Jamieson Wellness Inc. Reports Third Quarter 2021 Financial Results

 

  Narrows Fiscal 2021 Guidance and Declares Third Quarter Dividend  

 

Jamieson Wellness Inc. ("Jamieson Wellness" or the "Company") (TSX: JWEL) today reported financial results for its third quarter ended September 30, 2021. All amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures. See "Non-IFRS Financial Measures" below.

 

  Highlights of Third Quarter 2021 Results versus Third Quarter 2020 Results  

 
  • Revenue increased 6.4% to $112.4 million;
  •  
  • Jamieson Brands revenue increased by 3.1%, or 4.8% normalized for the impact of foreign exchange;
  •  
  • Adjusted EBITDA increased 11.0% to $25.5 million;
  •  
  • Net earnings was $14.3 million and adjusted net earnings increased 11.0% to $14.1 million; and
  •  
  • Earnings per diluted share and adjusted earnings per diluted share were $0.34.
  •  

"Consumers' continued focus on health and wellness has become a permanent fixture in their daily lives," said Mike Pilato, President and CEO of Jamieson Wellness. "This new consumer baseline reflects the extended duration of the COVID-19 pandemic, and a long-term commitment to using vitamins, minerals, and supplements to maximize vitality and well-being. We continue to adapt, invest in, and focus on meeting this rising demand across this growing base of global consumers. While we diligently manage supply chain risks and transportation cost pressures, we are very pleased with our solid third quarter results, including a 6.4% revenue increase, an 11% increase in Adjusted EBITDA and Adjusted Net Earnings, and a 100 basis point improvement in Adjusted EBITDA margin. Based on our positive year-to-date results and our favourable demand outlook, we are increasing our revenue guidance and narrowing our adjusted EBITDA expectations to the top of our previous range. We remain confident in our outlook and ability to drive significant value for all stakeholders as we approach our 100th anniversary as a leader in health and wellness."

 

  Third Quarter 2021 Results  

 

Revenue increased 6.4% to $112.4 million in the third quarter of 2021 compared with $105.6 million in the third quarter of 2020 driven by 3.1% growth in Jamieson Brands and 18.4% growth in Strategic Partners.

 

Revenue in the Jamieson Brands segment increased by 3.1% or $2.6 million to $85.2 million. The Company's domestic branded sales increased by 4.3% in the third quarter of 2021, with strong point of purchase sales on an expanded consumer base outpacing shipments in the quarter, supported by significant customer and distributor inventory replenishments in the second quarter. The Company's international branded business increased by 7.0% on a constant currency basis compared with the third quarter of 2020 led by continued growth in China, partially offset by strong replenishments earlier in the year to other regions. On a reported basis, the Company's international branded business decreased by 2.6% due to the strengthening of the Canadian dollar.

 

Revenue in the Strategic Partners segment increased 18.4%, or $4.2 million to $27.2 million in the third quarter of 2021 mainly due to expanded programs with new and existing customers.

 

Gross profit increased by $2.8 million to $40.8 million in the third quarter of 2021 mainly driven by revenue growth. Gross profit margin increased by 30 basis points to 36.3%, reflecting margin improvements in both segments from pricing and volume driven efficiencies, partially offset by the mix impact of proportionally higher sales in the Strategic Partners segment. Gross profit margin in the Jamieson Brands segment increased by 130 basis points to 44.3% due to volume driven efficiencies, favourable product mix, and pricing, partially offset by ongoing operating costs of using a third-party logistics provider, elevated costs reflecting ongoing global supply chain challenges, and sustained safety and business continuity costs while operating under a COVID-19 environment. Gross profit margin in Strategic Partners increased by 40 basis points to 11.5% mainly due to volume driven efficiencies, partially offset by an expected reduction from customer mix.

 

Selling, general and administrative ("SG&A") expenses increased by $0.2 million to $19.2 million in the third quarter of 2021. On a normalized basis, SG&A expenses increased $0.8 million to $19.0 million in the third quarter of 2021 due to additional resources to support strategic initiatives, while marketing remained relatively flat.

