TORONTO, May 23, 2024 /CNW/ – Gray Wolf Animal Health Corporation (TSXV: WOLF) (“Gray Wolf” or the “Company”), a diversified Canadian animal health company, today announced that it will be closing its doors in March. announced financial results for three months. 31st, 2024.
Gray Wolf Animal Health Logo (CNW Group/Grey Wolf Animal Health Corp.)
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Revenue for the quarter was $6 million, flat compared to the same period last year.
Gross profit remained unchanged at $3.1 million for the quarter, compared to $3.2 million for the same period in 2023.
Adjusted EBITDA1 was flat in the quarter at $0.9 million compared to $0.9 million in the same period in 2023.
“In the first quarter of 2024, our Animal Health business recorded double-digit sales growth year-over-year, driven by strong sales of medications, nutritional supplements and consumables to veterinary clinics. However, sales of these products to buying groups were flat as customers tightened inventory levels. This, combined with lower fees and other revenue, resulted in Animal Health business revenue decreasing 4.3% in the first quarter compared to the same period in 2023. Our Pharmacy business continued to grow year-over-year, with first quarter revenue increasing 4.5% to $3.1 million.
“To support Graywolf's long-term growth, the company has been investing in its sales and marketing teams to drive sales force effectiveness and strategy. As part of this effort, we incurred a one-time employee settlement charge of $0.2 million in the first quarter. Excluding these charges, total expenses decreased 3.1% to $2.6 million compared to the same period in 2023 as we continue to balance spending to ensure continued long-term growth. “Amidst market softening as a result of inflationary pressures across the economy, we remain optimistic about the value of our product portfolio for the health and well-being of patients,” said Angela Checchetto, Chief Executive Officer.
Key Financial Data and Comparisons
Grey Wolf Animal Health
Business results
Until December 31, 2024
Three months are over
March 31, 2024
March 31, 2023
Revenue
$6,046,505
$6,044,596
gross profit
3,112,159
3,175,782
gross profit %
51.5%
52.5%
total operating expenses
2,821,010
2,656,388
Current period operating profit
291,149
519,394
Corporate tax expense (refund)
53,771
(29,893)
net income
126,072
410,463
Earnings per share
Basic and diluted
$0.004
$0.013
EBITDA
606,961
864,969
Adjusted EBITDA
855,231
938,316
March 31, 2024
December 31, 2023
Total assets
$38,139,554
$39,632,440
total debt
12,946,529
14,542,886
Business results for the first quarter of the fiscal year ending March 2024
Total revenue for the three months ended March 31, 2024 was $6.0 million, flat compared to the same period in 2023. Animal Health segment revenue decreased 4.3% to $2.9 million from $3.1 million due to lower fees and other income. This decrease in the Animal Health segment was offset by an increase in Pharmacy segment revenue of 4.5% to $3.1 million from $3.0 million due to increased sales of compounded products.
The story continues
Gross profit margin for the three months ended March 31, 2024 was 51.5%, compared to 52.5% for the same period in 2023. Gross margin was impacted by lower margins in the Pharmacy business, offset by slightly higher margins in the Animal Health business. Units related to product composition.
Total expenses for the three months ended March 31, 2024 increased 6.2% to $2.8 million compared to the same period in 2023. Excluding temporary employee settlement costs incurred during the three months ended March 31, 2024, total expenses decreased 3.1% to $2.6 million compared to the same period in 2023. Salaries, bonuses and benefits related to workforce changes decreased during this three month period compared to the same period in 2023. Advertising and promotion expenses also decreased. The first quarter of 2024 was due to the company focusing spending on the core products in its portfolio. Finally, logistics expenses increased as a result of the transition of warehousing and logistics to a third-party provider in the fourth quarter of 2023. As an accounting measure, these costs are now reported in logistics expense compared to the same period in 2023 where they were previously reported. Depreciation and amortization and interest expense.
Adjusted EBITDA1 for the first quarter of 2024 was $0.9 million, compared to $0.9 million for the same period in 2023. This was primarily due to a decrease in net income after adjusting for one-time employee settlement costs.
