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Knight Therapeutics Reports Second Quarter 2024

August 08, 2024 | Last Trade: C$5.21 0.01 -0.19

MONTREAL, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Knight Therapeutics Inc. (TSX: GUD) ("Knight" or “the Company”), a leading pan- American (ex-US) specialty pharmaceutical company, today reported financial results for its second quarter ended June 30, 2024. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified.

Q2 2024 Highlights

Financial Results

  • Delivered record revenues of $95,573, an increase of $5,668 or 6% over the same period in prior year driven by growth of our key promoted products partly offset by our mature products.
  • Gross margin of $47,337 or 50% of revenues compared to $37,493 or 42% of revenues in the same period in prior year.
  • Adjusted EBITDA1 was $15,744, an increase of $1,475 or 10% over the same period in prior year.
  • Adjusted EBITDA per share1 of $0.16, an increase of $0.03 or 23% over the same period in prior year.
  • Net loss was $1,942, compared to net income of $1,840 in the same period in the prior year.
  • Cash outflow from operations was $1,086, compared to $1,486 in the same period in prior year.

Corporate Developments

  • Completed the NCIB launched in July 2023 with a total purchase of 5,999,524 shares at an average price of $4.87 for aggregate cash consideration of $29,231.
  • 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.

Products

  • Entered into an exclusive supply and distribution agreement for Jornay PM™ (methylphenidate HCI extended-release capsules) for Canada and Latin America.

Subsequent to quarter-end

  • Launched a NCIB in July to purchase up to 5,312,846 common shares of the Company over the next year.

“I am excited to report that for the six months ended June 30, 2024, we delivered record revenues of over $180 million and adjusted EBITDA of over $29 million. This strong performance is the result of the growth of our key promoted products and of our commercial execution across Canada and Latin America. In addition, we have expanded and strengthened our pipeline and will be leveraging our existing neurology infrastructure with the in-licensing of Jornay PMTM, our third neurology product added in the last nine months,” said Samira Sakhia, President and Chief Executive Officer of Knight Therapeutics Inc.

1 Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP measures. Refer to section Non-GAAP measures for additional details.

SELECTED FINANCIAL RESULTS REPORTED UNDER IFRS
[In thousands of Canadian dollars]
   Change  Change
 Q2-24Q2-23$1   %2YTD-24YTD-23$1 %2
Revenues95,57389,9055,668 6 %182,177172,5029,675 6%
Gross margin47,33737,4939,844  26%89,03678,25510,781 14%
Gross margin %50%42%   49%45%   
Selling and marketing13,26412,874(390) 3%25,91323,539(2,374)10%
General and administrative12,0999,119(2,980) 33%22,63718,225(4,412)24%
Research and development5,8064,336(1,470) 34%10,7868,523(2,263)27%
Amortization of intangible assets11,67411,274(400) 4%22,54622,445(101)—%
Operating expenses42,84337,603(5,240)14%81,88272,732(9,150)13%
Operating income (loss)4,494(110)4,604 4185%7,1545,5231,631 30%
Net (loss) income(1,942)1,840(3,782)206%   (6,488)(2,097)(4,391)209%

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 values

SELECTED FINANCIAL RESULTS EXCLUDING IAS 291
[In thousands of Canadian dollars]
   Change  Change
 Q2-24Q2-23$ %YTD-24YTD-23$ %
Revenues94,12190,4003,721 4%179,917173,0676,850 4%
Gross margin45,28140,2445,037 13%85,97781,6304,347 5%
Gross margin %48%45%   48%47%  
Selling and marketing12,96812,985(17)—%25,46123,6981,763 7%
General and administrative11,5789,1882,390 26%21,79018,0753,715 21%
Research and development5,5774,623954 21%10,4178,7251,692 19%
Amortization of intangible assets11,69911,189510 5%22,54522,314231 1%
Operating expenses41,82237,9853,837 10%80,21372,8127,401 10%
EBITDA115,64114,2691,372 10%29,23032,506(3,276)10%
Adjusted EBITDA115,74414,2691,475 10%29,33332,506(3,173)10%
Adjusted EBITDA per share10.160.130.03 23%0.290.30(0.01)3%

1 Financial results excluding the impact of IAS 29, EBITDA, adjusted EBITDA and adjusted EBITDA per share are non-GAAP measures. Refer to section Non- GAAP measures” for additional details.