 

Earnings from operations increased by $2.8 million, or 15.7%, to $20.6 million in the third quarter of 2021 and operating margin increased by 140 basis points to 18.3% as a result of higher revenue and gross profit margins. On a normalized basis, earnings from operations increased by $2.3 million, or 12.2% in the third quarter of 2021 and operating margin was 18.5% compared with 17.6% in third quarter of 2020.

 

Adjusted EBITDA increased by 11.0% to $25.5 million in the third quarter of 2021 and adjusted EBITDA margin was 22.7% compared with 21.7% in the third quarter of 2020.

 

Interest expense and other financing costs increased by $0.2 million to $1.5 million compared with the third quarter of 2020 due to higher average borrowings in the quarter and interest on lease liabilities.

 

Net earnings for the third quarter of 2021 was $14.3 million compared with $12.1 million in the third quarter of 2020. Adjusted net earnings, which excludes all non-operating expenses and foreign exchange, increased by $1.4 million, or 11.0%, to $14.1 million in the third quarter of 2021.

 

Adjusted net earnings excludes costs associated with share-based compensation relating to one-time grants to certain employees, foreign exchange gain, business integration, COVID-19 related costs, other non-recurring earnings or expenses net of related tax effects. A detailed reconciliation of reported net earnings to non-IFRS adjusted net earnings is included in the tables accompanying this release under the heading "Non-IFRS Financial Measures".

 

  Balance Sheet & Cash Flow  

 

The Company generated $10.1 million in cash from operations during the third quarter of 2021 compared with $4.6 million in the third quarter of 2020. Cash from operating activities before working capital considerations of $19.2 million was $3.0 million higher due to increased earnings in the current quarter. Cash invested in working capital decreased by $2.5 million driven by favourable timing on the collection of receivables, partially offset by increases in inventories to secure raw material supply reflecting ongoing global supply chain challenges. The Company's cash as at September 30, 2021 was $9.1 million compared with $1.2 million on December 31, 2020 and $3.1 million at the end of the third quarter of 2020. The Company ended the quarter with approximately $109.8 million in cash and available operating lines and net debt of $165.2 million.

 
                                                                                                          
  Three months ended  
  September 30  
  ($ in 000's, except as otherwise noted)   

  2021  

 
 

  2020  

 
  $ Change    % Change  
 
Cash, beginning of period  

  4,636  

 
 

 

 
 

  6,796  

 
 

 

 
 

  (2,160  

 
 

  )  

 
 

  (31.8  

 
 

  %)  

 
Cash flows from (used in):
Operating activities  

10,081

 
 

 

 
 

4,553

 
 

 

 
 

5,528

 
 

 

 
 

121.4

 
 

%

 
Investing activities  

(6,615

 
 

)

 
 

(1,799

 
 

)

 
 

(4,816

 
 

)

 
 

(267.7

 
 

%)

 
Financing activities  

1,048

 
 

 

 
 

(6,406

 
 

)

 
 

7,454

 
 

 

 
 

116.4

 
 

%

 
  Cash, end of period   

  9,150  

 
 

 

 
 

  3,144  

 
 

 

 
 

  6,006  

 
 

 

 
 

  191.0  

 
 

  %  

 
 

  Fiscal 2021 Outlook  

 

The Company is increasing its outlook for fiscal 2021 and anticipates revenue in a range of $442.0 to $447.0 million, compared with $435.0 to $445.0 million previously, which represents annual growth of 9.5% to 10.7%. The Company anticipates adjusted EBITDA in a range of $98.0 to $100.0 million, narrowed from a previous range of $97.0 to $100.0 million, and now anticipates adjusted diluted earnings per share in a range of $1.29 to $1.32 compared with $1.27 to $1.32 previously. The increase in the Company's outlook reflects strong growth in domestic branded sales as consumer demand continues to exceed pandemic baseline levels, and expanded programs with new and existing customers. Adjusted EBITDA reflects higher volumes partially offset by increased operating costs as global supply chain challenges continue to impact freight premiums, logistics and supply related operating efficiencies.

