Haivision Announces Results for the Three Months and Nine Months Ended July 31, 2024
Operational Restructuring Now Complete, Focus Turns to Higher Revenue Growth
"As we get closer to the end of our Fiscal 2024, I'm proud to say that we have completed our 2-year strategic plan for major EBITDA and profitability transformation," said
Q3 2024 Financial Results
- Revenue of
$30.6 million , down from the prior year comparative period, partially the result of delays in theU.S. budget approval, but also reflect our transformation away from the bespoke "integrator" model and our success in the long-term rental program. - Gross Margins* were 75.0%, a significant improvement from 71.9% for the same prior year period.
- Total expenses were
$21.9 million , a decrease of$3.8 million , from the same prior year period. - Operating profit was
$1.1 million , a$1.8 million or 333% improvement from the same prior year period. - Adjusted EBITDA* was
$4.1 million , consistent with the prior year period. - Adjusted EBITDA Margins* was 13.5%, compared to 12.4% for the same prior year period.
- Net income was
$0.4 million , a$1.3 million or 298% improvement from the same prior year period.
Financial Results for the nine months ended
- Revenue of
$99.4 million , down from the prior year comparative period, partially the result of delays in approval of theU.S. federal budget, but also reflects our transformation away from the bespoke integrator model, our success in the long-term rental program and are departure from the house of worship business. - Gross Margins* were 73.1%, a notable improvement from 69.1% for the same prior year period.
- Total expenses were
$67.4 million , a decrease of$7.0 million from the same prior year period. - Operating profit was
$5.2 million , a$7.7 million or 317% improvement from the same prior year period. - Adjusted EBITDA* was
$14.4 million , a$5.3 million or 78% improvement from the same prior year period. - Adjusted EBITDA Margins* was 14.5%, a signficant improvement when compared to 8.7% for the same prior year period.
- Net income was
$2.6 million , a$6.4 million or 243% improvement from the same prior year period.
Key Company Highlights
-
Haivision joins consortium with Airbus Defense and Space to develop new technologies for rapid, secure, and reliable communications. - Haivision MCS awarded
US$61.2 million (CAD$82 million ) production agreement byU.S. Navy for next-generation combat visualization and video distribution systems. -
Haivision collaborates with Shield AI to bring together full-motion video with AI object detection for defense and ISR applications. - France Television provides exclusive coverage of the
Paris 2024 Olympic surfing competition withHaivision's private 5G video transmission ecosystem. - Celebrated its 20-years anniversary as a leader and innovator in mission critical live video.
- Unveiled Hub 360, a cloud-based master control solution that streamlines live production workflows.
- Published its fifth annual Broadcast Transformation Report, highlighting the state of technology adoption in the broadcast industry.
- Awarded "Single/Dual-Stream Encoding Hardware" and "Best On-Prem Encoding/ Transcoding Solution" for the Makito X4 by Streaming Media Readers' Choice Awards.
- Joined the
Panasonic Partner Alliance for live video production workflows with Kairos; joined the Sony Cloud Production Platform for low latency live video in the cloud; and partnered with Grabyo, aLondon -based live cloud production platform, enabling integrated solution for live multi-camera productions. - Announced strategic partnerships with
CP Communications , Flypack, RF Wireless Systems, and Vidovation to extend mobile video transmitters rental services intoNorth America .
"Haivision MCS's recent award of a
Financial Results
Revenue for the three months and nine months ended
Gross Margin* for the three months and nine months ended
Total expenses for the three months and nine months ended
The result of these Gross Margin* improvements and lower total expenses was operating profits for the three months and nine months ended
Net income for the three months ended
*Measures followed by the suffix "*" in this press release are non-IFRS measures. 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 nine months ended
Conference Call Notification
Financial Statements, Management's Discussion and Analysis and Additional Information
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
Non-IFRS Measures
About
Haivision is a leading global provider of mission-critical, real-time video streaming and visual collaboration solutions. Our connected cloud and intelligent edge technologies enable organizations globally 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
Thousands of Canadian dollars (except per share amounts) |
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Three months ended
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Nine months ended
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2024 |
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2023 |
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2024 |
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2023 |
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($) |
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($) |
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($) |
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($) |
||
Revenue |
30,646 |
|
34,954 |
|
99,394 |
|
104,132 |
||
Cost of sales |
7,665 |
|
9,826 |
|
26,709 |
|
32,133 |
||
Gross profit |
22,981 |
|
25,128 |
|
72,685 |
|
71,999 |
||
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Expenses |
|
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||
Sales and marketing |
6,744 |
|
7,823 |
|
20,378 |
|
23,339 |
||
Operations and support |
3,939 |
|
3,820 |
