Yahoo Finance SIMPLY SOLVENTLESS ANNOUNCES 2023 ANNUAL RESULTS INCLUDING ELIMINATION OF ALL LONG-TERM DEBT, GROSS REVENUE OF $7.0 MILLION, ADJUSTED EBITDA OF $2.7 MILLION, AND NORMALIZED NET INCOME OF $1.9 MILLION
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CALGARY, AB , April 29, 2024 /CNW/ - Simply Solventless Concentrates Ltd. (TSXV: HASH) ("SSC") is pleased to announce its 2023 annual results. Selected financial, operational and transactional information is set out below and should be read in conjunction with SSC's December 31, 2023 financial statements and the related management's discussion and analysis, which are available for review on SSC's SEDAR+ profile at www.sedarplus.ca. SSC is also pleased to announce the appointment of Murray Brown to the position of Vice President, Operations, and to reiterate previously announced Q1 2024 guidance.
Jeff Swainson, President & CEO of SSC, stated: "2023 was a transformative year for SSC as our incredible team exceeded expectations across the board. Against a backdrop of continued industry headwinds, we eliminated all long-term debt, increased gross revenue by 149% to approximately $7.0 million, increased normalized net income by 215% to approximately $1.9 million, and strengthened our team significantly. Continued strong results are what matters to our team, and we now look to profitably expand our market share through continued organic growth and opportunistic acquisitions, capitalizing on the significant opportunities resulting from industry headwinds."
2023 Financial Highlights:
December 31, 2023 Working Capital(1): $3,693,879.
2023 Gross Revenue: $6,973,401 (December 31, 2022 -$2,799,367), an increase of 149%.
2023 Net Revenue: $6,191,646 (December 31, 2022 - $2,799,367), an increase of 121%.
2023 Gross Margin: $3,497,279 (December 31, 2022 - $38,427), an increase of 9,001%.
2023 Gross Margin: 57% of net revenue (December 31, 2022 - 1.4%), an increase of 3,971%.
2023 EBITDA(1): $1,401,847 (December 31, 2022 - $1,191,950 loss), an increase of 218%.
2023 Adjusted EBITDA(1): $2,246,926 (December 31, 2022 - $1,143,343 loss), an increase of 297%.
2023 Net Income: $1,040,316 (December 31, 2022 - $1,683,799 loss), an increase of 162%.
2023 Normalized Net Income(1): $1,885,395 (December 31, 2022 - $1,635,192 loss), an increase of 215%.
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(1) Non-IFRS financial measure. See discussion in the Non-IFRS Financial Measures advisories section of this press release below. |
2023 Operations and Transaction Highlights:
Brands: Launched the popular brands Astrolab (May 2023) and Frootyhooty (November 2023).
Facility Sale Leaseback: In June 2023, SSC eliminated $7,047,169 of debt and liabilities through a sale leaseback transaction of SSC's facility.
Financings: In August 2023, SSC raised $584,694 of equity at $0.20/unit (a "Unit"), each Unit being comprised of one common share and one common share purchase warrant, and converted $1,162,348 in convertible debentures to Units at $0.17/Unit, eliminating all remaining long-term debt of SSC.
Go Public Transaction: On December 18, 2023, SSC went public on the TSXV under the "HASH" ticker symbol through a reverse takeover transaction with Dash Capital Corp.
Appointment of Vice President, Operations and Option Grant
SSC is also pleased to announce the appointment of Murray Brown as Vice President, Operations of SSC. Murray is currently the Production Manager of SSC. Murray comes with four decades of experience at the executive level in cannabis, oil and gas services, and manufacturing. Prior to joining SSC, Murray served as Vice President, Operations and Chief Financial Officer of Custom Cannabis for a period of five years. In connection with Murray's appointment and a past executive appointment, SSC has granted an aggregate of 400,000 stock options under SSC's equity incentive plan at an exercise price of $0.20 per share and expiring on April 24, 2027. The option grants and appointment of Murray remains subject to the final approval of the TSX Venture Exchange.
Reiteration of Q1 2024 Financial Guidance
SSC projects record quarterly gross revenue during Q1 2024 of approximately $3,100,000 (Q1 2023 - $1,789,562), representing a growth rate of 73%. SSC also projects Q1 2024 adjusted EBITDA of approximately $500,000 (Q1 2023 - $318,978) (see Non-IFRS Financial Measures, below), a growth rate of 56%, and quarterly Q1 2024 net income of approximately $310,000 (Q1 2023 - $44,491), a growth rate of 597%.
