Knight Therapeutics Inc. (TSX: GUD) ("Knight" or “the Company”), a
leading pan-American (ex-US) specialty pharmaceutical company,
today reported financial results for its first quarter ended March
31, 2023. All currency amounts are in thousands except for share
and per share amounts. All currencies are Canadian unless otherwise
specified.
Q1 2023 Highlights
Financials
- Revenues were $82,597, an increase
of $18,790 or 29% over the same period in prior year.
- Gross margin of $40,762 or 49%
compared to $32,477 or 51% in the same period in prior year.
- Adjusted EBITDA1 was $18,237, an
increase of $4,925 or 37% over the same period in prior year.
- Adjusted EBITDA per share2 of
$0.17, an increase of $0.05 or 45% over the same period in prior
year.
- Net loss on financial assets
measured at fair value through profit or loss of $11,847.
- Net loss was $3,937, compared to
net loss of $18,811 in the same period in prior year.
- Cash inflow from operations was $3,711, compared to a cash
inflow from operations of $12,879 in the same period in prior
year.
Corporate Developments
- Purchased 2,243,905 common shares
through Knight’s NCIB at an average price of $4.83 for an aggregate
cash consideration of $10,830.
Products
- Submitted marketing authorization
application for tafasitamab in combination with lenalidomide for
the treatment of adult patients with relapsed or refractory diffuse
large B-cell lymphoma (DLBCL) who are not eligible for autologous
stem cell transplantation (ASCT) to ANMAT in Argentina in
Q1-23.
- Launched Palbocil® (palbociclib) in
Argentina in March 2023.
- Obtained regulatory approval for
Bapocil® (palbociclib) in Chile in March 2023.
Subsequent Events
- Shareholders re-elected Jonathan
Ross Goodman, Samira Sakhia, James C. Gale, Robert N. Lande,
Michael J. Tremblay, Nicolás Sujoy and Janice Murray on the Board
of Directors.
- Purchased an additional 1,144,520
common shares through NCIB for an aggregate cash consideration of
$5,359.
“I am excited to report impressive Q1 revenues
of over $82,000, a 29% growth compared to the same period last
year, and a record adjusted EBITDA of over $18,000, representing a
growth of 37%. This strong performance is a testament to the hard
work and dedication of our team and the continued success of our
portfolio and recent launches. I am also proud to announce that we
acquired $16 million of shares under the Normal Course Issuer Bid
this year, further demonstrating our commitment to delivering value
to our shareholders,” said Samira Sakhia, President and Chief
Executive Officer of Knight Therapeutics Inc.
1 Adjusted EBITDA is a non-GAAP measure, refer
to section “Non-GAAP measures” and “Reconciliation to adjusted
EBITDA” for additional details.2 Adjusted EBITDA per share is a
non-GAAP ratio, refer to section “Non-GAAP measures” for additional
details.
SELECT FINANCIAL RESULTS REPORTED UNDER
IFRS[In thousands of Canadian dollars]
| |
|
|
|
|
Change |
|
|
|
Q1-23 |
|
Q1-22 |
|
$1 |
|
%2 |
|
|
|
|
|
|
|
|
| Revenues |
|
82,597 |
|
63,807 |
|
18,790 |
|
29 |
% |
| Gross margin |
|
40,762 |
|
32,477 |
|
8,285 |
|
26 |
% |
| Gross margin % |
|
49 |
% |
51 |
% |
|
|
| Operating expenses4 |
|
35,129 |
|
32,793 |
|
(2,336 |
) |
7 |
% |
|
Net loss |
|
(3,937 |
) |
(18,811 |
) |
14,874 |
|
79 |
% |
|
EBITDA3 |
|
18,237 |
|
13,312 |
|
4,925 |
|
37 |
% |
|
Adjusted EBITDA3 |
|
18,237 |
|
13,312 |
|
4,925 |
|
37 |
% |
1 A positive variance represents a positive impact to net income
(loss) and a negative variance represents a negative impact to net
