Covalon Announces Strong Fourth Quarter and Year End Fiscal 2024 Results
Covalon Technologies reported strong financial results for Q4 and fiscal year 2024. Q4 revenue increased 29% to $8.9 million, with full-year revenue up 17% to $31.2 million. Product revenue grew significantly, rising 35% in Q4 and 30% for the full year, driven by stronger customer demand for collagen dressings and expanded product offerings in US hospitals.
The company demonstrated improved profitability with Q4 gross profit of $5.3 million (82.8% growth) and full-year gross profit of $18.9 million (31.3% growth). Q4 Adjusted EBITDA reached $1.1 million, a $2.9 million improvement over Q4 FY'23. Earnings per share for Q4 was $0.02 and $0.11 for the full year, marking significant improvements from previous periods.
Operating expenses decreased to $4.7 million in Q4 from $5.8 million, primarily due to restructuring of sales and marketing teams. The company's gross margin improved to 60% in Q4 from 42% in the prior year.
Covalon Technologies ha riportato risultati finanziari solidi per il quarto trimestre e l'anno fiscale 2024. I ricavi del quarto trimestre sono aumentati del 29% a 8,9 milioni di dollari, con un aumento dei ricavi annuali del 17% a 31,2 milioni di dollari. I ricavi da prodotto sono cresciuti in modo significativo, aumentando del 35% nel quarto trimestre e del 30% per l'intero anno, trainati da una domanda più forte di medicazioni al collagene e da un'offerta di prodotti ampliata negli ospedali statunitensi.
L'azienda ha dimostrato un miglioramento della redditività, con un utile lordo nel quarto trimestre di 5,3 milioni di dollari (crescita del 82,8%) e un utile lordo annuale di 18,9 milioni di dollari (crescita del 31,3%). L'EBITDA rettificato del quarto trimestre ha raggiunto 1,1 milioni di dollari, un miglioramento di 2,9 milioni di dollari rispetto al quarto trimestre dell'anno fiscale '23. L'utile per azione del quarto trimestre è stato di 0,02 dollari e di 0,11 dollari per l'intero anno, segnando miglioramenti significativi rispetto ai periodi precedenti.
Le spese operative sono diminuite a 4,7 milioni di dollari nel quarto trimestre rispetto ai 5,8 milioni di dollari, principalmente a causa della ristrutturazione dei team di vendita e marketing. Il margine lordo dell'azienda è migliorato al 60% nel quarto trimestre rispetto al 42% dell'anno precedente.
Covalon Technologies reportó resultados financieros sólidos para el cuarto trimestre y el año fiscal 2024. Los ingresos del cuarto trimestre aumentaron un 29% a 8,9 millones de dólares, con un aumento del 17% en los ingresos anuales a 31,2 millones de dólares. Los ingresos por productos crecieron de manera significativa, aumentando un 35% en el cuarto trimestre y un 30% para el año completo, impulsados por una mayor demanda de apósitos de colágeno y una oferta de productos ampliada en hospitales de EE. UU.
La compañía demostró una rentabilidad mejorada con un beneficio bruto de 5,3 millones de dólares en el cuarto trimestre (crecimiento del 82,8%) y un beneficio bruto anual de 18,9 millones de dólares (crecimiento del 31,3%). El EBITDA ajustado del cuarto trimestre alcanzó 1,1 millones de dólares, lo que representa una mejora de 2,9 millones de dólares con respecto al cuarto trimestre del año fiscal '23. Las ganancias por acción para el cuarto trimestre fueron de 0,02 dólares y de 0,11 dólares para el año completo, marcando mejoras significativas en comparación con períodos anteriores.
Los gastos operativos disminuyeron a 4,7 millones de dólares en el cuarto trimestre desde 5,8 millones de dólares, principalmente debido a la reestructuración de los equipos de ventas y marketing. El margen bruto de la empresa mejoró al 60% en el cuarto trimestre, frente al 42% del año anterior.