Revenues

For the quarter ended June 30, 2024, revenues excluding the impact of IAS 29 were $94,121 an increase of $3,721 or 4% mainly driven by a growth of $7,125 or 11% from our key promoted products offset by a decline in our mature products. The table below provides revenues by therapeutic area.

 Excluding the impact of IAS 291
   Change
Therapeutic AreaQ2-24Q2-23$ %
Oncology/Hematology35,62527,9357,690 28%
Infectious Diseases37,82445,567(7,743)17%
Other Specialty20,67216,8983,774 22%
Total94,12190,4003,721 4%

1 Revenues excluding the impact of IAS 29 is a non-GAAP measure, refer to section Non-GAAP measures” for additional details.

The increase in revenues is explained by the following:

  • Oncology/Hematology: The oncology/hematology portfolio grew by $7,690 due to the continued growth of key promoted products including Lenvima®, Akynzeo®, Trelstar® and the launch of Minjuvi® in Brazil.
  • Infectious Diseases: The infectious diseases portfolio decreased by $7,743 driven mainly by the timing of orders for Ambisome® under the MOH contract, a decrease in the demand of Impavido® partly offset by the growth of our key promoted products including Cresemba® and timing of orders for certain products. During Q2-24 the Company delivered $8,900 of Ambisome® to MOH compared to $18,000 in Q2-23.
  • MOH Contract: The Company signed a contract with the Ministry of Health of Brazil for Ambisome® in December 2022 ("2022 MOH Contract"). Knight delivered a total of $34,600 under the 2022 MOH Contract as follows: $7,000 in 2022, $25,200 in 2023 ($2,400 in Q1-23, $18,000 in Q2-23 and $4,800 in Q4-23) and $2,400 Q1-24. In December 2023, Knight signed a new contract with the MOH ("2024 MOH Contract") and delivered $6,800 in Q1-24 and $8,900 in Q2-24. The total MOH sales Ambisome® delivered in Q2-24 and YTD-24 was $8,900 and $18,100, respectively.
  • Other Specialty: The other specialty portfolio increased by $3,774, primarily driven by the commercial transition of Exelon® from Novartis to Knight. As a result of advanced purchases by certain customers in Q1-23, the revenues of Exelon® were negatively impacted in Q2-23.

Gross margin

Excluding the impact of IAS 29, gross margin as a percentage of revenues was 48% in Q2-24 compared to 45% in Q2-23. The increase in the Q2-24 gross margin, as a percentage of revenues, was due to product mix including a lower proportion of Ambisome® sales to MOH.

Selling and marketing ("S&M") expenses: For the quarter ended June 30, 2024 S&M expenses excluding the impact of IAS 29, were $12,968 in Q2-24 compared to $12,985 in Q2-23, a decrease of $17. There was no significant variance.

General and administrative ("G&A") expenses: For the quarter ended June 30, 2024 G&A expenses excluding the impact of IAS 29, were $11,578 in Q2-24 compared to $9,188 in Q2-23, an increase of $2,390 or 26%. The increase was mainly driven by an increase in structure and compensation expenses.

Research and development ("R&D") expenses: For the quarter ended June 30, 2024 R&D expenses excluding the impact of IAS 29, were $5,577 in Q2-24 compared to 4,623 in Q2-23, an increase of $954 or 21%. The increase was driven by an increase in product development activities in connection with our pipeline products and medical initiatives related to key promoted products. Knight invested $815 in Q2-24, an increase of $795 versus the prior year on its pipeline development activities. All costs related to development activities have been expensed which typically include regulatory submissions, analytical method transfers, stability studies and bio equivalence studies.

Adjusted EBITDA

For the quarter ended June 30, 2024, adjusted EBITDA increased by $1,475 or 10%. The increase was driven by a higher gross margin partly offset by higher G&A expenses, mainly related to structure and compensation increase and an increase in R&D expenses mainly due to an increase in our product development activities behind our pipeline.

