TORONTO--(BUSINESS WIRE)--Jamieson Wellness Inc. (“Jamieson Wellness” or the “Company”) (TSX: JWEL) today reported financial results for its second quarter ended June 30, 2020. All amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures. See “Non-IFRS Financial Measures” below.
Highlights of Second Quarter 2020 Results versus Second Quarter 2019 Results
- Revenue increased 15.6% to $93.2 million;
- Jamieson Brands revenue increased by 22.2%;
- Adjusted EBITDA increased 15.8% to $19.0 million;
- Net income was $6.0 million and adjusted net income increased 25.1% to $9.9 million; and
- Earnings per diluted share were $0.15 and adjusted earnings per diluted share were $0.24.
“Our Purpose as an organization is to improve the world’s health and wellness, and 2020 continues to show us that now, more than ever, our people and our brands are uniquely positioned to do so. I am very proud of our entire organization for their devoted efforts supporting our customers and consumers around the world through this period of increased need,” said Mark Hornick, President and Chief Executive Officer of Jamieson Wellness. “We have implemented numerous strategies to adapt to the challenging environment, each of which has prioritized the health and safety of our employees while allowing our operations to continue without any significant interruption. I am pleased that we continue to provide value to our investors, with sustained growth in revenue and earnings. We continue to drive our growth initiatives forward, increasing our outlook for both domestic and international revenue as well as for adjusted EBITDA and adjusted net earnings, and are confident in our near and long-term growth opportunities.”
Declaration of Second Quarter Dividend
The board of directors of the Company authorized a 1.5 cent increase in the quarterly dividend and declared a cash dividend for the second quarter of 2020 of 12.5 cents per common share, or approximately $5.0 million in the aggregate. The dividend will be paid on September 15, 2020 to all common shareholders of record at the close of business on August 28, 2020. The Company has designated this dividend as an “eligible dividend” for the purposes of the Income Tax Act (Canada).
Second Quarter 2020 Results
Revenue increased 15.6% to $93.2 million in the second quarter of 2020 compared to $80.6 million in the second quarter of 2019 driven by 22.2% growth in Jamieson Brands partially offset by an anticipated 4.4% decline in Strategic Partners.
Revenue in the Jamieson Brands segment increased by 22.2% or $13.5 million to $74.3 million in the second quarter of 2020. The Company continued to see point-of-purchase sales growth ahead of its expectation as COVID-19 continues to impact consumers in Canada and within international markets. The Company’s domestic Jamieson Brands sales increased by 14.0%, or $7.3 million, reflecting the acceleration of sales due to higher demand for immunity and general health supplements. The Company’s international business generated significant growth, increasing 69.0%, or $6.2 million versus prior year, led by strong growth in multiple geographies as demand for immunity products increased significantly, particularly in China and Europe. China continues to lead international growth through increased cross border e-commerce sales and initial shipments into domestic retail stores as the distribution network is expanded.
Revenue in the Strategic Partners segment decreased 4.4%, or $0.9 million to $18.9 million in the second quarter of 2020, primarily due to the timing of new programs launched in the prior year, the availability of production capacity to meet demand and the lower volumes related to a specific customer; partially offset by the impact of a change in billing practices for a key partner.
Gross profit increased by $3.4 million in the second quarter of 2020, driven by revenue growth and segment mix. Gross profit margin decreased by 140 basis points to 35.3%. Gross profit margin in the Jamieson Brands segment decreased by 230 basis points to 41.1% due to the implementation of physical distancing initiatives and safety measures in the Company’s production facilities in response to COVID-19, offsetting operational efficiencies that normally accompany higher volumes and favorable product mix. Gross profit margin in Strategic Partners decreased by 330 basis points to 12.7%, primarily driven by customer mix, the billing change of a key customer and expenses related to the implementation of physical distancing and additional safety measures related to COVID-19.
Selling, general and administrative (“SG&A”) expenses increased by 23.9%, or $4.0 million, to $21.0 million in the second quarter of 2020. Excluding the impact of specified COVID-19 and other related costs of $3.2 million, SG&A expenses increased by $0.8 million due to higher variable compensation expenses partially offset by timing of marketing activity and a reduction in travel, meals, and entertainment costs as a result of COVID-19.