income (loss)2 Percentage change is presented in absolute values3
EBITDA and adjusted EBITDA are non-GAAP measures, refer to the
definitions in section “Non-GAAP measures” for additional details4
Operating expenses include selling and marketing expenses, general
and administrative expenses, research and development expenses,
amortization and impairment of intangible assets
SELECT FINANCIAL RESULTS AT CONSTANT
CURRENCY[In thousands of Canadian dollars]
|
|
|
Q1-23 |
|
Q1-22 |
|
Variance |
|
|
Excluding impact of IAS 293 |
|
|
|
ConstantCurrency3 |
|
$1 |
|
%2 |
|
|
|
|
|
|
|
|
|
Revenues |
|
82,667 |
|
66,020 |
|
16,647 |
|
25 |
% |
| Gross margin |
|
41,386 |
|
35,153 |
|
6,233 |
|
18 |
% |
|
Gross margin % |
|
50 |
% |
53 |
% |
|
|
|
Operating expenses4 |
|
34,827 |
|
32,914 |
|
(1,913 |
) |
6 |
% |
|
EBITDA3 |
|
18,237 |
|
14,193 |
|
4,044 |
|
28 |
% |
|
Adjusted EBITDA3 |
|
18,237 |
|
14,193 |
|
4,044 |
|
28 |
% |
1 A positive variance represents a positive impact to adjusted
EBITDA and a negative variance represents a negative impact to
adjusted EBITDA2 Percentage change is presented in absolute values3
Financial results at constant currency and excluding impact of IAS
29, EBITDA and adjusted EBITDA are non-GAAP measures, refer to the
specific sections for additional details4 Operating expenses
include selling and marketing expenses, general and administrative
expenses, research and development expenses, amortization and
impairment of intangible assets
SELECT BALANCE SHEET ITEMS[In
thousands of Canadian dollars]
| |
|
|
|
|
|
Change |
|
|
|
03-31-23 |
|
12-31-22 |
|
$ |
|
%1 |
|
| |
|
|
|
|
|
|
|
| Cash, cash equivalents and
marketable securities |
|
160,469 |
|
172,674 |
|
(12,205 |
) |
7 |
% |
| Trade and other receivables |
|
160,472 |
|
151,669 |
|
8,803 |
|
6 |
% |
| Inventory |
|
98,988 |
|
92,489 |
|
6,499 |
|
7 |
% |
| Financial assets |
|
164,808 |
|
176,563 |
|
(11,755 |
) |
7 |
% |
| Accounts payable and accrued
liabilities |
|
110,994 |
|
108,730 |
|
2,264 |
|
2 |
% |
|
Bank loans |
|
75,333 |
|
70,072 |
|
5,261 |
|
8 |
% |
1 Percentage change is presented in absolute values
Revenues: For the quarter ended
March 31, 2023, revenues, excluding the impact of IAS 29, was
$82,667 an increase of $18,833 or 30% compared to the same prior
year period. The revenues by therapeutic areas are as follows:
| |
|
Excluding impact of IAS 293 |
| |
|
|
|
|
|
Change |
|
Therapeutic Area |
|
Q1-23 |
|
Q1-22 |
|
$1 |
|
%2 |
|
| Oncology/Hematology |
|
29,141 |
|
23,816 |
|
5,325 |
|
22 |
% |
| Infectious Diseases |
|
30,848 |
|
26,682 |
|
4,166 |
|
16 |
% |
| Other Specialty |
|
22,678 |
|
13,336 |
|
9,342 |
|
70 |
% |
|
Total |
|
82,667 |
|
63,834 |
|
18,833 |
|
30 |
% |
1 A positive variance represents a positive impact to net income
due to the application of IAS 29 and a negative variance represents
a negative impact to net income due to the application of IAS 292
Percentage change is presented in absolute values3 Revenues
excluding the impact of IAS 29 is a non-GAAP measure, refer to
section “Non-GAAP measures” for additional details.
The change in revenues by therapeutic areas is
explained by the following:
-
Oncology/Hematology: The oncology/hematology
portfolio grew by approximately $7,600 due to continued growth of
key promoted products including Halaven®, Lenvima® and Trelstar®
and the assumption of commercial activities of Akynzeo® in Brazil,
Argentina and Canada. This increase is offset by a reduction in
revenues of our mature and branded generics products due to their
lifecycle including the market entrance of new competitors.