 

This outlook reflects the following assumptions:

 
  • Jamieson Brands segment growth of 6.2% to 7.4%, including the impact of a strengthened Canadian dollar on international sales and reflecting the following:
    • 5.5% to 6.5% domestic growth, and
    •  
    • Approximately 22.5% international growth in U.S. dollars, while reported revenues in Canadian dollars will be impacted by a strengthened currency compared to the prior year and foreign exchange volatility on the conversion of U.S. dollars to Canadian dollars.
    •  
  •  
  • Strategic Partners segment growth of approximately 22.5%
  •  
  • Normalized SG&A expense increases of 8.5% to 9.5%, lowered from our previous range of between 8% to 12% due to reduced travel and entertainment combined with lower spend and improved efficiencies on domestic marketing investments.
  •  

For additional details on the Company's fiscal 2021 outlook, including guidance for the fourth quarter of 2021, refer to the "Outlook" section in the management's discussion and analysis of financial condition and results of operations ("MD&A") for the three and nine months ended September 30, 2021.

 

  Declaration of Third Quarter Dividend  

 

On November 3, 2021, the board of directors of the Company declared a cash dividend for the third quarter of 2021 of $0.15 per common share, or approximately $6.1 million in the aggregate. The dividend will be paid on December 15, 2021 to all common shareholders of record at the close of business on December 1, 2021. The Company has designated this dividend as an "eligible dividend" for the purposes of the Income Tax Act (Canada).

 

  Consolidated Financial Statements and Management's Discussion and Analysis  

 

The Company's unaudited condensed consolidated interim financial statements and accompanying notes as at and for the three and nine months ended September 30, 2021 and related MD&A are available under the Company's profile on SEDAR at www.sedar.com and on the Investor Relations section of the Company's website at https://investors.jamiesonwellness.com .

 

  Conference Call  

 

Management will host a conference call to discuss the Company's third quarter 2021 results at 5:00 p.m. ET today, November 4, 2021. The call can be accessed live over the telephone by dialing 1-888-204-4368 from Canada and the U.S. or 1-323-994-2093 from international locations. A replay will be available shortly after the call and can be accessed by dialing 1-844-512-2921 from Canada and the U.S. or 1-412-317-6671 from international locations. The passcode for the replay is 9535726 and it will be available until Thursday, November 18, 2021.

 

Interested parties may listen to a simultaneous webcast of the conference call by logging on via the Investor Relations section of the Company's website at https://www.jamiesonwellness.com/English/investors/home/default.aspx or directly at https://viavid.webcasts.com/starthere.jsp?ei=1503430&tp_key=2d2fd1645b . A replay of the webcast will be available for approximately 30 days following the call.

 

  About Jamieson Wellness  

 

Jamieson Wellness is dedicated to improving the world's health and wellness with its portfolio of innovative natural health brands. Established in 1922, Jamieson is the Company's heritage brand and Canada's #1 consumer health brand. Jamieson Wellness manufactures and markets sports nutrition products and specialty supplements under its Progressive, Precision and Iron Vegan brands. The Company also markets Smart Solutions, the #1 women's natural health focused brand in Canada. For more information, please visit jamiesonwellness.com.

 

Jamieson Wellness' head office is located at 1 Adelaide Street East Suite 2200, Toronto, Ontario, Canada.

 

  Forward-Looking Information  

 

This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes, but is not limited to, statements related to the Company's anticipated results and its outlook for its 2021 revenue, adjusted EBITDA and adjusted diluted earnings per share. Words such as "expect", "anticipate", "intend", "may", "will", "estimate" and variations of such words and similar expressions are intended to identify such forward-looking information. This information reflects the Company's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company's Annual Information Form dated March 30, 2021 and under the "Risk Factors" section in the Company's MD&A filed today, November 4, 2021. This information is based on the Company's reasonable assumptions and beliefs in light of the information currently available to it and the statements are made as of the date of this press release. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law or regulatory authority.

