NanoXplore reports record total revenues for Q4-2024 and full year 2024, with improved margins and adjusted EBITDA
From GlobeNewswire: 2024-09-18 17:15:00
create short, engaging summaries of the news. Limit summaries to 50 words or less per paragraph. Ensure clarity and engagement, Include all facts, figures and statistics mentioned in the news article. Arrange summaries sequentially or by relevance in easy to read paragraph format. Verify accuracy and state only facts, ignore any promotional or marketing of services in the article: MONTREAL, Sept. 18, 2024 (GLOBE NEWSWIRE) — NanoXplore Inc. (“NanoXplore” or “the Corporation”) (TSX: GRA and OTCQX: NNXPF), a world-leading graphene company, reported today financial results for the year ended June 30, 2024. All amounts in this press release are in Canadian dollars, unless otherwise stated. Key Financial Highlights Q4-2024 Record total revenues of $38,125,566 compared to $33,318,964 last year, representing a 14% increase;Adjusted gross margin* on revenues from customers of 23.6% compared to 20.8% last year;Loss of $2,421,110 compared to $2,003,549 last year;Adjusted EBITDA* of $2,488,304 compared to $526,140 last year;Adjusted EBITDA* of $3,329,793 compared to $1,130,962 last year for the Advanced Materials, Plastics and Composite Products segment;Adjusted EBITDA* loss of $841,489 compared to $604,822 last year for the Battery Cells segment (VoltaXplore initiative);Total liquidity of $36,504,880 as at June 30, 2024, including cash and cash equivalents of $26,504,880;Total long-term debt of $6,346,503 as at June 30, 2024, down by $1,529,385 compared to June 30, 2023. Key Financial Highlights Fiscal Year 2024 Record total revenues of $129,992,368 in 2024 compared to $123,857,171 in 2023, representing a 5% increase;Adjusted gross margin* on revenues from customers of 21.1% in 2024 compared to 17.4% in last year;Loss of $11,665,006 compared to $12,798,174 last year;Adjusted EBITDA* of $2,519,134 compared to a loss of $857,887 last year;Adjusted EBITDA* of $5,176,437 in 2024 compared to a loss of $234,795 last year for the Advanced Materials, Plastics and Composite Products segment;Adjusted EBITDA* loss of $2,657,303 in 2024 compared to $623,092 last year for the Battery Cells segment (VoltaXplore initiative). Overview Pedro Azevedo, Chief Financial Officer, said: “After a slow beginning to the year, I am very pleased with our 4th quarter and full year performance and financial results. We continued to execute on our expansion in graphene-enhanced SMC materials capacity and margin improvement plans. In addition, we also expanded, and continue to expand, our customer base for graphene powder and graphene-enhanced composites demonstrating the economic value of our graphene offering. These have resulted in our highest ever annual sales, highest ever gross margins and highest ever adjusted EBITDA. Growing our graphene and graphene-enhanced materials sales mix will continue to positively impact gross margins. We are in the 2nd stage of our growth plan but our financials do not yet fully reflect the full potential upside graphene sales will bring. We are once again well positioned for our next fiscal year and continue to execute on our 5-year strategic plan initiatives.” Soroush Nazarpour, President & Chief Executive Officer, said: “We faced some headwinds and uncertainties at the beginning of this fiscal year namely high interest rate, inflation cost pressure and tight labour market but NanoXplore’s team performed well in this environment, and we delivered record revenues, while gross and EBITDA margins continued to expand. I expect this trend of organic growth and margin performance to continue in 2025 due to broader acceptance of our graphene base products. During the year, we received increased volumes on existing programs and won new customers, demonstrating the innovative nature of our graphene-based solutions and our ability to grow organically. We have a first mover advantage in an emerging advance material sector, and we intend on staying a market leader through developing innovative graphene-enhanced solutions for our customers while expanding our manufacturing capabilities as well as ensuring we maintain a strong balance sheet.” * Non-IFRS Measures The Corporation prepares its financial statements under IFRS. However, the Corporation considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Corporation. These measures, which the Corporation believes are widely used by investors, securities analysts and other interested parties in evaluating the Corporation’s performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include “Adjusted EBITDA” and “Adjusted gross margin”. The following tables provide a reconciliation of IFRS “Loss” to Non-IFRS “Adjusted EBITDA” and of IFRS “Gross margin” to Non-IFRS “Adjusted Gross margin” for the three-month periods and for the years ended June 30, 2024 and 2023. IFRS “Loss” to Non-IFRS “Adjusted EBITDA” Q4-2024 Q4-2023 FY 2024 FY 2023 $ $ $ $ Loss(2,421,110)(2,003,549)(11,665,006)(12,798,174)Current and deferred income tax expenses (recovery)1,220,221 (239,724)966,577 (38,650)Net interest revenues33,861 22,924 (78,794)(63,342)Share of loss of a joint venture— — — 1,059,880 Loss (gain) on disposal of property, plant and equipment(193)131,974 (18,453)131,974 Foreign exchange111,928 (329,788)287,302 725,221 Share-based compensation expenses498,655 273,910 1,557,425 1,118,772 Non-operational items (1)189,783 — 459,783 116,000 Depreciation and amortization2,855,159 2,670,393 11,010,300 8,890,432 Adjusted EBITDA2,488,304 526,140 2,519,134 (857,887) – From Advanced Materials, Plastics and Composite Products 3,329,793 1,130,962 5,176,437 (234,795) – From Battery Cells(841,489)(604,822)(2,657,303)(623,092) (1) Non-operational items consist of professional fees mainly due debt renegotiation and to prospectuses related fees. IFRS “Gross margin” to Non-IFRS “Adjusted Gross margin” Q4-2024Q4-2023FY 2024FY 2023 $$$$ Revenues from customers37,717,68833,010,658128,600,936122,700,485Cost of sales28,811,99126,154,539101,486,565101,414,290Adjusted gross margin 8,905,6976,856,11927,114,37121,286,195Depreciation (production)1,657,6151,535,1656,362,3395,873,873Gross margin7,248,0825,320,95420,752,03215,412,322 Reporting Segments results NanoXplore reports its financials in two distinct segments: Advanced Materials, Plastics and Composite Products and Battery cells. Q4-2024 Q4-2023 Variation YTD 2024 YTD 2023 Variation $ $ $ % $ $ $ % From Advanced materials, plastics and composite productsRevenues38,125,566 33,318,964 4,806,602 14%129,964,625 123,857,171 6,107,454 5%Non-IFRS Measure * Adjusted EBITDA3,329,793 1,130,962 2,198,831 194%5,176,437 (234,795)5,411,232 2 305% From Battery cellsRevenues— — — N/A 27,743 — 27,743 N/A Non-IFRS Measure * Adjusted EBITDA(841,489)(604,822)(236,667)(39%)(2,657,303)(623,092)(2,034,211)N/A A. Results of operations variance analysis – Three-month periods Revenues Q4-2024Q4-2023Variation Q3-2024Variation $$$% $$% Revenues from customers37,717,688 33,010,6584,707,03014%33,617,1064,100,58212%Other income407,878 308,30699,57232%250,641157,23763%Total revenues38,125,566 33,318,9644,806,60214%33,867,7474,257,81913% All revenues are coming from the segment of Advanced Materials, Plastics and Composite Products. Revenues from customers increased from $33,617,106 in Q3-2024 to $37,717,688 in Q4-2024. This increase is mainly due to a positive product mix and higher volume. Revenues from customers increased from $33,010,658 in Q4-2023 to $37,717,688 in Q4-2024. This increase is mainly due to higher volume and higher tooling revenues. Other income increased from $308,306 in Q4-2023 to $407,878 in Q4-2024. Other income amounted to $250,641 in Q3-2024. The variation is mainly in grants received for R&D programs. Adjusted EBITDA 1) From Advanced Materials, Plastics and Composite Products The adjusted EBITDA improved from $1,130,962 in Q4-2023 to $3,329,793 in Q4-2024. The variation is explained as follows: Gross margin on revenues from customers increased by $2,049,578 compared to last year due to higher volume, favourable product mix, improved productivity and cost control;Higher other income of $99,572 as explained above. 2) From Battery Cells The adjusted EBITDA loss increased from $604,822 in Q4-2023 to $841,489 in Q4-2024. The variation is explained by the operational expenses increase (Selling, General & Administration “SG&A” and Research & Development “R&D”) of $236,667 due to higher than usual 3rd party pre-engineering expenses undertaken during the quarter. B. Results of operations variance analysis – Year ended Revenues FY 2024FY 2023Variation $$$% Revenues from customers128,600,936 122,700,4855,900,4515%Other income1,391,432 1,156,686234,74620%Total revenues129,992,368 123,857,1716,135,1975% All revenues are coming from the Advanced Materials, Plastics and Composite Products segment, except for $27,743 of other income [2023 – Nil] from the Battery Cells segment. Revenues from customers increased from $122,700,485 last year to $128,600,936 this year. This increase is mainly due to higher volume and higher tooling revenues. Other income increased from $1,156,686 last year to $1,391,432 this year. The variation is mainly in grants received for R&D programs. Adjusted EBITDA 1) From Advanced Materials, Plastics and Composite Products The adjusted EBITDA improved from a loss of $234,795 last year to a profit of $5,176,437 this year. The variation is explained as follows: Gross margin on revenues from customers increased by $5,828,176 compared to last year due to higher volume, favourable product mix, improved productivity and cost control;Higher other income of $234,746 as described above; andPartially offset by higher operating expenses (SG&A and R&D) of $967,730 mainly due to higher wages, including higher variable compensation. 2) From Battery Cells The adjusted EBITDA loss increased from $623,092 last year to $2,657,303 this year. The variation is explained by the operating expenses (G&A and R&D) of $2,685,046 due in part to the acquisition during 2023 of the Martinrea share in VoltaXplore. C. Other Additional information about the Corporation, including the Corporation’s Management Discussion and Analysis for the years ended June 30, 2024 and 2023 (“MD&A”) and the Corporation’s consolidated financial statements for the for years ended June 30, 2024 and 2023 (the “financial statements”) can be found at www.nanoxplore.ca. Webcast NanoXplore will hold a webcast tomorrow, September 19, 2024, at 8:30 am EDT to review its year ended June 30,…
Read more at GlobeNewswire:: NanoXplore Reports Results for Its Q4-2024 and Full Year