MONTREAL, Sept. 18, 2024 (GLOBE NEWSWIRE) -- NanoXplore Inc. ("NanoXplore" or "the Corporation") (TSX: GRA and OTCQX: NNXPF), a world-leading graphene company, reported today financial results for the year ended June 30, 2024.
All amounts in this press release are in Canadian dollars, unless otherwise stated.
Key Financial Highlights Q4-2024
- Record total revenues of $38,125,566 compared to $33,318,964 last year, representing a 14% increase;
- Adjusted gross margin* on revenues from customers of 23.6% compared to 20.8% last year;
- Loss of $2,421,110 compared to $2,003,549 last year;
- Adjusted EBITDA* of $2,488,304 compared to $526,140 last year;
- Adjusted EBITDA* of $3,329,793 compared to $1,130,962 last year for the Advanced Materials, Plastics and Composite Products segment;
- Adjusted EBITDA* loss of $841,489 compared to $604,822 last year for the Battery Cells segment (VoltaXplore initiative);
- Total liquidity of $36,504,880 as at June 30, 2024, including cash and cash equivalents of $26,504,880;
- Total long-term debt of $6,346,503 as at June 30, 2024, down by $1,529,385 compared to June 30, 2023.
Key Financial Highlights Fiscal Year 2024
- Record total revenues of $129,992,368 in 2024 compared to $123,857,171 in 2023, representing a 5% increase;
- Adjusted gross margin* on revenues from customers of 21.1% in 2024 compared to 17.4% in last year;
- Loss of $11,665,006 compared to $12,798,174 last year;
- Adjusted EBITDA* of $2,519,134 compared to a loss of $857,887 last year;
- Adjusted EBITDA* of $5,176,437 in 2024 compared to a loss of $234,795 last year for the Advanced Materials, Plastics and Composite Products segment;
- Adjusted EBITDA* loss of $2,657,303 in 2024 compared to $623,092 last year for the Battery Cells segment (VoltaXplore initiative).
Overview
Pedro Azevedo, Chief Financial Officer, said: "After a slow beginning to the year, I am very pleased with our 4th quarter and full year performance and financial results. We continued to execute on our expansion in graphene-enhanced SMC materials capacity and margin improvement plans. In addition, we also expanded, and continue to expand, our customer base for graphene powder and graphene-enhanced composites demonstrating the economic value of our graphene offering. These have resulted in our highest ever annual sales, highest ever gross margins and highest ever adjusted EBITDA. Growing our graphene and graphene-enhanced materials sales mix will continue to positively impact gross margins. We are in the 2nd stage of our growth plan but our financials do not yet fully reflect the full potential upside graphene sales will bring. We are once again well positioned for our next fiscal year and continue to execute on our 5-year strategic plan initiatives."
Soroush Nazarpour, President & Chief Executive Officer, said: "We faced some headwinds and uncertainties at the beginning of this fiscal year namely high interest rate, inflation cost pressure and tight labour market but NanoXplore's team performed well in this environment, and we delivered record revenues, while gross and EBITDA margins continued to expand. I expect this trend of organic growth and margin performance to continue in 2025 due to broader acceptance of our graphene base products. During the year, we received increased volumes on existing programs and won new customers, demonstrating the innovative nature of our graphene-based solutions and our ability to grow organically. We have a first mover advantage in an emerging advance material sector, and we intend on staying a market leader through developing innovative graphene-enhanced solutions for our customers while expanding our manufacturing capabilities as well as ensuring we maintain a strong balance sheet."
* Non-IFRS Measures
The Corporation prepares its financial statements under IFRS. However, the Corporation considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Corporation. These measures, which the Corporation believes are widely used by investors, securities analysts and other interested parties in evaluating the Corporation's performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include "Adjusted EBITDA" and "Adjusted gross margin".
The following tables provide a reconciliation of IFRS "Loss" to Non-IFRS "Adjusted EBITDA" and of IFRS "Gross margin" to Non-IFRS "Adjusted Gross margin" for the three-month periods and for the years ended June 30, 2024 and 2023.
