Slide 1: Q3 FY'24 Earnings Presentation
TSX-V: COV OTCQX: CVALF investors@covalon.com Q3 FY’24 Earnings Presentation August 21, 2024 Brent Ashton – CEO Katie Martinovich – Interim CFO Compassionate solutions designed for patients and made for care providers 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Certain statements included in this presentation may be considered forward-looking statements. These forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “estimate”, “e
Slide 3: Q3 Results Continue Strong Momentum
Q3 Results Continue Strong Momentum Q3 EBITDA of $1.7 million, adjusted EBITDA of “Our team is proud to deliver another strong quarterly performance. $2.4 million, and EPS of $0.06 Our results clearly demonstrate the Revenue of $9.2 million (+ 47% YoY) progress that the One Covalon team is making ag
Slide 4: Q3 FY'24 P&L / EBITDA
Q3 FY’24 P&L / EBITDA Q3 FY’24 Q3 FY’23 Delta $2.9 M of revenue growth led by focus on US Revenue $9.2 $6.3 + 47.1% Product Sales (90% YoY growth) Gross Profit United States represents (Gross Margin) $5.4 (58.9%) $3.6 (57.5%) + 50.7% 87% of WW revenue Operating Expenses $4.0 (43.7%) $4.2 (66.9%) - 2
Slide 5: Q3 FY'24 Year To Date P&L / EBITDA
Q3 FY’24 Year To Date P&L / EBITDA Q3 FY’24 Q3 FY’23 Delta Year To Date Last Year To Date Overcoming $2 million decease from Coatings Revenue $22.3 $19.7 +13.2 % business with 63% YTD growth from US Product Gross Profit (Gross Margin) $13.6 (60.9%) $11.5 (58.2%) + 270 bps Operating Solid margin impr
Slide 6: Past 4 Quarters of Financial Performance
Past 4 Quarters of Financial Performance Q4 FY’23 Q1 FY’24 Q2 FY’24 Q3 FY’24 Revenue $6.9 $4.7 $8.4 $9.2 Gross Profit (Gross Margin) $2.9 (41.9%) $2.8 (61.1%) $5.3 (63.1%) $5.4 (58.9%) Operating Expenses $5.8 (83.4%) $4.3 (92.7%) $3.8 (45.4%) $4.0 (43.7%) (% to Revenue) Adjusted EBITDA (% to Revenue
Slide 7: Q3 FY'24 Balance Sheet and Cash
Q3 FY’24 Balance Sheet and Cash Q4 Q1 Q2 Q3 FY’23 FY’24 FY’24 FY’24 Stabilized and increased cash position Cash $8.8 $8.3 $7.3 $9.4 Net Working $16.1 $14.8 $16.9 $18.8 Capital Strong improvement in Shareholders’ Net Working Capital and Commentary $18.8 $17.7 $19.8 $21.8 Equity Shareholders’ Point 2
Slide 8: Covalon's Value is Recognized by Leading Health Systems
Covalon’s Value is Recognized by Leading Health Systems Strong relationships with leading Children’s Hospitals Solid progress made with leading providers in the United States and Internationally 8
Slide 9: Key US Hospital Customer Metrics
Key US Hospital Customer Metrics RETAIN GROW EXISTING ADD NEW Have retained 98% of 55% YTD revenue Acquired 62 new our Top 50 customers growth from our Top 50 customers in the past from FY’23 customers from FY’23 9 months Key Covalon US Hospital Products
Slide 10: Covalon Strategic Priorities
Covalon Strategic Priorities Horizon 1 Priorities Driving growth with existing portfolio – retain, grow existing and 2024 15% add new Horizon 1 Priorities Establish new culture and build the Covalon foundation Horizon 2 Priorities 25% 60% Demonstrate management capability and credibility to achieve
Slide 11: Summary
Summary Q3 was a strong quarter – the One Covalon Team delivered We are working hard to continue the growth momentum Have delivered important achievements on the foundational work, but still an area of high focus – key to Covalon’s future Extensive opportunity hopper of what we could do - tough prio
Slide 12: Q&A
Q&A 12
Slide 13: Investor Relations Contact Information
Investor Relations Contact Information Brent Ashton Katie Martinovich Chief Executive Officer Interim Chief Financial Officer investors@covalon.com