Jamieson Wellness Inc. (“Jamieson Wellness” or the “Company”) (TSX: JWEL) today reported its third quarter results for the period ended September 30, 2024. All amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS and other financial measures. See “Non-IFRS and Other Financial Measures” below.
“Our brands continued to resonate with consumers globally in the third quarter, with strong consumption and growth in all of our key markets,” said Mike Pilato, President and CEO of Jamieson Wellness. “Consumers continue to improve their health and wellness with quality brands they can trust, which is reflected in our branded revenue growth of 20% in the quarter.
“As we prepare to close 2024, we remain focused on the execution of our strategic priorities. Our newly launched integrated advertising campaign in Canada continues to reinforce Jamieson’s position as the leading VMS brand in the country and we are preparing to take its success into international markets in 2025. Our investments in brand growth in China and in the U.S. are ongoing, and we have increased collaboration with our key distributor partners to further fuel the growth in our International business segment.
“Our results this quarter were driven by the growing consumer momentum behind proactive health and wellness solutions, and exceptional execution by our entire team. I want to thank all our team members for their dedication to delivering growth, relentless pursuit of our commitments, and passion for ensuring our high-quality products help to inspire better lives every day.”
Third Quarter Highlights
Third Quarter Financial Results Consolidated Summary
All comparisons are with the third quarter of 2023
Summary of Segment Results
All comparisons are with the third quarter of 2023
Jamieson Brands
Strategic Partners
Balance Sheet and Cash Flow from Operations
All comparisons are with the third quarter of 2023
1 This is a non-IFRS financial measure. See the “Non-IFRS and Other Financial Measures” section of this press release for more information on each non-IFRS financial measure. |
2 This is a non-IFRS ratio. See the “Non-IFRS and Other Financial Measures” section of this press release for more information on each non-IFRS ratio. |
3 This is a supplementary financial measure. See the “Non-IFRS and Other Financial Measures” section of this press release for more information on each supplementary financial measure. |
Narrowing Fiscal 2024 Outlook and Maintaining Fiscal 2025 Outlook
The Company is narrowing its outlook for the 2024 fiscal year and is now anticipating the following:
In fiscal 2025, the Company continues to anticipate the following:
For additional details on the Company’s fiscal 2024 and 2025 outlook, including guidance for the fourth quarter of 2024, refer to the “Outlook” section in the management’s discussion and analysis of financial condition and results of operations (“MD&A”) for the three and nine months ended September 30, 2024.
Declaration of Third Quarter Dividend
The board of directors of the Company declared a cash dividend for the third quarter of 2024:
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, 2024 and related MD&A are available under the Company’s profile on SEDAR+ at www.sedarplus.com and on the Investor Relations 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 2024 results at 5:00 p.m. ET today, November 7, 2024. To access:
About Jamieson Wellness
Jamieson Wellness is dedicated to Inspiring Better Lives Every Day with its portfolio of innovative natural health brands. Established in 1922, the Jamieson brand is Canada's #1 vitamins, minerals and supplements (“VMS”) brand. The Company’s youtheory brand, acquired in 2022, is an established and growing lifestyle brand in the U.S. Combined, these global brands are available in more than 50 countries worldwide. The Company also offers a variety of innovative VMS products as well as sports nutrition products to consumers in Canada with its Progressive, Smart Solutions, Iron Vegan and Precision brands. The Company is a participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business. For more information please visit www.jamiesonwellness.com.
Jamieson Wellness’ head office is located at 1 Adelaide Street East Suite 2200, 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 results and its outlook for its 2024 revenue, Adjusted EBITDA and Adjusted diluted earnings per share. Words such as “expect”, “anticipate”, “intend”, “may”, “will”, “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 Annual Information Form dated March 28, 2024 and under the “Risk Factors” section in the MD&A filed today, November 7, 2024. 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.
The Company cautions 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” and “Risk Factors” within the MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements.