SSC expects to issue its Q1 2024 results on or around May 9, 2024.
About Simply Solventless Concentrates Ltd.
SSC is a public company incorporated under the Business Corporations Act (Alberta). SSC's mission is to provide pure, potent, terpene-rich ready to consume cannabis products to discerning cannabis consumers. For more information regarding SSC, please see www.simplysolventless.ca.
Notice on Forward Looking Information
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "will", "estimates", "believes", "intends", "expects", "projected" and similar expressions which are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward looking statements concerning profitably expanding SSC's market share through continued organic growth and opportunistic acquisitions, and SSC capitalizing on the opportunities resulting from industry headwinds, and the timing of releasing SSC's Q1 2024 results. SSC cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, assumptions and expectations, many of which are beyond the control of SSC, including expectations and assumptions concerning SSC, as well as other risks and uncertainties, including those described in SSC's filings available on SEDAR+ at www.sedarplus.ca. The reader is cautioned that assumptions used in the preparation of any forward-looking statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of SSC. The reader is cautioned not to place undue reliance on any forward-looking statements. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this press release are made as of the date of this press release, and SSC does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.
Non-IFRS Financial Measures
This press release includes references to "Working Capital", "EBITDA", "Adjusted EBITDA" and "Normalized Net Income", which are not defined under International Financial Reporting Standards (IFRS). The intent of these non-IFRS measures is to provide additional useful information to investors and analysts. These non-IFRS measures do not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other entities. As such, these non-IFRS measures should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS.
Working Capital is defined as current assets less current liabilities as reported on SSC's consolidated statements of financial position. Working Capital is considered as a useful measure by management of SSC to indicate SSC's ability to service its short-term financial obligations with short-term assets.
EBITDA is calculated as income before interest, taxes, depreciation and amortization expenses. EBITDA is considered as a useful measure by management of SSC to understand the profitability of SSC excluding the effects of capital structure, taxation and depreciation, but may not be appropriate for other purposes.
Adjusted EBITDA is calculated as EBITDA less the sale of SSC's facility, plus the acquisition of Dash Capital Corp. and share compensation expense. Adjusted EBITDA is considered as a useful measure by management of SSC to understand the profitability of SSC excluding the effects of certain non-operating items.
Normalized Net Income is calculated as income less the sale of SSC's facility, plus the acquisition of Dash Capital Corp. and share compensation expense. Normalized Net Income is considered as a useful measure by management of SSC to understand the profitability of SSC excluding the effects of certain non-operating items.
The following table reconciles current assets and current liabilities to Working Capital:
As at | Dec 31, 2023 $ | Dec 31, 2022 $ |
Current assets | 8,419,131 | 3,467,464 |
Current liabilities | 4,725,252 | 2,339,957 |
Working Capital | 3,693,879 | 1,127,507 |
The following table reconciles net income (loss) to EBITDA:
Year Ended | Dec 31, 2023 $ | Dec 31, 2022 $ |
Net and comprehensive (loss) income | 1,040,316 | (1,683,799) |
Add (deduct): | ||
Depreciation and amortization | 48,207 | 229,854 |
Net interest (income) expense | 313,324 | 261,995 |
EBITDA | 1,401,847 | (1,191,950) |
The following table reconciles net income (loss) to Adjusted EBITDA:
Year Ended | Dec 31, 2023 $ | Dec 31, 2022 $ |
Net and comprehensive (loss) income | 1,040,316 | (1,683,799) |
Add (deduct): | ||
Depreciation and amortization | 48,207 | 229,854 |
Net interest (income) expense | 313,324 | 261,995 |
Gain on disposal | (417,814) | - |
Acquisition of Dash Capital Corp. | 1,043,909 | - |
Share compensation expense | 218,984 | 48,607 |
Adjusted EBITDA | 2,246,926 | (1,143,343) |
The following table reconciles net income (loss) to Normalized Net Income:
Year Ended | Dec 31, 2023 $ | Dec 31, 2022 $ |
Net and comprehensive (loss) income | 1,040,316 | (1,683,799) |
Add (deduct): | ||
Gain on disposal | (417,814) | - |
Acquisition of Dash Capital Corp. | 1,043,909 | - |
Share compensation expense | 218,984 | 48,607 |
Normalized Net Income | 1,885,395 | (1,635,192) |
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Neither the 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.
SOURCE Simply Solventless Concentrates Ltd.
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