Evome Medical Technologies Inc. (the “
Company” or
“
Evome”) (TSXV: EVMT) today reported continued
progress on its turn-around plan. Evome has grown revenue at its
core business unit, Biodex Medical Systems, Inc.
(“
Biodex”), while reducing total debt
significantly for the third straight quarter.
The Company announced it generated 100% revenue
growth in its Biodex business unit in April 2024 compared to
January 2024 as a result of the final reorganization of Biodex in
January 2024. While the retooling impacted the unaudited financial
results for the first quarter ending March 31, 2024, to be filed
today, the Company is providing details indicating a strong second
quarter to date.
In terms of revenue growth initiatives, the
Company announces that Biodex’s distribution partner, Veterans
Medical Supply Inc. (“VMS”), has submitted
clinical data and price quotes to the Veterans Health
Administration (the “VHA”) of the U.S. Department
of Veterans Affairs. The Company has also executed a non-binding
term sheet (the “Term Sheet”) with a Swiss-backed
distribution company (the “China Market
Distributor”) focused on the China market, as well other
smaller markets in Asia (excluding Japan and South Korea).
Year-to-Date Preliminary Debt Reduction
Summary (January to April) (unaudited)
- 16% reduction in senior, secured
debt
- 29% reduction in first position
acquisition debt (before interest)
- 5% reduction in unsecured,
subordinated acquisition debt (before interest)
A Return to a Stronger Balance Sheet:
Preliminary Snapshot as of April 30, 2024 (unaudited)
The reduction of debt this year positions Evome
to potentially eliminate its total acquisition debt burden subject
to the sale, and sale price, of one of its non-core units, DaMar
Plastics Manufacturing, Inc. (“DaMar”).
| Current Assets
(Cash + A/R + Inventory less A/P + Accrued Expenses) |
US$8.27M |
| Estimated Value of DaMar (see assumptions below)
(non-GAAP) |
US$9.85M |
| Total Assets (non-GAAP) |
US$18.12M |
| |
|
| Senior Secured (Asset-Based Loan) and Working Capital Debt |
US$5.76M |
| Acquisition Debt |
US$10.11M |
| Total Debt |
US$15.87M |
| |
|
| Assets in Excess of Above Debt (non-GAAP) |
US$2.25M |
| |
|
While the management team continues to plan to
use its asset-based loan facility, as cash flow from operations
grows, the Company plans to reduce its debt in the coming
quarters.
Growing Demand for Biodex
Products
Biodex has executed a Term Sheet with the China
Market Distributor, led by a team with over a decade of experience
selling Biodex products in China.
Pursuant to the Term Sheet, Biodex would receive
licensing fees adjusted based on certain volumes, with an initial
downpayment of US$400,000. This arrangement has the potential to
significantly increase nominal earnings contributions from this
region in the coming years.
The Company has agreed, subject to execution of
a definitive agreement, to grant exclusive rights to the China
Market Distributor to sell Biodex products in the entire Asian
market, excluding Japan or South Korea. These rights include
technology transfer to adapt Biodex products to local regulatory
and market needs.
Additionally, the Company has received an
initial purchase order from VMS, in advance of a potential sale of
its System 4 Pro, Gait Trainer Music Assisted Therapy and Balance
SD products to the VHA. The VHA is the largest integrated
health care system in the United States, providing care
at 1,321 health care facilities, including 172 VA Medical
Centers and 1,138 outpatient sites of care of varying
complexity (VHA outpatient clinics) to over 9 million Veterans
enrolled in the VA health care program1.
Streamlined Operations at Biodex to Meet Growing
Demand
Highlight: April 2024 revenues were double that of
January 2024
As the core unit of Evome, Biodex has strong
growth potential. The business has growing demand for its products
in current and new potential markets, including China and in the
U.S. with the VHA.
In January 2024, Evome’s CEO, Mike Seckler, made
the decision to revamp the operations of the Company, including
with suppliers and contract manufacturing clients, which impacted
first quarter revenues and profitability. However, as a result of
this action, preliminary April 2024 revenues were double that of
January 2024. January gross margins were 32% and April gross
margins were 36% as a comparison.
Going forward, the Company expects to have a
strong second quarter generating positive Adjusted EBITDA (defined
below).
“With many of the divestment and cost cutting
parts of the turn-around plan behind us, we are now focused on the
growth phase of the turnaround plan,” said CEO Mike Seckler. “By
the end of the second quarter, Evome will truly be a new company.
In less than a year, we were able to decrease costs, increase
Biodex revenue and divest non-core assets to reduce our debt. With
our debt issues largely contained, we can focus on adding cash to
the balance sheet from generating profits, as well as launching our
new products in new and current markets. I look forward to
introducing the new Evome to the markets with our update call next
week and then with face-to-face meetings over the summer.”
“As for our core asset Biodex, we have seen the
results of our January retooling with great sales growth for the
first four months of the year,” continued Mr. Seckler. “With the
introduction of our Reactive Step Trainer, I see further growth
ahead. I am gratified to see our first purchase order from VMS for
the RST product we launched earlier in the year. I believe our
veterans can benefit greatly from all of our products, especially
the RST.”
Mike SecklerChief Executive OfficerTel: 1 (800) 760-6826
Email: Info@Salonaglobal.com
Cautionary 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.
Unless otherwise specified, all financial
information is presented in Canadian dollars ("$", "dollars" and
"C$").
