The Company generated revenues of
Overall revenue increased by 44% from
Service revenue (also called our Aerial Intelligence and Data Segment, a key long-term strategic focus area) for Q3 2023 increased by 349%, from
The Company has an estimated unfulfilled demand exceeding
Gross profit for Q3 2023 was
The Company has increased gross margins to 36%, representing an increase of 600 basis points (6%) over the third quarter of 2022.The gross margin performance is higher than our expectations due to higher service revenue. As equipment sales increase in the coming quarters, we expect gross margins in line with our expectations.
Available working capital, as of
Volatus recorded a comprehensive loss of (
The Company had an EBITDA drain of (
The Company has an estimated order book of
The Company completed a cost optimization program in Q3 2023 and has confirmed annualized cost savings of
'Our Q3 results demonstrates partially our recent efforts to achieve near-term profitability and that we're on track for immediate and long-term efficiencies across all our business lines,' said
Notable Operational Accomplishments During the Quarter:
The Company continues to penetrate larger, more lucrative and longer-term power utility markets, expanding into the US and winning an additional contract with a value up to
The Company successfully entered the
The Company entered a strategic partnership to automate airborne gas leak detection, which includes small liquid leaks, airborne photo documentation, right-of-way threat detection, terrain management, geo-hazard change detection and vegetation management. The system enables the Company to detect quickly and accurately what may not be visible to the human eye with other technologies, catching threats to our environment such as leaks and erosion.
The Company has marked a key milestone by expanding its successful
Webinar
In conjunction with this release, Volatus investor relations will host a webinar on
About
Note Regarding Non-GAAP Measures
In this press release we describe certain income and expense items that are unusual or non-recurring. There are terms not defined by International Financial Reporting Standards (IFRS). Our usage of these terms may vary from the usage adopted by other companies. Specifically, gross profit, gross margin, and Adjusted EBITDA are undefined terms by IFRS that may be referenced herein. We provide this detail so that readers have a better understanding of the significant events and transactions that have had an impact on our results.
Throughout this release, reference is made to 'gross profit,' 'gross margin,' and 'Adjusted EBITDA' which are non-IFRS measures. Management believes that gross profit, defined as revenue less operating expenses, is a useful supplemental measure of operations. Gross profit helps provide an understanding on the level of costs needed to create revenue. Gross margin illustrates the gross profit as a percentage of revenue. Adjusted earnings before interest, taxes, depreciation and amortization ('Adjusted EBITDA'). The Company defines Adjusted EBITDA as IFRS comprehensive loss excluding interest expense, depreciation and amortization expense, share-based payments, income tax expense, integration and due diligence costs, one time profit or loss (non-recurring), and impairment of goodwill, property, plant, and equipment and right-of-use assets (ROU). The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. Readers are cautioned that these non-IFRS measures may not be comparable to similar measures used by other companies. Readers are also cautioned not to view these non-IFRS financial measures as an alternative to financial measures calculated in accordance with International Financial Reporting Standards ('IFRS'). Adjusted EBITDA does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers and should not be construed as alternatives to comprehensive loss or income determined in accordance with IFRS. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the 'Non-GAAP Measures and Additional GAAP Measures'? section of the Company's most recent MD&A which is available on SEDAR.
Forward-Looking Statement
This news release contains statements that constitute 'forward-looking information' and 'forward-looking statements' within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Often, but not always, forward-looking information and forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or 'believes' or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' (or other variations of the foregoing) be taken, occur, be achieved, or come to pass. Forward-looking information includes information regarding: (i) the business plans and expectations of the Company and (ii) expectations for other economic, business, and/or competitive factors. Forward-looking information is based on currently available competitive, financial, and economic data and operating plans, strategies, or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to the Company, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs. Any and all forward-looking information contained in this news release is expressly qualified by this cautionary statement. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Forward-looking information and forward-looking statements reflect the Company's current beliefs and is based on information currently available to it and on assumptions it believes to be not unreasonable in light of all of the circumstances. In some instances, material factors or assumptions are discussed in this news release in connection with statements containing forward-looking information. Such material factors and assumptions include, but are not limited to: the commercialization of drone flights beyond visual line of sight and potential benefits to the Company and meeting the continued listing requirements of the TSXV. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The forward-looking information contained herein is made as of the date of this news release and, other than as required by law, the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
Contact:
Tel: +1 833-865-2887
Email: abhinav.singhvi@volatusaerospace.com
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