Covalon Technologies Ltd. · TSXV:COV
Covalon Technologies — Q4 2021 Earnings Presentation
18 slides from Covalon Technologies's earnings presentation, Dec 13, 2021
Slide 1: Q4 2021 Earnings and Business Update
Q4 2021 Earnings and Business Update December 2021 Danny Brannagan, CFO 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: Fiscal 2021 Financial Results – Key Highlights
Fiscal 2021 Financial Results – Key Highlights Year-end net profit of $23.5 million or $0.91 per share which includes Revenues net income from the sale of the AquaGuard operations $19.6M +45% Revenue from continuing operations increased 45% to $19.6 million for the year, compared to $13.5 millio
Slide 5: Fiscal 2021 Income Statement Highlights
Fiscal 2021 Income Statement Highlights Revenues Gross Profit Adjusted Gross Margin(1) $19.6M +45% $9.7M +109% $10.3M +48% 50% +16 ppts 53% +1 ppts Primarily driven by an increase Primarily driven by inventory Primarily due to impact of in Collagen and IV Clear adjustments and re-work costs product
Slide 6: Q4 2021 Income Statement Highlights
Q4 2021 Income Statement Highlights Revenues Gross Profit Adjusted Gross Margin(1) $6.6M +125% $3.1M +*% $3.3M +106% 46% +40 ppts 51% - 4 ppts Primarily driven by an increase Primarily driven by inventory Primarily due to impact of in Collagen product sales in the adjustments and re-work costs produ
Slide 7: Advanced Wound Care Collagen Portfolio
Advanced Wound Care Collagen Portfolio ColActive Plus’ patented formulation offers wound care professionals the NEW advantage of permanent inhibition of elevated protease activity and optimal moisture balance to create a suitable environment for wound healing. 7
Slide 8: 200+ IV Clear customers in the United States
200+ IV Clear customers in the United States 8 of the top Children’s hospitals in North America Dominant market share for IV Clear in Middle East IV Clear – World’s only antimicrobial silicone adhesive IV dressing VALGuard – Only line-to-line contamination protection cover 88 8 8
Slide 9: Medical Device Coating Platform
Medical Device Coating Platform A proprietary free radical UV photo- polymerization “grafting from” process that results in a micron level functionalized surface. Completely customizable, CovaCoat® is lubricious and low particulate, enhancing the safety and functionality of medical devices, and can
Slide 10: Growth Drivers in 2022+
Growth Drivers in 2022+ Biological Collagen Platform Antimicrobial Silicone Platform Continued growth of collagen in United States Additional Middle East contracts secured for 2022-2023 Launched Collagen Powder in 2021 – anticipating Growth in IV Clear customer base in United States contribu
Slide 11: Key Investment Highlights Starting Fiscal 2022
Key Investment Highlights Starting Fiscal 2022 1. Well-funded and backed by very successful major investors, Covalon is Revenues positioned to accelerate top-line growth of its impressive product portfolio in the United States $19.6M +45% 2. Sale of AquaGuard product line transformed Covalon’s balan
Slide 12: Questions?
Questions? Millions of Covalon products are used every year by clinicians in hospitals around the world to help protect patients from infection. 12
Slide 13: Appendix
Appendix Millions of Covalon products are used every year by clinicians in hospitals around the world to help protect patients from infection. 13
Slide 14: Fiscal 2021 Revenue
Fiscal 2021 Revenue Product revenue increased 56% to $17.7 million, compared to $11.3 million for the same period in the prior year. Development and consulting services revenue for 2021 decreased by 15% to $1.7 million, compared to $2.0 million for the same period of the prior year. Revenue fr
Slide 15: Fiscal 2021 Revenue by Geography
Fiscal 2021 Revenue by Geography Revenue in the United States increased 43% to $12.7 million primarily as a result of increased collagen dressing sales. Product revenue increased in the United States by 61% or $4.1 million. Revenue in the Middle East increased by 91% or $2.1 million primarily
Slide 16: FY 2021 Gross Profit and Adjusted Gross Margin
FY 2021 Gross Profit and Adjusted Gross Margin(1) Gross margin for the year ended September 30, 2021, increased to 50% compared to 34% for the same period of the prior year. The gross margin is significantly influenced by source of revenue and by the relative mix of products sold in any given fi
Slide 17: FY 2021 Operating Expenses and Net Income (continuing operations)
FY 2021 Operating Expenses and Net Income (continuing operations) Operational expenses from continuing operations decreased 26% to $8.9 million compared to $12 million for the prior year. The decline in operating expenses was mainly due to reduced personnel expenses and a $1.4 million accounts r
Slide 18: 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.