코발론 테크놀로지스는 2024 회계연도 4분기 및 전체 연도에 대한 강력한 재무 결과를 발표했습니다. 4분기 수익은 29% 증가하여 890만 달러에 달했으며, 연간 수익은 17% 증가하여 3120만 달러를 기록했습니다. 제품 수익은 콜라겐 드레싱에 대한 고객 수요 증가와 미국 병원에서의 제품 제공 확대에 힘입어 4분기 35%, 전체 연도 30% 증가했습니다.
회사는 4분기 총 이익이 530만 달러(82.8% 성장)였고, 연간 총 이익이 1890만 달러(31.3% 성장)로 개선된 수익성을 보여주었습니다. 4분기 조정 EBITDA는 110만 달러로, 이전 회계연도 4분기 대비 290만 달러 개선되었습니다. 4분기 주당 순이익은 0.02달러, 연간 0.11달러로 이전 기간 대비 상당한 개선을 보였습니다.
영업 비용은 4분기 470만 달러로 감소했으며, 이는 580만 달러에서 주로 판매 및 마케팅 팀 구조 조정으로 인한 것입니다. 회사의 총 마진은 이전 해의 42%에서 4분기 60%로 개선되었습니다.
Covalon Technologies a annoncé de solides résultats financiers pour le quatrième trimestre et l'exercice 2024. Les revenus du quatrième trimestre ont augmenté de 29 % pour atteindre 8,9 millions de dollars, avec des revenus annuels en hausse de 17 % pour atteindre 31,2 millions de dollars. Les revenus liés aux produits ont connu une croissance significative, augmentant de 35 % au quatrième trimestre et de 30 % sur l'ensemble de l'année, soutenus par une demande accrue de pansements au collagène et l'élargissement de l'offre de produits dans les hôpitaux américains.
L'entreprise a montré une rentabilité améliorée avec un bénéfice brut de 5,3 millions de dollars au quatrième trimestre (croissance de 82,8 %) et un bénéfice brut annuel de 18,9 millions de dollars (croissance de 31,3 %). L'EBITDA ajusté du quatrième trimestre a atteint 1,1 million de dollars, soit une amélioration de 2,9 millions de dollars par rapport au quatrième trimestre de l'exercice 23. Le bénéfice par action pour le quatrième trimestre était de 0,02 dollar et de 0,11 dollar pour l'ensemble de l'année, marquant des améliorations significatives par rapport aux périodes précédentes.
Les dépenses d'exploitation ont diminué à 4,7 millions de dollars au quatrième trimestre, contre 5,8 millions de dollars, principalement en raison de la restructuration des équipes de vente et de marketing. La marge brute de l'entreprise s'est améliorée à 60 % au quatrième trimestre, contre 42 % l'année précédente.
Covalon Technologies meldete starke finanzielle Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024. Der Umsatz im vierten Quartal stieg um 29% auf 8,9 Millionen Dollar, während der Jahresumsatz um 17% auf 31,2 Millionen Dollar zunahm. Die Produktumsätze wuchsen erheblich und stiegen um 35% im vierten Quartal und um 30% für das gesamte Jahr, befeuert durch eine stärkere Kundennachfrage nach Kollagenauflagen und eine erweiterte Produktpalette in US-Krankenhäusern.
Das Unternehmen verzeichnete eine verbesserte Rentabilität mit einem Bruttogewinn von 5,3 Millionen Dollar im vierten Quartal (Wachstum von 82,8%) und einem Bruttogewinn von 18,9 Millionen Dollar für das gesamte Jahr (Wachstum von 31,3%). Das bereinigte EBITDA für das vierte Quartal erreichte 1,1 Millionen Dollar, was eine Verbesserung von 2,9 Millionen Dollar gegenüber dem vierten Quartal des Geschäftsjahres 23 darstellt. Der Gewinn pro Aktie betrug im vierten Quartal 0,02 Dollar und für das gesamte Jahr 0,11 Dollar, was signifikante Verbesserungen gegenüber den Vorperioden markiert.