Jamieson Wellness Inc. |
|||||||||||
Selected Consolidated Financial Information |
|||||||||||
In thousands of Canadian dollars, except share and per share amounts |
|||||||||||
Three months ended |
Nine months ended |
||||||||||
September 30 |
September 30 |
||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||
Revenue | 176,155 |
|
151,505 |
|
488,999 |
|
455,807 |
|
|||
Cost of sales | 108,584 |
|
100,355 |
|
313,615 |
|
301,275 |
|
|||
Gross profit | 67,571 |
|
51,150 |
|
175,384 |
|
154,532 |
|
|||
Gross profit margin | 38.4 |
% |
33.8 |
% |
35.9 |
% |
33.9 |
% |
|||
Selling, general and administrative expenses | 41,982 |
|
30,780 |
|
125,407 |
|
98,004 |
|
|||
Share-based compensation | 1,788 |
|
1,413 |
|
5,281 |
|
4,334 |
|
|||
Earnings from operations | 23,801 |
|
18,957 |
|
44,696 |
|
52,194 |
|
|||
Operating margin | 13.5 |
% |
12.5 |
% |
9.1 |
% |
11.5 |
% |
|||
Foreign exchange (gain)/ loss | 578 |
|
(1,359 |
) |
(373 |
) |
286 |
|
|||
Interest expense and other financing costs | 5,068 |
|
5,589 |
|
14,588 |
|
17,899 |
|
|||
Accretion on preferred shares | 2,169 |
|
2,041 |
|
6,509 |
|
2,868 |
|
|||
Earnings before income taxes | 15,986 |
|
12,686 |
|
23,972 |
|
31,141 |
|
|||
Provision for income taxes | 5,568 |
|
4,915 |
|
8,960 |
|
9,101 |
|
|||
Net earnings | 10,418 |
|
7,771 |
|
15,012 |
|
22,040 |
|
|||
Net earnings attributable to: | |||||||||||
Shareholders | 10,564 |
|
8,224 |
|
15,104 |
|
23,475 |
|
|||
Non-controlling interests | (146 |
) |
(453 |
) |
(92 |
) |
(1,435 |
) |
|||
10,418 |
|
7,771 |
|
15,012 |
|
22,040 |
|
||||
Adjusted net earnings | 15,834 |
|
14,991 |
|
34,403 |
|
37,469 |
|
|||
EBITDA | 27,934 |
|
25,512 |
|
59,441 |
|
67,095 |
|
|||
Adjusted EBITDA | 33,914 |
|
31,871 |
|
81,566 |
|
87,435 |
|
|||
Adjusted EBITDA margin | 19.3 |
% |
21.0 |
% |
16.7 |
% |
19.2 |
% |
|||
Weighted average number of shares | |||||||||||
Basic | 41,566,805 |
|
42,055,796 |
|
41,501,326 |
|
41,926,277 |
|
|||
Diluted | 42,943,970 |
|
42,567,969 |
|
42,747,176 |
|
42,421,242 |
|
|||
Earnings per share attributable to common shareholders: | |||||||||||
Basic, earnings per share | 0.25 |
|
0.18 |
|
0.36 |
|
0.53 |
|
|||
Diluted, earnings per share | 0.24 |
|
0.18 |
|
0.35 |
|
0.52 |
|
|||
Adjusted diluted, earnings per share | 0.37 |
|
0.35 |
|
0.80 |
|
0.88 |
|
Jamieson Wellness Inc. |
|||
Consolidated Statements of Financial Position |
|||
In thousands of Canadian dollars |
|||
September 30,
|
December 31,
|
||
Assets | |||
Current assets | |||
Cash | 42,190 |
36,863 |
|
Accounts receivable | 137,846 |
164,499 |
|
Inventories | 193,476 |
182,456 |
|
Derivatives | 211 |
3,707 |
|
Prepaid expenses and other current assets | 6,911 |
5,335 |
|
Income taxes recoverable | 5,352 |
- |
|
385,986 |
392,860 |
||
Non-current assets | |||
Property, plant and equipment | 101,716 |
106,903 |
|
Goodwill | 277,431 |
274,411 |
|
Intangible assets | 366,050 |
366,521 |
|
Deferred income tax | 4,288 |
2,879 |
|
Total assets | 1,135,471 |
1,143,574 |
|
Liabilities | |||
Current liabilities | |||
Accounts payable and accrued liabilities | 108,669 |
135,520 |
|
Income taxes payable | 2,335 |
2,263 |
|