|
11,903 |
|
11,409 |
||
Research and development |
6,713 |
|
7,236 |
|
20,738 |
|
22,542 |
||
General and administrative |
3,870 |
|
4,740 |
|
12,788 |
|
14,036 |
||
Share-based payment |
585 |
|
449 |
|
1,627 |
|
1,545 |
||
Restructuring costs |
— |
|
1,546 |
|
— |
|
1,546 |
||
|
21,851 |
|
25,615 |
|
67,434 |
|
74,417 |
||
|
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||
Operating Profit (loss) |
1,131 |
|
(486) |
|
5,251 |
|
(2,417) |
||
Financial expenses |
206 |
|
393 |
|
749 |
|
1,337 |
||
Income (loss) before income taxes |
925 |
|
(880) |
|
4,502 |
|
(3,754) |
||
|
|
|
|
|
|
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|
||
Income taxes |
|
|
|
|
|
|
|
||
Current |
887 |
|
(388) |
|
2,236 |
|
(242) |
||
Deferred |
(397) |
|
371 |
|
(378) |
|
283 |
||
|
490 |
|
(17) |
|
1,858 |
|
40 |
||
|
|
|
|
|
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||
|
|
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|
|
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|
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||
Net income (loss) |
435 |
|
(863) |
|
2,644 |
|
(3,795) |
||
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Other comprehensive income (loss) |
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Foreign currency translation adjustment |
785 |
|
(2,670) |
|
203 |
|
(2) |
||
Comprehensive income (loss) |
1,221 |
|
(3,532) |
|
2,848 |
|
(3,797) |
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Net income (loss) per share: |
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Basic |
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Diluted |
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Weighted average number of shares outstanding |
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Basic |
29,038,392 |
|
29,004,453 |
|
29,074,599 |
|
28,964,172 |
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Diluted |
30,162,758 |
|
29,004,453 |
|
30,123,314 |
|
28,964,172 |
Thousands of Canadian dollars |
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As at |
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$ |
|
$ |
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Assets |
|
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Current assets |
|
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|
|
Cash |
13,882 |
|
8,285 |
|
Trade and other receivables |
24,676 |
|
26,113 |
|
Investment tax credits receivable |
2,044 |
|
2,238 |
|
Inventories |
15,581 |
|
18,930 |
|
Prepaid expenses and deposits |
3,828 |
|
4,043 |
|
|
60,011 |
|
59,609 |
|
|
|
|
|
|
Property and equipment |
3,727 |
|
3,900 |
|
Right-of-use assets |
6,199 |
|
7,494 |
|
Intangible assets |
12,727 |
|
17,668 |
|
|
46,309 |
|
46,219 |
|
Non-refundable investment tax credits receivable |
7,313 |
|
5,602 |
|
Deferred income taxes |
3,953 |
|
3,599 |
|
|
80,228 |
|
84,482 |
|
|
140,239 |
|
144,091 |
|
Liabilities |
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Current liabilities |
|
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|
Line of credit |
3,402 |
|
4,685 |
|
Trade and other payables |
14,031 |
|
17,534 |
|
Restructuring costs payable |
70 |
|
240 |
|
Purchase price payable |
208 |
|
204 |
|
Income taxes payable |
1,779 |
|
659 |
|
Current portion of lease liabilities |
1,677 |
|
1,688 |
|
Current portion of term loans |
1,138 |
|
964 |
|
Deferred revenue |
12,672 |
|
12,104 |
|
|
34,977 |
|
38,078 |
|
|
|
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|
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Lease liabilities |
5,460 |
|
6,738 |
|
Long term debt |
1,664 |
|
2,101 |
|
Deferred revenue |
3,009 |
|
3,021 |
|
|
45,110 |
|
49,938 |
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Equity |
|
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Share capital |
89,900 |
|
90,902 |
|
Retained earnings |
(7,792) |
|
(9,997) |
|
Share-based compensation and other reserves |
4,864 |
|
5,295 |
|
Cumulative translation adjustment |
8,157 |
|
7,953 |
|
|
95,129 |
|
94,153 |
|
|
140,239 |
|
144,091 |
|
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|
Thousands of Canadian dollars |
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Three months ended July 31, |
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Nine months ended
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|
2024 |
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2023 |
|
2024 |
|
2023 |
|||
|
($) |
|
($) |
|
($) |
|
($) |
|||
Net Income (loss) |
434 |
|
(863) |
|
2,644 |
|
(3,795) |
|||
Income Taxes |
490 |
|
(17) |
|
1,858 |
|
40 |
|||
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|||
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Income (loss) before income taxes |
925 |
|
(880) |
|
4,502 |
|
(3,755) |
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Depreciation |
828 |
|
768 |
|
2,561 |
|
2,315 |
|||
Amortization |
1,602 |
|
2,053 |
|
4,947 |
|
6,091 |
|||
Financial expenses |
206 |
|
393 |
|
749 |
|
1,337 |
|||
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|||
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EBITDA (1) |
3,561 |
|
2,335 |
|
12,759 |
|
5.988 |
|||
|
|
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|
|
|
|
|||
Share-based payments (LTIP) |
585 |
|
449 |
|
1,627 |
|
1,545 |
|||
Restructuring costs |
— |
|
1,546 |
|
— |
|
1,546 |
|||
|
|
|
|
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|||
|
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Adjusted EBITDA (1) |
4,146 |
|
4.330 |
|
14,386 |
|
9,079 |
|||
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Adjusted EBITDA Margin(1) |
13.5 % |
|
12.4 % |
|
14.5 % |
|
8.7 % |
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___________________ |
Note: |
(1) Non-IFRS measure. See "Non-IFRS Measures." |
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