TORONTO, ON — (Newsfile Corp. – February 21, 2024) – Deveron Corp. (TSXV: FARM) (“Deveron” or the “Company”), a leading agricultural services and data company in North America, is pleased to announce that I am happy to report. Results for 3 and 6 months ended December 31stcent, 2023. Complete financial results are available at www.sedarplus.ca.
Financial Highlights for Q2 2024
As previously announced, the Company has significantly reduced operating costs as a result of the decision to deprioritize capture services within the Carbon business unit based on customer experience and future demand forecasts. Although this decision impacted revenue growth in the quarter, Deveron was able to record a significant increase in adjusted EBITDA.
Non-IFRS Adjusted EBITDA for the second quarter of 2024 increased 17% to $5,629,992 from $4,815,798 in the second quarter of 2024. Revenues for the second quarter of 2024 were $15,308,396, an increase of 1% from $15,143,300 in the prior year period. Non-IFRS Adjusted EBITDA for the first half of 2024 increased 20% to $4,568,886 from $3,801,188 in the prior year period. Revenue for the first half of 2024 increased 3% to $23,026,999 from $22,332,794 in the prior year period.
Infertility testing increased in the quarter, offsetting a decline in carbon-related collection services. Gross profit margin decreased slightly from 77% to 74% due to higher prices for laboratory supplies and changes in the company's revenue mix. Operating expenses increased 23% to $9.3 million due to a $3.5 million year-over-year change in noncontrolling interests, put liability. Excluding this non-cash item, expenses decreased 16% as a result of previously announced headcount reductions in the Data Products Group and US operations. Adjusted EBITDA for the quarter increased 17% to $5.6 million, reflecting our focus on our profitable infertility testing business and right-sizing our U.S. operations.
-
Revenue for the quarter increased 1% to $15,308,396 and was the quarter with the most fertility sampling.
-
Non-IFRS adjusted EBITDA improved to $5,629,992, or 36.8% of revenue, an increase of 17% year over year.
-
The company's non-IFRS adjusted EBITDA margin improved by 5% YoY to 36.8% from 31.8% in the same period in FY03/23.
-
Deveron has repaid the acquisition loan in the amount of $535,000, resulting in an amount of $23,104,801 as of December 31, 2023.
“We achieved strong results in the second quarter of 2024 as a result of our focus on profitability and our core Fertility business unit,” said David McMillan, President and CEO of Deveron. Following the decision to deprioritize carbon capture services for profitability, the company said: “EBITDA margins improved significantly year-on-year. Looking into the new year, we continue to focus on our infertility business, which is our most profitable business area. We see a great opportunity to optimize our margins by onboarding new brands, onboarding new locations for existing customers, and increasing fidelity sampling. A channel partner strategy targeting agricultural retail with a three-pronged approach to complete testing and upselling existing customers to soil health products. With a more streamlined cost structure, a new approach to our sales process, and significant opportunities in the agricultural retail industry, we couldn't be more excited about the coming year. ”
Financial summary
|
Operation results |
In the last three months |
Regarding the ended 6 months |
||||
|
December 31cent2023 |
December 31cent2022 |
% change |
December 31, 2023 |
December 31, 2022 |
% change |
|
|
total income |
$15,308,396 |
$15,143,300 |
1% |
$23,026,999 |
$22,332,794 |
3% |
|
gross profit |
11,334,347 |
11,725,583 |
-3% |
16,348,880 |
16,045,991 |
2% |
|
Gross profit margin % |
74% |
77% |
-3% |
71% |
72% |
-1% |
|
Operating expenses |
9,328,672 |
7,557,701 |
twenty three% |
20,167,489 |
16,495,633 |
twenty two% |
|
Net income (loss) |
1,436,526 |
3,975,835 |
-64% |
(4,539,420) |
(809,938) |
-460% |
|
add tax |
569,148 |
172,047 |
231% |
720,811 |
360,297 |
100% |
|
Add: Interest |
1,010,523 |
1,842,469 |
-45% |
1,901,823 |
2,973,400 |
-36% |
|
Add: Acquisition and integration costs |
– |
– |
1,050,506 |
– |
||
|
Add: Non-cash expenses^ |
2,613,794 |
(1,174,555) |
– |
6,485,672 |
1,277,429 |
408% |
|
Non-IFRS adjusted EBITDA (loss)* |
5,629,992 |
4,815,798 |
17% |
4,568,886 |
3,801,188 |
20% |
|
Weighted average number of common shares outstanding |
156,413,687 |
116,387,677 |
156,294,819 |
116,387,677 |
||
|
Per share: |
||||||
|
net loss |
0.01 |
– |
(0.04) |
(0.01) |
||
*Non-IFRS measure. Adjusted earnings before interest, taxes, depreciation and amortization (”Adjusted EBITDA) should not be construed as a substitute for comprehensive loss or comprehensive income as determined in accordance with IFRS. Adjusted EBITDA does not have a standardized meaning under IFRS and may not be comparable to similar measures provided by other issuers. We define Adjusted EBITDA. As an IFRS net loss excluding interest expense, depreciation and amortization, share-based payments, income tax expense, integration costs, temporary acquisition costs, goodwill, property, plant and equipment and right-of-use asset (ROU) impairments, we report adjusted EBITDA. is a meaningful financial metric because it measures the cash generated by the business that can be used to fund working capital requirements, future interest and principal debt repayments, and future growth initiatives. Masu.