Die Betriebsausgaben sanken im vierten Quartal auf 4,7 Millionen Dollar von 5,8 Millionen Dollar, hauptsächlich aufgrund der Umstrukturierung der Vertriebs- und Marketingteams. Die Bruttomarge des Unternehmens verbesserte sich im vierten Quartal auf 60% von 42% im Vorjahr.
- Revenue growth of 29% in Q4 to $8.9M and 17% for FY2024 to $31.2M
- Product revenue increased 35% in Q4 and 30% for full year
- Q4 gross profit grew 82.8% to $5.3M with margin improvement to 60%
- Positive Q4 Adjusted EBITDA of $1.1M ($2.9M improvement)
- Operating expenses reduced by $1.1M in Q4
- Positive EPS of $0.02 in Q4 and $0.11 for full year
- Development and consulting services revenue declined 97% to $62,479
- Increased inventory provisions of $1.04M compared to $317,521 in prior year
- Higher general and administrative expenses
Outstanding progress made towards long-term company growth vision Highlights:
-
Strong sales growth:
-
Q4 revenue of
$8.9 million 29% growth) -
Full year 2024 revenue of
$31.2 million 17% growth)
-
Q4 revenue of
-
Solid gross profit acceleration:
-
Q4 gross profit of
$5.3 million 82.8% growth) -
Full year 2024 gross profit of
$18.9 million 31.3% growth)
-
Q4 gross profit of
-
Robust profitability turnaround:
-
Q4 Adjusted EBITDA of
$1.1 million $2.9 million -
Full year 2024 Adjusted EBITDA of
$4.8 million $7.5 million -
Q4 Earnings Per Share of
$0.02 $0.14 -
Full year 2024 Earnings Per Share of
$0.11 $0.29
-
Q4 Adjusted EBITDA of
“We delivered very strong revenue growth coupled with margin improvements, robust earnings, and positive free cash flow. Our Medical Consumables revenue increased
Conference Call Scheduled
A conference call and webcast to discuss Covalon’s Q4 and year end Fiscal 2024 financial results will be held on Tuesday, January 7 at 8:30am Eastern Time. To view, listen to, and participate in the live webcast, please follow the link below:
https://events.q4inc.com/attendee/735517619
To listen and participate via the conference call, please dial:
North American Toll-Free: 1-800-549-8228
Local (
Local (
Conference ID: 30029
Participants will be able to ask questions of Company management during the Q&A portion of the conference call.
A recording of the call will also be available on www.covalon.com under Financials on the Investors tab.
Financial Performance
For the three-month period ended September 30, 2024:
Total revenue increased
Development and consulting services revenue amounted to
Gross margin increased to
Total operating expenses decreased to
Research and development expenses decreased to
Sales and marketing expenses decreased by
General and administrative expenses increased to
For the year ended September 30, 2024:
Total revenue increased by
Gross margin for the year improved to
Operating expenses decreased by
Research and development expenses increased to
Q4 Financial Overview
Statement of Operations
The following audited table presents Covalon’s consolidated statements of operations for the three- and twelve-month periods ended September 30, 2024 and 2023:
|
Three months ended
|
|
Twelve months ended
|
||||||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||||||
Revenue |
|
|
|
|
|
||||||||
Product |
$ |
8,850,134 |
|
$ |
6,535,060 |
|
|
$ |
31,020,731 |
|
$ |
23,920,670 |
|
Development and consulting services |
|
5,939 |
|
|
319,307 |
|
|
|
62,479 |
|
|
2,451,288 |
|
Licensing and royalty fees |
|
11,485 |
|
|
40,881 |
|
|
|
85,322 |
|
|
223,328 |
|
|
|
|
|