SELECT BALANCE SHEET ITEMS
[In
thousands of Canadian dollars]
   June 30,
2024
 December 31,
2023
Change   
 $  %
Cash, cash equivalents and marketable securities152,668161,825(9,157)6%
Trade and other receivables135,203141,684(6,481)5%
Inventories103,64591,83411,811 13%
Financial assets115,728128,369(12,641)10%
Accounts payable and accrued liabilities84,82190,617(5,796)6%
Bank loans50,95261,866(10,914)18%


Cash, cash equivalents and marketable securities
: As at June 30, 2024, Knight had $152,668 in cash, cash equivalents and marketable securities, a decrease of $9,157 or 6% as compared to December 31, 2023. The decrease is mainly due to the settlement of upfront and milestone payments in connection with product licensing agreements including Qelbree™, IPX203, Jornay PM™ and Cresemba®, principal and interest payments on bank loans and repurchase of shares through the NCIB, partly offset by the cash inflows from operations. The cash inflows from operating activities were $29,795 driven by the operating results adjusted for noncash items such as depreciation, amortization as well as decrease in working capital of $3,576. The decrease in working capital was mainly due to a decrease in accounts receivable driven by the timing of collections from customers and an increase in inventory excluding the impact of IAS 29 driven by the timing of sales and purchases of inventory.

Bank loans: As at June 30, 2024, bank loans were at $50,952, a decrease of $10,914 or 18% as compared December 31, 2023 due to principal repayments of bank loans as well as the depreciation of the Brazilian Real and Colombian Pesos.

Corporate Updates

NCIB

On July 11, 2024, the Company announced that the Toronto Stock Exchange approved its notice of intention to launch a NCIB (“2024 NCIB”). Under the terms of the 2024 NCIB, Knight may purchase for cancellation up to 5,312,846 common shares of the Company which represented 10% of its public float as at June 30, 2024. The 2024 NCIB commenced on July 15, 2024 and will end on the earlier of July 14, 2025 or when the Company completes its maximum purchases under the NCIB. Furthermore, Knight entered into an agreement with a broker to facilitate purchases of its common shares under the NCIB.

During the three-month period ended June 30, 2024, the Company purchased 205,661 common shares at an average price of $6.04 for aggregate cash consideration of $1,242 under the 2023 NCIB. Subsequent to the quarter-end up to July 31, 2024, the Company purchased an additional 165,000 common shares at an average purchase price of $5.67 for an aggregate cash consideration of $936.

The Company has purchased an aggregate of 42.5 million shares at an average price of $5.70 since the launch of its share buy back program in 2019.

Financial Outlook Update

Financial Outlook

Knight provides guidance on revenues on a non-GAAP basis. This is due to both the difficulty in predicting Argentinian inflation rates and its IAS 29 impact.

For fiscal 2024, Knight has increased its financial guidance on revenues and now expects to generate between $355 million to $365 million in revenues up from $335 to $350 million. The adjusted EBITDA1 is expected to be approximately 16% of revenues. The change in the financial outlook is primarily due to an improvement in forecasted LATAM currencies against the Canadian dollar as well as an acceleration of investments on our pipeline products. The guidance is based on a number of assumptions, including but not limited to the following:

  • no revenues or expenses for business development transactions not completed as at August 7, 2024
  • no unforeseen termination to our license, distribution & supply 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 material increase in provisions for inventory or trade receivables
  • no significant variations of forecasted foreign currency exchange rates
  • inflation 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 and adjusted EBITDA are 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 second quarter ended June 30, 2024, today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call.

Date: Thursday, August 8, 2024
Time: 8:30 a.m. ET
Telephone: Toll Free: 1-800-836-8184 or International 1-289-819-1350
Webcast: www.knighttx.com or Webcast
This 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.sedarplus.ca.

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, 2023 as filed on www.sedarplus.ca. 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 SakhiaArvind Utchanah
President & Chief Executive OfficerChief Financial Officer
T: 514.484.4483T. +598.2626.2344
F: 514.481.4116 
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.knighttx.comWebsite: www.knighttx.com


NON-GAAP
MEASURES
[In thousands of Canadian dollars]

The Company discloses non-GAAP measures and ratios 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

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.