- Infectious
Diseases: : The infectious disease portfolio grew by
approximately $7,800, excluding the impact of the planned
transition and termination of the Gilead Amendment. This growth is
driven by our key promoted products and the buying patterns of
certain customers. In addition, Knight recorded revenues of $2,400
in Q1-23 related to a one-time sales contract with the Ministry of
Health in Brazil for Ambisome® (“2022 MOH Contract”). The 2022
MOH Contract was signed in December 2022 for a total value of
$18,400 of which $7,000 was delivered in 2022, $2,400 in Q1-23 and
$9,000 in April 2023.In addition to the full amount of the 2022 MOH
Contract of $18,400, subsequent to the quarter, Knight received an
order for an additional $9,000 (“2023 MOH Contract”) from the
Ministry of Health of Brazil which was delivered in April
2023.
- Other Specialty:
The Other Specialty portfolio grew by approximately $6,200
excluding the impact of the change in accounting treatment of
Exelon® from net profit transfer to revenues with related cost of
sales. The increase is mainly due to advance purchases of Exelon®
driven by the commercial transition from Novartis to Knight in
certain countries as well as the purchasing patterns of certain
customers.
Gross margin: Under IFRS, gross
margin, as a percentage of revenues, was 49% in Q1-23 and 51% in
Q1-22. Excluding the impact of IAS 29, gross margin, as a
percentage of revenues, was 50% in Q1-23 and 53% in Q1-22. The
decrease in gross margin, as a percentage of revenues, is due to
product mix including Exelon® recorded as a net profit transfer in
Q1-22 compared to revenues with related cost of sales in Q1-23.
Selling and marketing
(“S&M”): For the quarter ended March 31, 2023, S&M
expenses were $10,665, an increase of $975 or 10% compared to the
same period in prior year. Excluding the impact of IAS 29, the
increase is $1,014 or 10%.
General and administrative
(“G&A”): For the quarter ended March 31, 2023, G&A
expenses were $9,106, an increase of $274 or 3%, compared to the
same period in prior year. Excluding the impact of IAS 29, the
increase is $342 or 4%.
Research and development
(“R&D”): For the quarter ended March 31, 2023, R&D
expenses were $4,187, an increase of $1,204 or 40%, compared to the
same period in prior year. Excluding the impact of IAS 29, the
increase is $1,260 or 44%. The increase is driven by compensation
expense and medical initiatives related to key promoted products
including Akynzeo® in-licensed in H2-22.
Amortization and impairment of
intangible assets: For the quarter ended March 31, 2023,
amortization and impairment of intangible assets was $11,171, a
decrease of $117 or 1%.
Interest income: Interest
income is the sum of interest income on financial instruments
measured at amortized cost and other interest income. For the
quarter ended March 31, 2023, interest income was $3,352, an
increase of 126% or $1,872, compared to the same period in prior
year due to higher interest rates on cash and marketable
securities.
Interest expense: For the
quarter ended March 31, 2023, interest expense was $2,791, an
increase of $1,680 or 151%, compared to the same period in prior
year due to higher average loan balance resulting from IFC loan
received in December 2022 and higher variable interest rates,
partially offset by principal repayments of Itaú Unibanco Brasil
and Bancolombia bank loans in 2022.
Adjusted EBITDA: For the
quarter ended March 31, 2023, adjusted EBITDA was $18,237, an
increased of $4,925 or 37%. The decrease in adjusted EBITDA is
driven by an increase in gross margin of $8,285, offset by an
increase in operating expenses.
Net loss: For the quarter ended
March 31, 2023, net loss was $3,937 compared to net loss of $18,811
for the same period in prior year. The variance mainly resulted
from the above-mentioned items and (1) a net loss on the
revaluation of financial assets measured at fair value through
profit or loss of $11,847 versus a net loss of $16,363 in the same
period in prior year, mainly due to unrealized revaluations of the
strategic fund investments, (2) a foreign exchange gain of $73
versus a foreign exchange loss of $6,189 and (3) the income tax
recovery of $1,009 in Q1-23 of driven by the recognition of certain
deferred tax assets due to timing differences related to our
financial assets, tax loss in certain jurisdictions and certain
intercompany transactions, offset by current income tax expense due
to operating income, compared to the income tax recovery of $3,501
in Q1-22 driven by the recognition of certain deferred tax assets
due tax losses generated and timing differences related to our
financial assets.
