Haivision reports record quarterly
performance
with 23.3% year-over-year revenue growth
MONTREAL, March 15, 2022 /CNW Telbec/ - Haivision
Systems Inc. ("Haivision" or the "Company")
(TSX: HAI), a leading global provider of mission critical,
real-time IP video solutions, today announced its results for the
first quarter ended January 31,
2022.
Mirko Wicha, Chairman and CEO of
Haivision said, "We continue to build on the momentum generated in
our first year as a public Company. We are seeing continued
demand for our products as demonstrated by this quarter's record
revenue, as we continue to execute our vision and strategy set
forward during our IPO. We are also very excited with the
recent announcement to acquire Aviwest SAS, adding ultra-low
latency 5G and advanced network bonding to our already
comprehensive video contribution solutions."
Q1 2022 Financial Results
- Revenue of $28.3 million was an
increase of $5.4 million or 23.3%
from the prior year period.
- Gross Margins* for the quarter were 69.4%.
- Operating loss for the quarter was $0.1
million, an increase in operating income of $11.2 million from the prior year period largely
related to share-based payments.
- Adjusted EBITDA* was $2.1
million, a decrease of $1.4
million from the prior year period, but represents the
thirty-third (33rd) consecutive quarter of positive
Adjusted EBITDA*.
- Adjusted EBITDA margin for the quarter was 7.6% compared to
15.5% in the prior year period.
- Net loss of $0.5 million was an
increase in net income of $11.6
million from the prior year period.
- Cash at quarter end was $24.0
million.
Key Company Highlights
- CineMassive Displays, LLC renamed as Haivision MCS, LLC, to
highlight our focus on "Mission-Critical Systems."
- On February 24, 2022, Haivision
announced an agreement to acquire Aviwest SAS adding 5G mobile
technology and network bonding to Haivision's industry-leading
ultra-low latency video streaming and networking solutions.
- Haivision won its second Emmy® Award for Technology &
Engineering for the "Management of IP Multicast Video Distribution
to Desktops and TVs in News and Media Production Facilities" for
our flagship multisite live video distribution and IPTV solutions,
Haivision Media Platform.
- Haivision awarded "Best Corporate Video and Enterprise Video
Content Management Platform" at the 2021 Streaming Media Readers'
Choice Awards.
- Published our third annual Broadcast IP Transformation Report,
showing the adoption of SRT and 5G as two of the most influential
trends in the industry.
- Haivision's SRT Alliance has now surpassed 550 members
supporting our open-source initiative.
- Released products supporting SMPTE-2110 enabling all IP based
workflows in Broadcast.
"We continue to be excited the progress we have made with
CineMassive, and the cross-selling of solutions that have resulted
in synergistic sales." said Mirko
Wicha, Chairman and CEO of Haivision. "We have also
rebranded CineMassive Displays as Haivision MCS to better highlight
our focus on 'Mission-Critical Systems" in our defense, government,
enterprise, and public safety verticals.
Dan Rabinowitz, CFO and EVP,
Operations stated, "The Aviwest acquisition is expected to close at
the end of the month, and we expect it to be immediately accretive
in the short-term with opportunities to reach our typical levels of
Adjusted EBITDA contribution by the end of this calendar year."
First Quarter 2022 Financial Results
First quarter revenues of $28.3
million, represented a 23% increase compared to $23.0 million for the prior year period.
Gross Margins* for the quarter were 69.3% compared to 76.4% for the
same period in the prior year. The decrease in Gross Margins*
results largely from the addition of CineMassive's business which
historically operated at a lower overall gross margin than
Haivision's traditional business. Adjusted EBITDA* in the quarter
of $2.1 million, a $1.4 million decrease compared to the
$3.6 million for the prior year
period. The decrease in Adjusted EBITDA is largely related to
the $5.3 million increase in revenue
contributing to a $2.1 million
increase in gross profit; offset by increases in total expenses
(excluding share-based payments, amortization, and depreciation) of
$3.4 million.
Operating loss for the quarter was $0.1
million an increase of $11.2
million from the same period in the prior year, Net loss of
$0.5 million an increase of
$11.6 million from the same period in
the prior year. The increases in operating income and net income
are largely related to the $5.3
million increase in revenue contributing to a $2.1 million increase in gross profit and
the $14.1 million increase in share-based payments related to
the exercise of options on the legacy ESOP prior to the initial
public offering in December 2020 offset by increases in total
expenses (excluding share-based payments) of $4.6 million.
* Represents a non-IFRS measure. For the relevant definition,
see "Non-IFRS Measures" below. As applicable, a reconciliation of
this non-IFRS measure to the most directly comparable IFRS
financial measure is included in the tables at the end of this
press release and in the Company's management's discussion and
analysis for the three months and three months ended January 31, 2022.
Conference Call Notification
Haivision will hold a conference call to discuss its fourth
quarter financial results on Tuesday,
March 15, 2022 at 5:30 pm (ET). To
register for the call, please use this link
http://www.directeventreg.com/registration/event/8662097. After
registering, a confirmation will be sent through email, including
dial in details and unique conference call codes for entry.