|
|
||||||||
Total revenue |
|
8,867,558 |
|
|
6,895,248 |
|
|
|
31,168,532 |
|
|
26,595,286 |
|
|
|
|
|
|
|
||||||||
Cost of sales |
|
3,525,557 |
|
|
4,004,706 |
|
|
|
12,235,807 |
|
|
12,233,447 |
|
|
|
|
|
|
|
||||||||
Gross profit before operating expenses |
|
5,342,001 |
|
|
2,890,542 |
|
|
|
18,932,725 |
|
|
14,361,839 |
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
||||||||
Operations |
|
311,324 |
|
|
527,306 |
|
|
|
1,973,752 |
|
|
1,904,941 |
|
Research and development activities |
|
453,511 |
|
|
481,890 |
|
|
|
1,594,079 |
|
|
1,413,278 |
|
Sales, marketing and agency fees |
|
1,135,331 |
|
|
2,101,152 |
|
|
|
5,432,463 |
|
|
8,167,894 |
|
General and administrative |
|
2,777,459 |
|
|
2,643,411 |
|
|
|
7,781,398 |
|
|
7,404,226 |
|
|
|
4,677,625 |
|
|
5,753,759 |
|
|
|
16,781,692 |
|
|
18,890,339 |
|
|
|
|
|
|
|
||||||||
Finance expenses (income) |
|
51,509 |
|
|
17,112 |
|
|
|
91,249 |
|
|
(67,502 |
) |
Gain on finance lease receivable |
|
- |
|
|
- |
|
|
(610,008 |
) |
|
- |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
612,867 |
|
$ |
(2,880,329 |
) |
|
$ |
2,669,792 |
|
$ |
(4,460,998 |
) |
Other comprehensive income (loss) Amount that may be reclassified to profit or loss |
|
|
|
|
|
||||||||
|
|
|
|
|
|||||||||
Foreign currency translation adjustment - continued operations |
|
(297,313 |
) |
|
437,435 |
|
|
|
179,018 |
|
|
(61,814 |
) |
|
|
|
|
|
|||||||||
Total comprehensive income (loss) |
$ |
315,554 |
|
$ |
(2,442,894 |
) |
|
$ |
2,848,810 |
|
$ |
(4,522,812 |
) |
|
|
|
|
|
|||||||||
Earnings (loss) per common share |
|
|
|
|
|
||||||||
Basic income (loss) per share |
$ |
0.02 |
|
$ |
(0.12 |
) |
|
$ |
0.11 |
|
$ |
(0.18 |
) |
|
|
|
|
|
|||||||||
Diluted earnings (loss) per share |
$ |
0.02 |
|
$ |
(0.12 |
) |
|
$ |
0.11 |
|
$ |
(0.18 |
) |
Non-GAAP Financial Measures
This press release makes reference to certain non-GAAP measures. These measures are not recognized or defined measures under IFRS Accounting Standards, do not have standardized meaning prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional financial information to complement those IFRS Accounting Standards measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS Accounting Standards. The non-GAAP financial measures, adjustments, and reasons for adjustments should be carefully evaluated as these measures have limitations as analytical tools and should not be used in substitution for an analysis of the Company’s results under IFRS Accounting Standards. We use non-GAAP measures including “Adjusted Gross Margin” and “Adjusted EBITDA” to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS Accounting Standards measures. We believe that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers. Our management also uses non-GAAP measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. The following non-GAAP financial measures are presented in this news release, and a description of the calculation for each measure is included below:
- Adjusted Gross Margin is defined as gross profit before operating expenses, plus depreciation and amortization included in cost of sales, plus inventory provision amounts.
- Adjusted EBITDA as earnings (loss) before interest expense (income), depreciation and amortization, stock-based compensation, inventory provisions (reversals), accounts receivable write-offs, gain (loss) on finance lease receivable, and loss (gain) on disposal of property and equipment.