Revenues and financial results under IFRS are adjusted to remove the impact of hyperinflation under IAS 29. The 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 and financial results excluding the impact of hyperinflation under IAS 29 allow results to be viewed without the impact of IAS 29 thereby facilitating the comparison of results period over period. The presentation of revenues and financial results excluding the impact of hyperinflation under IAS 29 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.

The following tables are reconciliations of financial results under IFRS to financial results excluding the impact of hyperinflation under IAS 29.

  Q2-24    YTD-24  
 Reported 
under IFRS
IAS 29 
Adjustment
 Excluding the
Impact of  
IAS 29
Reported
under IFRS
IAS 29 
Adjustment
 Excluding the
Impact of  
IAS 29 
Revenues95,573(1,452)94,121182,177(2,260) 179,917
Cost of goods sold48,236604 48,84093,141799 93,940
Gross margin47,337(2,056)45,28189,036(3,059) 85,977
Gross margin (%)50%  48%49%  48%
Expenses        
Selling and marketing13,264(296)12,96825,913(452) 25,461
General and administrative12,099(521)11,57822,637(847) 21,790
Research and development5,806(229)5,57710,786(369) 10,417
Amortization of intangible assets11,67425 11,69922,546(1) 22,545
Operating income (loss)4,494(1,035)3,4597,154(1,390) 5,764

 

  Q2-23  YTD-23 
 Reported under IFRSIAS 29
Adjustment
Excluding the Impact of IAS 29Reported under IFRSIAS 29
Adjustment
Excluding the Impact of IAS 29
Revenues89,90549590,400172,502565173,067
Cost of goods sold52,412(2,256)50,15694,247(2,810)91,437
Gross margin37,4932,75140,24478,2553,37581,630
Gross margin (%)42% 45%45% 47%
Expenses      
Selling and marketing12,87411112,98523,53915923,698
General and administrative9,119699,18818,225(150)18,075
Research and development4,3362874,6238,5232028,725
Amortization of intangible assets11,274(85)11,18922,445(131)22,314
Operating income(110)2,3692,2595,5233,2958,818


Revenues
and Financial results at constant currency

Revenues and financial results at constant currency are obtained by translating the prior period revenues and financial results from the functional currencies to CAD using the conversion rates in effect during the current period. Furthermore, with respect to Argentina, the Company excludes the impact of hyperinflation and translates the revenues and results at the average exchange rate in effect for each of the periods.

Revenues and financial results at constant currency allow 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 and 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.

The following tables are reconciliations of financial results under IFRS to financial results and financial results at constant currency.        

 Q2-23 YTD-23
   Reported under IFRS IAS 29
Adjustment
 Constant Currency Adjustment Constant CurrencyReported under IFRSIAS 29
Adjustment
 Constant Currency AdjustmentConstant Currency
Revenues89,905 495 112 90,512172,502565 3,592176,659
Cost of goods sold52,412 (2,256)(224)49,93294,247(2,810)1,45392,890
Gross margin37,493 2,751 336 40,58078,2553,375 2,13983,769


Expenses
        
Selling and marketing12,874 111 (53)12,93223,539159 20523,903
General and administrative9,119 69 301 9,48918,225(150)50118,576
Research and development4,336 287 20 4,6438,523202 968,821
Amortization of intangible assets11,274 (85)233 11,42222,445(131)12822,442
Operating income(110)2,369 (165)2,0945,5233,295 1,20910,027


EBITDA

EBITDA is defined as operating income or loss adjusted to exclude amortization and impairment of intangible assets, depreciation, purchase price allocation accounting adjustments, and the impact of IAS 29 (accounting under hyperinflation) but to include costs related to leases.

EBITDA allows results to be viewed without the impact of amortization and impairment of intangible assets, depreciation, purchase price allocation accounting adjustments, and the impact of IAS 29 (accounting under hyperinflation) but to include costs related to leases fluctuations in foreign currency exchange rates thereby facilitating the comparison of results period over period. The presentation of EBITDA 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.

Adjusted EBITDA

Adjusted EBITDA is defined EBITDA adjusted for acquisition costs and non-recurring expenses.

Adjusted EBITDA allows results to be viewed without the impact of amortization and impairment of intangible assets, depreciation, purchase price allocation accounting adjustments, and the impact of IAS 29 (accounting under hyperinflation), acquisition costs and non-recurring expenses but to include costs related to leases fluctuations in foreign currency exchange rates thereby facilitating the comparison of results period over period. The presentation of adjusted EBITDA 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.

