Nanalysis Announces Third Quarter 2024 Results
Nanalysis Scientific Corp (TSXV: NSCI, OTCQX: NSCIF) reported strong Q3 2024 results with 50% year-over-year revenue growth to $10.6 million. The company achieved positive EBITDA of $264K, compared to a loss of $1,354K in Q3 2023. Product sales gross margin improved to 52% from 41%, while security services margin rose to 15% from -3%. Net loss decreased to $1,644K from $6,287K in the previous year. The company saw strength in both core segments: product sales and security services, with the latter showing consistent revenue growth following complete airport service transition in Q1 2024.
Nanalysis Scientific Corp (TSXV: NSCI, OTCQX: NSCIF) ha riportato risultati solidi per il terzo trimestre del 2024, con una crescita dei ricavi del 50% anno su anno, raggiungendo i 10,6 milioni di dollari. L'azienda ha registrato un EBITDA positivo di 264.000 dollari, rispetto a una perdita di 1.354.000 dollari nel terzo trimestre del 2023. Il margine lordo delle vendite di prodotti è migliorato al 52% dal 41%, mentre il margine dei servizi di sicurezza è aumentato al 15% dal -3%. La perdita netta è diminuita a 1.644.000 dollari rispetto ai 6.287.000 dollari dell'anno precedente. L'azienda ha mostrato una solidità in entrambi i segmenti principali: vendite di prodotti e servizi di sicurezza, con quest'ultimo che ha mostrato una crescita costante dei ricavi a seguito della transizione completa dei servizi aeroportuali nel primo trimestre del 2024.
Nanalysis Scientific Corp (TSXV: NSCI, OTCQX: NSCIF) reportó resultados sólidos para el tercer trimestre de 2024, con un crecimiento del 50% en los ingresos interanuales, alcanzando los 10,6 millones de dólares. La compañía logró un EBITDA positivo de 264.000 dólares, en comparación con una pérdida de 1.354.000 dólares en el tercer trimestre de 2023. El margen bruto de ventas de productos mejoró al 52% desde el 41%, mientras que el margen de servicios de seguridad aumentó al 15% desde el -3%. La pérdida neta disminuyó a 1.644.000 dólares desde 6.287.000 dólares del año anterior. La compañía mostró fortaleza en ambos segmentos principales: ventas de productos y servicios de seguridad, siendo este último el que mostró un crecimiento constante de ingresos tras completar la transición de servicios aeroportuarios en el primer trimestre de 2024.
Nanalysis Scientific Corp (TSXV: NSCI, OTCQX: NSCIF)는 2024년 3분기에서 전년 대비 50%의 매출 성장을 기록하며 1,060만 달러의 강력한 실적을 보고했습니다. 회사는 2023년 3분기 1,354,000 달러의 손실에 비해 264,000 달러의 긍정적인 EBITDA를 달성했습니다. 제품 판매 총 마진은 41%에서 52%로 개선되었으며, 보안 서비스 마진은 -3%에서 15%로 상승했습니다. 순손실은 전년 대비 6,287,000 달러에서 1,644,000 달러로 감소했습니다. 회사는 제품 판매와 보안 서비스라는 핵심 세그먼트 모두에서 강세를 보였으며, 후자는 2024년 1분기에 공항 서비스 전환이 완료된 이후 지속적인 수익 성장을 보여주었습니다.
Nanalysis Scientific Corp (TSXV: NSCI, OTCQX: NSCIF) a annoncé de solides résultats pour le troisième trimestre 2024, avec une croissance des revenus de 50% d'une année sur l'autre, atteignant 10,6 millions de dollars. L'entreprise a réalisé un EBITDA positif de 264 000 dollars, contre une perte de 1 354 000 dollars au troisième trimestre 2023. La marge brute des ventes de produits s'est améliorée, passant de 41% à 52%, tandis que la marge des services de sécurité a augmenté de -3% à 15%. La perte nette a diminué à 1 644 000 dollars, contre 6 287 000 dollars l'année précédente. L'entreprise a connu des performances solides dans ses deux segments principaux : les ventes de produits et les services de sécurité, ces derniers affichant une croissance continue des revenus après la transition complète des services aéroportuaires au premier trimestre 2024.