 

The Company cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect the Company's results. Readers are urged to consider the risks, uncertainties and assumptions associated with these statements carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See "Forward-looking Information" and "Risk Factors" within the Company's MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements.

 
                                                                                                                                                                                                                                                                                                                                                                                                 
 

  Jamieson Wellness Inc.  

 

Consolidated Statements of Operations

 

In thousands of Canadian dollars, except share and per share amounts

 
 
  Three months ended    Nine months ended  
  September 30    September 30  
 

  2021  

 
 

  2020  

 
 

  2021  

 
 

  2020  

 
 
  Revenue   

  112,368  

 
 

 

 
 

  105,565  

 
 

 

 
 

  321,194  

 
 

 

 
 

  283,292  

 
 

 

 
Cost of sales  

71,555

 
 

 

 
 

67,520

 
 

 

 
 

208,169

 
 

 

 
 

181,050

 
 

 

 
Gross profit  

40,813

 
 

 

 
 

38,045

 
 

 

 
 

113,025

 
 

 

 
 

102,242

 
 

 

 
 
  Gross profit margin   

  36.3  

 
 

  %  

 
 

  36.0  

 
 

  %  

 
 

  35.2  

 
 

  %  

 
 

  36.1  

 
 

  %  

 
 
Selling, general and administrative expenses  

19,228

 
 

 

 
 

19,010

 
 

 

 
 

61,218

 
 

 

 
 

57,635

 
 

 

 
Share-based compensation  

992

 
 

 

 
 

1,231

 
 

 

 
 

4,651

 
 

 

 
 

3,769

 
 

 

 
  Earnings from operations   

  20,593  

 
 

 

 
 

  17,804  

 
 

 

 
 

  47,156  

 
 

 

 
 

  40,838  

 
 

 

 
 
  Operating margin   

  18.3  

 
 

  %  

 
 

  16.9  

 
 

  %  

 
 

  14.7  

 
 

  %  

 
 

  14.4  

 
 

  %  

 
 
Foreign exchange gain  

(577

 
 

)

 
 

(271

 
 

)

 
 

(444

 
 

)

 
 

(172

 
 

)

 
Other expenses  

-

 
 

 

 
 

3

 
 

 

 
 

-

 
 

 

 
 

3

 
 

 

 
Interest expense and other financing costs  

1,505

 
 

 

 
 

1,315

 
 

 

 
 

4,291

 
 

 

 
 

4,633

 
 

 

 
Income before income taxes  

19,665

 
 

 

 
 

16,757

 
 

 

 
 

43,309

 
 

 

 
 

36,374

 
 

 

 
Provision for income taxes  

5,381

 
 

 

 
 

4,613

 
 

 

 
 

11,417

 
 

 

 
 

10,181

 
 

 

 
  Net earnings   

  14,284  

 
 

 

 
 

  12,144  

 
 

 

 
 

  31,892  

 
 

 

 
 

  26,193  

 
 

 

 
  Adjusted net earnings   

  14,051  

 
 

 

 
 

  12,655  

 
 

 

 
 

  35,312  

 
 

 

 
 

  30,336  

 
 

 

 
 
  EBITDA   

  24,794  

 
 

 

 
 

  21,202  

 
 

 

 
 

  58,171  

 
 

 

 
 

  49,882  

 
 

 

 
  Adjusted EBITDA   

  25,456  

 
 

 

 
 

  22,933  

 
 

 

 
 

  66,325  

 
 

 

 
 

  58,603  

 
 

 

 
 
  Adjusted EBITDA margin   

  22.7  

 
 

  %  

 
 

  21.7  

 
 

  %  

 
 

  20.6  

 
 

  %  

 
 

  20.7  

 
 

  %  

 
 
  Weighted average number of shares  
Basic  

40,256,983

 
 

 

 
 

39,741,698

 
 

 

 
 

40,076,485

 
 

 

 
 

39,430,417

 
 

 

 
Diluted  

41,698,267

 
 

 

 
 

41,574,340

 
 

 

 
 

41,500,445

 
 

 

 
 

41,261,833

 
 

 

 
 
