Nanalysis Announces Second Quarter 2024 Results
Nanalysis Scientific Corp. (OTCQX: NSCIF) has reported significant growth in Q2 2024 with a 65% YoY revenue increase to $11.5M, driven by strong sales in benchtop NMR and security services, along with substantial medical imaging hardware sales. The company achieved a positive EBITDA of $414K compared to a loss of $2.4M in Q2 2023. Product sales totaled $5.4M, while service revenue soared to $5.3M, marking a 144% increase. Gross margin on product sales rose to 50%, and security services saw a 46% improvement. Significant cost reductions and efficiency improvements contributed to a net loss reduction to $2M from $4.1M. CEO Sean Krakiwsky expressed optimism for H2 2024, citing historical seasonal strength and ongoing margin improvements.
Nanalysis Scientific Corp. (OTCQX: NSCIF) ha riportato una significativa crescita nel secondo trimestre del 2024 con un aumento dei ricavi del 65% rispetto all'anno precedente, raggiungendo $11,5M, grazie a forti vendite di NMR da banco e servizi di sicurezza, insieme a vendite sostanziali di hardware per immagini mediche. L'azienda ha ottenuto un EBITDA positivo di $414K rispetto a una perdita di $2,4M nel Q2 2023. Le vendite di prodotti hanno totalizzato $5,4M, mentre i ricavi da servizi sono aumentati a $5,3M, segnando un incremento del 144%. Il margine lordo sulle vendite di prodotti è salito al 50%, e i servizi di sicurezza hanno visto un miglioramento del 46%. Riduzioni significative dei costi e miglioramenti di efficienza hanno contribuito a una riduzione della perdita netta a $2M da $4,1M. Il CEO Sean Krakiwsky ha espresso ottimismo per il secondo semestre del 2024, citando la storica forza stagionale e i miglioramenti continui dei margini.
Nanalysis Scientific Corp. (OTCQX: NSCIF) ha informado un crecimiento significativo en el segundo trimestre de 2024 con un aumento del 65% en los ingresos interanuales hasta $11.5M, impulsado por fuertes ventas de NMR de escritorio y servicios de seguridad, junto con ventas sustanciales de hardware para imágenes médicas. La empresa logró un EBITDA positivo de $414K en comparación con una pérdida de $2.4M en el Q2 2023. Las ventas de productos totalizaron $5.4M, mientras que los ingresos por servicios se dispararon a $5.3M, marcando un aumento del 144%. El margen bruto de las ventas de productos aumentó al 50%, y los servicios de seguridad vieron una mejora del 46%. Reducciones significativas de costos y mejoras en la eficiencia contribuyeron a una reducción de la pérdida neta a $2M desde $4.1M. El CEO Sean Krakiwsky expresó optimismo para la segunda mitad de 2024, citando la fuerza estacional histórica y las mejoras de margen en curso.
Nanalysis Scientific Corp. (OTCQX: NSCIF)은 2024년 2분기에 전년 대비 매출 65% 증가를 보고하며 $11.5M의 성장을 기록했으며, 이는 벤치탑 NMR 및 보안 서비스에서의 강력한 판매와 상당한 의료 이미징 하드웨어 판매에 의해 촉진되었습니다. 이 회사는 2023년 2분기에 $2.4M의 손실에 비해 $414K의 긍정적인 EBITDA를 달성했습니다. 제품 판매는 $5.4M에 달했으며, 서비스 수익은 $5.3M으로 급증하여 144% 증가했습니다. 제품 판매의 총 마진은 50%로 증가했으며, 보안 서비스는 46% 개선되었습니다. 상당한 비용 절감과 효율성 향상이 순 손실을 $4.1M에서 $2M으로 줄이는 데 기여했습니다. CEO 션 크라키프스키는 2024년 하반기에 대한 긍정적인 전망을 표현하며, 역사적인 계절적 강점과 지속적인 마진 개선을 인용했습니다.