Nanalysis Scientific Corp (TSXV: NSCI, OTCQX: NSCIF) berichtete über starke Ergebnisse für das 3. Quartal 2024 mit einem Jahresumsatzwachstum von 50%, das 10,6 Millionen Dollar erreichte. Das Unternehmen erreichte ein positives EBITDA von 264.000 Dollar, verglichen mit einem Verlust von 1.354.000 Dollar im 3. Quartal 2023. Die Bruttomarge aus Produktverkäufen verbesserte sich von 41% auf 52%, während die Marge bei Sicherheitsdiensten von -3% auf 15% stieg. Der Nettverlust sank auf 1.644.000 Dollar im Vergleich zu 6.287.000 Dollar im Vorjahr. Das Unternehmen verzeichnete Stärke in beiden Kerngeschäften: Produktverkäufen und Sicherheitsdiensten, wobei letzteres nach dem vollständigen Übergang der Flughafendienstleistungen im 1. Quartal 2024 ein konstantes Umsatzwachstum zeigte.
- 50% year-over-year revenue growth to $10.6 million
- Product sales gross margin improved to 52% from 41%
- Security services margin increased to 15% from -3%
- Positive EBITDA of $264K vs loss of $1,354K in Q3 2023
- Net loss reduced by 74% to $1,644K from $6,287K
- Still operating at a net loss of $1,644K
- Seasonal slowdown in Benchtop NMR sales
- Decrease in third-party equipment sales
Company Achieved
"We continue to see strength in both of our core business segments, product sales and security services," said Sean Krakiwsky, Founder and CEO of Nanalysis. "We had a solid Q3, as demonstrated by our year over year revenue growth. Within Benchtop NMR we experienced our typical seasonal slowdown in the third quarter. This was partially offset, however, by a large medical imaging sale in the quarter. Our focus on efficiencies in both our manufacturing processes and service delivery is resulting in gross margin improvements and positive EBITDA."
Financial highlights for the three months ended September 30, 2024:
Three months ended September 30 | |||||
( | 2024 | 2023 | ($) Change | Change | |
Product sales | 4,242 | 3,941 | 301 | 8 % | |
Service revenue | 5,420 | 2,629 | 2,791 | 106 % | |
Flow-through inventory | 908 | 466 | 442 | 95 % | |
Total sales and revenue | 10,570 | 7,036 | 3,534 | 50 % | |
Gross margin percentage - product sales | 52 % | 41 % | 11 % | ||
Gross margin percentage - service revenue | 15 % | -3 % | 18 % | ||
Adjusted EBITDA | 264 | (1,354) | 1,618 | ||
Net loss | (1,644) | (6,287) | 4,643 | 74 % | |
- For the three months ended September 30, 2024, the Company reported consolidated revenue of
$10,570 , an increase of$3,534 or50% from the comparative period in 2023. - Gross margin percentage on product sales was
52% versus41% for the three months ended September 30, 2024. Improvement in gross margin percentage for Benchtop NMR is materializing, as average selling prices have improved and manufacturing cost reductions started in 2023 and continued in 2024 are taking effect. - Security service gross margin percentage in the quarter was
15% versus (3)% 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 expects to increase revenue and drive efficiency within this business through 2024. - Adjusted EBITDA for the three months ended September 30, 2024, was
$264 K versus an Adjusted EBITDA (loss) of ($1,354 K - Net loss for the three months ended was
$1,644 K as compared to the three-month loss for September 30, 2023, of$6,287 K. The difference between Adjusted EBITDA and Net loss includes a number of non-cash charges such as depreciation and amortization. Included in Net loss for the three months ended September 30, 2023, the Company recognized a one-time charge of$2.8 million
Quarterly Trend:
2024 | 2023 | |||
( | Q3 | Q2 | Q1 | Q4 |
Product sales | 4,242 | 5,402 | 4,216 | 5,450 |
Security service revenue | 5,420 | 5,265 | 4,723 | 3,362 |
Flow-through parts revenue | 908 | 807 | 2,223 | 988 |
Total revenue | 10,570 | 11,474 | 11,162 | 9,800 |
Adjusted EBITDA | 264 | 414 | (362) | (774) |
Net loss for the period | (1,644) | (1,995) | (2,522) | (2,123) |
- The Company has demonstrated continuous margin expansion 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.
