Winnipeg, Manitoba--(Newsfile Corp. - November 29, 2021) - Novra Technologies Inc. (TSXV: NVI) ("Novra") has announced its financial results for the nine months ended September 30, 2021. All amounts are in Canadian dollars unless otherwise noted.
First Nine Months 2021 Consolidated Financial Results
Novra's financial results for the first nine months of 2021 were significantly improved over the same period in 2020, with top line revenue growing 72% to $5.7 million and net income loss improving by $1.6 million. However, continued global supply chain and transport disruptions have prevented us from achieving the significant profits we were expecting for this period. Over $4 million in backlogged orders that we anticipated delivering in Q3 or early Q4 will now be delivered in late Q4 and into Q1 2022. This has negatively impacted our Q3 revenue expectations by $3 to $4 million and we expect to recognise this revenue in the next two quarters. We are working with our suppliers and partners to aggressively manage these supply chain disruptions and delivery challenges.
| 3 Months Ended September 30, | Period ended September 30, | |||||||||||||||||
| (In Thousands) | 2021 | 2020 | % Chg | 2021 | 2020 | % Chg | ||||||||||||
| Revenue by type: | ||||||||||||||||||
| Products | $ | 535 | $ | 547 | -2% | $ | 4,581 | $ | 1,591 | 188% | ||||||||
| Services | 356 | 545 | -35% | 1,116 | 1,714 | -35% | ||||||||||||
| Total revenue | 891 | 1,092 | -18% | 5,697 | 3,305 | 72% | ||||||||||||
| Gross profit | 193 | 517 | -63% | 2,760 | 1,767 | 56% | ||||||||||||
| Gross margin | 21.6% | 47.4% | 48.5% | 53.5% | ||||||||||||||
| Operating expenses | 1,185 | 1,229 | -4% | 3,720 | 3,946 | -6% | ||||||||||||
| Operating income (loss) | (992 | ) | (712 | ) | 39% | (960 | ) | (2,179 | ) | -56% | ||||||||
| Other income (expenses) | 298 | (4 | ) | NM | 912 | 502 | 82% | |||||||||||
| Net income (loss) as reported under IFRS | $ | (694 | ) | $ | (715 | ) | -3% | $ | (47 | ) | $ | (1,677 | ) | -97% | ||||
| Adjusted EBITDA - non-IFRS measure | $ | (380 | ) | $ | (325 | ) | 17% | $ | 900 | | $ | (806 | ) | NM | ||||
| NM - Not meaningful (1) Amounts in the table may not reconcile due to rounding differences. (2) Refer to the Management's Discussion & Analysis ("MD&A") for a reconciliation of Adjusted EBITDA to Net Income (loss) as reported under IFRS. | ||||||||||||||||||
The significant increase in revenue for the period, coupled with a 6% reduction in operating expenses, resulted in adjusted EBITDA(2) of positive $900 thousand for the period, an improvement of more than $1.7 million over 2020. This indicates a substantial improvement in the results of Novra's core operating activities.
Gross profit for the current period was slightly lower at 48.5%, a reduction of 5% compared to 2020. This reduction resulted from changes in our product/service mix, as well as the rising input costs that have been felt by manufacturers around the world. We have recently adjusted product pricing in response to those cost increases.
Due to COVID-19's fourth wave and the new Omicron variant, we expect continued volatility in our revenue and income over the next few quarters as we do not know the impact on our clients and the global economy in general. Novra currently has an order backlog of approximately $4.7 million and at September 30, 2021 we also had more than $1.1 million in deferred revenue. Together these provide some visibility into future revenue for the remainder of 2021 and beyond.
"Although our results for the first nine months of 2021 are very encouraging with revenue growth of 72% and an adjusted EBITDA improvement of $1.7 million, we are disappointed that global supply chain issues are still persistent and have shifted significant expected revenue and income for orders we have already received out to the next two quarters. We are optimistic that the global economy is starting to adapt and operate in the age of COVID-19 and that pervasive supply chain challenges will subside to allow us to deliver our order backlog in a timely manner," said Harris Liontas, President and CEO. "I appreciate and thank our clients for their patience and understanding during these very challenging times that all manufactures are going through, as well as their trust in us and our products to deliver their mission critical services."
For additional details on Novra's results and outlook for the nine months ended September 30, 2021, please refer to our MD&A and the Consolidated Financial Statements, which are available on SEDAR (www.sedar.com).
About Novra Technologies Inc.:
Novra (TSXV: NVI) (OTCQB: NVRVF) is an international technology provider of products, systems and services for the distribution of multimedia broadband content. The Novra Group of companies includes Novra Technologies Inc, International Datacasting Corporation, and Wegener Corporation. The companies in the group are known for a strong focus on applications including: broadcast video and radio, digital cinema, digital signage, and highly reliable data communications.
For more information visit: www.novragroup.com
Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of applicable Canadian securities laws, concerning but not limited to: our profitability outlook, the pending acquisition of Wegener, and anticipated developments in our operations in future periods. Forward-looking statements are generally identifiable by words such as "expect", "anticipate", "believe", "intend", "estimate", "predict", "outlook", "opportunity", "momentum", "potential", "targeted", "plans" "possible", "positive indication for", "looking forward to", "getting ready to", "is starting to", and similar expressions, or statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved. As such, forward-looking statements are not historical facts but reflect our current assumptions and expectations regarding future events. These are subject to a number of risk and uncertainties that could cause actual results or events to differ materially from current expectations and assumptions. Some of these risks and uncertainties are described herein under the "Risks and Uncertainties" section of the MD&A.
For the above reasons, readers are cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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CONTACT FOR NOVRA:
Harris Liontas
President & CEO
+1 204 989 4632
hliontas@novra.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105675
