TORONTO - Jamieson Wellness Inc. ('Jamieson Wellness' or the 'Company') (TSX: JWEL) today reported financial results for its fourth quarter and twelve months ended December 31, 2018.
All amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures.
IFRS 15 - Revenue Recognition: Results for the fourth quarter and fiscal year 2018 reflect the impact of the application of IFRS 15. As a result, certain items previously included in costs of sales are now classified as a reduction of revenue. Application of this accounting policy reduced fourth quarter 2018 revenue by $3.6 million and reduced fiscal year 2018 revenue by $13.3 million. As the Company's 2018 Guidance did not reflect the impact of this classification change, revenue is presented excluding the new revenue recognition accounting impact to improve comparability with Guidance and prior period results. The Company has provided a table which details the impact this classification change has had on revenue by quarter throughout 2018 (refer to 'Summary of Consolidated Quarterly Results' below and within the MD&A). There is no impact on earnings from operations, Adjusted EBITDA or net income as a result of the application of IFRS 15. Results for the year ended December 31, 2018 are presented under the new guidance, while prior year results have not been adjusted and continue to be reported in accordance with historical accounting guidance. 'We finished 2018 on a strong note with a record level of performance, reporting 22% revenue growth during the fourth quarter excluding the IFRS 15 revenue recognition impact and met each of our 2018 guidance metrics. During the quarter and full year, we saw tremendous strength in our core Jamieson brand, both domestically and internationally, and robust growth in the Strategic Partners segment of the business,' said Mark Hornick, President and Chief Executive Officer of Jamieson Wellness. 'During the fourth quarter, revenue in the branded segment was 12% higher than the previous year driven by a very strong 16% growth in the Jamieson brand domestically and 26% growth internationally. We have now implemented new leadership and structural improvements in our Specialty Brands division to improve performance. We expect Specialty Brands sales to return to growth in the second half of 2019. As we enter a new year, we remain confident in our Company-wide growth strategies and ability to achieve our strategic goals.'
About Jamieson Wellness
Jamieson Wellness is dedicated to improving the world's health and wellness with its portfolio of innovative natural health brands. Established in 1922, Jamieson is the Company's heritage brand and Canada's #1 consumer health brand. Jamieson Wellness manufactures and markets sports nutrition products and specialty supplements under its Progressive, Precision and Iron Vegan brands. The Company also markets products by Lorna Vanderhaeghe Health Solutions (LVHS), the #1 women's natural health focused brand in Canada.
This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes, but is not limited to, statements related to the Company's anticipated growth opportunities and its outlook for its 2019 revenue, Adjusted EBITDA and Adjusted Diluted Earnings per Share. Words such as 'expect,' 'anticipate,' 'intend,' 'attempt,' 'may,' 'plan,' 'will', 'can', 'believe,' 'seek,' 'estimate,' and variations of such words and similar expressions are intended to identify such forward-looking information. This information reflects the Company's current expectations regarding future events. Forwardlooking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under 'Risk Factors' in the Company's final prospectus ('Prospectus') dated June 29, 2017 in respect of its initial public offering, as modified by the disclosure under the 'Risk Factors' section in the Company's MD&A filed February 27, 2019. This information is based on the Company's reasonable assumptions and beliefs in light of the information currently available to it and the statements are made as of the date of this press release. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law or regulatory authority. We caution that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect the Company's results. Readers are urged to consider the risks, uncertainties and assumptions associated with these statements carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information.