- The Company reported positive Adjusted EBITDA in the third quarter of 2024 despite the seasonality effects of the slower summer months. 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
$1,644
Recent strategic and operational highlights during and after the third quarter of 2024 include:
- Margin Expansion in both business segments: The Company was able to reap the benefits of cost cutting and drive efficiencies to grow gross margins to
52% , up11% year over year in product sales and15% , up18% year over year in security services from (3% ) in the prior year. - Consistent Revenue in Airport Security Maintenance Business: The mix between scheduled maintenance, unscheduled maintenance and project work will shift quarterly but should provide a consistent balance of billing. The Company is focused on improving its efficiency and planning related to service delivery in order to increase margins through 2024 and into 2025.
- Medical Imaging: The Company completed another large medical imaging hardware sale in the quarter contributing to strong product sales in a traditionally slower quarter.
Outlook
"As we enter the fourth quarter, we have continued strong sales and the hard work we have done to expand our margins is materializing," said Sean Krakiwsky, Founder and CEO of Nanalysis. "Growth initiatives within the Scientific Equipment segment include the development and future launch of new products, developing new software applications, and seeking vertical market partnerships. Our market opportunity is expanding as more industries conclude that NMR, combined with the small size and portability of our products, is an excellent solution for their analysis needs. As we evolve, it is likely that we will reduce effort selling other companies' products, and increasingly focus on sales of our own proprietary products and services.
"Within the Security Services segment, we are pursuing several new customer opportunities to leverage our existing capabilities.
"Overall, we continue to grow our sales and are laser focused on operational improvements to reach our ultimate goal of profitability. These trends will continue through the rest of the year and into 2025. We have a positive outlook, are executing well, and expect a strong fourth quarter to close out the year."
Conference Call:
Investors interested in participating in the live full year call can dial 1-800-510-2154 or 437-900-0527-1350 from abroad. Investors can also access the call online through a listen-only webcast here: https://app.webinar.net/qArLoq1oXkG 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 # 14204.
Additionally, the Company will be hosting a Q&A session for its European investors at 8:30am ET tomorrow, Friday, November 22nd, 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 September 30 | ||||
( | 2024 | 2023 | ($) Change | |
Security services revenue | 5,420 | 2,629 | 2,791 | |
Flow-through inventory revenue | 908 | 466 | 442 | |
Total Service Revenue | 6,328 | 3,095 | 3,233 | |
Security services costs | 4,627 | 2,708 | 1,919 | |
Flow-through inventory costs | 908 | 466 | 442 | |
Total Cost of Services | 5,535 | 3,174 | 2,361 | |
Three months ended September 30 | ||||
( | 2024 | 2023 | ($) Change | |
Net loss | (1,644) | (6,287) | 4,643 | |
Business acquisition costs and contingent consideration loss | 5 | 184 | (179) | |
Depreciation and amortization expense | 1,098 | 1,073 | 25 | |
Finance expense | 341 | 289 | 52 | |
Stock-based compensation | 181 | 281 | (100) | |
Foreign exchange (gain) loss | (141) | 79 | (220) | |
Loss on loss of control of subsidiary | - | 2,810 | (2,810) | |
Loss from associate | 305 | 256 | 49 | |
Impairment of associate receivable | 74 | - | 74 | |
Restructuring costs | 42 | 82 | (40) | |
Current income tax (recovery) expense | (22) | 13 | (35) | |
Deferred income tax expense (recovery) | 25 | (134) | 159 | |
Adjusted EBITDA | 264 | (1,354) | 1,618 | |
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 services revenue less Security services costs) divided by Security services 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 commercial 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 is working to expand into 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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