  Earnings per share attributable to common shareholders:  
Basic, earnings per share  

  0.35  

 
 

 

 
 

  0.31  

 
 

 

 
 

  0.80  

 
 

 

 
 

  0.66  

 
 

 

 
Diluted, earnings per share  

  0.34  

 
 

 

 
 

  0.29  

 
 

 

 
 

  0.77  

 
 

 

 
 

  0.63  

 
 

 

 
Adjusted diluted, earnings per share  

  0.34  

 
 

 

 
 

  0.30  

 
 

 

 
 

  0.85  

 
 

 

 
 

  0.74  

 
 

 

 
 
                                                                                                                                                                                                               
 

  Jamieson Wellness Inc.  

 

Consolidated Statements of Financial Position

 

In thousands of Canadian dollars

 
 
  September 30,
2021
 
  December 31,
2020
 
  Assets  
  Current assets  
Cash  

9,150

 
 

 

 
 

1,166

 
 

 

 
Accounts receivable  

105,636

 
 

 

 
 

97,951

 
 

 

 
Inventories  

130,442

 
 

 

 
 

102,645

 
 

 

 
Derivatives  

986

 
 

 

 
 

-

 
 

 

 
Prepaid expenses and other current assets  

5,689

 
 

 

 
 

2,389

 
 

 

 
 

  251,903  

 
 

 

 
 

  204,151  

 
 

 

 
  Non-current assets  
Property, plant and equipment  

94,320

 
 

 

 
 

83,796

 
 

 

 
Goodwill  

122,975

 
 

 

 
 

122,975

 
 

 

 
Intangible assets  

193,524

 
 

 

 
 

196,158

 
 

 

 
Deferred income tax  

2,523

 
 

 

 
 

2,261

 
 

 

 
  Total assets   

  665,245  

 
 

 

 
 

  609,341  

 
 

 

 
 
  Liabilities  
  Current liabilities  
Accounts payable and accrued liabilities  

80,395

 
 

 

 
 

73,084

 
 

 

 
Income taxes payable  

913

 
 

 

 
 

6,580

 
 

 

 
Derivatives  

4,544

 
 

 

 
 

8,231

 
 

 

 
Current portion of other long-term liabilities  

2,884

 
 

 

 
 

3,115

 
 

 

 
 

  88,736  

 
 

 

 
 

  91,010  

 
 

 

 
  Long-term liabilities  
Long-term debt  

174,378

 
 

 

 
 

149,058

 
 

 

 
Deferred income tax  

3,692

 
 

 

 
 

3,538

 
 

 

 
Other long-term liabilities  

53,060

 
 

 

 
 

51,479

 
 

 

 
Total liabilities  

21,384

 
 

 

 
 

21,854

 
 

 

 
  Total liabilities   

  341,250  

 
 

 

 
 

  316,939  

 
 

 

 
 
  Shareholders' equity  
Share capital  

266,943

 
 

 

 
 

255,795

 
 

 

 
Contributed surplus  

14,211

 
 

 

 
 

12,986

 
 

 

 
Retained earnings  

44,874

 
 

 

 
 

29,023

 
 

 

 
Accumulated other comprehensive loss  

(2,033

 
 

)

 
 

(5,402

 
 

)

 
  Total shareholders' equity   

  323,995  

 
 

 

 
 

  292,402  

 
 

 

 
  Total liabilities and shareholders' equity   

  665,245  

 
 

 

 
 

  609,341  

 
 

 

 
 
                                                                                                                                                         
 

  Jamieson Wellness Inc.  