Earnings from operations decreased 10.6% to $10.7 million in the second quarter of 2020 and operating margin decreased by 330 basis points to 11.5% as a result of higher revenue and gross profit offset by higher SG&A and share-based compensation expenses. On an adjusted basis, earnings from operations increased 13.5% to $14.8 million in the second quarter of 2020 and operating margin was 15.9%, or relatively consistent with the prior year period.
Adjusted EBITDA increased 15.8% to $19.0 million in the second quarter of 2020 from $16.4 million in the second quarter of 2019 and adjusted EBITDA margin was 20.4% compared to 20.3% in the prior year period.
Interest expense and other financing costs decreased by $1.1 million to $1.4 million in the second quarter of 2020 mainly due to lower average borrowings in the quarter and lower interest rates.
Net income for the second quarter of 2020 was $6.0 million compared to $8.2 million in the second quarter of 2019. Adjusted net income, which excludes all non-operating expenses and foreign exchange gains or losses, increased to $9.9 million in the second quarter of 2020 from $7.9 million in the second quarter of 2019.
Adjusted net income for the second quarter of 2020 excludes costs associated with share-based compensation, foreign exchange loss, business integration, COVID-19 related costs, other non-recurring expenses and related tax effects. A detailed reconciliation of reported net income to non-IFRS adjusted net income is included in the tables accompanying this release under the heading “Non-IFRS Financial Measures”.
Balance Sheet & Cash Flow
The Company generated $14.4 million in cash from operations during the second quarter of 2020 compared to cash generated of $6.6 million in the prior year. Cash from operating activities before working capital considerations of $9.9 million was lower by $2.1 million primarily reflecting higher COVID-19 related costs partially offset by higher volumes in the current quarter. Improvements in cash from working capital was mainly driven by favourable timing on the collection of receivables and timing of payments, partially offset by an increase in inventories to secure immunity related raw materials to ensure continuity of supply.
The Company’s cash at June 30, 2020 was $6.8 million compared to $0.2 million on December 31, 2019. The Company ended the quarter with $118.0 million in cash and available operating lines and total debt of $163.8 million. On May 21, 2020, the Company declared a quarterly dividend of $0.11 per common share to holders of record as of May 29, 2020 and paid such dividend on June 12, 2020. The dividend payment was approximately $4.4 million in the aggregate.
Three months ended |
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|
|
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June 30 |
|
|
|
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||||||||
($ in 000's, except as otherwise noted) | 2020 |
|
2019 |
|
$ Change |
|
% Change |
|||||
Cash, beginning of period | 5,227 |
|
3,314 |
|
1,913 |
|
57.7 |
% |
||||
Cash flows from (used in): | ||||||||||||
Operating activities | 14,422 |
|
6,601 |
|
7,821 |
|
118.5 |
% |
||||
Investing activities | (4,740 |
) |
(2,362 |
) |
(2,378 |
) |
(100.7 |
%) |
||||
Financing activities | (8,113 |
) |
(2,285 |
) |
(5,828 |
) |
(255.1 |
%) |
||||
Cash, end of period | 6,796 |
|
5,268 |
|
1,528 |
|
29.0 |
% |
Fiscal 2020 Outlook
The Company is increasing its outlook for fiscal 2020 and anticipates revenue in a range of $385.0 to $395.0 million, compared to $364.0 to $376.0 million previously, which represents annual growth of 11.5% to 14.5%. The Company anticipates adjusted EBITDA in a range of $84.0 to $88.0 million, up from $80.0 to $84.0 million previously, and now anticipates adjusted diluted earnings per share in a range of $1.08 to $1.15 compared to $1.02 to $1.10 previously. The increase in the Company’s outlook reflects strong consumer demand both domestically and internationally.
This outlook reflects the following assumptions:
-
Jamieson Brands segment growth of 14% to 17%, including:
- 10% to 12% domestic growth, and
- 40% to 50% international growth
- Strategic Partners segment growth of approximately 5%
- Normalized SG&A expense increases of 8% to 10% to invest in marketing to drive international growth and additional resources to support e-commerce initiatives
- A forecasted annual CAD/USD average exchange rate of $1.35
- Interest expense of between $6.0 million and $6.5 million
- Effective income tax rate of approximately 28.0%
- A fully diluted share count of approximately 41 million shares
Considering the outbreak of COVID-19 and physical distancing measures taken around the world, there exists the risk of a second wave and further escalation in measures required to control the outbreak including prolonged retail and manufacturing closures that could impact our estimates for 2020.