Financial Statements, Management's Discussion and Analysis
and Additional Information
Haivision's consolidated audited financial statements for the
first quarter ended January 31, 2022
(the "Q1 Financial Statements"), the management's discussion
and analysis thereon and additional information relating to
Haivision and its business can be found under Haivision's profile
on SEDAR at www.sedar.com. The financial information presented in
this release was derived from the Q1 Financial Statements.
Forward-Looking Statements
This release includes "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of applicable securities laws,
including, without limitation, statements regarding the Company's
growth opportunities and its ability to execute on its growth
strategy. In some cases, but not necessarily in all cases,
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "targets", "expects"
or "does not expect", "is expected", "an opportunity exists", "is
positioned", "estimates", "intends", "assumes", "anticipates" or
"does not anticipate" or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might", "will" or "will be taken", "occur" or
"be achieved". In addition, any statements that refer to
expectations, projections or other characterizations of future
events or circumstances contain forward-looking statements.
Forward-looking statements are not historical facts, nor guarantees
or assurances of future performance but instead represent
management's current beliefs, expectations, estimates and
projections regarding future events and operating performance.
Forward-looking statements are necessarily based on opinions,
assumptions and estimates that, while considered reasonable by
Haivision as of the date of this release, are subject to inherent
uncertainties, risks and changes in circumstances that may differ
materially from those contemplated by the forward-looking
statements. Important factors that could cause actual results to
differ, possibly materially, from those indicated by the
forward-looking statements include, but are not limited to, the
risk factors identified under "Risk Factors" in the Company's
latest annual information form, and in other periodic filings that
the Company has made and may make in the future with the securities
commissions or similar regulatory authorities in Canada, all of which are available under the
Company's SEDAR profile at www.sedar.com. These factors are not
intended to represent a complete list of the factors that could
affect Haivision. However, such risk factors should be considered
carefully. There can be no assurance that such estimates and
assumptions will prove to be correct. You should not place undue
reliance on forward-looking statements, which speak only as of the
date of this release. Haivision undertakes no obligation to
publicly update any forward-looking statement, except as required
by applicable securities laws.
Non-IFRS Measures
Haivision's consolidated financial statements for the first
quarter ended January 31,
2022 are prepared in accordance with International Financial
Reporting Standards ("IFRS"), as issued by the International
Accounting Standards Board. This press release makes reference to
certain non-IFRS measures, including "EBITDA", "Gross Margin",
"Adjusted EBITDA" and "Adjusted EBITDA Margin". 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.
Accordingly, these measures should not be considered in isolation
or as a substitute for analysis of our financial information
reported under IFRS. Rather, these non-IFRS measures are used to
provide investors with supplemental measures of our operating
performance and thus highlight trends in our core business that may
not otherwise be apparent when relying solely on IFRS measures. We
also believe that securities analysts, investors, and other
interested parties frequently use non-IFRS measures in the
evaluation of issuers. Our management also uses non-IFRS measures
to facilitate operating performance comparisons from period to
period, to prepare annual operating budgets and forecasts and to
determine components of management compensation.
Adjusted EBITDA is a supplemental measure used by management to
assess the financial performance of our business. Adjusted EBITDA
is also a key metric that management uses prior to execution of any
strategic investing or financing opportunity. "EBITDA" is defined
as earnings (loss) before income taxes, depreciation, amortization,
and financial expenses and "Adjusted EBITDA" is defined as EBITDA,
as adjusted for stock-based compensation and certain non-recurring
expense items. "Adjusted EBITDA Margin" represents Adjusted EBITDA
divided by revenue. "Gross Margin" represents gross profit divided
by revenue.
A reconciliation of EBITDA and Adjusted EBITDA to Net income
(loss) is included in the tables at the end of this press release
and in the Company's management discussion and analysis for the
three months ended January 31,
2022.
About Haivision
Haivision is a leading global provider of mission-critical,
real-time video streaming and networking solutions. Our connected
cloud and intelligent edge technologies enable global organizations
to engage audiences, enhance collaboration, and support decision
making. We provide high quality, low latency, secure, and reliable
live video at a global scale. Haivision open sourced its
award-winning SRT low latency video streaming protocol and founded
the SRT Alliance to support its adoption. Awarded two Emmys® for
Technology and Engineering from the National Academy of Television
Arts and Sciences, Haivision continues to fuel the future
of IP video transformation. Founded in 2004, Haivision is
headquartered in Montreal and
Chicago with offices, sales, and
support located throughout the Americas, Europe, and Asia. Learn more at haivision.com.