Cash, cash equivalents and marketable
securities: As at March 31, 2023, Knight had $160,469 in
cash, cash equivalents and marketable securities, a decrease of
$12,205 or 7% as compared to December 31, 2022. The variance is
primarily due to outflows certain regulatory and sales milestones
on certain products, including AKYNZEO® and ALOXI® from Helsinn,
shares repurchased through NCIB, partially offset by cash inflows
from operating activities and proceeds from the disposal of
Medimetriks.
Financial assets: As at March
31, 2023, financial assets were at $164,808, a decrease of $11,755
or 7%, as compared to the prior year, mainly due to negative
mark-to-market adjustments of $11,522 driven by the decline in the
share prices of the publicly-traded equities of our strategic fund
investments, distributions of $509, offset by foreign exchange
gains of $623. Given the nature of the fund investments there could
be significant fluctuations in the fair value of the underlying
assets.
Bank Loans: As at March 31,
2023, bank loans were at $75,333, an increase of $5,261 or 8% as
compared to December 31, 2022, due to accrued interest of $2,186
and the appreciation of BRL, COP, CLP and MXN against CAD.
Product Updates
Knight launched Palbocil® (palbociclib) in
Argentina in March 2023. Palbocil® / Bapocil® (palbociclib) is
indicated for the treatment of patients with hormone receptor (HR)
positive, human epidermal growth factor receptor 2 (HER2)-negative
locally advanced or metastatic breast cancer in combination with an
aromatase inhibitor as initial endocrine-based therapy in
post-menopausal women; or fulvestrant in patients with disease
progression after prior endocrine therapy. In addition, in March
2023, Knight obtained regulatory approval for Bapocil®
(palbociclib) in Chile.
Corporate Updates
NCIB
During the three-month period ended March 31,
2023, the Company purchased 2,243,905 common shares at an average
price of $4.83 for aggregate cash consideration of $10,830.
Subsequent to quarter-end up to May 5, 2023, the Company purchased
an additional 1,144,520 common shares at an average purchase price
of $4.68 for an aggregate cash consideration of $5,359.
Financial Outlook Update
Knight provides guidance on revenues1 on a
non-GAAP basis. This is due to both the difficulty in predicting
Argentinian inflation rates and its IAS 29 impact.
For fiscal 2023, Knight has updated its guidance
and expects to generate $300 to $320 million in revenue, an
increase of $20 million on the lower and upper range. The adjusted
EBITDA, as a percentage of revenues is expected to be between 14%
to 15% of revenues. The increase in the financial outlook is
primarily due to an improvement in the forecasted LATAM currencies
against the Canadian dollar and the 2023 MOH Contract for
Ambisome®. The guidance is based on a number of assumptions,
including but not limited to the following:
- no revenues for
business development transactions not completed as at May 10,
2023
- discontinuation
of certain distribution agreements
- no interruptions
in supply whether due to global supply chain disruptions or general
manufacturing issues
- no new generic
entrants on our key pharmaceutical brands
- no unforeseen
changes to government mandated pricing regulations
- successful
commercial execution on product listing arrangements with HMOs,
insurers, key accounts, and public payers
- successful
execution and uptake of newly launched products
- no significant
restrictions or economic shut down due to global pandemics
- foreign currency
exchange rates remaining within forecasted ranges
Should any of the assumptions differ, the
financial outlook and the actual results may vary materially. Refer
to the risks and assumptions referred to in the Forward-Looking
Statements section of this news release for further details.
1 Revenues excluding the impact of IAS 29
is a non-GAAP measure, refer to the definitions in section
“Non-GAAP measures” for additional details
Conference Call
Notice
Knight will host a conference call and audio webcast to discuss
its first quarter ended March 31, 2023, today at 8:30 am ET. Knight
cordially invites all interested parties to participate in this
call.