While physical distancing in Canada has significantly impacted certain industries, the Company’s industry and supply chain are considered essential. The Company has not seen significant retail closures, outside of supplement only stores considered non-essential, and our products remain widely available in food, drug, mass and e-commerce channels. Consumer response to COVID-19 has resulted in the acceleration of demand for both immunity and general health supplements. Higher demand will be slightly constrained while the Company experiences a temporary increase in absenteeism and manages the impact of physical distancing measures in its facilities. In support of its employees, the Company has increased sanitation, maximized physical distancing and, where possible, established shift gaps to avoid congestion during shift changeovers. The Company has adapted rapidly to the changing environment to minimize the risk of business interruption due to COVID-19 while ensuring a steady supply of products to its consumers. The extent of 2020 gross profit margin pressures will be a function of the depth and duration of recommended physical distancing policies in the weeks and months to come.
For additional details on the Company’s fiscal 2020 outlook, including guidance for the second quarter of 2020, refer to the “Outlook” section in the management’s discussion and analysis of financial condition and results of operations (“MD&A”) for the three months ended June 30, 2020.
Consolidated Financial Statements and Management’s Discussion and Analysis
The Company’s unaudited condensed consolidated interim financial statements and accompanying notes as at and for the three months ended June 30, 2020 and related MD&A are available under the Company’s profile on SEDAR at www.sedar.com and on the Investor Relations section of the Company’s website at https://investors.jamiesonwellness.com.
Conference Call
Management will host a conference call to discuss the Company’s second quarter 2020 results at 5:00 p.m. ET today, August 12, 2020. The call can be accessed live over the telephone by dialing 1- 800-437-2398 from Canada and the U.S. or 1- 323-289-6576 from international locations. Due to increased volumes of conference calls this quarter, please dial the conference call number 15 minutes prior to the start time. A replay will be available shortly after the call and can be accessed by dialing 1-844-512-2921 from Canada and the U.S. or 1-412-317-6671 from international locations. The passcode for the replay is 9865727 and it will be available until Wednesday, August 26, 2020.
Interested parties may listen to a simultaneous webcast of the conference call by logging on via the Investor Relations section of the Company's website at https://investors.jamiesonwellness.com or directly at http://public.viavid.com/index.php?id=140793. A replay of the webcast will be available for approximately 30 days following the call.
About Jamieson Wellness
Jamieson Wellness is dedicated to improving the world's health and wellness with its portfolio of innovative natural health brands. Established in 1922, Jamieson is the Company's heritage brand and Canada's #1 consumer health brand. Jamieson Wellness manufactures and markets sports nutrition products and specialty supplements under its Progressive, Precision and Iron Vegan brands. The Company also markets Smart Solutions by Lorna Vanderhaeghe, the #1 women's natural health focused brand in Canada. For more information please visit jamiesonwellness.com.
Jamieson Wellness’ head office is located at 1 Adelaide Street East Suite 2200, Toronto, Ontario, Canada.
Forward-Looking Information
This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes, but is not limited to, statements related to the Company’s anticipated results and its outlook for its 2020 revenue, adjusted EBITDA and adjusted diluted earnings per share. Words such as “expect,”, “anticipate”, “intend,”, “may,”, “will”, “estimate” and variations of such words and similar expressions are intended to identify such forward-looking information. This information reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the Company’s Annual Information Form dated March 27, 2020 and under the “Risk Factors” section in the Company’s MD&A filed today, August 12, 2020. This information is based on the Company’s reasonable assumptions and beliefs in light of the information currently available to it and the statements are made as of the date of this press release. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law or regulatory authority.
The Company cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect the Company’s results. Readers are urged to consider the risks, uncertainties and assumptions associated with these statements carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See “Forward-looking Information” and “Risk Factors” within the Company’s MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements.