 

Segment Information

 

In thousands of Canadian dollars, except as otherwise noted

 
 
 

  Jamieson Brands  

 
 
  Three months ended
September 30
 
 

  2021  

 
 

  2020  

 
  $ Change    % Change  
 
Revenue  

85,175

 
 

82,604

 
 

2,571

 
 

3.1%

 
 

-

 
Gross profit  

37,690

 
 

35,489

 
 

2,201

 
 

6.2%

 
Gross profit margin  

44.3%

 
 

43.0%

 
 

-

 
 

1.3%

 
 
Selling, general and administrative expenses  

17,645

 
 

17,322

 
 

323

 
 

1.9%

 
 
Share-based compensation  

992

 
 

1,231

 
 

(239)

 
 

(19.4%)

 
 
  Earnings from operations   

  19,053  

 
 

  16,936  

 
 

  2,117  

 
 

  12.5%  

 
  Operating margin   

  22.4%  

 
 

  20.5%  

 
 

  -  

 
 

  1.9%  

 
 
  Adjusted EBITDA   

  23,363  

 
 

  21,467  

 
 

  1,896  

 
 

  8.8%  

 
  Adjusted EBITDA margin   

  27.4%  

 
 

  26.0%  

 
 

  -  

 
 

  1.4%  

 
 
                                                                                                                                  
 

  Strategic Partners  

 
 
  Three months ended
September 30
 
 

  2021  

 
 

  2020  

 
  $ Change    % Change  
 
Revenue  

27,193

 
 

22,961

 
 

4,232

 
 

18.4%

 
 
Gross profit  

3,123

 
 

2,556

 
 

567

 
 

22.2%

 
Gross profit margin  

11.5%

 
 

11.1%

 
 

-

 
 

0.4%

 
 
Selling, general and administrative expenses  

1,583

 
 

1,688

 
 

(105)

 
 

(6.2%)

 
 
  Earnings from operations   

  1,540  

 
 

  868  

 
 

  672  

 
 

  77.4%  

 
  Operating margin   

  5.7%  

 
 

  3.8%  

 
 

  -  

 
 

  1.9%  

 
 
  Adjusted EBITDA   

  2,093  

 
 

  1,466  

 
 

  627  

 
 

  42.8%  

 
  Adjusted EBITDA margin   

  7.7%  

 
 

  6.4%  

 
 

  -  

 
 

  1.3%  

 
 
                                                                                                                                                  
 

  Jamieson Brands  

 
 
  Nine months ended
September 30
 
 

  2021  

 
 

  2020  

 
  $ Change    % Change  
 
Revenue  

243,461

 
 

226,690

 
 

16,771

 
 

7.4%

 
 
Gross profit  

103,214

 
 

95,295

 
 

7,919

 
 

8.3%

 
Gross profit margin  

42.4%

 
 

42.0%

 
 

-

 
 

0.4%

 
 
Selling, general and administrative expenses  

56,151

 
 

50,263

 
 

5,888

 
 

11.7%

 
 
Share-based compensation  

4,651

 
 

3,769

 
 

882

 
 

23.4%

 
 
  Earnings from operations   

  42,412  

 
 

  41,263  

 
 

  1,149  

 
 

  2.8%  

 
  Operating margin   

  17.4%  

 
 

  18.2%  

 
 

  -  

 
 

  (0.8%)  

 
 
  Adjusted EBITDA   

  59,833  

 
 

  54,878  

 
 

  4,955  

 
 

  9.0%  

 
  Adjusted EBITDA margin   

  24.6%  

 
 

  24.2%  

 
 

  -  

 
 

  0.4%  

 
 
                                                                                                                                  
 

  Strategic Partners  

 
 
  Nine months ended
September 30
 
 

  2021  

 
 

  2020  

 
  $ Change    % Change  
 
Revenue  

77,733

 
 

56,602

 
 

21,131

 
 

37.3%

 
 
Gross profit  

9,811

 
 

6,947

 
 

2,864

 
 

41.2%

 
Gross profit margin  

12.6%

 
 

12.3%

 
 

-

 
 

0.3%

 
 
Selling, general and administrative expenses  

5,067

 
 

7,372

 
 

(2,305)

 
 

(31.3%)

 
 
  Earnings (loss) from operations   

  4,744  

 
 

  (425)  

 
 

  5,169  

 
 

  1216.2%  

 
  Operating margin   

  6.1%  

 
 

  (0.8%)  

 
 

  -  

 
 

  6.9%  

 
 
  Adjusted EBITDA   

  6,492  

 
 