There can be no assurance that any non-core
disposition (including the disposition of DaMar contemplated
herein) will be completed or the sale price or timing of any
disposition. Completion of any transaction will be subject to,
amongst other things, negotiation and execution of definitive
agreements, and applicable director, shareholder and regulatory
approvals. The estimate of a potential sale price for DaMar is
based on it being acquired in September 2022 for US$5.8M and it has
generated annual revenue growth of 19% when comparing Q4 2022
revenue of US$1,510,853 to Q4 2023 revenue of US$1,799,772. As a
result of this growth and projected continued growth, the Company
has determined that a reasonable estimated market value of DaMar is
$9.85M.
Certain statements contained in this press
release constitute "forward-looking information" within the
meaning of the Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. These statements can be
identified by the use of forward-looking terminology such as
“expects” “believes”, “estimates”, "may", "would", "could",
"should", "potential", "will", "seek", "intend", "plan",
and "anticipate", and similar expressions as they relate to the
Company, including: the financial results of the second quarter;
the Company successfully disposing of any non-core units,
including, without limitation, DaMar and the use of such proceeds;
the amount of acquisition debt the Company would be able to
eliminate upon the sale of DaMar; the Company planning to reduce
its debt in the coming quarters; the potential revenue growth as a
result of the Company’s relationship with VMS and potential
relationship with the China Market Distributor; the final terms of
a relationship with the China Market Distributor; and the Company
launching new products in new and current markets. All statements
other than statements of historical fact may be forward-looking
information. Such statements reflect the Company's current views
and intentions with respect to future events, and current
information available to the Company, and are subject to certain
risks, uncertainties and assumptions, including: the completion of
normal quarter and year end accounting procedures and adjustments
not resulting in any material differences; the Company successfully
identifying a buyer for a non-core business and negotiating and
closing a sale; DaMar selling for at least $9.85M; the Company and
the China Market Distributor successfully negotiating and executing
definitive agreements; and the Company having the necessary capital
to complete its business objectives. The Company cautions that the
forward-looking statements contained herein are qualified by
important factors that could cause actual results to differ
materially from those reflected by such statements. Such factors
include but are not limited to the general business and
economic conditions in the regions in which the Company
operates; the ability of the Company to execute on key
priorities, including the successful completion of acquisitions,
business retention, and strategic plans and to attract,
develop and retain key executives; difficulty integrating newly
acquired businesses; ongoing or new disruptions in the supply
chain, the extent and scope of such supply chain disruptions, and
the timing or extent of the resolution or improvement of such
disruptions; the ability to implement business strategies and
pursue business opportunities; disruptions in or attacks
(including cyber-attacks) on the Company’s information
technology, internet, network access or other voice or data
communications systems or services; the evolution of various types
of fraud or other criminal behavior to which the Company is
exposed; the failure of third parties to comply with their
obligations to the Company or its affiliates; the impact of
new and changes to, or application of, current laws and
regulations; granting of permits and licenses in a highly
regulated business; the overall difficult litigation
environment, including in the United States; increased competition;
changes in foreign currency rates; increased funding costs
and market volatility due to market illiquidity and competition
for funding; the availability of funds and resources to pursue
operations; critical accounting estimates and changes to
accounting standards, policies, and methods used by the
Company; the occurrence of natural and unnatural catastrophic
events and claims resulting from such events; as well as
those risk factors discussed or referred to in the Company’s
disclosure documents filed the securities regulatory
authorities in certain provinces of Canada and available at
www.sedarplus.ca. Should any factor affect the Company in an
unexpected manner, or should assumptions underlying the
forward-looking information prove incorrect, the actual results or
events may differ materially from the results or events
predicted. Any such forward-looking information is expressly
qualified in its entirety by this cautionary statement.
Moreover, the Company does not assume responsibility for the
accuracy or completeness of such forward-looking information.
The forward-looking information included in this press release
is made as of the date of this press release and the Company
undertakes no obligation to publicly update or revise any
forward-looking information, other than as required by
applicable law.
Non-GAAP Measures
This press release refers to "Adjusted EBITDA"
which is a non-GAAP and non-IFRS financial measure that does not
have a standardized meaning prescribed by GAAP or IFRS. The
Company’s presentation of this financial measure may not be
comparable to similarly titled measures used by other companies.
This non-GAAP financial measure assists the Company’s management in
comparing its operating performance over time because certain items
may obscure underlying business trends and make comparisons of
long-term performance difficult, as they are of a nature and/or
size that occur with inconsistent frequency or relate to discrete
acquisition plans that are fundamentally different from the ongoing
operating plans of the Company. The Company’s management also
believes that presenting this measure allows investors to view the
Company’s performance using the same measures that the Company uses
in evaluating its financial and business performance and trends.
“Adjusted EBITDA” is defined as net operating loss excluding
depreciation of property and equipment, amortization of
right-of-use asset, amortization of intangible asset, severance
expense due to restructuring, and stock-based compensation.
Preliminary Financial
Metrics
This press release contains certain pre-released
financial metrics. The financial metrics contained in this press
release are preliminary and represent the most current information
available to the Company's management, as financial closing
procedures for the second quarter ended June 30, 2024 are not yet
complete. The Company's actual consolidated financial statements
for such period, and for the year ended December 31, 2024, may
result in material changes to the financial metrics summarized in
this press release (including by any one financial metric, or all
of the financial metrics, being below or above the figures
indicated) as a result of the completion of normal quarter and year
end accounting procedures and adjustments, and also what one might
expect to be in the final consolidated financial statements based
on the financial metrics summarized in this press release. Although
the Company believes the expectations reflected in this press
release are based upon reasonable assumptions, the Company can give
no assurance that actual results will not differ materially from
these expectations.
1
https://www.va.gov/health/aboutvha.asp#:~:text=The%20Veterans%20Health%20Administration%20(VHA,Veterans%20enrolled%20in%20the%20VA
Evome Medical Technologies (TSXV:EVMT)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Evome Medical Technologies (TSXV:EVMT)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