Jamieson Wellness Inc. Consolidated Statements of Operations and Comprehensive Income (Loss) In thousands of Canadian dollars, except share and per share amounts |
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Three months ended |
Six months ended |
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June 30 |
June 30 |
|||||||||||||
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|||||||
Revenue | 93,204 |
|
80,592 |
|
177,727 |
|
153,170 |
|
||||||
Cost of sales | 60,263 |
|
51,013 |
|
113,530 |
|
96,391 |
|
||||||
Gross profit | 32,941 |
|
29,579 |
|
64,197 |
|
56,779 |
|
||||||
Gross profit margin | 35.3 |
% |
36.7 |
% |
36.1 |
% |
37.1 |
% |
||||||
Selling, general and administrative expenses | 20,993 |
|
16,949 |
|
38,625 |
|
33,438 |
|
||||||
Share-based compensation | 1,273 |
|
690 |
|
2,538 |
|
1,490 |
|
||||||
Earnings from operations | 10,675 |
|
11,940 |
|
23,034 |
|
21,851 |
|
||||||
Operating margin | 11.5 |
% |
14.8 |
% |
13.0 |
% |
14.3 |
% |
||||||
Foreign exchange loss (gain) | 848 |
|
(195 |
) |
99 |
|
(169 |
) |
||||||
Other expenses | - |
|
6 |
|
- |
|
3 |
|
||||||
Interest expense and other financing costs | 1,390 |
|
2,463 |
|
3,318 |
|
4,885 |
|
||||||
Income before income taxes | 8,437 |
|
9,666 |
|
19,617 |
|
17,132 |
|
||||||
Provision for income taxes | 2,399 |
|
1,480 |
|
5,568 |
|
3,562 |
|
||||||
Net income | 6,038 |
|
8,186 |
|
14,049 |
|
13,570 |
|
||||||
Adjusted net income | 9,882 |
|
7,897 |
|
17,681 |
|
14,368 |
|
||||||
EBITDA | 12,715 |
|
15,007 |
|
28,680 |
|
27,470 |
|
||||||
Adjusted EBITDA | 18,983 |
|
16,392 |
|
35,669 |
|
30,875 |
|
||||||
Adjusted EBITDA margin | 20.4 |
% |
20.3 |
% |
20.1 |
% |
20.2 |
% |
||||||
Weighted average number of shares | ||||||||||||||
Basic | 39,447,020 |
|
38,321,699 |
|
39,273,066 |
|
38,313,840 |
|
||||||
Diluted | 41,178,625 |
|
39,741,550 |
|
41,003,141 |
|
39,732,220 |
|
||||||
Earnings per share attributable to common shareholders: | ||||||||||||||
Basic, earnings per share | 0.15 |
|
0.21 |
|
0.36 |
|
0.35 |
|
||||||
Diluted, earnings per share | 0.15 |
|
0.21 |
|
0.34 |
|
0.34 |
|
||||||
Adjusted Diluted, earnings per share | 0.24 |
|
0.20 |
|
0.43 |
|
0.36 |
|
Jamieson Wellness Inc. Consolidated Statements of Financial Position In thousands of Canadian dollars |
|||||
June 30,
|
December 31,
|
||||
Assets | |||||
Current assets | |||||
Cash | 6,796 |
198 |
|
||
Accounts receivable | 74,945 |
89,394 |
|
||
Inventories | 104,287 |
81,948 |
|
||
Derivatives | 2,022 |
- |
|
||
Prepaid expenses and other current assets | 2,279 |
1,893 |
|
||
190,329 |
173,433 |
|
|||
Non-current assets | |||||
Property, plant and equipment | 68,540 |
64,906 |
|
||
Goodwill | 122,975 |
122,975 |
|
||
Intangible assets | 197,752 |
198,189 |
|
||
Deferred income tax | 2,262 |
2,272 |
|
||
Total assets | 581,858 |
561,775 |
|
||
Liabilities | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 71,924 |
67,795 |
|
||
Income taxes payable | 1,156 |
2,365 |
|
||
Derivatives | 1,026 |
1,292 |
|
||
Current portion of other long-term liabilities | 1,914 |
1,890 |
|
||
76,020 |
73,342 |
|
|||
Long-term liabilities | |||||
Long-term debt | 163,754 |
164,769 |
|
||
Post-retirement benefits | 4,123 |
3,923 |
|
||
Deferred income tax | 51,906 |
51,107 |
|
||
Other long-term liabilities | 10,381 |