Derivatives | 3,345 |
- |
|
Current portion of other long-term liabilities | 25,584 |
7,546 |
|
139,933 |
145,329 |
||
Long-term liabilities | |||
Long-term debt | 335,000 |
325,000 |
|
Post-retirement benefits | 1,167 |
1,078 |
|
Deferred income tax | 59,913 |
60,532 |
|
Redeemable preferred shares | 95,918 |
89,409 |
|
Other long-term liabilities | 18,569 |
41,031 |
|
Total liabilities | 650,500 |
662,379 |
|
Equity | |||
Share capital | 320,179 |
312,593 |
|
Warrants | 14,705 |
14,705 |
|
Contributed surplus | 23,057 |
19,089 |
|
Retained earnings | 71,270 |
80,654 |
|
Accumulated other comprehensive income | 13,351 |
11,892 |
|
Total shareholders' equity | 442,562 |
438,933 |
|
Non-controlling interests | 42,409 |
42,262 |
|
Total equity | 484,971 |
481,195 |
|
Total liabilities and equity | 1,135,471 |
1,143,574 |
Non-IFRS and Other Financial Measures
This press release makes reference to certain financial measures, including non-IFRS financial measures that are historical, non-IFRS measures that are forward-looking, non-GAAP ratios and supplementary financial measures. Management uses these 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. The Company uses the following non-IFRS financial measures: “EBITDA”, “Adjusted EBITDA” and “Adjusted net earnings”, the most directly comparable financial measure for each that is disclosed in its financial statements being net earnings, “normalized gross profit”, “normalized SG&A”, “normalized earnings from operations”, “cash from operating activities before working capital considerations” and “net debt”, the most directly comparable financial measures for each that is disclosed in its financial statements being gross profit, SG&A, earnings from operations, cash flows from operating activities, and long-term debt, respectively, the following non-IFRS ratios: “Adjusted EBITDA margin”, “Adjusted diluted earnings per share”, “normalized gross profit margin”, “normalized operating margin”, and the following supplementary financial measures: “gross profit margin” and “operating margin” 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 and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. For an explanation of the composition of each such measure and the usefulness and additional uses of each by management, see the “How we Assess the Performance of our Business” section of the MD&A, which is incorporated by reference. See below for a quantitative reconciliation of each non-IFRS financial measure to its most directly comparable financial measure disclosed in the Company’s financial statements to which the measure relates.
The following tables provide a quantitative reconciliation of net earnings to EBITDA, Adjusted EBITDA, and Adjusted net earnings, as well as gross profit to normalized gross profit, SG&A to normalized SG&A, earnings from operations to normalized earnings from operations and net debt, each of which are non-IFRS financial measures (see the “Non-IFRS and Other Financial Measures” of this press release for further information on each non-IFRS financial measure) for the three and nine months ended September 30, 2024, and September 30, 2023.
