MAV BEAUTY BRANDS REPORTS FOURTH QUARTER & FULL-YEAR 2021 FINANCIAL RESULTS

Total income of $26.7 million versus $23.3 million in This autumn 2020 Net lack of ($0.1) million in contrast with web earnings of $0.1 million in This autumn 2020Adjusted EBITDA of $3.2 million versus $3.4 million in This autumn 2020(1)Adjusted Free Cash Flow of $0.2 million versus $4.8 million in This autumn 2020(1)Cash offered by working actions of $0.2 million versus $5.1 million in This autumn 2020VAUGHAN, ON, March 24, 2022 /CNW/ – MAV Beauty Brands Inc. (“MAV Beauty Brands” or the “Company”), a world private care firm, at this time introduced its monetary outcomes for the three and 12 months ended December 31, 2021. Unless in any other case indicated, all quantities are expressed in U.S. {dollars}. Certain metrics, together with these expressed on an adjusted foundation, are non-IFRS measures (see “Non-IFRS Measures” under).”Revenue elevated by 14.5% within the quarter in comparison with prior yr and there have been a number of efficiency highlights from the portfolio, together with the sustained progress of the Marc Anthony and Cake manufacturers. Nonetheless, it was a difficult quarter and yr general as we felt the influence of web distribution losses whereas our margins and profitability had been additionally affected by ongoing provide chain price pressures and different elements, mentioned Serge Jureidini, President & CEO of MAV Beauty Brands. “We proceed working to mitigate these headwinds. In a progress oriented haircare market, our focus for 2022 is to stabilize the enterprise by enhanced execution and constructing the desirability of our manufacturers, notably by product innovation. Over time, we proceed to consider the platform will ship above-category progress from a various and complementary model portfolio.”Selected Financial Highlights(1)(2)(3)(in 1000’s of US {dollars} besides per share quantities) (unaudited)This autumn 2021Q4 2020FY 2021FY 2020Revenue26,70323,323107,156114,906Gross profit10,3939,05943,97752,549Net earnings (loss) for the interval(142)108(97,636)6,506Earnings per share (primary)0.000.00(2.66)0.18Adjusted EBITDA3,1603,39716,50628,470Cash circulate from working activities2335,0666,40614,781Adjusted Free Cash Flow1774,8375,83813,438Adjusted Net Income 288003,64512,637Adjusted Earnings per Share (diluted)0.000.020.090.30(1)EBITDA (used under), Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Net Income, Adjusted Earnings per Share, and Net Debt (used under) are every non-IFRS measures and should not incomes measures acknowledged by IFRS. Further details about non-IFRS measures and definitions of the non-IFRS measures used on this press launch might be discovered underneath the heading “Non-IFRS Measures” on this press launch. Reconciliations of non-IFRS measures to the related reported measures ready in accordance with IFRS might be discovered on this press launch underneath the headings “This autumn 2021 Compared to This autumn 2020 & FY2021 Compared to FY2020”. See additionally the heading “How We Assess the Performance of Our Business” on web page 8, and the heading “Non-IFRS Measures” on web page 10 of our Management’s Discussion and Analysis for the three- and 12-month durations ended December 31, 2021. (2)Certain comparative figures have been revised to reclassify compliance costs that had been beforehand recorded in promoting and administrative bills to income to adapt with IFRS 15 and the monetary presentation adopted for the present interval.(3)Earnings per share (primary) calculation doesn’t embrace the influence of two,463,963 frequent shares of the Company issuable upon the trade of the items issued as a part of The Mane Choice acquisition.This autumn 2021 Business and Financial Review Story continuesQ4 2021 income elevated by 14.5% to $26.7 million, in comparison with $23.3 million in This autumn 2020. For the Canada/US area, income elevated by 11.9% to $24.4 million in This autumn 2021, in comparison with $21.8 million in This autumn 2020. The year-over-year improve primarily displays greater gross sales from two of the Company’s manufacturers, which offset decreased gross sales from the opposite two manufacturers. For the International area, income elevated by 38.4% to $2.2 million, in This autumn 2021 in comparison with $1.6 million in This autumn 2020, reflecting continued restoration from COVID-19 associated disruptions and improved manufacturing and logistics service ranges in comparison with the prior yr.Gross revenue elevated by 14.7% to $10.4 million in This autumn 2021, in comparison with $9.1 million in This autumn 2020. Gross revenue margin was 38.9% in This autumn 2021, in comparison with 38.8% in This autumn 2020. The year-over-year enchancment displays a positive gross sales combine, offset by the continued unfavourable influence of elevated provide chain enter prices. Beginning in 2022, the Company is adjusting its pricing on sure merchandise to partially offset a few of these greater enter prices.Selling and administrative expense elevated by 21.8%, or $1.3 million, to $7.3 million in This autumn 2021 in comparison with $6.0 million in This autumn 2020. The improve in promoting and administrative expense primarily displays elevated advertising and marketing and compensation prices in This autumn 2021 in comparison with This autumn 2020, partially offset by a beneficial variance in administrative prices.Adjusted EBITDA(1) decreased to $3.2 million in This autumn 2021, from $3.4 million in This autumn 2020. In This autumn 2021, the Company reported a web lack of ($0.1) million, versus web earnings of $0.1 million in This autumn 2020. Adjusted Net Income(1) decreased to $0.0 million, in contrast with Adjusted Net Income(1) of $0.8 million in This autumn 2020, because of the elements mentioned above. Adjusted Earnings Per Share (Diluted)(1) was $0.00 per share in This autumn 2021, in contrast with $0.02 per share in This autumn 2020.Cash circulate from operations was $1.7 million and Adjusted Free Cash Flow(1) decreased to $0.2 million in This autumn 2021, in comparison with $1.9 million and $4.8 million, respectively, in This autumn 2020 . The year-over-year change was primarily attributable as a consequence of change in working capital. At yr finish, Net Debt(1) was $121.5 million, and money was $12.0 million.In late February 2022, a cyber safety breach at our major third-party logistics accomplice disrupted our order outflow capabilities. The Company anticipates an unfavourable influence on its Q1 income, primarily leading to a shift of shipments into Q2. Mitigation plans have been applied and the Company anticipates a return to pre-incident working ranges as of April 2022.Financial Statements and Management’s Discussion and AnalysisThe Company’s audited consolidated monetary statements and Management’s Discussion and Analysis for the three- and 12-month durations ended December 31, 2021 can be found underneath the Company’s profile on SEDAR at www.sedar.com and on MAV Beauty Brands’ investor relations web site at buyers.mavbeautybrands.com.Conference Call & WebcastMAV Beauty Brands will host a convention name to debate its Fiscal 2021 fourth quarter monetary outcomes at 8:30 a.m. EDT on March 24, 2022. To take part within the name, dial 647-794-4605 or 888-204-4368 utilizing the convention ID 7935239. The audio webcast might be accessed at buyers.mavbeautybrands.comhttps://bit.ly/2mutHer. Listeners ought to entry the webcast or name 10-Quarter-hour earlier than the beginning time to make sure they’re linked.About MAV Beauty Brands (TSX:MAV)MAV Beauty Brands is a world private care platform centered on buying nice impartial manufacturers and serving to these manufacturers to scale and win market share. We have constructed an working platform to construct manufacturers by expanded distribution, innovation, and advertising and marketing. Today, now we have a diversified portfolio of 4 complementary private care manufacturers – Marc Anthony, Renpure, Cake Beauty and The Mane Choice – providing premium high quality hair care, physique care and sweetness merchandise. These merchandise are bought in over 25 international locations world wide and most of the world’s largest retailers.Non–IFRS MeasuresThis press launch makes reference to sure non–IFRS measures. These measures should not acknowledged measures underneath IFRS, should not have a standardized which means prescribed by IFRS and are subsequently unlikely to be akin to related measures introduced