The following table is a reconciliation of operating income (loss) to EBITDA and adjusted EBITDA.

 Q2-24 Q2-23 YTD-24 YTD-23 
Operating income (loss)4,494 (110)7,154 5,523 
Adjustments to operating income (loss):        
Amortization of intangible assets11,674 11,274 22,546 22,445 
Depreciation of property, plant and equipment and ROU assets1,495 884 3,204 2,796 
Lease costs (IFRS 16 adjustment)(982)(636)(1,864)(1,367)
Impact of IAS 29(1,040)2,857 (1,810)3,109 
EBITDA15,641 14,269 29,230 32,506 
Acquisition and transition costs103  103  
Adjusted EBITDA15,744 14,269 29,333 32,506 


Adjusted
EBITDA per share

Adjusted EBITDA per share is defined as Adjusted EBITDA over number of common shares outstanding at the end of the respective period. The presentation of adjusted EBITDA per share is considered to be a non-GAAP ratio 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.

The following table calculates adjusted EBITDA per share as follows:

 Q2-24Q2-23YTD-24YTD-23
Adjusted EBITDA15,74414,26929,33332,506
Adjusted EBITDA per common share0.160.130.290.30
Number of common shares outstanding at period end (in thousands)101,327107,177101,327107,177

 

SELECTED FINANCIAL RESULTS AT CONSTANT CURRENCY
[In thousands of Canadian dollars]         
 Excluding impact of IAS 29
  Constant Currency1Change   Constant Currency1Change
 Q2-24Q2-23$ % YTD-24YTD-23$ %
Revenues94,12190,5123,609 4%179,917176,6593,258 2%
Gross margin45,28140,5804,701 12%85,97783,7692,208 3%
Gross margin %48%45%  48 %47 %  
Operating expenses41,82238,486(3,336)9%80,21373,742(6,471)9%
EBITDA15,64114,2271,414 10%29,23033,915(4,685)14%
Adjusted EBITDA15,74414,2271,517 11%29,33333,915(4,582)14%
Adjusted EBITDA per share0.160.130.03 23%0.290.31(0.02)6%

1 Financial results at constant currency is a non-GAAP measure. Refer to section “Non-GAAP measures” for additional details.

 INTERIM CONSOLIDATED BALANCE SHEETS
[In thousands of Canadian dollars]
[Unaudited] 
As atJune 30, 2024December 31, 2023
ASSETS  
Current  
Cash and cash equivalents60,80758,761
Marketable securities88,02895,657
Trade receivables84,97688,722
Other receivables5,8357,427
Inventories103,64591,834
Prepaids and deposits4,6014,881
Other current financial assets8,63115,753
Income taxes receivable4,0872,080
Total current assets360,610365,115


Marketable securities


3,833


7,407
Prepaids and deposits7,2837,767
Right-of-use assets6,6736,190
Property, plant and equipment14,81411,669
Intangible assets295,548289,960
Goodwill84,60479,844
Other financial assets107,097112,616
Deferred income tax assets20,51019,390
Other long-term receivables44,39245,535
Total non-current assets584,754580,378
Total assets945,364945,493

 

INTERIM CONSOLIDATED BALANCE SHEETS (continued)
[In thousands of Canadian dollars]
[Unaudited]
As atJune 30, 2024December 31, 2023


LIABILITIES AND EQUITY
  
Current  
Accounts payable and accrued liabilities77,80885,366
Lease liabilities2,5691,728
Other liabilities1,8011,046
Bank loans16,98817,850
Income taxes payable9181,182
Other balances payable5,7456,857
Total current liabilities105,829114,029


Accounts payable and accrued liabilities


7,013


5,251
Lease liabilities4,5875,497
Bank loans33,96444,016
Other balances payable26,22227,012
Deferred income tax liabilities4,9482,817
Total liabilities182,563198,622


Shareholders' equity
  
Share capital540,945540,046
Warrants117117
Contributed surplus25,66225,991
Accumulated other comprehensive income51,82029,829
Retained earnings144,257150,888
Total shareholders' equity762,801746,871
Total liabilities and shareholders' equity945,364945,493