Nanalysis Scientific Corp. (OTCQX: NSCIF) a annoncé une croissance significative au deuxième trimestre 2024 avec une augmentation des revenus de 65 % par rapport à l'année précédente atteignant 11,5 millions de dollars, soutenue par de fortes ventes de RMN de paillasse et de services de sécurité, ainsi que des ventes substantielles de matériel d'imagerie médicale. L'entreprise a réalisé un EBITDA positif de 414 000 $ par rapport à une perte de 2,4 millions de dollars au T2 2023. Les ventes de produits ont totalisé 5,4 millions de dollars, tandis que les revenus des services ont grimpé à 5,3 millions de dollars, marquant une augmentation de 144 %. La marge brute sur les ventes de produits a augmenté à 50 %, et les services de sécurité ont connu une amélioration de 46 %. Des réductions de coûts et des améliorations d'efficacité significatives ont contribué à réduire la perte nette à 2 millions de dollars contre 4,1 millions de dollars. Le PDG Sean Krakiwsky a exprimé son optimisme pour le deuxième semestre 2024, citant la force saisonnière historique et les améliorations continues des marges.
Nanalysis Scientific Corp. (OTCQX: NSCIF) hat ein signifikantes Wachstum im 2. Quartal 2024 mit einem Umsatzanstieg von 65% im Jahresvergleich auf $11,5M gemeldet, unterstützt durch starke Verkäufe von Tisch-NMR und Sicherheitsdiensten sowie erhebliche Verkäufe von Medizintechnik-Hardware. Das Unternehmen erzielte ein positives EBITDA von $414K im Vergleich zu einem Verlust von $2,4M im 2. Quartal 2023. Der Produktverkauf lag bei insgesamt $5,4M, während die Serviceerlöse auf $5,3M anstiegen, was einen Anstieg von 144% markiert. Die Bruttomarge auf Produktverkäufe stieg auf 50%, und die Sicherheitsdienste verzeichneten einen Anstieg von 46%. Bedeutende Kostenreduzierungen und Effizienzverbesserungen trugen dazu bei, den Nettoverlust auf $2M von $4,1M zu reduzieren. CEO Sean Krakiwsky äußerte Optimismus für das 2. Halbjahr 2024 und verwies auf saisonale Stärken aus der Vergangenheit sowie anhaltende Margenverbesserungen.
- Achieved 65% YoY revenue growth to $11.5M in Q2 2024.
- Positive EBITDA of $414K compared to a $2.4M loss in Q2 2023.
- Gross margin on product sales increased to 50%.
- Service revenue increased by 144% to $5.3M.
- Net loss reduced to $2M from $4.1M, a 51% improvement.
- Net loss of $2M in Q2 2024.
Record Revenue and Positive EBITDA
"We continue to see strength in both of our core business segments, benchtop NMR and security services," said Sean Krakiwsky, Founder and CEO of Nanalysis. "In addition, this quarter we had the added contribution of sizeable medical imaging hardware sales resulting in another record revenue quarter. We are very encouraged by these results which were consistent with our internal expectations, and we have a very positive outlook as we move into the back half of the year, which has historically been stronger than our first half. While we continue to drive our topline, we remain steadfast on improving margins by leveraging efficiencies and reducing costs, with the ultimate goal of delivering bottom line profitability to shareholders."
