Summary of Preliminary Annual Financial Results for 2023
- Generated annual revenues of
$62.6 million - Generated annual gross margin of
$22.5 million - Annual gross margin as percentage of sales of 36%
- Generated annual Adjusted EBITDA of
$852,000
“We can now say with confidence, we have completed the turn-around of this company,” said CEO
“As our first quarter ends, we continue to make improvements. But rather than working to shore up the company, we are working on several fronts to increase revenues and profits. We are working to reduce debt by divesting non-core business units. We have also launched our RST product and have several orders. We have very strong demand internationally and spent the first quarter retooling our operations to deliver the RST and additional products overseas. We anticipate this will be reflected in improved revenues and margins from the second quarter onward. We also plan to launch the SpaceTek Knee™ product, co-developed by NASA, toward the end of the year. Because we are driving toward a growing and profitable business with a normalized level of debt, we are finding more opportunities to expand our business. I am excited to report our first quarter accomplishments soon. And lastly, I appreciate our shareholders support of me and my plan. I believe we have succeeded in saving this company, now we focus on improving the share price.”
Unless otherwise specified, all financial information is presented in Canadian dollars ("$", "dollars" and "C$") and has been rounded to the nearest hundred thousand. The Company will file its financial statements for the year ended
Chief Executive Officer
Tel: 1 (800) 760-6826
Email: Info@Salonaglobal.com
Cautionary Statements
Neither the
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 2023; the Company increasing revenues and profits; the Company reducing debt by divesting non-core business units; the Company anticipating improved revenues and margins from the second quarter onward; and the Company launching its SpaceTek Knee™ product toward the end of the year. 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 successful launch and sales of Reactive Step Trainer (RST) in Q2 which is a higher margin product then the Company’s existing products; the Company successfully identifying a buyer for a non-core business and negotiating and closing a sale; 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
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. The following table provides reconciliation between net operating (loss) and Adjusted EBITDA:
For the year ended | |||
Net operating (loss) | $ | (5,544,714 | ) |
Depreciation of property and equipment | 1,002,627 | ||
Amortization of right-of-use asset | 2,023,956 | ||
Amortization of intangible asset | 1,505,108 | ||
Severance Expenses / Restructuring | 576,101 | ||
Stock based compensation | 1,288,455 | ||
Adjusted EBITDA | $ | 851,533 | |
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 fourth quarter and year ended
Source:
2024 GlobeNewswire, Inc., source