Jamieson Wellness Inc. |
||||||||||||
Segment Information |
||||||||||||
In thousands of Canadian dollars, except as otherwise noted |
||||||||||||
Jamieson Brands | ||||||||||||
Three months ended
|
||||||||||||
2024 |
2023 |
$ Change |
% Change |
|||||||||
Revenue | 154,988 |
|
129,138 |
|
25,850 |
|
20.0 |
% |
||||
Gross profit | 65,257 |
|
47,691 |
|
17,566 |
|
36.8 |
% |
||||
Amortization of fair value adjustments (2) | - |
|
3,504 |
|
(3,504 |
) |
(100.0 |
%) |
||||
Normalized gross profit | 65,257 |
|
51,195 |
|
14,062 |
|
27.5 |
% |
||||
Gross profit margin | 42.1 |
% |
36.9 |
% |
- |
|
5.2 |
% |
||||
Normalized gross profit margin | 42.1 |
% |
39.6 |
% |
- |
|
2.5 |
% |
||||
Share-based compensation (3) | 1,788 |
|
1,413 |
|
375 |
|
26.5 |
% |
||||
Selling, general and administrative expenses | 40,516 |
|
29,258 |
|
11,258 |
|
38.5 |
% |
||||
Acquisition and divestiture related costs (4) | (541 |
) |
(431 |
) |
(110 |
) |
(25.5 |
%) |
||||
IT system implementation (5) | (2,992 |
) |
(2,370 |
) |
(622 |
) |
(26.2 |
%) |
||||
Other | (81 |
) |
- |
|
(81 |
) |
- |
|
||||
Normalized selling, general and administrative expenses | 36,902 |
|
26,457 |
|
10,445 |
|
39.5 |
% |
||||
Earnings from operations | 22,953 |
|
17,020 |
|
5,933 |
|
34.9 |
% |
||||
Acquisition and divestiture related costs (4) | 541 |
|
431 |
|
110 |
|
25.5 |
% |
||||
IT system implementation (5) | 2,992 |
|
2,370 |
|
622 |
|
26.2 |
% |
||||
Amortization of fair value adjustments (2) | - |
|
3,504 |
|
(3,504 |
) |
(100.0 |
%) |
||||
Other | 81 |
|
- |
|
81 |
|
(100.0 |
%) |
||||
Normalized earnings from operations | 26,567 |
|
23,325 |
|
3,242 |
|
13.9 |
% |
||||
Operating margin | 14.8 |
% |
13.2 |
% |
- |
|
1.6 |
% |
||||
Normalized operating margin | 17.1 |
% |
18.1 |
% |
- |
|
(1.0 |
%) |
||||
Adjusted EBITDA | 32,340 |
|
29,125 |
|
3,215 |
|
11.0 |
% |
||||
Adjusted EBITDA margin | 20.9 |
% |
22.6 |
% |
- |
|
(1.7 |
%) |
||||
Strategic Partners | ||||||||||||
Three months ended
|
||||||||||||
2024 |
2023 |
$ Change |
% Change |
|||||||||
Revenue | 21,167 |
|
22,367 |
|
(1,200 |
) |
(5.4 |
%) |
||||
Gross profit | 2,314 |
|
3,459 |
|
(1,145 |
) |
(33.1 |
%) |
||||
Gross profit margin | 10.9 |
% |
15.5 |
% |
- |
|
(4.6 |
%) |
||||
Selling, general and administrative expenses | 1,466 |
|
1,522 |
|
(56 |
) |
(3.7 |
%) |
||||
Earnings from operations | 848 |
|
1,937 |
|
(1,089 |
) |
(56.2 |
%) |
||||
Operating margin | 4.0 |
% |
8.7 |
% |
- |
|
(4.7 |
%) |
||||
Adjusted EBITDA | 1,574 |
|
2,746 |
|
(1,172 |
) |
(42.7 |
%) |
||||
Adjusted EBITDA margin | 7.4 |
% |
12.3 |
% |
- |
|
(4.8 |
%) |
||||
Jamieson Brands | ||||||||||||
Nine months ended
|
||||||||||||
2024 |
2023 |
$ Change |
% Change |
|||||||||
Revenue | 426,123 |
|
370,164 |
|
55,959 |
|
15.1 |
% |
||||
Gross profit | 167,671 |
|
141,211 |
|
26,460 |
|
18.7 |
% |
||||
