The Company's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2020, as well as its accompanying management discussion and analysis (MD&A) have been filed on SEDAR. Copies of the filings may be obtained at www.sedar.com. All values in this news release and the Company's financial disclosures are in Canadian dollars unless otherwise stated.
Financial Highlights
- Revenues were $97.8 million and $144.4 million compared with $40.4 million and $82 million in the comparative period. The increase in revenue resulted from higher volumes of sales of the Company's products. The Company augmented existing customer demand and attracted new customers for its cleanser and sanitizer products.
- EBITDA of $30.1 million and $38.5 million compared with EBITDA of $3.6 million and $9.4 million in the comparative periods. The improved EBITDA reflects higher volumes of sales of the Company's products.
- Adjusted EBITDA of $28.4 million and $33.9 million compared with adjusted EBITDA of $2.9 million and $6.7 million in the comparative period. Adjusted EBITDA removes the effects of foreign exchange, changes in fair value of financial instruments and impairment charges.
- On April 16, 2020, the Company completed a vertical short-form amalgamation with its wholly-owned subsidiary, Apollo Health and Beauty Care Inc. The Company did not change its name as part of the amalgamation and carries on business under the trade name "Apollo Health and Beauty Care".
- The Company repaid $29.4 million of debt during the six months ended June 30, 2020. In July 2020, the Company further repaid the residual $2.5 million outstanding under its loan from WFI Inc. Currently, the only remaining debt of the Company is its commercial bank credit facility in the amount of approximately $29.1 million.
Please refer to Acasta's MD&A for additional detail and discussion on the Company's results from operations.
Name Change
The Company is pleased to announce that it will change its name to "Apollo Healthcare Corp." The Toronto Stock Exchange trading symbol for the Company's Class B shares will change to "AHC" as soon as possible following the name change.
Advisories:
Cautionary Note Concerning Forward Looking Statements
This news release includes forward looking statements. All such statements constitute forward looking information within the meaning of applicable securities law and are made pursuant to the "safe harbour" provisions of applicable securities laws. Forward looking statements include, but are not limited to statements about other anticipated future events or results, including comments with respect to Company's future financial performance and condition. Forward looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as "will", "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of the Company's management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. The forward-looking information contained in this news release is presented for the purpose of assisting readers in understanding the Company's business and strategic priorities and objectives. A number of risks, uncertainties and other factors may cause actual outcomes or financial results to differ materially from the forward looking statements contained in this news release, including, among other factors, those referenced in the section entitled "Risk Factors" in the Company's annual information form for the year ended December 31, 2019, a copy of which is available on the SEDAR website at www.sedar.com under the Company's profile. Forward looking statements contained in this news release are not guarantees of future outcomes performance and, while forward looking statements are based on certain assumptions that the Company considers reasonable, actual events could differ materially from those expressed or implied by forward looking statements made by the Company. Readers are cautioned to consider these and other factors carefully when making decisions with respect to the Company and to not place undue reliance on forward looking statements. Circumstances affecting the Company may change rapidly. Except as may be expressly required by applicable law, Acasta does not undertake any obligation to update publicly or revise any such forward looking statements, whether as a result of new information, future events or otherwise. These cautionary statements expressly qualify all forward looking statements in this new release.
Non-IFRS Financial Performance Measures (Unaudited)
Adjusted net income (loss), EBITDA and adjusted EBITDA are not recognized measures under IFRS and this data may not be comparable to data presented by other companies.
Adjusted net income (loss) is calculated by adjusting net income (loss) as recorded in the unaudited condensed consolidated interim statements of income (loss) and comprehensive income (loss) for the exclusion of certain other income and expense items determined in accordance with IFRS. The Company believes that this generally accepted measure allows the evaluation of the results of continuing operations and is useful in making comparisons between periods. Adjusted net income (loss) is intended to provide investors with information about the Company's continuing income generating capabilities. Management uses this measure to monitor and plan for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.
EBITDA is calculated by adjusting net income (loss) as recorded in the unaudited condensed consolidated interim statements of income (loss) and comprehensive income (loss) for finance costs, current and deferred income tax, depreciation and amortization expenses. The Company believes that this measure allows the evaluation of the results of continuing operations and is useful in making comparisons between periods. EBITDA is intended to provide investors with information about the Company's continuing income generating capabilities. Management uses this measure to monitor and plan for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.
Adjusted EBITDA is calculated by adjusting net income (loss) as recorded in the unaudited condensed consolidated interim statements of income (loss) and comprehensive income (loss) for the exclusion of certain other income and expense items determined in accordance with IFRS, being the calculation for adjusted net income (loss) and then further adjusting for finance costs, current and deferred income tax, depreciation and amortization expenses. The Company believes that this generally accepted measure allows the evaluation of the results of continuing operations and is useful in making comparisons between periods. Adjusted EBITDA is intended to provide investors with information about the Company's continuing income generating capabilities. Management uses this measure to monitor and plan for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.
Contacts
Acasta Enterprises Inc.
Investor.Relations@acastaenterprises.com Fred Leigh
416-861-5933
www.acastaenterprises.com
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