/NOT FOR DISTRIBUTION TO
As previously announced on
On
LXR also announced today that, based on information currently available to management as of the date hereof, it is providing select preliminary unaudited financial results for the full-year ended
The following are select preliminary highlights for FY 2022. All comparatives, unless otherwise noted, are versus the same period in the prior year.
- FY 2022 total net revenue was
$20.0 million , an increase of 11% — e-commerce net revenue as a per cent of net revenue was 60.7% - Gross profit was
$7.6 million , an increase of 12.7% — gross profit margin was 38.2% as compared to 37.6% - Adjusted EBITDA (a non-IFRS measure) was
($1.4) million , same level as the prior year - Cash earnings (a non-IFRS measure) was a loss of
($0.7) million compared to a loss of($1.8) million - Operating cash flow (Net loss plus changes in non-cash working capital) was break-even, a significant improvement versus net outflows of
($3.6) million in the prior year - Cash on hand on
December 31, 2022 was$2.6 million , a decrease of$1.0 million from the prior year, primarily due to debt repayment
Comparative Financial Highlights (for the years ended
Financial highlights ($ Million) | FY 2020 | FY 2021 | FY 2022 |
Total net revenue | |||
Gross profit margin % | 41.9 % | 37.6 % | 38.2 % |
Adj. EBITDA | ( | ( | ( |
Adj. EBITDA % | (24 %) | (8 %) | (7 %) |
Net Loss | ( | ( | ( |
Cash earnings/(loss) | ( | ( | ( |
Operating cash flows | ( | ( | Break-even |
Cash on hand | |||
Bank Debt | |||
E-comm. % total revenue | 32 % | 59 % | 61 % |
All figures reported with respect to FY 2022 are preliminary results and are subject to change and adjustment as the Company's fourth quarter 2022 financial results are finalized and such changes and adjustments could be material. Accordingly, investors are cautioned not to place undue reliance on the above preliminary figures. The Company is issuing preliminary results in order to enable it to disclose such information in connection with the Private Placement and does not intend to continue to provide preliminary results in the future. This update should not be viewed as a substitute for the Company's full audited annual results and does not present all necessary information for an understanding of the Company's financial position or results with respect to FY 2022.
In assessing performance, among other things, the Company relies on EBITDA, Adjusted EBITDA and Cash Earnings, which are all non-GAAP measures that do not have a standardized meaning prescribed by GAAP. These financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that this measure should not be construed as an alternative to profit or cash flow from operating activities determined in accordance with GAAP as an indicator of the Corporation's performance. The Corporation's management believes that these measures are commonly reported and widely used by investors as an indicator of a company's cash operating performance and ability to service debt.
EBITDA is defined by the Company as earnings before finance costs, income tax expense and depreciation and amortization. Adjusted EBITDA excludes from EBITDA the effects of expenses that are non-recurring in nature. Cash Earnings/(Loss) (or net cash generated before changes in non-cash working capital) is a measure we consider to be important as it serves as an indicator of the actual cash being generated from continuing operations. We define Cash Earnings as Net Profit/(Loss) plus non-cash charges.
The following is a reconciliation of the above to its nearest IFRS measure for the years ended
($ 000s) | FY 2020 | FY 2021 | FY 2022 | |
Reconciliation of Net Loss to Cash earnings/(loss) and | ||||
Net Loss | (7,711) | (2,898) | (1,647) | |
Add: non-cash items: | ||||
Depreciation and amortization expense | 638 | 348 | 353 | |
Gain on disposal of property and equipment | — | (1) | — | |
Stock-based compensation expense | 267 | 749 | 521 | |
Write-off of property and equipment | 1,050 | — | — | |
Unrealized foreign exchange (gain)/loss | (14) | 12 | 44 | |
Cash earnings/(loss) | (5,770) | (1,790) | (729) | |
Add: Net change in non-cash working capital | 4,320 | (1,762) | 719 | |
Operating Cash Flows | (1,450) | (3,552) | (10) | |
($ 000s) | FY 2020 | FY 2021 | FY 2022 | |
Reconciliation of Net Loss to EBITDA and Adj. EBITDA | ||||
Net Loss | (7,711) | (2,898) | (1,647) | |
Adjustments to Net Loss: | ||||
Amortization and depreciation expense | 622 | 319 | 325 | |
Finance costs | 607 | 543 | 590 | |
Income tax expense | 2 | 9 | 23 | |
EBITDA | (6,480) | (2,027) | (709) | |
Adjustments to EBITDA: | ||||
Foreign exchange loss (gain) | 432 | 142 | (1,304) | |
Loss due to bad debt from | 704 | — | — | |
Write-off of property and equipment | 1,050 | — | — | |
Gain on disposal of property and equipment | — | (1) | — | |
Stock-based compensation | 1,018 | 749 | 521 | |
Information technology non-recurring expense | — | — | 62 | |
Write-off of the right-of-use liability | (40) | — | — | |
Store closing costs | 12 | 9 | — | |
Gain on European-related balances | — | (163) | — | |
Government wage subsidy program | — | (177) | — | |
Adjusted EBITDA | (3,304) | (1,468) | (1,430) |
The preliminary results provided in this news release constitute forward-looking statements within the meaning of applicable securities laws, are based on a number of assumptions and are subject to a number of risks and uncertainties. Actual results may differ materially. Please see the section below entitled Cautionary Statement Regarding Forward-Looking Information.
Certain statements in this press release are prospective in nature and constitute forward-looking information and/or forward-looking statements within the meaning of applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements generally, but not always, can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "could", "would", "will", "expect", "intend", "estimate", "forecasts", "project", "seek", "anticipate", "believes", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events and the negative of any of these terms. Forward- looking statements in this news release include, but are not limited to, statements regarding the anticipated proceeds from the Private Placement, the Company's intended use of proceeds from the Private Placement, the participation of insiders in the Private Placement, the expected closing date of the Private Placement, the Company's ability to renew its working capital and term loan facilities on substantially similar terms and conditions, the expected maturity of such facilities and our anticipated results for FY 2022. Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management, which includes assumptions about management's historical experience, perception of trends and current business conditions, expected future developments and other factors which management considers appropriate. With respect to the forward- looking statements included in this press release, management has made certain assumptions with respect to, among other things, the Company's ability to meet its future objectives and strategies, the Company's ability to achieve its future projects and plans and that such projects and plans will proceed as anticipated, as well as assumptions concerning the satisfaction of all conditions of closing to the Private Placement, including receipt of all necessary regulatory and stock exchange approvals, and the successful completion of the Private Placement within the anticipated timeframe, general economic and market growth rates, currency exchange and interest rates and competitive intensity.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward- looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur.
All forward-looking statements included in and incorporated into this press release are qualified by these cautionary statements. Unless otherwise indicated, the forward-looking statements contained herein are made as of the date of this press release, and except as required by applicable law, the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Readers are cautioned that the actual results achieved may vary from the information provided herein and that such variations may be material. Consequently, there are no representations by LXRandCo that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements.
Further to the Company's press release on
The Private Placement was considered and unanimously approved by the board of directors of the Company. There was no contrary view or abstention by any director approving the Private Placement. The Insider Participants were not present in the final deliberations and did not participate in the approval process.
This press release is not an offer to sell or the solicitation of an offer to buy the securities in
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