Labour relations costs (1) | 4,713 |
|
- |
|
4,713 |
|
100.0 |
% |
||||
Amortization of fair value adjustments (2) | - |
|
5,819 |
|
(5,819 |
) |
(100.0 |
%) |
||||
Acquisition and divestiture related costs (4) | 165 |
|
- |
|
165 |
|
100.0 |
% |
||||
Normalized gross profit | 172,549 |
|
147,030 |
|
25,519 |
|
17.4 |
% |
||||
Gross profit margin | 39.3 |
% |
38.1 |
% |
- |
|
1.2 |
% |
||||
Normalized gross profit margin | 40.5 |
% |
39.7 |
% |
- |
|
0.8 |
% |
||||
Share-based compensation (1) | 5,281 |
|
4,334 |
|
947 |
|
21.9 |
% |
||||
Selling, general and administrative expenses | 120,839 |
|
93,200 |
|
27,639 |
|
29.7 |
% |
||||
Acquisition and divestiture related costs (4) | (865 |
) |
(5,539 |
) |
4,674 |
|
84.4 |
% |
||||
IT system implementation (5) | (9,421 |
) |
(4,469 |
) |
(4,952 |
) |
(110.8 |
%) |
||||
Labour relations costs (1) | (1,675 |
) |
- |
|
(1,675 |
) |
(100.0 |
%) |
||||
Other | (378 |
) |
179 |
|
(557 |
) |
(311.2 |
%) |
||||
Normalized selling, general and administrative expenses | 108,500 |
|
83,371 |
|
25,129 |
|
30.1 |
% |
||||
Earnings from operations | 41,551 |
|
43,677 |
|
(2,126 |
) |
(4.9 |
%) |
||||
Acquisition and divestiture related costs (4) | 1,030 |
|
5,539 |
|
(4,509 |
) |
(81.4 |
%) |
||||
IT system implementation (5) | 9,421 |
|
4,469 |
|
4,952 |
|
110.8 |
% |
||||
Labour relations costs (1) | 6,388 |
|
- |
|
6,388 |
|
(100.0 |
%) |
||||
Amortization of fair value adjustments (2) | - |
|
5,819 |
|
(5,819 |
) |
(100.0 |
%) |
||||
Other | 378 |
|
(179 |
) |
557 |
|
311.2 |
% |
||||
Normalized earnings from operations | 58,768 |
|
59,325 |
|
(557 |
) |
(0.9 |
%) |
||||
Operating margin | 9.8 |
% |
11.8 |
% |
- |
|
(2.0 |
%) |
||||
Normalized operating margin | 13.8 |
% |
16.0 |
% |
- |
|
(2.2 |
%) |
||||
Adjusted EBITDA | 76,155 |
|
76,432 |
|
(277 |
) |
(0.4 |
%) |
||||
Adjusted EBITDA margin | 17.9 |
% |
20.6 |
% |
- |
|
(2.7 |
%) |
||||
Strategic Partners | ||||||||||||
Nine months ended
|
||||||||||||
2024 |
2023 |
$ Change |
% Change |
|||||||||
Revenue | 62,876 |
|
85,643 |
|
(22,767 |
) |
(26.6 |
%) |
||||
Gross profit | 7,713 |
|
13,321 |
|
(5,608 |
) |
(42.1 |
%) |
||||
Gross profit margin | 12.3 |
% |
15.6 |
% |
- |
|
(3.3 |
%) |
||||
Selling, general and administrative expenses | 4,568 |
|
4,804 |
|
(236 |
) |
(4.9 |
%) |
||||
Other | - |
|
(72 |
) |
72 |
|
100.0 |
% |
||||
Normalized selling, general and administrative expenses | 4,568 |
|
4,732 |
|
(164 |
) |
(3.5 |
%) |
||||
Earnings from operations | 3,145 |
|
8,517 |
|
(5,372 |
) |
(63.1 |
%) |
||||
Other | - |
|
72 |
|
(72 |
) |
(100.0 |
%) |
||||
Normalized earnings from operations | 3,145 |
|
8,589 |
|
(5,444 |
) |
(63.4 |
%) |
||||
Operating margin | 5.0 |
% |
9.9 |
% |
- |
|
(4.9 |
%) |
||||
Normalized operating margin | 5.0 |
% |
10.0 |
% |
- |
|
(5.0 |
%) |
||||
Adjusted EBITDA | 5,411 |
|
11,003 |
|