Date: Thursday, May 11,
2023Time: 8:30 a.m. ETTelephone:
Toll Free: 1-855-669-9657 or International
1-412-317-0790Webcast: www.knighttx.com or
WebcastThis is a listen-only audio webcast. Media Player is
required to listen to the broadcast.
Replay: An archived replay will be available
for 30 days at www.knighttx.com
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in
Montreal, Canada, is a specialty pharmaceutical company focused on
acquiring or in-licensing and commercializing pharmaceutical
products for Canada and Latin America. Knight's Latin American
subsidiaries operate under United Medical, Biotoscana Farma and
Laboratorio LKM. Knight Therapeutics Inc.'s shares trade on TSX
under the symbol GUD. For more information about Knight
Therapeutics Inc., please visit the company's web site at
www.knighttx.com or www.sedar.com.
Forward-Looking Statement
This document contains forward-looking
statements for Knight Therapeutics Inc. and its subsidiaries. These
forward-looking statements, by their nature, necessarily involve
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the forward-looking
statements. Knight Therapeutics Inc. considers the assumptions on
which these forward-looking statements are based to be reasonable
at the time they were prepared but cautions the reader that these
assumptions regarding future events, many of which are beyond the
control of Knight Therapeutics Inc. and its subsidiaries, may
ultimately prove to be incorrect. Factors and risks, which could
cause actual results to differ materially from current expectations
are discussed in Knight Therapeutics Inc.'s Annual Report and in
Knight Therapeutics Inc.'s Annual Information Form for the year
ended December 31, 2022 as filed on www.sedar.com. Knight
Therapeutics Inc. disclaims any intention or obligation to update
or revise any forward-looking statements whether because of new
information or future events, except as required by law.
CONTACT INFORMATION:
|
Investor Contact: |
|
|
| Knight Therapeutics Inc. |
|
|
| Samira Sakhia |
|
Arvind Utchanah |
| President & Chief Executive
Officer |
|
Chief Financial Officer |
| T: 514.484.4483 |
|
T. +598.2626.2344 |
| F: 514.481.4116 |
|
|
|
Email: info@knighttx.com |
|
Email: info@knighttx.com |
|
Website: www.knighttx.com |
|
Website: www.knighttx.com |
IMPACT OF HYPERINFLATION[In
thousands of Canadian dollars]
The Company applies IAS 29, Financial Reporting
in Hyperinflation Economies, as the Company's Argentine
subsidiaries used the Argentine Peso as their functional currency.
IAS 29 requires that the financial statements of an entity whose
functional currency is the currency of a hyperinflationary economy
be adjusted based on an appropriate general price index to express
the effects of inflation. If the Company did not apply IAS 29, the
effect on the Company's operating income would be as follows:
|
|
Q1-23 |
|
|
|
Reportedunder IFRS |
|
Excluding impactof IAS 291 |
|
Variance |
|
|
|
$2 |
|
%3 |
|
|
|
|
|
|
|
|
|
Revenues |
|
82,597 |
|
82,667 |
|
(70 |
) |
0 |
% |
|
Cost of goods sold |
|
41,835 |
|
41,281 |
|
(554 |
) |
1 |
% |
|
Gross margin |
|
40,762 |
|
41,386 |
|
(624 |
) |
2 |
% |
|
Gross margin (%) |
|
49 |
% |
50 |
% |
|
|
| |
|
|
|
|
|
| Expenses |
|
|
|
|
|
| Selling and marketing |
|
10,665 |
|
10,713 |
|
48 |
|
0 |
% |
| General and administrative |
|
9,106 |
|
8,887 |
|
(219 |
) |
2 |
% |
| Research and development |
|
4,187 |
|
4,102 |
|
(85 |
) |
2 |
% |
| Amortization and impairment of
intangible assets |
|
11,171 |
|
11,125 |
|
(46 |
) |
0 |
% |
|
Operating income |
|
5,633 |
|
6,559 |
|
(926 |
) |
14 |
% |
1 Financial results excluding the impact of hyperinflation (IAS
29) is a non-GAAP measure. Refer to the definitions in section
“Non-GAAP measures” for additional details2 A positive variance
represents a positive impact to net income due to the application
of IAS 29 and a negative variance represents a negative impact to
net income due to the application of IAS 293 Percentage change is
presented in absolute values
NON-GAAP MEASURES [In thousands
of Canadian dollars]
Non-GAAP measures
The Company discloses non-GAAP measures and
adjusted EBITDA per share ratio that do not have standardized
meanings prescribed by IFRS. The Company believes that
shareholders, investment analysts and other readers find such
measures helpful in understanding the Company’s financial
performance. Non-GAAP financial measures and adjusted EBITDA per
share ratio do not have any standardized meaning prescribed by IFRS
and may not have been calculated in the same way as similarly named
financial measures presented by other companies.
