Imaflex Announces Q4 and FY 2023 Results and Provides Business Update
Navigating Headwinds,
Highlights
-
FY 2023 revenues of
$93.6 million , down from$111.5 million in 2022; Q4 2023 up 5.6% to$23.0 million -
FY 2023 net income of
$0.5 million (EPS 1 :$0.01 ), versus$9.1 million (EPS:$0.18 ) in 2022 -
Q4 net loss of
$1.0 million (includes$1.0 million non-cash write-off of obsolete production equipment), down from net income of$0.5 million in prior year -
Strong balance sheet with cash available for operating activities totalling
$9.9 million at year end, including a cash balance of$0.8 million and another$9.1 million underImaflex's $12.0 million revolving line of credit -
During 2023,
Imaflex made$13.0 million in equipment investments to secure future growth and profitability
"As we reflect on 2023, I want to acknowledge the year's complexities," commented Mr.
"While our short-term performance was impacted by these headwinds, I am proud of the resilience and commitment our team demonstrated throughout the year as we continued to lay the groundwork for sustainable growth."
_______________________ |
1 Basic and diluted earnings per share |
Consolidated Financial Highlights (unaudited)
|
Three months ended |
Years ended |
|||||||||||
CDN $ thousands, except per share amounts |
2023 |
2022 |
% Change |
2023 |
2022 |
% Change |
|||||||
Revenues |
23,006 |
21,778 |
5.6 % |
93,593 |
111,534 |
(16.1) % |
|||||||
Gross Profit |
2,159 |
3,330 |
(35.2) % |
11,005 |
18,047 |
(39.0) % |
|||||||
Selling & admin. expenses |
1,461 |
2,040 |
(28.4) % |
8,039 |
8,089 |
(0.6) % |
|||||||
Write-off of obsolete production equipment |
962 |
- |
n/a |
962 |
- |
n/a |
|||||||
Other (gains)/losses |
532 |
189 |
181.5 % |
597 |
(1,531) |
139.0 % |
|||||||
Net income/(loss) |
(1,007) |
500 |
(301.4) % |
509 |
9,125 |
(94.4) % |
|||||||
Basic EPS |
(0.02) |
0.01 |
(300) % |
0.01 |
0.18 |
(94.4) % |
|||||||
Diluted EPS |
(0.02) |
0.01 |
(300) % |
0.01 |
0.18 |
(94.4) % |
|
Three months ended |
Years ended |
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CDN $ thousands, except per share amounts |
2023 |
2022 |
% Change |
2023 |
2022 |
%Change |
|||||||
Gross margin |
9.4 % |
15.3 % |
(5.9) pp |
11.8 % |
16.2 % |
(4.4) pp |
|||||||
Selling & admin. expenses as % of revenues |
6.4 % |
9.4 % |
(3.0) pp |
8.6 % |
7.3 % |
1.3 pp |
|||||||
EBITDA2 (Excluding FX) |
1,106 |
2,328 |
(52.5) % |
6,602 |
14,089 |
(53.1) % |
|||||||
EBITDA |
658 |
2,139 |
(69.2) % |
6,016 |
15,620 |
(61.5) % |
|||||||
EBITDA margin |
2.9 % |
9.8 % |
(6.9) pp |
6.4 % |
14.0 % |
(7.6) pp |
________________________________ |
2
See header titled "Caution Regarding non-IFRS Financial Measures" which follows. |
Financial Review: Quarter and Year Ended
Revenues
Revenues were
For fiscal 2023 revenues totalled
Gross Profit
Gross profit came in at
Gross profit for the current quarter was impacted by reduced selling prices due to strong price competition. In addition, certain charges were reclassified from Selling and Administrative Expenses to Cost of Sales, including non-cash depreciation expenses largely related to right of use assets. Similarly, this affected results for fiscal 2023, along with higher labour and training costs related to new equipment purchases and employee hires.
Operating Expenses
Selling and Administrative expenses were
A majority of the Corporation's foreign exchange gains and losses are non-cash impacting and largely relate to intercompany balances for which
Write-off of Obsolete Production Equipment
During the Fourth quarter of 2023,
Net Income and EBITDA
The Company recorded a net loss of
Net income stood at
EBITDA came in at
For fiscal 2023, EBITDA stood at
Liquidity and Capital Resources
Net cash flows generated by operating activities, before movements in working capital and taxes paid, stood at
For the year-to-date, cash flows generated by operating activities, before movements in working capital and taxes paid, stood at
As at
ADVASEAL
®
Update
While securing
Outlook
"The past year has presented its challenges, but it has also showcased our commitment to building a stronger Company," said
Caution Regarding Non-IFRS Financial Measures
The Company's management uses non-IFRS measures in this press release, namely EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), EBITDA excluding foreign exchange.
While EBITDA is not a standard International Financial Reporting Standards (IFRS) measure, management, analysts, investors and others use it as an indicator of the Company's financial and operating management and performance. EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of the Company's performance. The Company's method of calculating EBITDA may be different from those used by other companies and accordingly they should not be considered in isolation.
About Imaflex Inc.
Founded in 1994,
Cautionary Statement on Forward Looking Information
Certain information included in this press release constitutes "forward-looking" statements within the meaning of Canadian securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the management of the Corporation, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies. The Corporation cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance, or achievements of
Neither the
SOURCE