Financial highlights for the three months ended June 30, 2024:
Three months ended June 30 | |||||
( | 2024 | 2023 | ($) | Change | |
Product sales | 5,402 | 3,917 | 1,485 | 38 % | |
Service revenue | 5,265 | 2,162 | 3,103 | 144 % | |
Flow-through inventory | 807 | 877 | (70) | -8 % | |
Total sales and revenue | 11,474 | 6,956 | 4,518 | 65 % | |
Gross margin percentage - product sales | 50 % | 39 % | 12 % | ||
Gross margin percentage - service revenue | 10 % | -36 % | 45 % | ||
Adjusted EBITDA | 414 | (2,399) | 2,813 | ||
Net loss | (1,995) | (4,054) | 2,059 | 51 % | |
- For the three months ended June 30, 2024, the Company reported consolidated revenue of
$11,474 K, an increase of$4,518 K or65% from the comparative period in 2023. - Gross margin percentage on product sales was
50% for the three months ended June 30, 2024. Improvement in gross margin percentage for Benchtop NMR is materializing as sales have improved in the second half of last year and manufacturing cost reductions started in 2023 have begun to positively affect margins. - Security service gross margin percentage in the quarter was
10% versus (36)% in prior year comparative period as the Company completed the full transition of100% of airports serviced to its control from the incumbent provider in the first quarter of 2024, and now expects to increase revenue and drive efficiency within this business through 2024, while keeping costs stable. - Adjusted EBITDA for the three months ended June 30, 2024, was
$414 K versus an Adjusted EBITDA loss of ($2,399 K - Net loss for the three months ended was
$1,995 K as compared to the three-month loss for June 30, 2023, of$4,054 K.
Quarterly Trend:
2024 | 2023 | ||||
( | Q2 | Q1 | Q4 | Q3 | |
Product sales | 5,402 | 4,216 | 5,450 | 3,941 | |
Security service revenue | 5,265 | 4,723 | 3,362 | 2,629 | |
Flow-through parts revenue | 807 | 2,223 | 988 | 466 | |
Total revenue | 11,474 | 11,162 | 9,800 | 7,036 | |
Adjusted EBITDA | 414 | (362) | (774) | (1,354) | |
Net loss for the period | (1,995) | (2,522) | (2,123) | (6,287) | |
- The Company has demonstrated continuous growth in Security service revenue quarter over quarter, driven by the expansion of the Company's airport security maintenance business as the Company took over more airports from the incumbent service provider, ultimately taking over all airports in Q1 2024.
- Second quarter product sales remained strong as the Company realized a large medical imaging sale which added significant revenue to the quarter. As the Company moves into the second half of 2024, it believes product sales will remain strong as seasonality in the second half has historically produced positive results.
- The Company's Adjusted EBITDA has continued to improve quarter over quarter, resulting in positive Adjusted EBITDA for the second quarter of 2024. The Company expects this to continue as it works to grow both product sales and security service revenue, while closely managing costs.
- Net loss was (
$1,995 K
Recent strategic and operational highlights during and after the second quarter of 2024 include:
- New Quarterly Revenue Record: Q2 2024 revenue of
$11.5 million - Consistent Revenue in Airport Security Maintenance Business: The Company saw a higher weighting of unscheduled maintenance and service during the quarter which contributed to strong revenue results. As unscheduled maintenance work ebbs, resources will shift to focus on the continued rollout of projects which will provide a consistent balance of billing. The Company continues to work to gain efficiencies and expects to see increased margin growth through 2024 and into 2025.
- Continued year over year Benchtop NMR Strength: In Q2, the Company generated
$2.8 million $1.2 million - Welcomed Ms. Jennifer Stubbs to Nanalysis' Board of Directors: Following shareholder approval at the Annual General Meeting, Ms. Stubbs joins Nanalysis as a Director. The Company also announced that Guido Cloetens has stepped down as a director of the Company as he did not stand for re-election at the Meeting. The Board of Directors sincerely thanks Mr. Cloetens for his many valuable contributions to the Company during his time as a director and wishes him well in the future.
- Granted Funding Supporting AI Software Development for Detection of Illicit Substances: The Company is receiving advisory services and up to
$1.45 million in non-repayable, non-dilutive funding from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP), to develop Artificial Intelligence based software tools to detect illicit substances on top of the Company's portable Nuclear Magnetic Resonance (NMR) spectrometers.
Outlook
"We feel that we have had a great first half of the year, and we plan on continuing this trajectory through the second half of the year," said Sean Krakiwsky, Founder and CEO of Nanalysis. " While we continue to implement our orderly cost reduction program, we are excited about the growth trajectory for BT NMR, MRI, and our Services business. We continue to make excellent operational improvements, which will continue to show gross margin expansion and ultimately bottom-line profitability. We will always be a company of technological innovation, with exciting product announcements expected this year."