by different corporations. Rather, these measures are offered as further info to enrich these IFRS measures by offering additional understanding of our outcomes of operations from administration’s perspective. Accordingly, these measures shouldn’t be thought of in isolation nor as an alternative to evaluation of our monetary info reported underneath IFRS. We use non–IFRS measures together with “Adjusted Earnings Per Share (Diluted)”, “Adjusted EBITDA”, “Adjusted Free Cash Flow”, “Adjusted Net Income”, “EBITDA”, “Free Cash Flow” and “Net Debt”. These non–IFRS measures are used to offer buyers with supplemental measures of our working efficiency and thus spotlight developments in our core enterprise that will not in any other case be obvious when relying solely on IFRS monetary measures. We additionally consider that securities analysts, buyers, and different events continuously use non–IFRS measures within the analysis of issuers. Our administration additionally makes use of non–IFRS measures with a view to facilitate working efficiency comparisons from interval to interval, to organize annual working budgets and to find out parts of administration compensation. Definitions and reconciliations of non-IFRS measures to the related reported measures ready in accordance with IFRS might be discovered underneath the headings “Non-IFRS Measures” and “This autumn 2021 Compared to This autumn 2020 & FY2021 Compared to FY2020” on this press launch. See additionally our Management’s Discussion and Analysis underneath the headings “How We Assess the Performance of Our Business” on web page 8, and “Non-IFRS Measures” on web page 10.”Adjusted Earnings Per Share (Diluted)” is computed equally to primary earnings per share besides that the weighted common variety of shares excellent is elevated to incorporate further shares for the assumed conversion of desire shares, proportionate voting shares, and exchangeable shares and train of inventory choices, if dilutive. The common variety of shares is calculated by assuming that excellent conversions had been exercised and that the proceeds from such workouts had been used to amass frequent shares on the common market value throughout the reporting interval. We consider Adjusted Earnings Per Share (Diluted) is a helpful measure to evaluate the efficiency of our Company because it gives significant working outcomes per diluted share and facilitates period-to-period working comparisons.”Adjusted EBITDA” represents, for the relevant interval, EBITDA earlier than sure bills, prices, costs or advantages incurred in such interval which in administration’s view should not indicative of constant operations, together with: (i) integration, restructuring, and different prices; (ii) buy accounting changes; (iii) share–based mostly compensation; (iv) impairment of goodwill; and (v) unrealized international trade (loss) acquire. We consider Adjusted EBITDA is a helpful measure to evaluate the efficiency of our Company because it gives significant working outcomes and facilitates period-to-period working comparisons.”Adjusted Free Cash Flow” is calculated as Free Cash Flow adjusted so as to add again acquisition associated prices that are included in money offered by working actions. We consider Adjusted free money circulate is a helpful measure to evaluate the Company’s potential to repay debt, finance strategic enterprise acquisitions and investments, pay dividends and repurchase shares. It additionally facilitates period-to-period comparisons.”Adjusted Net Income” represents, for the relevant interval, web earnings (loss) as adjusted so as to add again or deduct, as relevant, sure bills, prices, costs or advantages incurred in such interval which in administration’s view should not indicative of constant operations, together with: (i) integration, restructuring, and different prices; (ii) buy accounting changes; (iii) share–based mostly compensation; (iv) impairment of goodwill; (v) unrealized international trade loss (acquire); and (vi) tax impacts of the aforementioned changes (based mostly on annual efficient tax charge). We consider Adjusted Net Income is a helpful measure to evaluate the efficiency of our Company because it gives significant working outcomes and facilitates