The Company uses the following non-GAAP
measures:
Revenues and Financial results excluding
the impact of hyperinflation under IAS 29: Revenues and
financial results under IFRS are adjusted to remove the impact of
hyperinflation under IAS 29. Impact of hyperinflation under IAS 29
is calculated by applying an appropriate general price index to
express the effects of inflation. After applying the effects of
translation, the statement of income is converted using the closing
foreign exchange rate of the month.
Revenues/financial results at constant currency
allow revenues/financial results to be viewed without the impact of
fluctuations in foreign currency exchange rates thereby
facilitating the comparison of results period over period. The
presentation of revenues/financial results under constant currency
is considered to be a non-GAAP measure and does not have any
standardized meaning under GAAP. As a result, the information
presented may not be comparable to similar measures presented by
other companies.
EBITDA: Operating income or
loss adjusted to exclude amortization and impairment of non-current
assets, depreciation, purchase price allocation accounting
adjustments, and the impact of IAS 29 (accounting under
hyperinflation) but to include costs related to leases.
Adjusted EBITDA: EBITDA
adjusted for acquisition costs and non-recurring expenses.
Adjustments include the following:
- With the adoption of IFRS 16, the
lease payments of Knight are not reflected in operating expenses.
The IFRS 16 adjustment approximates the cash outflow related to
leases of Knight.
- Acquisition costs relate to costs
incurred on legal, consulting and advisory fees for the
acquisitions.
- Other non-recurring expenses relate
to expenses incurred by Knight that are not due to, and are not
expected to occur in, the ordinary course of business.
For the three months ended March 31, the Company calculated
EBITDA and adjusted EBITDA as follows:
| |
|
|
Change |
|
|
Q1-23 |
|
Q1-22 |
|
$1 |
|
%2 |
|
| Operating (loss)
income |
5,633 |
|
(316 |
) |
5,949 |
|
n/a4 |
|
| Adjustments to operating (loss)
income: |
|
|
|
|
| Amortization and impairment of
intangible assets |
11,171 |
|
11,288 |
|
(117 |
) |
1 |
% |
| Depreciation of property, plant
and equipment and ROU assets |
1,912 |
|
2,093 |
|
(181 |
) |
9 |
% |
| Lease costs (IFRS 16
adjustment) |
(731 |
) |
(646 |
) |
(85 |
) |
13 |
% |
|
Impact of IAS 29 |
252 |
|
893 |
|
(641 |
) |
72 |
% |
|
EBITDA3 |
18,237 |
|
13,312 |
|
4,925 |
|
37 |
% |
|
Acquisition and transaction costs |
— |
|
— |
|
— |
|
n/a4 |
|
| Other non-recurring expenses |
— |
|
— |
|
— |
|
n/a4 |
|
|
Adjusted EBITDA3 |
18,237 |
|
13,312 |
|
4,925 |
|
37 |
% |
1 A positive variance represents a positive
impact to net income (loss) and a negative variance represents a
negative impact to net income (loss)2 Percentage change is
presented in absolute values3 EBITDA and adjusted EBITDA are
non-GAAP measures, refer to the definitions in section “Non-GAAP
measures” for additional details4 Percentage change not
relevant
Adjusted EBITDA per share:
Adjusted EBITDA over number of common shares outstanding at the end
of the respective period.