IFRS "Loss" to Non-IFRS "Adjusted EBITDA"
| Q4-2024 | Q4-2023 | FY 2024 | FY 2023 | |||||
| $ | $ | $ | $ | |||||
| Loss | (2,421,110 | ) | (2,003,549 | ) | (11,665,006 | ) | (12,798,174 | ) |
| Current and deferred income tax expenses (recovery) | 1,220,221 | (239,724 | ) | 966,577 | (38,650 | ) | ||
| Net interest revenues | 33,861 | 22,924 | (78,794 | ) | (63,342 | ) | ||
| Share of loss of a joint venture | - | - | - | 1,059,880 | ||||
| Loss (gain) on disposal of property, plant and equipment | (193 | ) | 131,974 | (18,453 | ) | 131,974 | ||
| Foreign exchange | 111,928 | (329,788 | ) | 287,302 | 725,221 | |||
| Share-based compensation expenses | 498,655 | 273,910 | 1,557,425 | 1,118,772 | ||||
| Non-operational items (1) | 189,783 | - | 459,783 | 116,000 | ||||
| Depreciation and amortization | 2,855,159 | 2,670,393 | 11,010,300 | 8,890,432 | ||||
| Adjusted EBITDA | 2,488,304 | 526,140 | 2,519,134 | (857,887 | ) | |||
| - From Advanced Materials, Plastics and Composite Products | 3,329,793 | 1,130,962 | 5,176,437 | (234,795 | ) | |||
| - From Battery Cells | (841,489 | ) | (604,822 | ) | (2,657,303 | ) | (623,092 | ) |
(1) Non-operational items consist of professional fees mainly due debt renegotiation and to prospectuses related fees.
IFRS "Gross margin" to Non-IFRS "Adjusted Gross margin"
| Q4-2024 | Q4-2023 | FY 2024 | FY 2023 | |
| $ | $ | $ | $ | |
| Revenues from customers | 37,717,688 | 33,010,658 | 128,600,936 | 122,700,485 |
| Cost of sales | 28,811,991 | 26,154,539 | 101,486,565 | 101,414,290 |
| Adjusted gross margin | 8,905,697 | 6,856,119 | 27,114,371 | 21,286,195 |
| Depreciation (production) | 1,657,615 | 1,535,165 | 6,362,339 | 5,873,873 |
| Gross margin | 7,248,082 | 5,320,954 | 20,752,032 | 15,412,322 |
Reporting Segments results
NanoXplore reports its financials in two distinct segments: Advanced Materials, Plastics and Composite Products and Battery cells.
| Q4-2024 | Q4-2023 | Variation | YTD 2024 | YTD 2023 | Variation | |||||||||||
| $ | $ | $ | % | $ | $ | $ | % | |||||||||
| From Advanced materials, plastics and composite products | ||||||||||||||||
| Revenues | 38,125,566 | 33,318,964 | 4,806,602 | 14 | % | 129,964,625 | 123,857,171 | 6,107,454 | 5 | % | ||||||
| Non-IFRS Measure * | ||||||||||||||||
| Adjusted EBITDA | 3,329,793 | 1,130,962 | 2,198,831 | 194 | % | 5,176,437 | (234,795 | ) | 5,411,232 | 2 305 | % | |||||
| From Battery cells | ||||||||||||||||
| Revenues | - | - | - | N/A | 27,743 | - | 27,743 | N/A | ||||||||
| Non-IFRS Measure * | ||||||||||||||||
| Adjusted EBITDA | (841,489 | ) | (604,822 | ) | (236,667 | ) | (39 | %) | (2,657,303 | ) | (623,092 | ) | (2,034,211 | ) | N/A | |
A. Results of operations variance analysis - Three-month periods
Revenues
| Q4-2024 | Q4-2023 | Variation | Q3-2024 | Variation | |||||
| $ | $ | $ | % | $ | $ | % | |||
| Revenues from customers | 37,717,688 | 33,010,658 | 4,707,030 | 14 | % | 33,617,106 | 4,100,582 | 12 | % |
| Other income | 407,878 | 308,306 | 99,572 | 32 | % | 250,641 | 157,237 | 63 | % |
| Total revenues | 38,125,566 | 33,318,964 | 4,806,602 | 14 | % | 33,867,747 | 4,257,819 | 13 | % |
All revenues are coming from the segment of Advanced Materials, Plastics and Composite Products.
Revenues from customers increased from $33,617,106 in Q3-2024 to $37,717,688 in Q4-2024. This increase is mainly due to a positive product mix and higher volume.
Revenues from customers increased from $33,010,658 in Q4-2023 to $37,717,688 in Q4-2024. This increase is mainly due to higher volume and higher tooling revenues.
Other income increased from $308,306 in Q4-2023 to $407,878 in Q4-2024. Other income amounted to $250,641 in Q3-2024. The variation is mainly in grants received for R&D programs.