^Calculating non-cash expenditures
|
In the last three months |
Regarding the ended 6 months |
|||
|
December 31, 2023 |
December 31, 2022 |
December 31, 2023 |
December 31, 2022 |
|
|
Depreciation and amortization |
1,870,476 |
1,633,274 |
3,678,455 |
3,792,003 |
|
stock-based payment |
316,479 |
241,148 |
608,415 |
534,403 |
|
NCI Put Obligation Changes |
426,839 |
(3,048,977) |
2,198,802 |
(3,048,977) |
|
Non-cash expenditures^ |
$2,613,794 |
($1,174,555) |
$6,485,672 |
$1,277,429 |
Operational Highlights for Q2 2023
Deveron Announces Closing of Private Placement of Convertible Bonds
October 5th, In addition to the September 25, 2023 press release, the Company completed the first tranche of a non-brokered private placement by issuing 1,750 unsecured convertible notes at a price of $1,000 for gross proceeds of $1,750,000. announced. The Company intends to use the net proceeds from the offering to refinance the Company's outstanding promissory notes and for general working capital.
Deveron Corp announces launch of PFAS testing services
November 1st, We announced the launch of a new testing service for the analysis of per- and polyfluoroalkyl substances (“PFASPFAS are present in soil, water, compost, and other matrices. PFAS are a group of synthetic chemicals that have received significant attention due to their widespread use and potential environmental and health concerns. The company announced the launch of a new testing service to analyze PFAS in soil. , water, compost and other matrices.
Deveron Announces Introduction of Cost Optimization Program
On December 6, the company announced that it had implemented a new phase of its cost optimization program. In its continued effort to prioritize the execution and focus of profitable reproductive field services, Deveron has realized a $1.5 million We implemented cost reductions. The Company expects annual run rate savings to total approximately $2.4 million when combined with previous cost synergies of $900,000 announced on November 21, 2023.
Deveron announces option grant
upon December 29ththThe Company announced that it has granted a total of 2.5 million stock options (hereinafter referred to as “”).option“) Purchase common stock (“common stock“'') Common stock issuable upon exercise of the Company's option exercisable to certain employees of the Company at a price of $0.185 per common share and expiring on December 23, 2028, Rights are subject to a four month retention period. Grant date.
After the end of the quarter
February 7thth, the Company announced the onboarding of a new corporate agreement with a prominent player in underwater PFAS remediation. PFAS are synthetic chemicals that have received significant attention due to their widespread use and potential environmental and health concerns.
Management's discussion and analysis for the current period and the accompanying financial statements and notes are available under the Company Profile on SEDAR+ (www.sedarplus.ca). This news release is not a substitute for reading the financial statements, including the notes to the financial statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Deveron: Deveron is an agricultural technology company that uses data and insights to help farmers and large agricultural companies increase yields, reduce costs, and improve agricultural outcomes. The company employs a digital process that leverages data collected on farms across North America to drive an unbiased interpretation of production decisions and ultimately recommend ways to optimize the use of inputs. Our team of agronomists and data scientists build products that recommend ways to better manage fertilizers, seeds, fungicides, and other farm inputs. Additionally, we have a national network of data technicians deployed to collect different types of farm data, from soil to drones, building the foundation for a best-in-class data layer. Our focus is on the United States and Canada. One billion acres of farmland are actively farmed annually.
For more information and to join the community, please visit www.deveron.com/investors or contact us on Twitter @Deveron..
philip linton
Vice President of Corporate Development
plinton@deveron.com
Phone number: 647-622-0076
This news release contains certain “forward-looking statements” within the meaning of that term under Canadian securities legislation. Statements regarding our future plans and goals are forward-looking statements that, without limitation, involve varying degrees of risk. Forward-looking statements reflect management's current beliefs regarding possible future events and conditions and are, by their nature, based on management's beliefs and assumptions and are based on known and specific information generally and specific to the Company. Subject to unknown risks and uncertainties. Although we believe that the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ from our forward-looking statements. The content may differ significantly. The following are important factors that could cause our actual results to differ materially from those expressed or implied by such forward-looking statements: changes in global agricultural prices, general markets; conditions, risks inherent in farming, uncertainties of the future, uncertainties of profitability and access to additional capital; Additional information regarding the important factors and assumptions applied in making these forward-looking statements and the various risks and uncertainties faced by the Company can be found in the Company's annual and interim management discussions and discussions. Further details are provided in the Risk Factors section of the analysis. The financial statements and other continuous disclosure documents and financial statements filed by the Company with Canadian securities regulators are available below. www.sedarplus.ca. We undertake no obligation to update this forward-looking information, except as required by applicable law. We rely on litigation protection for forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/198818.
