- Turnaround accelerates in Q2 with another significant increase in revenue
- Revenue in first six months of FY2020 exceeds total FY2019 revenue by 20%
Pioneering's turnaround accelerated in its second quarter ended
Financial Highlights:
- Revenue in Q2 was
$2,514,757 (up 175%) vs.$915,544 during the same period last year. - Revenue for the first six months of fiscal 2020 is
$4,715,942 – a 116% increase over the$2,188,416 in revenue during the same period last year and 20% higher than 2019 full year revenue of$3,941,621 . - Balance sheet remains strong with
$4.4M in cash and over$3.1M in accounts receivable and inventory as ofMarch 31, 2020 . - Gross margins declined due to US tariffs, special incentives for select customers, inventory accounting consequences of supplier price increases.
Selected Financial Results for the
Three Months Ended March 31 2020 | Three Months Ended March 31 2019 | Six Months Ended March 31 2020 | Six Months Ended March 31 2019 | ||
Revenue | 2,514,757 | 914,544 | 4,715,942 | 2,188,418 | |
Gross Profit | 848,675 | 533,124 | 2,015,598 | 1,239,513 | |
Expenses | 1,029,983 | 1,009,883 | 1,843,364 | 2,466,002 | |
Net Income (Loss) | (260,014) | (470,902) | 64,720 | (1,227,143) | |
EPS Basic (Loss) | ( | ( | |||
Adjusted EBITDA¹ | 45,584 | (382,694) | 459,385 | (1,021,540) | |
Tariff Adjusted EBITDA¹ | 339,859 | (382,694) | 831,100 | (1,021,540) |
(1) | Adjusted EBITDA and Tariff Adjusted EBITDA are non-IFRS measures. Please refer to "Non-IFRS Measures" at the end of this press release. |
Pioneering CEO
Although the Company's revenues grew significantly during the three months ended
The ongoing COVID-19 pandemic has affected Pioneering in a number of ways. On the one hand, the closure of restaurants and self-isolation and "work from home" measures have significantly increased the amount of home cooking and, as a consequence, cooking related fires. This has increased awareness of the problem and the need for solutions to reduce the risk of cooking fires. Pioneering believes that these circumstances provide an opportunity for it to strengthen the profile of its products and to attract new customers.
On the other hand, although Pioneering currently expects that its strong sales performance will continue into the second half of fiscal 2020, it has seen a decline in product shipments in the third quarter due to COVID-19. The pandemic has also affected the Company's supply chain and during Q2 temporarily interrupted its supply of product.
Given the uncertainties associated with the ongoing nature and duration of the COVID-19 pandemic, it is not possible to reliably estimate the impact of the pandemic on the Company's financial results or operations in future periods.
Q2 2020 Business Highlights
Strong Balance Sheet: As at
Distributor Partnership Activities: As part of its strategy to aggressively invest for growth with
About
Forward Looking Statements
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in Pioneering's target markets, the demand for Pioneering's products, the availability of funding and the efficacy of Pioneering's technology, governmental regulation and the impact of the COVID-19 pandemic. These forward- looking statements are made as of the date hereof an, except as required by applicable law, Pioneering does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from Pioneering's expectations and projections.
Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under International Financial Reporting Standards ("IFRS"). However, management of Pioneering believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock-based compensation, restructuring costs included in general and administration expense, fair value movement – derivative liability and other non-recurring gains or losses including transaction costs related to acquisition. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons. Adjusted EBITDA does not have any standard meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Pioneering's Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Pioneering posted on SEDAR (www.sedar.com). For a reconciliation of Adjusted EBITDA as presented by Pioneering to net income, please refer to Pioneering's management's discussion and analysis.
Tariff Adjusted EBITDA, defined as Adjusted EBITDA adjusted for tariff and tariff related costs, is used by management to measure operating performance of the Company and is a supplement to our unaudited condensed interim financial statements presented in accordance with IFRS. Tariff Adjusted EBITDA is a helpful measure of operating performance, similar to Adjusted EBITDA, enabling management and investors to gain a clearer understanding of the underlying financial performance of the Company without the impact of
Neither the TSXV nor its Regulation Services Provider (as that term is defined under the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE
© Canada Newswire, source