You should also be aware that the Company may recognize income or incur expenses in the future that are the same as, or similar to some of the adjustments in these non-GAAP financial measures. Because these non-GAAP financial measures may be defined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
The table below provides a reconciliation of gross profit before operating expenses under IFRS Accounting Standards in the consolidated financial statements to Adjusted Gross Margin for the three months, and twelve months ended September 30, 2024 and 2023. Management believes that Adjusted Gross Margin is useful in assessing the performance of the Company’s ongoing operations and its ability to generate cash flows from period to period. The adjusting items below are considered to be outside of the Company’s core operating results, and these items can distort the trends associated with the Company’s ongoing performance, even though some of those expenses may recur.
|
Three months ended
|
Year ended
|
||
|
2024 |
2023 |
2024 |
2023 |
Gross profit before operating expenses |
|
|
|
|
Add: Depreciation and amortization |
56,898 |
56,484 |
225,785 |
225,044 |
Add: Inventory provisions (reversals) |
135,263 |
697,470 |
1,041,964 |
317,521 |
Adjusted Gross Margin |
5,534,162 |
3,644,496 |
20,200,474 |
14,904,404 |
Adjusted Gross Margin (%) |
|
|
|
|
The table below provides a reconciliation of net loss under IFRS Accounting Standards in the consolidated financial statements to Adjusted EBITDA for the three and twelve months ended September 30, 2024 and 2023. Management believes that these non-GAAP measures are useful in assessing the performance of the Company’s ongoing operations and its ability to generate cash flows to fund its cash requirements from period to period. The adjusting items below are considered to be outside of the Company’s core operating results, and these items can distort the trends associated with the Company’s ongoing performance, even though some of those expenses may recur.
|
Three months ended
|
Year ended
|
||
|
2024 |
2023 |
2024 |
2023 |
Net income (loss) |
|
( |
|
( |
Add: Finance expense (gains) |
51,509 |
17,112 |
91,249 |
(67,502) |
Add: Depreciation and amortization |
252,092 |
214,766 |
986,458 |
969,370 |
Add: Stock based compensation |
58,488 |
121,872 |
405,981 |
559,154 |
Add: Inventory provisions (reversals) |
135,263 |
697,470 |
1,041,964 |
317,521 |
Add: Impairment of intangible assets |
- |
- |
175,052 |
- |
Add: Loss (gain) on disposal of property and equipment |
(4,578) |
- |
80,443 |
- |
Add: Gain of finance lease receivable |
- |
- |
(610,008) |
- |
Adjusted EBITDA |
|
( |
|
( |
About Covalon
Covalon is a patient-driven medical device company, that provides innovative and cost-effective healthcare solutions for advanced wound care, infection control, and medical device coatings. Through a strong portfolio of patented technologies and solutions, we offer innovative, gentle and more compassionate options to aid patients on their healing journey. Our solutions are designed for patients and made for care providers. Covalon leverages its patented medical technology platforms and expertise in two ways: (i) by developing products that are sold under Covalon’s name; and (ii) by developing and commercializing medical products for other medical companies under development and license contracts. The Company is listed on the TSX Venture Exchange, having the symbol COV and trades on the OTCQX Market under the symbol CVALF. To learn more about Covalon, visit our website at www.covalon.com.
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.
This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend", or variations of such words and phrases or state that certain actions, events, or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur”, or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates, and projections regarding future events. Forward-looking statements involve risks and uncertainties, including, but not limited to, the factors described in greater detail in the “Risks and Uncertainties” section of our management’s discussion and analysis of financial condition and results of operations for the year ended September 30, 2024, which is available on the Company’s profile at www.sedarplus.ca, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Investors should not place undue reliance on any forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company assumes no obligation to update or alter any forward-looking statements, whether as a result of new information, further events, or otherwise, except as required by law.
(1) See “Non-GAAP Measures” below, including for a reconciliation of the non-GAAP measures used in this release to the most comparable IFRS Accounting Standards measures.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250107776006/en/
To learn more about Covalon, please contact:
Investor Relations, Covalon Technologies Ltd.
Email: investors@covalon.com
Website: https://covalon.com/
Source: Covalon Technologies Ltd.
FAQ
What was Covalon's (CVALF) revenue growth in Q4 2024?
How much did CVALF's product revenue increase in fiscal 2024?
What was CVALF's earnings per share for fiscal 2024?
How much did CVALF's gross margin improve in Q4 2024?
What was Covalon's (CVALF) Adjusted EBITDA for Q4 2024?