9,466 |
|
||
Total liabilities | 306,184 |
302,607 |
|
||
Shareholders' equity | |||||
Share capital | 252,076 |
243,224 |
|
||
Contributed surplus | 11,348 |
10,727 |
|
||
Deficit | 11,432 |
6,061 |
|
||
Accumulated other comprehensive income (loss) | 818 |
(844 |
) |
||
Total shareholders' equity | 275,674 |
259,168 |
|
||
Total liabilities and shareholders' equity | 581,858 |
561,775 |
|
Jamieson Wellness Inc. Segment Information In thousands of Canadian dollars, except as otherwise noted |
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Jamieson Brands | ||||||||||||
Three months ended
|
||||||||||||
2020 |
2019 |
$ Change |
% Change |
|||||||||
Revenue | 74,292 |
|
60,816 |
|
13,476 |
|
22.2 |
% |
||||
|
||||||||||||
Gross profit | 30,531 |
|
26,414 |
|
4,117 |
|
15.6 |
% |
||||
Gross profit margin | 41.1 |
% |
43.4 |
% |
- |
|
(2.3 |
%) |
||||
Selling, general and administrative expenses | 16,885 |
|
15,265 |
|
1,620 |
|
10.6 |
% |
||||
Share-based compensation | 1,273 |
|
690 |
|
583 |
|
84.5 |
% |
||||
Earnings from operations | 12,373 |
|
10,459 |
|
1,914 |
|
18.3 |
% |
||||
Operating margin | 16.7 |
% |
17.2 |
% |
- |
|
(0.5 |
%) |
||||
Adjusted EBITDA | 17,624 |
|
14,419 |
|
3,205 |
|
22.2 |
% |
||||
Adjusted EBITDA margin | 23.7 |
% |
23.7 |
% |
- |
|
- |
|
||||
Strategic Partners | ||||||||||||
Three months ended
|
||||||||||||
2020 |
2019 |
$ Change |
% Change |
|||||||||
Revenue | 18,912 |
|
19,776 |
|
(864 |
) |
(4.4 |
%) |
||||
Gross profit | 2,410 |
|
3,165 |
|
(755 |
) |
(23.9 |
%) |
||||
Gross profit margin | 12.7 |
% |
16.0 |
% |
- |
|
(3.3 |
%) |
||||
Selling, general and administrative expenses | 4,108 |
|
1,684 |
|
2,424 |
|
143.9 |
% |
||||
Earnings from operations | (1,698 |
) |
1,481 |
|
(3,179 |
) |
(214.7 |
%) |
||||
Operating margin | (9.0 |
%) |
7.5 |
% |
- |
|
(16.5 |
%) |
||||
Adjusted EBITDA | 1,359 |
|
1,973 |
|
(614 |
) |
(31.1 |
%) |
||||
Adjusted EBITDA margin | 7.2 |
% |
10.0 |
% |
- |
|
(2.8 |
%) |
||||
Jamieson Brands | ||||||||||||
Six months ended
|
||||||||||||
2020 |
2019 |
$ Change |
% Change |
|||||||||
Revenue | 144,086 |
|
116,857 |
|
27,229 |
|
23.3 |
% |
||||
Gross profit | 59,806 |
|
50,125 |
|
9,681 |
|
19.3 |
% |
||||
Gross profit margin | 41.5 |
% |
42.9 |
% |
- |
|
(1.4 |
%) |
||||
Selling, general and administrative expenses | 32,941 |
|
30,180 |
|
2,761 |
|
9.1 |
% |
||||
Share-based compensation | 2,538 |
|
1,490 |
|
1,048 |
|
70.3 |
% |
||||
Earnings from operations | 24,327 |
|
18,455 |
|
5,872 |
|
31.8 |
% |
||||
Operating margin | 16.9 |
% |
15.8 |
% |
- |
|
1.1 |
% |
||||
Adjusted EBITDA | 33,411 |
|
26,498 |
|
6,913 |
|
26.1 |
% |
||||
Adjusted EBITDA margin | 23.2 |
% |
22.7 |
% |
- |
|
0.5 |
% |
||||
Strategic Partners | ||||||||||||
Six months ended
|
||||||||||||
2020 |
2019 |
$ Change |
% Change |
|||||||||
Revenue | 33,641 |
|
36,313 |
|
(2,672 |
) |
(7.4 |
%) |
||||
Gross profit | 4,391 |
|
6,654 |
|
(2,263 |
) |
(34.0 |
%) |
||||
Gross profit margin | 13.1 |
% |
18.3 |
% |
- |
|
(5.2 |
%) |
||||
Selling, general and administrative expenses | 5,684 |
|
3,258 |
|
2,426 |
|
74.5 |
% |
||||
Earnings from operations | (1,293 |
) |
3,396 |
|
(4,689 |
) |
(138.1 |
%) |
||||
Operating margin | (3.8 |
%) |
9.4 |
% |
- |
|
(13.2 |
%) |
||||
Adjusted EBITDA | 2,258 |
|