 

INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS)
[In thousands of Canadian dollars, except for share and per share amounts] 
[Unaudited]
     
 Three months ended June 30,
 Six months ended June 30,
 
 2024 2023 2024 2023 
         
Revenues95,573 89,905 182,177 172,502 
Cost of goods sold48,236 52,412 93,141 94,247 
Gross margin47,337 37,493 89,036 78,255 
         
Expenses        
Selling and marketing13,264 12,874 25,913 23,539 
General and administrative12,099 9,119 22,637 18,225 
Research and development5,806 4,336 10,786 8,523 
Amortization of intangible assets11,674 11,274 22,546 22,445 
Operating income (loss)4,494 (110)7,154 5,523 
         
Interest income on financial instruments measured at amortized cost (1,960)(2,015)(4,096)(4,194)
Other interest income(624)(1,072)(1,129)(2,245)
Interest expense2,284 3,004 4,861 5,795 
Other expense(42)(310)(211)(216)
Net loss (gain) on financial instruments measured at fair value through profit or loss665 (3,939)16,932 7,908 
Foreign exchange loss (gain)5,542 4,918 3,608 4,845 
Gain on hyperinflation(2,084)(908)(6,380)(1,636)
(Loss) income before income taxes713 212 (6,431)(4,734)
         
Income tax        
Current1,245 33 2,914 2,139 
Deferred1,410 (1,661)(2,857)(4,776)
Income tax expense (recovery)2,655 (1,628)57 (2,637)
Net income (loss) for the period(1,942)1,840 (6,488)(2,097)
         
Basic and diluted net income (loss) per share(0.02)0.02 (0.06)(0.02)
Weighted average number of common shares outstanding        
Basic101,330,154 108,475,559 101,251,374 109,988,526 
Diluted101,330,154 108,678,732 101,251,374 109,988,526 

 

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
[In thousands of Canadian dollars]
[Unaudited]
 Three months ended June 30, Six months ended June 30, 
 2024 2023 2024 2023 
OPERATING ACTIVITIES    
Net (loss) income for the period(1,942)1,840 (6,488)(2,097)
Adjustments reconciling net income to operating cash flows:    
Depreciation and amortization13,169 12,158 25,750 25,241 
Net loss (gain) on financial instruments665 (3,939)16,932 7,908 
Unrealized foreign exchange (gain) loss(4,124)(809)(6,329)(2,062)
Other operating activities3,078 407 (3,646)(92)
 10,846 9,657 26,219 28,898 
Changes in non-cash working capital and other items(11,932)(11,143)3,576 (26,068)
Cash inflow (outflow) from operating activities(1,086)(1,486)29,795 2,830 


INVESTING ACTIVITIES
    
Purchase of marketable securities(41,625)(76,334)(77,922)(185,550)
Proceeds on maturity of marketable securities69,674 75,200 91,990 181,168 
Investment in funds(1,072)(148)(1,203)(170)
Purchase of intangible assets(16,735) (26,817)(7,667)
Other investing activities1,511 5,482 1,339 7,705 
Cash inflow (outflow) from investing activities11,753 4,200 (12,613)(4,514)


FINANCING ACTIVITIES
    
Repurchase of common shares through Normal Course Issuer Bid(1,242)(13,951)(1,242)(24,465)
Principal repayment of bank loans(6,930)(5,422)(8,659)(6,009)
Proceeds from bank loans747 1,443 1,292 2,090 
Other financing activities(3,937)(4,165)(5,650)(5,583)
Cash outflow from financing activities(11,362)(22,095)(14,259)(33,967)


Increase (decrease) in cash and cash equivalents during the period


(695


)


(19,381


)


2,923
 

(35,651


)
Cash and cash equivalents, beginning of the period62,835 56,218 58,761 71,679 
Net foreign exchange difference(1,333)1,007 (877)1,816 
Cash and cash equivalents, end of the period60,807 37,844 60,807 37,844 


Cash and cash equivalents


60,807
 

37,844
 

60,807
 

37,844
 
Marketable securities91,861 103,779 91,861 103,779 
Total cash, cash equivalents and marketable securities152,668 141,623 152,668 141,623 

Recursion

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