  3,725  

 
 

  2,767  

 
 

  74.3%  

 
  Adjusted EBITDA margin   

  8.4%  

 
 

  6.6%  

 
 

  -  

 
 

  1.8%  

 
 

  Non-IFRS Financial Measures  

 

This press release makes reference to certain non‑IFRS measures. Management uses these non‑IFRS financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing the Company's business performance and trends. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. We use non‑IFRS measures, including "gross profit", "gross profit margin", "operating margin", "EBITDA", "adjusted EBITDA", "adjusted EBITDA margin", "adjusted net earnings" and "adjusted diluted earnings per share" to provide supplemental measures of the Company's operating performance and thus highlight trends in the Company's core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non‑IFRS measures in order to prepare annual operating budgets and to determine components of management compensation. Definitions of non-IFRS measures can be found in the Company's MD&A.

 
                                                                                                             
 

  Reconciliation of Adjusted Net Earnings  

 

In thousands of Canadian dollars

 
 
  Three months ended    Nine months ended  
  September 30    September 30  
 

  2021  

 
 

  2020  

 
 

  2021  

 
 

  2020  

 
 
  Net earnings   

  14,284  

 
 

  12,144  

 
 

  31,892  

 
 

0

 
 

  26,193  

 
  Adjustments to net earnings:  
Share-based compensation  

10

 
 

144

 
 

846

 
 

432

 
Foreign exchange gain  

(577)

 
 

(271)

 
 

(444)

 
 

(172)

 
International market expansion  

-

 
 

-

 
 

-

 
 

13

 
Business integration  

88

 
 

121

 
 

1,789

 
 

541

 
COVID-19 related costs  

159

 
 

645

 
 

2,337

 
 

4,663

 
Other  

-

 
 

5

 
 

(179)

 
 

5

 
Related tax effects  

87

 
 

(133)

 
 

(929)

 
 

(1,339)

 
  Adjusted net earnings   

  14,051  

 
 

  12,655  

 
 

  35,312  

 
 

  30,336  

 
 
                                                                                                                                                             
 

  Reconciliation of EBITDA and Adjusted EBITDA  

 

In thousands of Canadian dollars

 
 
  Three months ended    Nine months ended  
  September 30    September 30  
 

  2021  

 
 

  2020  

 
 

  2021  

 
 

  2020  

 
 
  Net earnings   

  14,284  

 
 

  12,144  

 
 

  31,892  

 
 

  26,193  

 
  Add:  
Provision for income taxes  

5,381

 
 

4,613

 
 

11,417

 
 

10,181

 
Interest expense and other financing costs  

1,505

 
 

1,315

 
 

4,291

 
 

4,633

 
Depreciation of property, plant, and equipment  

2,543

 
 

2,071

 
 

7,377

 
 

5,924

 
Amortization of intangible assets  

1,081

 
 

1,059

 
 

3,194

 
 

2,951

 
 
  Earnings before interest, taxes, depreciation, and amortization (EBITDA)   

  24,794  

 
 

  21,202  

 
 

  58,171  

 
 

  49,882  

 
  Add EBITDA adjustments:  
Share-based compensation  

992

 
 

1,231

 
 

4,651

 
 

3,769

 
Foreign exchange gain  

(577)

 
 

(271)

 
 

(444)

 
 

(172)

 
International market expansion  

-

 
 

-

 
 

-

 
 

13

 
Business integration  

88

 
 

121

 
 

1,789

 
 

443

 
COVID-19 related costs  

159

 
 

645

 
 

2,337

 
 

4,663

 
Other  

-

 
 

5

 
 

(179)

 
 

5

 
  Adjusted EBITDA   

  25,456  

 
 

  22,933  

 
 

  66,325  

 
 

  58,603  

 
 

Source: Jamieson Wellness Inc.

 

  

  

  Investor and Media Contact Information:
 

 

Jamieson Wellness
Ruth Winker
416-705-5437
rwinker@jamiesonlabs.com  

 

News Provided by Business Wire via QuoteMedia

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