Thousands of Canadian
dollars (except per
share amounts)
|
|
|
|
|
|
|
|
|
Three months
ended
January 31,
|
|
2022
|
|
2021
|
|
|
|
|
|
($)
|
|
($)
|
|
|
|
|
Revenue..................................................................
|
28,334
|
|
22,985
|
Cost of
sales.......................................................
|
8,665
|
|
5,433
|
Gross
profit.........................................................
|
19,669
|
|
17,552
|
|
|
|
|
Expenses
|
|
|
|
Sales and
marketing............................................
|
5,943
|
|
5,109
|
Operations and
support.......................................
|
2,564
|
|
1,319
|
Research and
development.................................
|
6,201
|
|
4,879
|
General and
administrative..................................
|
4,314
|
|
3,109
|
Share-based
payment..........................................
|
769
|
|
14,449
|
|
19,791
|
|
28,665
|
|
|
|
|
Operating Profit
(loss)............................................
|
(122)
|
|
(11,313)
|
Financial
expenses..............................................
|
154
|
|
109
|
Income (loss)
before income taxes.......................
|
(276)
|
|
(11,421)
|
|
|
|
|
Income
taxes
|
|
|
|
Current................................................................
|
(117)
|
|
952
|
Deferred..............................................................
|
323
|
|
(288)
|
|
|
|
|
|
206
|
|
664
|
|
|
|
|
Net income
(loss)....................................................
|
(482)
|
|
(12,086)
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
Foreign currency
translation adjustment...............
|
2,048
|
|
(490)
|
Comprehensive
income (loss)................................
|
1,566
|
|
(12,575)
|
|
|
|
|
Net income per
share
|
|
|
|
Net income (loss) per share (basic and diluted).....
|
($0.02)
|
|
($0.60)
|
Weighted average number of shares outstanding
|
|
|
|
Basic...............................................................
|
28,785,252
|
|
21,098,923
|
Diluted.............................................................
|
28,785,252
|
|
21,098,923
|
|
|
|
|
|
|
|
|
Thousands of Canadian
dollars
|
|
|
As
at
|
|
January 31,
2022
|
|
October 31,
2021
|
|
$
|
|
$
|
|
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash……………………………………………………….
|
24,030
|
|
26,838
|
Trade and other
receivables……………………………
|
21,371
|
|
19,476
|
Investment tax credits
receivable………………………
|
2,000
|
|
2,000
|
Inventories………………………………………………..
|
10,091
|
|
8,840
|
Prepaid expenses
……………………………………….
|
4,845
|
|
3,226
|
|
62,337
|
|
60,380
|
|
|
|
|
Property and
equipment ………………………………………….
|
1,678
|
|
1,848
|
Right-of-use
assets.……………………………………………….
|
7,670
|
|
7,926
|
Intangible
assets..………………………………………………….
|
16,813
|
|
17,533
|
Goodwill
…………………………………………………………….
|
31,014
|
|
30,079
|
Non-refundable
investment tax credits receivable …………….
|
2,815
|
|
2,535
|
Deferred income
taxes…………………………………………….
|
1,914
|
|
2,179
|
|
61,904
|
|
62,100
|
|
124,241
|
|
122,480
|
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
Trade and other
payables……………………………….
|
11,177
|
|
12,504
|
Income taxes payable
…………………………………...
|
2,585
|
|
2,960
|
Current portion of
lease liabilities ………………………
|
1,016
|
|
1,002
|
Deferred revenue
………………………………………...
|
8,933
|
|
7,913
|
|
23,711
|
|
24,379
|
|
|
|
|
Lease liabilities
…………………………………………………….
|
7,459
|
|
7,587
|
Deferred revenue
………………………………………………….
|
2,239
|
|
1,593
|
|
33,409
|
|
33,559
|
|
|
|
|
Equity
|
|
|
|
Share capital
……………………………………………………….
|
90,176
|
|
89,785
|
Retained earnings
…………………………………………………
|
(3,484)
|
|
(3,002)
|
Stock option
reserve……………………………………………….
|
2,638
|
|
2,684
|
Cumulative
translation adjustment ………………………………
|
1,502
|
|
(546)
|
|
90,832
|
|
88,921
|
|
124,241
|
|
122,480
|
|
|
|
|
Thousands of Canadian
dollars
|
|
|
|
|
|
|
|
|
Three months
ended
January 31,
|
|
2022
|
|
2021
|
|
|
|
|
|
($)
|
|
($)
|
|
|
|
|
Net Income
(loss)................................................
|
(482)
|
|
(12,086)
|
Income
Taxes..................................................
|
206
|
|
664
|
|
|
|
|
Income before
income taxes..............................
|
(276)
|
|
(11,422)
|
|
|
|
|
Depreciation.....................................................
|
515
|
|
289
|
Amortization.....................................................
|
980
|
|
138
|
Financial
expenses..........................................
|
154
|
|
109
|
|
|
|
|
|
|
|
|
EBITDA(1)...........................................................
|
1,373
|
|
(10,886)
|
|
|
|
|
Share-based payment (LTIP).........................
|
769
|
|
324
|
Share-based payment (ESOP).......................
|
--
|
|
14,125
|
|
|
|
|
Adjusted
EBITDA(1)..............................................
|
2,142
|
|
3,563
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)...............................
|
7.6%
|
|
15.5 %
|
|
_______________
|
Note:
|
(1)
|
Non-IFRS measure. See
"Non-IFRS Measures"
|
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SOURCE Haivision Systems Inc.