Covalon Technologies Ltd. · TSXV:COV
Covalon Technologies — Q4 2024 Earnings Presentation
17 slides from Covalon Technologies's earnings presentation, Jan 7, 2025
Slide 1: Fourth Quarter and Full Year Fiscal 2024 Earnings Presentation
TSX-V: COV OTCQX: CVALF investors@covalon.com Fourth Quarter and Full Year Fiscal 2024 Earnings Presentation January 7, 2025 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: Key 2024 Accomplishments and Outcomes
Key 2024 Accomplishments and Outcomes Commercial Organization Outstanding Operational Strong Free Cash Flow Transition Success Progress Generation Important Foundational Significant Clinical Advancements Impact Covalon Valuation Acceleration 3
Slide 4: Covalon Fourth Quarter / Full Year Fiscal 2024 Summary
Covalon Fourth Quarter / Full Year Fiscal 2024 Summary • Strong Fourth Quarter Performance “Our Covalon team is proud of the work that • Revenue of $8.9 million (growth of 29% YoY) was done to deliver a strong fourth quarter • Adjusted EBITDA of $1.1 million and full year fiscal 2024. In a year with
Slide 5: Financial Highlights – Revenue, Margin and Operating Expenses
Financial Highlights – Revenue, Margin and Operating Expenses US Medical Consumables Covalon Gross Margin Covalon Operating Expenses Revenue Growth (2024 / change vs. 2023) (2024 / change vs. 2023) 60.2% $4.7M Q4 72% growth Q4 +1,830 bps Q4 - $1.1M $16.8M FY 66% growth FY 60.7% +670 bps FY - $2.1M 5
Slide 6: Financial Highlights – Income, Earnings and Cash
Financial Highlights – Income, Earnings and Cash Covalon Adjusted EBITDA Covalon Earnings Per Share Covalon Cash Position (2024 / change vs. 2023) (2024 / change vs. 2023) (2024 / change vs. 2023) $1.1M $.02 per share Q4 +$2.9 million Q4 +$.14 per share Sept 30, 2024 $4.8M $.11 per share $16.7M FY +
Slide 7: US Vascular Access and Surgical Consumables – Strong Focus Driving Outstanding Growth
US Vascular Access and Surgical Consumables – Strong Focus Driving Outstanding Growth 8 of the 10 best US Children’s Hospitals1 trust Covalon to protect their patients RETAIN GROW EXISTING ADD NEW 98% retention of our 55% revenue growth from Acquired 66 new hospital Top 50 FY’23 hospital our Top 50
Slide 8: US Vascular Access and Surgical Consumables Strong Focus Driving Outstanding Growth
US Vascular Access and Surgical Consumables Strong Focus Driving Outstanding Growth 10 of the 15 largest US Children’s hospitals1 trust Covalon to protect their patients # of these accounts with >100% growth at 6 of >$100k in annual revenue Strong these accounts in FY’24 • 2022 = 1 account VALGuard®
Slide 9: Shifting to a More Predictable High Growth Covalon
Shifting to a More Predictable High Growth Covalon Covalon Revenue Mix1 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 86% $10,000,000 $5,000,000 49% 27% $0 2015 2020 2024 US Medical Consumables Coatings and Licensing International US Medical Consumables Business – “sticky” recurring re
Slide 10: Covalon 2025 Focus for the Future
Covalon 2025 Focus for the Future Growth-Focused Commercial Advancement Market Development Acceleration Operational Optimization Innovation and Business Development 10
Slide 11: Summary
Summary • Exciting 2024 with a lot of impactful accomplishments and outcomes • Strong fourth quarter and full year fiscal 2024 performance • Significant multi-year growth opportunity ahead of us 11
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
Slide 14: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results Q4 FY’24 Q4 FY’23 Delta Revenue $8.9 $6.9 + 29.0% Gross Profit $5.3 $2.9 + 82.8% (Gross Margin) (60.2%) (41.9%) Operating Expenses $4.7 $5.8 - 3,130 bps (% to Revenue) (52.8%) (84.1%) EBITDA $0.9 -$2.6 + $3.5 (% to Revenue) (10.1%) (-37.7%) Adjusted EBITDA $1.1 -$1.8 + $2
Slide 15: Full Year Fiscal 2024 Results
Full Year Fiscal 2024 Results FY’24 FY’23 Delta Revenue $31.1 $26.6 +16.9 % Gross Profit (Gross Margin) $18.9 (60.7%) $14.4 (54.0%) + 31.3% Operating Expenses $16.8 (54.0%) $18.9 (71.1%) - 1,710 bps (% to Revenue) EBITDA (% to Revenue) $3.7 (12.0%) -$3.5 (-13.2%) + $7.2 Adjusted EBITDA $4.8 (15.4%)
Slide 16: Past 6 Quarters of Financial Performance
Past 6 Quarters of Financial Performance Q3 FY’23 Q4 FY’23 Q1 FY’24 Q2 FY’24 Q3 FY’24 Q4 FY’24 Revenue $6.3 $6.9 $4.7 $8.4 $9.2 $8.9 Gross Profit $3.6 $2.9 $2.8 $5.3 $5.4 $5.3 (Gross Margin) (57.5%) (41.9%) (61.1%) (63.1%) (58.9%) (60.2%) Operating Expenses $4.2 $5.8 $4.3 $3.8 $4.0 $4.7 (% to Revenu
Slide 17: FY'24 Balance Sheet and Cash
FY’24 Balance Sheet and Cash Q1 Q2 Q3 Q4 FY’24 FY’24 FY’24 FY’24 Cash $8.3 $7.3 $9.4 $16.7 Net Working $14.8 $16.9 $18.8 $25.0 Capital Shareholders’ $17.7 $19.8 $21.8 $27.5 Equity Debt $---- $---- $---- $---- Current Ratio 4.8 6.8 5.2 7.3 All $ figures in $CAD millions unless otherwise noted