period-to-period working comparisons.”EBITDA” represents web earnings (loss) for the interval earlier than: (i) earnings tax expense (restoration); (ii) curiosity and accretion; and (iii) amortization and depreciation.”Free Cash Flow” represents, for the relevant interval, money offered by working actions much less money used to buy property and tools. Free money circulate is a key metric utilized by the investing neighborhood that measures the Company’s potential to repay debt, finance strategic enterprise acquisitions and investments, pay dividends and repurchase shares.”Net Debt” is calculated as long-term debt earlier than unamortized deferred financing prices much less money as reported within the consolidated statements of economic place. We consider Net Debt is a helpful measure is a crucial measure because it displays the principal quantity of debt owing by the Company as at a specific date.Forward-Looking InformationCertain info on this press launch, together with the expansion oriented haircare market, improved operational execution throughout the Company’s platform, the flexibility to attain improved and constant working outcomes, the flexibility to construct the desirability of our manufacturers by product innovation, the flexibility to regulate pricing to offset greater product enter and provide chain prices, the flexibility to mitigate the influence of the cyber safety breach at our major third-party logistics accomplice and return to pre-incident ranges of operation as of April 2022, constitutes forward-looking info. In some circumstances, however not essentially in all circumstances, forward-looking info might be recognized by means of forward-looking terminology akin to “plans”, “targets”, “expects” or “doesn’t count on”, “is predicted”, “a possibility exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “doesn’t anticipate” or “believes”, or variations of such phrases and phrases or state that sure actions, occasions or outcomes “could”, “may”, “would”, “would possibly”, “will” or “can be taken”, “happen” or “be achieved”. In addition, any statements that seek advice from expectations, projections or different characterizations of future occasions or circumstances include forward-looking info. Statements containing forward-looking info should not historic details however as a substitute characterize administration’s expectations, estimates and projections relating to future occasions.Forward-looking info is essentially based mostly on a variety of opinions, assumptions and estimates that, whereas thought of cheap by MAV Beauty Brands as of the date of this press launch, are topic to identified and unknown dangers, uncertainties, assumptions and different elements that will trigger the precise outcomes, stage of exercise, efficiency or achievements to be materially completely different from these expressed or implied by such forward-looking info, together with however not restricted to the elements described in better element within the “Risk Factors” part of the Company’s Annual Information Form dated March 23, 2022 for the yr ended December 31, 2021, the “Risk Factors” part of the Company’s This autumn 2021 MD&A, and the Company’s different periodic filings made accessible at www.sedar.com. These elements should not meant to characterize a whole listing of the elements that might have an effect on MAV Beauty Brands; nevertheless, these elements ought to be thought of fastidiously. There might be no assurance that such estimates and assumptions will show to be right. The forward-looking statements contained on this press launch are made as of the date of this press launch, and MAV Beauty Brands expressly disclaims any obligation to replace or alter statements containing any forward-looking info, or the elements or assumptions underlying them, whether or not on account of new info, future occasions or in any other case, besides as required by legislation.This autumn 2021 Compared to This autumn 2020 & FY 2021 Compared to FY 2020 (in 1000’s of US {dollars}) (unaudited)This autumn 2021Q4 2020$ Change% ChangeConsolidated statements of operations:Revenue (1)26,70323,3233,38014.5%Cost of sales16,31014,2642,04614.3%Gross profit10,3939,0591,33414.7percentExpensesSelling and administrative (1)7,2955,9871,30821.8%Amortization and depreciation1,1161,081353.2%Interest and accretion1,6001,841(241)(13.1)%Foreign trade loss45408(363)(89.0)%Integration, restructuring, and other121196(75)(38.3)%10,1779,5136647.0%Income (loss) earlier than earnings taxes216(454)670nmfIncome tax expense (restoration)Current(54)(20)(34)nmfDeferred412(542)954nmf358(562)920nmfNet earnings (loss) for the interval(142)108(250)nmfEBITDA (2)2,9322,46846418.8%Adjusted EBITDA (2)3,1603,397(237)(7.0)%Adjusted Net Income (2)28800(772)(96.5)%(in 1000’s of US {dollars})Fiscal 2021Fiscal 2020$ Change% ChangeConsolidated statements of operations:Revenue (1)107,156114,906(7,750)(6.7)%Cost of sales63,17962,3578221.3%Gross profit43,97752,549(8,572)(16.3)%BillsSelling and administrative (1)28,11228,182(70)(0.2)%Impairment of goodwill129,033—129,033nmfAmortization and depreciation4,3854,2091764.2%Interest and accretion6,5667,421(855)(11.5)%Foreign trade loss167318(151)(47.5)%Integration, restructuring, and different(2,629)3,808(6,437)nmf165,63443,938121,696277.0%Income (loss) earlier than earnings taxes(121,657)8,611(130,268)nmfIncome tax expense (restoration)Current(41)—(41)nmfDeferred(23,980)2,105(26,085)nmf(24,021)2,105(26,126)nmfNet earnings (loss) for the interval(97,636)6,506(104,142)nmfEBITDA (2)(110,706)20,241(130,947)nmfAdjusted EBITDA (2)16,50628,470(11,964)(42.0)%Adjusted Net Income (2)3,64512,637(8,992)(71.2)%(1)Certain comparative figures have been revised to reclassify compliance costs that had been beforehand recorded in promoting and administrative bills to income to adapt with IFRS 15 and the monetary presentation adopted for the present interval.(2)EBITDA, Adjusted EBITDA and Adjusted Net Income are every non-IFRS measures and should not incomes measures acknowledged by IFRS Definitions and reconciliations of non-IFRS measures to the related reported measures might be discovered underneath the headings “Non-IFRS Measures” and “This autumn 2021 Compared to This autumn 2020 & FY2021 Compared to FY2020” on this press launch. See additionally our Management’s Discussion and Analysis underneath the headings “How We Assess the Performance of Our Business” on web page 8, and “Non-IFRS Measures” on web page 10.(in 1000’s of US {dollars}) (unaudited)This autumn 2021Q4 2020Fiscal 2021Fiscal 2020Consolidated web earnings (loss):(142)108(97,636)6,506 Income tax expense358(562)(24,021)2,105 Interest and accretion1,6001,8416,5667,421 Amortization and deprecation1,1161,0814,3854,209EBITDA2,9322,468(110,706)20,241 Integration, restructuring, and different(1)121196(2,629)3,808 Purchase accounting changes(2)———2,321 Share-based compensation(3)883148102,006 Impairment of goodwill(4)——129,033— Unrealized international trade gain19419(2)94Adjusted EBITDA3,1603,39716,50628,470(in 1000’s of US {dollars}) (unaudited)This autumn 2021Q4 2020Fiscal 2021Fiscal 2020Consolidated web earnings (loss):(142)108(97,636)6,506 Integration, restructuring, and different(1)121196(2,629)3,808 Purchase accounting changes(2)———2,321 Share-based compensation(3)883148102,006 Impairment of goodwill(4)——129,033— Unrealized international trade gain19419(2)94 Tax influence of the above changes(58)(237)(25,931)(2,098)Adjusted Net Income288003,64512,637(1)Refer to Note 12 to the consolidated monetary statements for additional particulars.(2)In conjunction with the acquisition by the Company of all the membership pursuits of The Mane Choice Hair Solution, LLC, the honest worth adjustment of stock as a part of the preliminary buy value allocation was expensed to price of gross sales because the inventories had been bought.(3)Represents recognition of share-based compensation, which have been accounted for as promoting and administrative bills.(4)Refer to Note 10 to the consolidated monetary statements for additional particulars.(in 1000’s of US {dollars}) (unaudited)This autumn 2021Q4 2020Fiscal 2021Fiscal 2020Cash offered by working activities2335,0666,40614,781Less: buy of property and tools(56)(229)(568)(1,343)Free money circulate and adjusted free money flow1774,8375,83813,438SOURCE MAV Beauty BrandsCisionView unique content material: http://www.newswire.ca/en/releases/archive/March2022/24/c1232.html

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