Conference Call:
Investors interested in participating in the live full year call can dial 1-800-836-8184 or 289-819-1350 from abroad. Investors can also access the call online through a listen-only webcast here: https://app.webinar.net/nwZajZWGPNR or on the investor relations section of the Company's website HERE.
The webcast will be archived on the Company's investor relations webpage for at least 90 days and a telephonic playback will be available for seven days after the conference call by calling 1-888-660-6345 or 289-819-1450, conference ID # 89736.
Additionally, the Company will be hosting a Q&A session for its European investors at 8:30am ET tomorrow, Thursday, August 29th, which can be accessed by the following link: Join the meeting now.
Non-IFRS and Supplementary Financial Measures
The Company prepares and reports its consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, as adopted by the Canadian Accounting Standards Board ("IFRS"). However, this press release may make reference to certain non-IFRS measures including key performance indicators used by management. These measures are not recognized measures under IFRS and 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, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS.
The Company uses Flow-through parts revenue, Security service revenue, and Adjusted Earnings Before Interest, Tax, Depreciation and Amortization ("Adjusted EBITDA") as non-IFRS measures, which may be calculated differently by other companies. These non-IFRS measure are used to provide investors with a supplemental measure of the Company's operating performance and liquidity and thus highlight trends in the Company's business that may not otherwise be apparent when relying solely on IFRS measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of companies in similar industries.
Three months ended June 30 | |||||
( | 2024 | 2023 | ($) Change | ||
Security services revenue | 5,265 | 2,162 | 3,103 | ||
Flow-through inventory revenue | 807 | 877 | (70) | ||
Total Service Revenue | 6,072 | 3,039 | 3,033 | ||
Security services costs | 4,759 | 2,931 | 1,828 | ||
Flow-through inventory costs | 807 | 877 | (70) | ||
Total Cost of Services | 5,566 | 3,808 | 1,758 | ||
Three months ended June 30 | |||||
( | 2024 | 2023 | ($) Change | ||
Net loss | (1,995) | (4,054) | 2,059 | ||
Business acquisition costs and contingent consideration loss (gain) | 22 | (26) | 48 | ||
Depreciation and amortization expense | 1,085 | 1,141 | (56) | ||
Finance expense | 357 | 136 | 221 | ||
Stock-based compensation | 388 | 287 | 101 | ||
Foreign exchange (gain) loss | (51) | 74 | (125) | ||
Loss from associate | 235 | - | 235 | ||
Impairment of associate receivable | 200 | - | 200 | ||
Restructuring costs | 179 | 355 | (176) | ||
Current income tax expense (recovery) | 2 | (67) | 69 | ||
Deferred income tax recovery | (8) | (245) | 237 | ||
Adjusted EBITDA | 414 | (2,399) | 2,813 | ||
Supplementary Financial Measures
The Company may also use supplementary financial measures which are intended to be disclosed on a periodic basis to depict the historical or expected future financial performance, cash position, or cash flow of the Company, are not a non-IFRS measure, and are not presented in the financial statements. The measures as discussed in this press release include:
- Gross margin percentage, which is defined as either (Product sales less Cost of product sold) divided by Product sales or (Security service revenue less Cost of security services) divided by Security service revenue
About Nanalysis Scientific Corp. (TSXV: NSCI, OTCQX: NSCIF, FRA:1N1)
Nanalysis Scientific Corp. in operates two primary business segments: Scientific Equipment and Security Services. Within its Scientific Equipment business is what the Company terms "MRI and NMR for industry". The Company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The Company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. In 2020, the Company announced the launch of its 100MHz device, the most powerful and most advanced compact NMR device ever brought to market.
The Company's devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company continues to exploit new global market opportunities independently and with partners. With its partners, the Company provides scientific equipment sales and maintenance services globally.
In 2022 the Company was awarded a five-year,
Notice regarding Forward Looking Statements and Legal Disclaimer
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Nanalysis Scientific Corp.
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