Covalon Technologies Ltd. · TSXV:COV
Covalon Technologies — Q1 2022 Earnings Presentation
15 slides from Covalon Technologies's earnings presentation, March 2022
Slide 1: Q1 2022 Earnings and Business Update
Q1 2022 Earnings and Business Update March 2022 Jason Gorel, CFO (interim) Brian Pedlar, CEO TSX-V: COV OTCQX: CVALF www.covalon.com | 1-877-711-6055 Millions of Covalon products are used every year by clinicians in hospitals around the world to help protect patients from infection.
Slide 2: Covalon’s Infection Prevention Technologies Save Lives
Covalon’s Infection Prevention Technologies Save Lives Covalon is an innovation-driven medical device company, with a strong portfolio of patented dressings and technology that make it easier for health care providers to protect patients from infection and help patients heal. Whether suffering from
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Certain statements included in this Memorandum 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”, “exp
Slide 4: Q1 Fiscal 2022 Financial Results – Key Highlights
Q1 Fiscal 2022 Financial Results – Key Highlights ▪ Revenue from continuing operations increased 90% to $4.9 million for Revenues the year, compared to $2.6 million in the prior year due to an increase in product sales $4.9M +90% ▪ Cash flow from operations was $0.5 million, an improvement of $1.2 O
Slide 5: Income Statement Highlights
Q1 2022 Income Statement Highlights Revenues Gross Profit Adjusted Gross Margin(1) $4.9M +90% $2.3M +72% $3.1M +116% 46% -49 ppts 62% +74 ppts Primarily driven by an increase Primarily driven by inventory Primarily due to impact of in Collagen product sales in the adjustments incurred in Q1 product
Slide 6: Revenue
Q1 2022 Revenue ▪ Product revenue increased 90% to $4.5 million, compared to $2.0 million for the same period in the prior year. ▪ Development and consulting services revenue for Q1 2022 decreased by 28% to $0.4 million, compared to $0.5 million for the same period of the prior year. ▪ Revenue from
Slide 7: Revenue by Geography
Q1 2022 Revenue by Geography ▪ Revenue in the United States increased 216% to $3.6 million primarily as a result of increased collagen dressing sales. ▪ Product revenue increased in the United States by 488% or $2.6 million. ▪ Revenue in the Middle East was down 2% to $0.7 million. ▪ Product revenue
Slide 8: Gross Profit and Adjusted Gross Margin
Q1 2022 Gross Profit and Adjusted Gross Margin(1) ▪ Gross margin for the period ended December 31, 2021, decreased to 46% compared to 51% for the same period of the prior year. ▪ Included in cost of goods for Q1 2022 was a $0.7 million inventory provision. ▪ The gross margin is significantly influen
Slide 9: Operating Expenses and Net Income (continuing operations)
Q1 2022 Operating Expenses and Net Income (continuing operations) ▪ Operational expenses from continuing operations increased 49% to $3.4 million compared to $2.3 million for the prior year. ▪ Excluding government subsidies booked in the prior period, operating expenses increased approximately 32% o
Slide 10: Growth Drivers in 2022+: Advanced Wound Care Collagen Portfolio
Advanced Wound Care Collagen Portfolio Growth Drivers in 2022+ ▪ Continued growth of collagen in NEW United States ▪ Launched Collagen Powder in 2021 – anticipating contribution to revenue in 2022 ▪ Middle East collagen contracts returning to pre-COVID-19 levels 10
Slide 11: Growth Drivers in 2022+: Antimicrobial Silicone Platform
Growth Drivers in 2022+ Antimicrobial Silicone Platform ▪ Growth in IV Clear and VALGuard customer base in United States with cross selling opportunities ▪ Launch SurgiClear in 2022 to US hospitals based on strong clinical evidence and key reference accounts ▪ Additional Middle East contracts secure
Slide 12: Growth Drivers in 2022+: Medical Device Coating Platform
Medical Device Growth Drivers in 2022+ Coating Platform ▪ Large Medical Coating license agreement announced in 2018 approximate 24 months from beginning of royalties ▪ Growing development pipeline of customer projects with opportunity for further license arrangements ▪ Growth of manufacturing coatin
Slide 13: Key Investment Highlights Fiscal 2022
Key Investment Highlights Fiscal 2022 1. Well-funded and backed by very successful major investors, Selected Partners & Distributors Covalon is positioned to accelerate top-line growth of its impressive product portfolio in the United States 2. Sale of AquaGuard product line transformed Covalon’s ba
Slide 14: Questions?
Questions? Millions of Covalon products are used every year by clinicians in hospitals around the world to help protect patients from infection. 14
Slide 15: Thank You!
Thank You! Millions of Covalon products are used every year by clinicians in hospitals around the world to help protect patients from infection. 15