(5,592 |
) |
(50.8 |
%) |
||||
Adjusted EBITDA margin | 8.6 |
% |
12.8 |
% |
- |
|
(4.2 |
%) |
||||
Reconciliation of Non-IFRS Financial Measures |
|||||||||||
In thousands of Canadian dollars |
|||||||||||
Three months ended |
Nine months ended |
||||||||||
September 30 |
September 30 |
||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||
Net earnings: | 10,418 |
|
7,771 |
|
15,012 |
|
22,040 |
|
|||
Add: | |||||||||||
Provision for (recovery of) income taxes | 5,568 |
|
4,915 |
|
8,960 |
|
9,101 |
|
|||
Interest expense and other financing costs | 5,068 |
|
5,589 |
|
14,588 |
|
17,899 |
|
|||
Accretion on preferred shares | 2,169 |
|
2,041 |
|
6,509 |
|
2,868 |
|
|||
Depreciation of property, plant, and equipment | 3,201 |
|
3,695 |
|
9,953 |
|
10,821 |
|
|||
Amortization of intangible assets | 1,510 |
|
1,501 |
|
4,419 |
|
4,366 |
|
|||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) | 27,934 |
|
25,512 |
|
59,441 |
|
67,095 |
|
|||
Share-based compensation (3) | 1,788 |
|
1,413 |
|
5,281 |
|
4,334 |
|
|||
Foreign exchange loss/(gain) | 578 |
|
(1,359 |
) |
(373 |
) |
286 |
|
|||
Acquisition and divestiture related costs (4) | 541 |
|
431 |
|
1,030 |
|
5,539 |
|
|||
Labour relations costs (1) | - |
|
- |
|
6,388 |
|
- |
|
|||
IT system implementation (5) | 2,992 |
|
2,370 |
|
9,421 |
|
4,469 |
|
|||
Amortization of fair value adjustments (2) | - |
|
3,504 |
|
- |
|
5,819 |
|
|||
Other | 81 |
|
- |
|
378 |
|
(107 |
) |
|||
Adjusted EBITDA | 33,914 |
|
31,871 |
|
81,566 |
|
87,435 |
|
|||
Provision for income taxes | (5,568 |
) |
(4,915 |
) |
(8,960 |
) |
(9,101 |
) |
|||
Interest expense and other financing costs | (5,068 |
) |
(5,589 |
) |
(14,588 |
) |
(17,899 |
) |
|||
Depreciation of property, plant, and equipment | (3,201 |
) |
(3,695 |
) |
(9,953 |
) |
(10,821 |
) |
|||
Amortization of intangible assets | (1,510 |
) |
(1,501 |
) |
(4,419 |
) |
(4,366 |
) |
|||
Share-based compensation (3) | (1,666 |
) |
(1,290 |
) |
(4,915 |
) |
(4,047 |
) |
|||
Tax deduction from vesting of certain share-based awards | - |
|
- |
|
- |
|
(1,022 |
) |
|||
Tax effect of normalization adjustments | (1,067 |
) |
110 |
|
(4,328 |
) |
(2,710 |
) |
|||
Adjusted net earnings | 15,834 |
|
14,991 |
|
34,403 |
|
37,469 |
|
|||
Three months ended |
Nine months ended |
||||||||||
September 30 |
September 30 |
||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||
Gross profit | 67,571 |
|
51,150 |
|
175,384 |
|
154,532 |
|
|||
Labour relations costs (1) | - |
|
- |
|
4,713 |
|
- |
|
|||
Amortization of fair value adjustments (2) | - |
|
3,504 |
|
- |
|
5,819 |
|
|||
Acquisition and divestiture related costs (4) | - |
|
- |
|
165 |
|
- |
|
|||
Normalized gross profit | 67,571 |
|
54,654 |
|
180,262 |
|
160,351 |
|
|||
Normalized gross profit margin | 38.4 |
% |
36.1 |
% |
36.9 |
% |
35.2 |
% |
|||