4,377 |
|
(2,119 |
) |
(48.4 |
%) |
||||
Adjusted EBITDA margin | 6.7 |
% |
12.1 |
% |
- |
|
(5.4 |
%) |
Non-IFRS Financial Measures
This press release makes reference to certain non-IFRS measures. Management uses these non-IFRS financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing the Company’s business performance and trends. These measures are not recognized measures under IFRS, 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, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. We use non-IFRS measures, including “gross profit”, “gross profit margin”, “operating margin” “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA margin”, “Adjusted Net Income” and “Adjusted Diluted Earnings per Share” to provide supplemental measures of the Company’s operating performance and thus highlight trends in the Company’s core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS measures in order to prepare annual operating budgets and to determine components of management compensation. Definitions of non-IFRS measures can be found in the Company’s MD&A.
Reconciliation of Adjusted Net Income In thousands of Canadian dollars |
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Three months ended |
Six months ended |
|||||||||||
June 30 |
June 30 |
|||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||
Net income | 6,038 |
|
8,186 |
|
14,049 |
|
13,570 |
|
||||
Adjustments to net income: | ||||||||||||
Share-based compensation | 144 |
|
190 |
|
288 |
|
380 |
|
||||
Foreign exchange loss (gain) | 848 |
|
(195 |
) |
99 |
|
(169 |
) |
||||
Termination benefits and related costs | - |
|
- |
|
- |
|
480 |
|
||||
International market expansion | - |
|
434 |
|
13 |
|
936 |
|
||||
Business integration | 254 |
|
262 |
|
420 |
|
396 |
|
||||
COVID-19 related costs | 3,932 |
|
- |
|
4,017 |
|
- |
|
||||
Other | - |
|
252 |
|
- |
|
330 |
|
||||
Revaluation of deferred tax liability | - |
|
(1,032 |
) |
- |
|
(1,032 |
) |
||||
Related tax effects | (1,334 |
) |
(200 |
) |
(1,205 |
) |
(523 |
) |
||||
Adjusted net income | 9,882 |
|
7,897 |
|
17,681 |
|
14,368 |
|
Reconciliation of EBITDA and Adjusted EBITDA In thousands of Canadian dollars |
||||||||||
Three months ended |
Six months ended |
|||||||||
June 30 |
June 30 |
|||||||||
2020 |
2019 |
2020 |
2019 |
|||||||
Net income | 6,038 |
8,186 |
|
14,049 |
13,570 |
|
||||
Add: | ||||||||||
Provision for income taxes | 2,399 |
1,480 |
|
5,568 |
3,562 |
|
||||
Interest expense and other financing costs | 1,390 |
2,463 |
|
3,318 |
4,885 |
|
||||
Depreciation of property, plant, and equipment | 1,932 |
1,981 |
|
3,853 |
3,641 |
|
||||
Amortization of intangible assets | 956 |
897 |
|
1,892 |
1,812 |
|
||||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) | 12,715 |
15,007 |
|
28,680 |
27,470 |
|
||||
Add EBITDA adjustments: | ||||||||||
Share-based compensation | 1,273 |
690 |
|
2,538 |
1,490 |
|
||||
Foreign exchange loss (gain) | 848 |
(195 |
) |
99 |
(169 |
) |
||||
Termination benefits and related costs | - |
- |
|
- |
480 |
|
||||
International market expansion | - |
434 |
|
13 |
936 |
|
||||
Business integration | 215 |
204 |
|
322 |
338 |
|
||||
COVID-19 related costs | 3,932 |
- |
|
4,017 |
- |
|
||||
Other | - |
252 |
|
- |
330 |
|
||||
Adjusted EBITDA | 18,983 |
16,392 |
|
35,669 |
30,875 |
|