Evome Medical Technologies Inc. (the “
Company” or
“
Evome”) (TSXV: EVMT) today reported financial
results for the second quarter ended June 30, 2024, featuring
$421,000 in positive Adjusted EBITDA1, a reduction in debt,
financial performance momentum and significant progress with its
restructuring. The Company's financial statements for the three and
six months ended June 30, 2024 and 2023 and related Management's
Discussion and Analysis (MD&A) are available under the
Company's profile on SEDAR+ (www.sedarplus.com).
Financial highlights of Q2 2024 included the
following:
- Revenue of $10.5 million
- Revenue from the Company’s core
business, Biodex Medical Systems, Inc. (“Biodex”),
was $6.1 million, up 59% compared with Q1 2024
- Gross profit of $3.3 million
- Gross profit from Biodex was $3.2
million, up 60% compared with Q1 2024
- Adjusted EBITDA of $421,000, up
117% compared with Q1 2024 and up 145% compared with Q2 2023
- Reduced debt by $2.7 million,
including $2.6 million of acquisition debt and $175,000 from the
Company’s credit line
- Since June 2023, total debt has
been reduced by 18%
- The credit line debt was reduced by
a further $900,000 in July 2024
- Management plans to continue to use
cash flow from operations as well as proceeds, if applicable, from
the Company’s intended sale of DaMar Plastics Manufacturing, Inc.
to reduce debt further
Business Restructuring
Prior to the appointment of Mike Seckler as CEO
in June 2023, the Company had accumulated significant acquisition
debt along with flat revenues, mounting losses and declining cash
balances. Since then, the Company achieved positive Adjusted EBITDA
in Q3 2023, Q4 2023 and Q2 2024, following a retooling effort in Q1
2024.
“We have made tremendous progress over the past
12 months including a restructuring of the entire Company,” said
Mike Seckler, CEO. “We focused on boosting sales of our core Biodex
division and cutting costs to increase profitability. Concurrently,
we reduced and restructured debt.”
“I am pleased to report that the business has
now stabilized and is generating positive Adjusted EBITDA. I remain
optimistic about maintaining recent financial momentum into the
third quarter and beyond for our core business, Biodex. As
previously announced, we are planning to divest our remaining
business units, which we anticipate could allow us to retire all
outstanding acquisition debt and provide a path to sustainable
operations built upon a large client base and a stellar brand in
Biodex,” he added.
Gordon Bean Named CFO
The Company also announced the promotion of
Gordon Bean from Vice President of Finance to Chief Financial
Officer, as of August 1, 2024. Mr. Bean has more than 20 years of
experience in accounting and finance, including at life science and
publicly traded companies.
Most recently, Mr. Bean worked at 3 Step Sports,
Keolis Transit America and Rapid Micro Biosystems as the Corporate
Controller, where he was responsible for all aspects of financial
accounting, reporting and treasury. A CPA since 2000, he holds a
Master of Science in Accounting (with distinction) from Bentley
College and dual Bachelor of Science degrees in Psychology
(neuropsychology) and Biology from Concordia University.
Mr. Bean has been granted 100,000 restricted
stock units under the Company’s 2023 Equity Incentive Plan that
vest over 24 months and settle in common shares of the Company. The
restricted stock units and underlying common shares will be issued
as “restricted securities” (as defined in Rule 144 under the United
States Securities Act of 1933, as amended), have been issued in
reliance on exemptions from U.S. federal and state registration
requirements and are subject to a four month and one day hold
period pursuant to Canadian securities laws and the TSX Venture
Exchange.
Conference Call
The Company will hold a conference call on
Monday, August 19, 2024, at 2:00 PM Eastern time (11:00 AM Pacific
time). The call will be hosted by Mike Seckler, CEO, and Gordon
Bean, CFO. Please register via the link below to attend.
Date: Monday, August 19, 2024Time: 2:00 PM
Eastern time (11:00 AM Pacific time)Link for attendees to register:
https://register.gotowebinar.com/register/656455062393989723
About Evome
Evome Medical Technologies Inc. (TSXV: EVMT)
specializes in human performance and rehabilitative solutions
achieved through strategic acquisitions and leveraging the
intellectual properties of specialized companies under our
wholly-owned subsidiaries. The Company's aim is to create a large,
broad-based medical device company with global reach. For more
information visit www.evomemedical.com.
Biodex is a leader in innovative rehabilitation
solutions, recognized for its advanced product line serving
orthopedic, sports medicine, and neurorehabilitation needs.
Renowned for its precision and durability, Biodex offers
cutting-edge equipment such as balance and mobility systems,
isokinetic testing devices, and comprehensive upper extremity
rehabilitation tools. With a presence in over 70 countries and
partnerships with 52 distributors, Biodex continues to drive
advancements in patient care through a strong commitment to
research, education, and technology integration.
For Additional Information:
Mike Seckler Chief Executive
Officerinfo@evomemedical.com
For Media and Investor
Relations:
irlabsAlyssa BarryPrincipal and Co-Founder1
(833) 947-5227
Additional Information
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 disposition
(including the proposed dispositions disclosed 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.
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 Company successfully disposing of any
subsidiaries, including as disclosed herein; and the Company’s
intended use of cash flow and any proceeds from the sale of a
business unit. 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 Company successfully identifying a
buyer for a non-core business and negotiating and closing a sale.
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 with United States Securities and
Exchange Commission and available at www.sec.gov, and with 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 Financial 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 loss
excluding interest expense, provision for income taxes,
depreciation of property and equipment, amortization of
right-of-use asset, amortization of intangible asset, foreign
exchange (loss) gain, other income, provision for impairment,
change in fair value of contingent consideration, transaction
costs, gain/loss on sale of business and stock-based
compensation.
The following table provides reconciliation
between net income (loss) and Adjusted EBITDA:
| |
For the
three months ended June 30, 2024 |
| |
Evome |
|
Core
Business |
|
Net Loss |
$ |
(2,283,948 |
) |
|
$ |
455,955 |
|
| |
|
|
|
| Amortization
of intangible asset |
|
108,657 |
|
|
|
54,990 |
|
| Depreciation
of property and equipment |
|
239,504 |
|
|
|
35,844 |
|
| Depreciation
of right-of-use asset |
|
468,616 |
|
|
|
118,730 |
|
| Interest
expense |
|
548,819 |
|
|
|
97,070 |
|
| Transaction
costs |
|
5,121 |
|
|
|
- |
|
| Share based
compensation |
|
136,557 |
|
|
|
- |
|
| Foreign
exchange loss (gain) |
|
28 |
|
|
|
- |
|
| Intangible
and right of use asset impairment |
|
23,080 |
|
|
|
- |
|
| Goodwill
Impairment |
|
714,187 |
|
|
|
- |
|
| Gain/Loss on
sale of business |
|
472,822 |
|
|
|
(111,339 |
) |
| Other
income |
|
(149 |
) |
|
|
- |
|
| Current
income tax recovery (expense) |
|
(11,820 |
) |
|
|
- |
|
| |
|
|
|
|
Adjusted EBITDA |
$ |
421,474 |
|
|
$ |
651,250 |
|
1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial
Measures".
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