Adjusted EBITDA
1) From Advanced Materials, Plastics and Composite Products
The adjusted EBITDA improved from $1,130,962 in Q4-2023 to $3,329,793 in Q4-2024. The variation is explained as follows:
- Gross margin on revenues from customers increased by $2,049,578 compared to last year due to higher volume, favourable product mix, improved productivity and cost control;
- Higher other income of $99,572 as explained above.
2) From Battery Cells
The adjusted EBITDA loss increased from $604,822 in Q4-2023 to $841,489 in Q4-2024. The variation is explained by the operational expenses increase (Selling, General & Administration "SG&A" and Research & Development "R&D") of $236,667 due to higher than usual 3rd party pre-engineering expenses undertaken during the quarter.
B. Results of operations variance analysis - Year ended
Revenues
| FY 2024 | FY 2023 | Variation | |||
| $ | $ | $ | % | ||
| Revenues from customers | 128,600,936 | 122,700,485 | 5,900,451 | 5 | % |
| Other income | 1,391,432 | 1,156,686 | 234,746 | 20 | % |
| Total revenues | 129,992,368 | 123,857,171 | 6,135,197 | 5 | % |
All revenues are coming from the Advanced Materials, Plastics and Composite Products segment, except for $27,743 of other income [2023 - Nil] from the Battery Cells segment.
Revenues from customers increased from $122,700,485 last year to $128,600,936 this year. This increase is mainly due to higher volume and higher tooling revenues.
Other income increased from $1,156,686 last year to $1,391,432 this year. The variation is mainly in grants received for R&D programs.
Adjusted EBITDA
1) From Advanced Materials, Plastics and Composite Products
The adjusted EBITDA improved from a loss of $234,795 last year to a profit of $5,176,437 this year. The variation is explained as follows:
- Gross margin on revenues from customers increased by $5,828,176 compared to last year due to higher volume, favourable product mix, improved productivity and cost control;
- Higher other income of $234,746 as described above; and
- Partially offset by higher operating expenses (SG&A and R&D) of $967,730 mainly due to higher wages, including higher variable compensation.
2) From Battery Cells
The adjusted EBITDA loss increased from $623,092 last year to $2,657,303 this year. The variation is explained by the operating expenses (G&A and R&D) of $2,685,046 due in part to the acquisition during 2023 of the Martinrea share in VoltaXplore.
C. Other
Additional information about the Corporation, including the Corporation's Management Discussion and Analysis for the years ended June 30, 2024 and 2023 ("MD&A") and the Corporation's consolidated financial statements for the for years ended June 30, 2024 and 2023 (the "financial statements") can be found at www.nanoxplore.ca.
Webcast
NanoXplore will hold a webcast tomorrow, September 19, 2024, at 8:30 am EDT to review its year ended June 30, 2024. Soroush Nazarpour, CEO and President of NanoXplore, and Pedro Azevedo, Chief Financial Officer, will host the event. To access the webcast please click on the link https://edge.media-server.com/mmc/p/3gw4uj5b or you can access through our website in the Investors section under Events and Presentations. A replay of this event can be accessed via the above link or on our website.
About NanoXplore
NanoXplore is a graphene company, a manufacturer and supplier of high-volume graphene powder for use in transportation and industrial markets. Also, the Corporation provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors. The Corporation is also a silicon-graphene-enhanced Li-ion battery manufacturer for the Electric Vehicle and grid storage markets. NanoXplore is headquartered in Montreal, Quebec with manufacturing facilities in Canada, the United States and Europe.
Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements, and subject to risks and uncertainties. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as "anticipate", "believe", "continue", "could", "estimate", "foresee", "grow", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Such forward-looking information necessarily involves known and unknown risks and uncertainties, including the relevant assumptions and risks factors set out in NanoXplore's most recent annual management discussion and analysis filed on SEDAR+ at www.sedarplus.ca, which may cause NanoXplore's actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks, uncertainties and other factors include, among others, the uncertain and unpredictable condition of global economy, notably as a consequence of the Covid-19 pandemic. Any forward-looking information is made as of the date hereof and, except as required by law, NanoXplore does not undertake any obligation to update or revise any forward-looking statement as a result of new information, subsequent events or otherwise.
Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management. 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. By their nature, forward-looking statements involve known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated by such statements.
No securities regulatory authority has either approved or disapproved the contents of this press release.
For further information, please contact:
Pierre Yves Terrisse
Vice-President Corporate Development
py.terrisse@nanoxplore.ca
Tel: 1 438 476-1965
