |
Sales and marketing |
|
276 |
|
|
521 |
|
(45%) |
|
|
890 |
|
|
1,105 |
|
(19%) |
Research and development |
|
415 |
|
|
550 |
|
(28%) |
|
|
812 |
|
|
1,087 |
|
(25%) |
|
|
1,388 |
|
|
1,816 |
|
(24%) |
|
|
2,954 |
|
|
3,656 |
|
(19%) |
|
|
|
|
|
|
|
|
Net income(loss) continuing
operations |
|
687 |
|
|
(1,699) |
|
140% |
|
|
(56) |
|
|
(1,384) |
|
96% |
Net loss discontinued
operations |
|
(3,386) |
|
|
(687) |
|
(393%) |
|
|
(4,672) |
|
|
(1,255) |
|
(272%) |
|
|
|
|
|
|
|
|
Adjusted EBITDA(1) |
|
1,151 |
|
|
(1,039) |
|
211% |
|
|
895 |
|
|
(430) |
|
308% |
Loss per share: |
|
|
|
|
|
|
|
Basic and diluted – continuous operations |
$ |
0.01 |
|
$ |
(0.02) |
|
|
|
$ |
(0.00) |
|
$ |
(0.01) |
|
|
Basic and diluted – discontinued operations |
$ |
(0.03) |
|
$ |
(0.00) |
|
|
|
$ |
(0.04) |
|
$ |
(0.01) |
|
|
|
$ |
(0.02) |
|
$ |
(0.02) |
|
|
|
$ |
(0.04) |
|
$ |
(0.02) |
|
|
(1) |
Adjusted EBITDA is a non-IFRS financial measure. Refer to the
Non-IFRS Financial Measures disclosure below for a reconciliation
to the nearest IFRS equivalent. |
|
|
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 the Six Months Ended Q2
2023 (expressed in ‘000s):
- The Company
reported revenue for the six months ended Q2 2023 of $7,420
compared to $5,564 for the six months ended Q2 2022, an increase of
$1,856. The increase in revenue is primarily due to the resale of
two large scale machines in the first half of 2023, relative to the
comparable period of the prior year which had one machine
resale.
- Royalty Revenues
of $690 for the six months ended Q2 2023 compared to $750 for the
six months ended Q2 2022, a decrease of $60. Some partners had
higher base royalties during the calendar year, resulting in a
smaller royalty obligation to meet the minimum annual royalty
threshold. Additionally, some partners decided to forego
exclusivity.
- Gross margin for
the six months ended Q2 2023 was 44% compared to 51% for six months
ended Q2 2022. EnWave sold two high margin machines in the quarter
however, due to increased large-scale machines in fabrication,
direct costs increased.
- SG&A
expenses (including R&D) were $2,954 for the six months ended
Q2 2023 compared to $3,656 for the six months ended Q2 2022, a
decrease of $702. The decrease resulted from concerted efforts to
reduce discretionary spending, including lower personnel costs in
all departments.
- Adjusted EBITDA (refer to Non-IFRS
Financial Measures section below) for the six months ended Q2 2023
was $895 compared to a loss of $430 for the six months ended Q2
2022, an increase of $1,325. The increase in adjusted EBITDA was
primarily due to the wind down of NutraDried and its classification
as discontinued operations, the resale of two large scale machines
and the reduction of SG&A expenses (including R&D).
Significant Corporate Accomplishments in
Q2 2023 and Subsequently:
- Commissioned a
120kW large-scale REV™ machine for Orto al Sole in Italy for
production of premium dried fruits and vegetables for
snacking.
- Commissioned a
120kW large-scale REV™ machine in Asia for Dole to start production
of better-for-you snack products under the brand Good Crunch™
(https://www.dolefoodservice.com/good-crunch) using EnWave’s REV™
technology.
- Sold and
commissioned a 120kW REV™ machine to a major Canadian cannabis
company to produce premium smokeable flower, cannabis plant
material for extraction and edible products.
- Sold two 10kW
REV™ machines to a current royalty partner tripling its North
American REVTM manufacturing capacity for production to support a
growing market demand.
- Signed a license
with PiP International Incorporated (“PIP”) to allow for the
commercialization of high-value plant-based ingredients.
Additionally, PIP purchased a 10kW REV™ machine for continued
product development.
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 and non-recurring impairment, restructuring
and severance charges, government assistance and discontinued
operations. 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 March 31, |
Six months endedMarch 31 |
($ ‘000s) |
2023 |
2022 |
2023 |
2022 |
|
|
|
|
|
Net (loss) income after income
tax |
(2,699) |
(2,386) |
(4,728) |
(2,639) |
Amortization and depreciation |
276 |
243 |
565 |
446 |
Stock-based compensation |
197 |
378 |
365 |
612 |
Foreign exchange loss |
(9) |
47 |
32 |
66 |
Finance expense (income), net |
- |
(8) |
(11) |
(23) |
Government assistance |
- |
- |
- |
(147) |
Discontinued operations |
3,386 |
687 |
4,672 |
1,255 |
Adjusted EBITDA |
1,151 |
(1,039) |
895 |
(430) |
|
|
|
|
|
Non-IFRS financial measures should be considered
together with other data prepared 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 Delta, 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 fifty royalty-generating partners
spanning twenty six 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.
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 up to 20% more terpenes and 25% more
cannabinoids, and achieve at least a 3-log reduction in
crop-destroying microbes.
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, 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, the Company ceasing to make
investments in NutraDried, the timing of the wind-down and
dissolution of NutraDried, expectations around the cost of winding
down NutraDried, and the Company's intended focus for the future
are forward-looking statements. 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, including that the
process of winding up NutraDried will involve time and expense to
the Company materially greater than anticipated, that the
realization of assets of NutraDried will not sufficiently cover the
orderly wind-up of NutraDried, which could result in the
requirement for additional funding by the Company to complete such
wind-up, that the foregoing developments will adversely affect the
Company, in terms of cost, management time and focus, outlook or
reputation; the ability of the Company to achieve its longer-term
outlook, the ability to lower costs, and the other risk factors set
forth in the Company's public filings. 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 Déc 2024 à Jan 2025
EnWave (TSXV:ENW)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025