Selling, general and administrative expenses | 41,982 |
|
30,780 |
|
125,407 |
|
98,004 |
|
|||
Acquisition and divestiture related costs (4) | (541 |
) |
(431 |
) |
(865 |
) |
(5,539 |
) |
|||
IT system implementation (5) | (2,992 |
) |
(2,370 |
) |
(9,421 |
) |
(4,469 |
) |
|||
Labour relations costs (1) | - |
|
- |
|
(1,675 |
) |
- |
|
|||
Other | (81 |
) |
- |
|
(378 |
) |
107 |
|
|||
Normalized selling, general and administrative expenses | 38,368 |
|
27,979 |
|
113,068 |
|
88,103 |
|
|||
Earnings from operations | 23,801 |
|
18,957 |
|
44,696 |
|
52,194 |
|
|||
Acquisition and divestiture related costs (4) | 541 |
|
431 |
|
1,030 |
|
5,539 |
|
|||
IT system implementation (5) | 2,992 |
|
2,370 |
|
9,421 |
|
4,469 |
|
|||
Labour relations costs (1) | - |
|
- |
|
6,388 |
|
- |
|
|||
Amortization of fair value adjustments (2) | - |
|
3,504 |
|
- |
|
5,819 |
|
|||
Other | 81 |
|
- |
|
378 |
|
(107 |
) |
|||
Normalized earnings from operations | 27,415 |
|
25,262 |
|
61,913 |
|
67,914 |
|
|||
Normalized operating margin | 15.6 |
% |
16.7 |
% |
12.7 |
% |
14.9 |
% |
(1) | These expenses are mainly comprised of third-party legal, security fees, unavoidable facility expenditures, customer fines and penalties, along with freight charges to expedite shipments to customers as it relates to a labour disruption in Q1 2024. |
|
(2) | Post-closing amortization of the fair value increase of acquired inventories related to the April 28, 2023 transaction with our former distribution partner in China. |
|
|
||
(3) | The Company’s share-based compensation expense pertains to our long-term incentive plan (the “LTIP”) (refer to “Share-based compensation”), with stock options, performance-based share units (“PSUs”), time-based restricted share units (“RSUs”), and deferred share units (“DSUs”) expenses, along with associated payroll taxes. |
|
|
||
(4) | Current period mainly pertains to legal, tax and LTIP set-up costs associated with the integration of our former distributor partner in China, while prior year was mainly comprised of acquisition costs relating to the same transaction which closed on April 28, 2023. |
|
|
||
(5) | Current quarter expense mainly pertains to development costs associated with our IT system implementation to augment our system infrastructure. Unlike other system improvement projects with costs capitalized, due to its cloud-based nature, these system implementation costs are expensed accordingly. |
Reconciliation of Net Debt |
|||||
In thousands of Canadian dollars |
|||||
($ in 000's) | As at September 30, | As at December 31, | |||
2024 |
2023 |
||||
Long-term debt | 335,000 |
|
325,000 |
|
|
Cash | (42,190 |
) |
(36,863 |
) |
|
Net debt | 292,810 |
|
288,137 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107236969/en/
Investor and Media Contact Information:
Jamieson Wellness
Ruth Winker
416-960-0052
[email protected]