TORONTO, Aug. 26, 2020 /CNW/ - Mimi's Rock Corp.
(TSXV: MIMI) (OTCQB: MIMNF) (the "Company"), an online dietary
supplement and wellness company, today announced its financial
results for the three months ended June 30,
2020.
Highlights
- $10.9 million revenue – Highest
to date
- $1.6 million EBITDA – Highest to
date
- $0.9 million after-tax net
income
"The second quarter of 2020 financial results reflect the
continued evolution of our business" said David Kohler, CEO. "Our positioning in the
marketplace combined with our new product offerings, have resulted
in our best results to date—and we are proud of what we have
accomplished. We have seen that the COVID-19 virus has
further accelerated consumer interest in shopping online. We
are excited about the implications and expect growth to
continue."
Results of Operations for the Three Months Ended June 30, 2020
Net income for the second quarter of 2020 was $928,165 compared to a net loss of $1,240,051 in the same period in 2019. EBITDA for
the second quarter of 2020 was $1,584,184, compared to EBITDA of $460,008 for the same period in 2019. Adjusted
EBITDA (which excludes non-cash share-based compensation expenses,
listing fees, foreign exchange gains (losses) and investment
income) for the second quarter of 2020 was $1,573,165, ahead of the Adjusted EBITDA of
$1,382,117 reported for the same
period in 2019.
Revenues
Consolidated revenues for the second quarter of 2020 were
$10,943,137, up 25% from revenues of
$8,770,904 in the same period in
2019. Revenues were $10,943,137 for
the three months ended June 30, 2020
compared to revenues of $8,770,904
for the period ended June 30,
2019. Revenues in the comparative 2019 period represent
revenues from the DTI business only as the skin care businesses,
All Natural and Maritime Naturals, were acquired in December 2019.
DTI, the core dietary supplements business, saw an improvement
in its financial performance in the second quarter of 2020,
indicating that it has completed its recovery from a difficult
fourth quarter of 2019. Management expects the revenues of this
business to experience some fluctuation on a quarter-to-quarter
basis, but ultimately continue to grow throughout 2020 with the
launch of new complementary products and expansion into additional
geographic territories. Also, revenues from the skin care
businesses are expected to continue to grow as the products enter
the U.S. market.
Selling and Marketing Expense
The Company incurred selling and marketing expenses of
$4,788,764, or approximately 43.8% of
revenue, for the second quarter of 2020, compared to $3,523,242, or 40.2% of revenue, for the same
period in 2019. In the 2019 period, management consciously
scaled back online advertising to evaluate returns on
investment. In Q2 2020, the level of online advertising was
increased as management had become confident that its refined
marketing strategy was gaining traction in the marketplace.
General and Administrative Expense
General and administrative expenses for the three months ended
June 30, 2020 were $1,272,825, compared to $1,302,960 for the same period in
2019. General and administrative expenses consist primarily of
salaries and benefits, professional fees, occupancy costs and
insurance. General and administrative expenses are relatively
comparable to the same period in 2019 due to the fact that staff
and operational costs are relatively stable. General and
administrative expenses are expected to remain relatively fixed for
foreseeable future periods.
Interest Expense and Financing Costs
Interest and financing costs of $180,991 were incurred during the three months
ended June 30, 2020, compared to
$533,475 for the three months ended
June 30, 2019. Interest and
financing expenses have decreased significantly in 2020 periods
compared to 2019 primarily due to renegotiations of the senior debt
facility as well as lower interest rates and non-cash charges
related to amortization of finance costs incurred in securing the
loan.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
About Mimi's Rock Corp.:
Mimi's Rock Corp. is an online dietary supplement and wellness
company operating under the Dr. Tobias brand. The brand features
over 30 products including the top selling colon cleansing product
and the #1 selling Omega 3 Fish Oil on Amazon.com. Mimi's Rock
currently serves customers in the United
States and has rapid growth plans to expand into other
markets. For more information, visit https://mimisrock.com.
Forward-Looking Information
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. Often, but not always, forward-looking statements
can be identified by the use of words such as "plans", "expects",
or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or describes a "goal", or variation of
such words and phrases or state that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved. The forward- looking statements in this press
release include, but are not limited to, statements
regarding the impact of the COVID-19 pandemic on the business
and operations of the Company, the Company's expected
revenues, the expected increase in quarterly revenues and Adjusted
EBITDA. Please refer to the Company's 2019 Annual Financial
Statements and MD&A for more details on the Company's
calculation of EBITDA and Adjusted EBITDA.
All forward-looking statements reflect the Company's beliefs and
assumptions based on information available at the time the
statements were made. Actual results or events may differ from
those predicted in these forward-looking statements. All of the
Company's forward-looking statements are qualified by the
assumptions that are stated or inherent in such forward-looking
statements, including the assumptions listed below. Although the
Company believes that these assumptions are reasonable, this list
is not exhaustive of factors that may affect any of the
forward-looking statements.
Forward-looking statements involve known and unknown risks,
future events, conditions, uncertainties and other factors which
may cause the actual results, performance or achievements to be
materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or
implied by the forward-looking statements, including risks relating
to: the Company's reliance on strength of reputation and
brands, third-party manufacturing, transportation and distribution,
the Company's ability to protect its intellectual property, the
Company's reliance on e-commerce sites, disruption or breaches in
information technology systems, the successful integration
subsequent to acquisitions, litigation, volatility in the market
price, the inability to successfully implement growth strategy on a
timely basis, difficulty expanding sales in targeted international
markets, changes in general economic conditions, the
Company's ability to service its debt obligations, management
of growth, reliance on management, conflicts of interest, local and
foreign tax matters, liquidity, currency and other financial risks,
potential product liability or other regulatory claims, product
recalls, the need to develop and innovate products, changes in
legal and regulatory standards, competition, operating risk and
insurance coverage, natural disasters, unusual weather and
geo-political events, the effect of COVID-19 on operations
and other risks relating to the business and industry of the
Company that are detailed from time to time in the Company's
filings with the Canadian provincial securities regulators.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. All forward-looking information contained in this press
release is given as of the date hereof and is based upon the
opinions and estimates of management and information available to
management as at the date hereof. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events,
or otherwise, except in accordance with applicable securities
laws.
Please visit www.mimisrock.com or www.sedar.com for the
Company's recent filings.
SOURCE Mimi's Rock Corp.