The Company calculated adjusted EBITDA per share
as follows:
|
|
|
Q1-23 |
|
Q1-22 |
|
| Adjusted
EBITDA1 |
|
18,237 |
|
13,312 |
|
| Adjusted EBITDA per common
share1 |
|
0.166 |
|
0.114 |
|
| Number of
common shares outstanding at period end (in thousands) |
110,082 |
|
116,546 |
|
1 Ajusted EBITDA is
non-GAAP measure and adjusted EBITDA per share is a non-GAAP
ratio, refer to the definition in section "Non-GAAP Measures" for
additional details
INTERIM CONSOLIDATED BALANCE
SHEETS[In thousands of Canadian dollars][Unaudited]
|
As at |
|
|
|
|
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
| ASSETS |
|
|
|
|
| Current |
|
|
|
|
| Cash and cash equivalents |
56,218 |
|
71,679 |
|
| Marketable securities |
89,094 |
|
85,826 |
|
| Trade receivables |
103,573 |
|
94,890 |
|
| Other receivables |
13,254 |
|
12,930 |
|
| Inventories |
98,988 |
|
92,489 |
|
| Prepaids and deposits |
1,773 |
|
1,704 |
|
| Other current financial
assets |
38,062 |
|
33,716 |
|
|
Income taxes receivable |
2,248 |
|
2,385 |
|
|
Total current assets |
403,210 |
|
395,619 |
|
|
|
|
|
|
|
| Marketable securities |
15,157 |
|
15,169 |
|
| Prepaids and deposits |
3,927 |
|
4,355 |
|
| Right-of-use assets |
5,455 |
|
5,827 |
|
| Property, plant and
equipment |
16,810 |
|
16,806 |
|
| Intangible assets |
331,518 |
|
338,780 |
|
| Goodwill |
84,797 |
|
82,274 |
|
| Other financial assets |
126,746 |
|
142,847 |
|
| Deferred income tax
assets |
13,509 |
|
9,310 |
|
| Other
long-term receivables |
43,645 |
|
43,849 |
|
|
Total non-current assets |
641,564 |
|
659,217 |
|
|
Total assets |
1,044,774 |
|
1,054,836 |
|
INTERIM CONSOLIDATED BALANCE SHEETS
(continued)[In thousands of Canadian
dollars][Unaudited]
|
As at |
|
|
March 31, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
|
| Current |
|
|
|
|
| Accounts payable and accrued
liabilities |
107,989 |
|
106,061 |
|
| Lease liabilities |
2,132 |
|
2,578 |
|
| Other liabilities |
1,687 |
|
5,793 |
|
| Bank loans |
20,293 |
|
17,674 |
|
| Income taxes payable |
2,252 |
|
2,274 |
|
| Other balances payable |
1,099 |
|
6,941 |
|
|
Total current liabilities |
135,452 |
|
141,321 |
|
|
|
|
|
|
|
| Accounts payable and accrued
liabilities |
3,005 |
|
2,669 |
|
| Lease liabilities |
5,172 |
|
5,050 |
|
| Bank loan |
55,040 |
|
52,398 |
|
| Other balances payable |
21,903 |
|
23,176 |
|
| Deferred income tax
liabilities |
5,333 |
|
4,365 |
|
|
Total liabilities |
225,905 |
|
228,979 |
|
|
|
|
|
|
|
| Shareholders’
Equity |
|
|
|
|
| Share capital |
587,173 |
|
599,055 |
|
| Warrants |
117 |
|
117 |
|
| Contributed surplus |
24,447 |
|
23,664 |
|
| Accumulated other comprehensive
loss |
48,154 |
|
41,266 |
|
|
Retained earnings |
158,978 |
|
161,755 |
|
|
Total shareholders’ equity |
818,869 |
|
825,857 |
|
|
Total liabilities and
shareholders’ equity |
1,044,774 |
|
1,054,836 |
|
INTERIM CONSOLIDATED STATEMENTS OF
LOSS[In thousands of Canadian dollars, except for share
and per share amounts][Unaudited]
|
|
Three months ended March 31, |
|
|
|
2023 |
|
2022 |
|
|
|
|
|
| Revenues |
82,597 |
|
63,807 |
|
|
Cost of goods sold |
41,835 |
|
31,330 |
|
|
Gross margin |
40,762 |
|
32,477 |
|
|
|
|
|
| Expenses |