Cash and cash equivalents were $5.6 million at March 31, 2024, compared to $7.8 million at December 31, 2023. The Company used cash from operating activities of $1.8 million, primarily due to the impact of net income and changes in non-cash working capital items, particularly trade and other receivables, payables, and accrued liabilities. offset by. Trade and other receivables were affected by the timing of the Easter holiday. This is because payments from customers are normally made at the end of the month, but because this day was a bank holiday, these payments were not recognized until the end of the quarter.
As of March 31, 2024, our outstanding borrowings were $9.0 million, of which $1.1 million was current and $7.9 million was non-current. The Company's debt is a fixed rate term loan with an average interest rate of 4.7% through September 2026.
Graywolf's financial statements for the three months ended March 31, 2024 and the accompanying analysis of operations can be found under the Company's profile at www.sedar.com.
1Non-IFRS
Management uses both IFRS and non-IFRS measures to evaluate the financial and operating performance of our business. These non-IFRS measures are measures not recognized under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other companies. Non-IFRS measures referenced in this press release include Adjusted EBITDA. The Company defines Adjusted EBITDA as earnings before financing and special transaction charges (including, for greater certainty, charges related to qualifying transactions), interest income, interest and surcharges, income taxes, depreciation of property, plant and equipment, amortization of rights of use, amortization of intangible assets, stock-based compensation, changes in the fair value of embedded derivatives, foreign exchange gains and losses and other income. The Company considers Adjusted EBITDA an additional measure in its performance evaluation and an important indicator of its operating performance and cash flow, which provides useful information for investors and analysts to analyze and compare profitability among companies.
The table below summarizes the differences between Grey Wolf's consolidated IFRS and non-IFRS financial measures, reconciled as follows:
EBITDA and Adjusted EBITDA
Grey Wolf Animal Health, Inc.
Adjusted EBITDA
Until December 31, 2024
3 months are over
March 31, 2024
March 31, 2023
net income
$126,072
$410,463
interest income
(54,067)
(31,748)
Interest and increased costs
140,250
155,371
income tax
53,771
(29,893)
Depreciation of tangible fixed assets
75,255
68,122
Right-of-use asset depreciation expense
21,930
48,904
Amortization of intangible assets
243,750
243,750
EBITDA
606,961
864,969
Adjustment
stock compensation
(22,601)
58,146
Exchange gains and losses
25,123
15,201
Payment Fees
245,748
–
Adjusted EBITDA
855,231
938,316
About Gray Wolf Animal Health Corp.
Gray Wolf Animal Health Corp., headquartered in Toronto, Canada, is a diversified animal health company founded by veterinarians to bring to market a broad portfolio of products that meet the unmet needs of veterinarians, clinics, and pets. It's a medical company. Our strategy is to license, acquire and develop innovative prescription and non-prescription products for commercialization in the Canadian veterinary channel. For more information, please visit www.greywolfah.com.
Neither 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 news release.
Forward-looking statements
Certain information contained in this press release contains forward-looking information within the meaning of applicable Canadian securities laws. This information includes statements regarding the Company's objectives, strategies for achieving those objectives, statements regarding management's beliefs, plans, estimates and intentions, and statements regarding anticipated future events, results and circumstances that are not historical facts. Contains similar statements regarding performance or expectations. Forward-looking information generally refers to statements such as “outlook”, “objective”, “may”, “will”, “will”, “expect”, “intend”, “estimate”, The use of forward-looking terminology such as “expects,” “believes,” “should,” “plans,” “continue” or similar expressions that suggest future results or events or the negation thereof. can be identified by Such forward-looking information reflects management's beliefs and is based on information currently available. All forward-looking information in this press release is qualified by the following cautionary statements:
Forward-looking information necessarily involves known and unknown risks and uncertainties, whether general or specific, including the possibility that expectations, projections, forecasts, projections or conclusions will prove to be inaccurate, assumptions made, etc. may be incorrect, and the purpose may arise. , strategic goals and priorities may not be achieved. Various factors, many of which are beyond our control, may affect our and our subsidiaries' operations, performance and results and may cause actual results to differ materially from current expectations regarding estimated or anticipated events or results. This may cause
A more detailed assessment of risks that could cause actual results to differ materially from current expectations is included in the “Risk Factors” section of Gray Wolf's Management's Discussion and Analysis for the three months ended March 31, 2024. This press release is made as of the date of this document and should not be relied upon as representing the Company's views as of any date subsequent to the date hereof. Management undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
Source: Gray Wolf Animal Health Corp.
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