|
|
| Selling and marketing |
10,665 |
|
9,690 |
|
| General and administrative |
9,106 |
|
8,832 |
|
| Research and development |
4,187 |
|
2,983 |
|
| Amortization and impairment of
intangible assets |
11,171 |
|
11,288 |
|
|
Operating (loss) income |
5,633 |
|
(316 |
) |
| |
|
|
| Interest income on financial
instruments measured at amortized cost |
(2,179 |
) |
(346 |
) |
| Other interest income |
(1,173 |
) |
(1,134 |
) |
| Interest expense |
2,791 |
|
1,111 |
|
| Other expense |
94 |
|
90 |
|
| Net loss on financial instruments
measured at fair value through profit or loss |
11,847 |
|
16,363 |
|
| Foreign exchange (gain) loss |
(73 |
) |
6,189 |
|
| Gain on hyperinflation |
(728 |
) |
(277 |
) |
|
Income (loss) before income taxes |
(4,946 |
) |
(22,312 |
) |
| |
|
|
| Income tax |
|
|
| Current |
2,106 |
|
173 |
|
|
Deferred |
(3,115 |
) |
(3,674 |
) |
|
Income tax recovery |
(1,009 |
) |
(3,501 |
) |
|
Net loss for the period |
(3,937 |
) |
(18,811 |
) |
|
|
|
|
| Basic and diluted net loss per
share |
(0.04 |
) |
(0.16 |
) |
|
Basic and diluted weighted average number of common shares
outstanding |
111,518,305 |
|
117,173,258 |
|
INTERIM CONSOLIDATED STATEMENTS OF CASH
FLOWS[In thousands of Canadian dollars][Unaudited]
|
|
Three months endedMarch 31, |
|
|
|
2023 |
|
2022 |
|
|
OPERATING ACTIVITIES |
|
|
| Net loss for the
period |
(3,937 |
) |
(18,811 |
) |
| Adjustments reconciling net
income to operating cash flows: |
|
|
|
Depreciation and amortization |
13,083 |
|
13,381 |
|
|
Net gain on financial instruments |
11,847 |
|
16,363 |
|
|
Unrealized foreign exchange loss |
(1,253 |
) |
6,650 |
|
|
Other operating activities |
(1,104 |
) |
(2,811 |
) |
|
|
18,636 |
|
14,772 |
|
| Changes in non-cash working
capital and other items |
(14,925 |
) |
(1,893 |
) |
|
Cash inflow from operating activities |
3,711 |
|
12,879 |
|
|
|
|
|
| INVESTING
ACTIVITIES |
|
|
| Purchase of marketable
securities |
(109,216 |
) |
(15,808 |
) |
| Proceeds on maturity of
marketable securities |
105,968 |
|
36,546 |
|
| Investment in funds |
(22 |
) |
(40 |
) |
| Purchase of intangible
assets |
(7,667 |
) |
(234 |
) |
| Other investing activities |
2,223 |
|
354 |
|
|
Cash (outflow) inflow from investing
activities |
(8,714 |
) |
20,818 |
|
|
|
|
|
| FINANCING
ACTIVITIES |
|
|
| Repurchase of common shares
through Normal Course Issuer Bid |
(10,514 |
) |
(6,663 |
) |
| Principal repayment on bank
loans |
(587 |
) |
— |
|
| Proceeds from bank loans |
647 |
|
422 |
|
| Other financing activities |
(813 |
) |
(571 |
) |
|
Cash outflow from financing activities |
(11,267 |
) |
(6,812 |
) |
|
|
|
|
| Increase (decrease) in
cash and cash equivalents during the period |
(16,270 |
) |
26,885 |
|
| Cash and cash equivalents,
beginning of the period |
71,679 |
|
85,963 |
|
|
Net foreign exchange difference |
809 |
|
609 |
|
|
Cash and cash equivalents, end of the period |
56,218 |
|
113,457 |
|
|
|
|
|
| Cash and cash equivalents |
56,218 |
|
113,457 |
|
| Marketable securities |
104,251 |
|
42,939 |
|
|
Total cash, cash equivalents and marketable
securities |
160,469 |
|
156,396 |
|
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