WINNIPEG, Nov. 29, 2019 /CNW/ - Novra Technologies
Inc. ("Novra") (TSX-V: NVI) today announced its financial results
for the third quarter and nine months ended September 30, 2019. All amounts are in
Canadian dollars unless otherwise noted.
Third Quarter 2019 Consolidated Financial Results
The following financial summary shows results for the three and
nine months ended September 30,
2019.
|
|
|
|
|
(in thousands,
except for Gross Margin and % Chg)
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
2018
|
% Chg
|
|
2019
|
2018
|
% Chg
|
|
Revenue by
type:
|
|
|
|
|
|
|
|
|
Products
|
2,306
|
$
|
2,908
|
-21%
|
|
5,973
|
$
|
5,494
|
9%
|
|
Services
|
710
|
650
|
9%
|
|
1,966
|
1,730
|
14%
|
|
Total
revenue
|
3,016
|
3,558
|
-15%
|
|
7,939
|
7,224
|
10%
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
1,849
|
2,087
|
-11%
|
|
4,077
|
3,725
|
9%
|
|
Gross
margin
|
61.3%
|
58.7%
|
|
|
51.4%
|
51.6%
|
|
|
Operating
expenses
|
1,374
|
1,527
|
-10%
|
|
4,617
|
4,808
|
-4%
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
475
|
560
|
-15%
|
|
(540)
|
(1,083)
|
-50%
|
|
Other income
(expenses)
|
18
|
(93)
|
NM
|
|
(302)
|
(5)
|
NM
|
|
Net income (loss)
as reported under IFRS
|
493
|
$
|
467
|
5%
|
|
(842)
|
$
|
(1,088)
|
-23%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
non-IFRS measure (2)
|
796
|
$
|
862
|
-8%
|
|
572
|
$
|
(328)
|
NM
|
|
NM – Not
meaningful
|
|
(1)
|
Amounts in the table
may not reconcile due to rounding differences.
|
|
(2)
|
Refer to the
Management's Discussion & Analysis ("MD&A") for a
reconciliation of Adjusted EBITDA to Net Income (loss) as reported
under IFRS.
|
Our first 9 months of 2019 marked a significant improvement as
our revenue was up 10% to $7.9
million (2018: $7.2
million) and our adjusted EBITDA, a non-IFRS measure,
increased to $572 thousand (2018:
loss of $328 thousand), an
improvement of $900 thousand.
Removing the effect of IFRS 16 implementation in 2019, which
changed the accounting for leases, adjusted EBITDA would have
improved $356 thousand compared to
the first nine months of 2018.
Revenue for this quarter was $3.0
million (2018: $3.55 million),
however net income improved to $493
thousand for the quarter (2019: $467
thousand) and our adjusted EBITDA was $796 thousand (2018: $862
thousand).
In the third quarter we began to realize significant reductions
in operating expenses for administration and for research and
development, as a result of actions taken so far this year. For the
nine-month period, general and administrative operating costs were
$248 thousand lower than the
comparable period in 2018. Additional efficiencies are expected to
be implemented in late Q4 to take effect in Q1 2020. We expect a
10% reduction in overall operating expenditures in 2020 compared to
2019 as we complete our integration of Novra Group's three
operating companies.
"We saw higher sales for the first 9 months of 2019 with
improvement in both our net income and adjusted EBITDA because of
the focused work we are doing to reach new customers, expand the
networks of current customers, cut costs and provide world-class
leading-edge products. Novra has significantly evolved into a
strong scalable global company in the growing multimedia broadband
content distribution business. We continue to execute on our
stated corporate vision to invest in the development of world-class
leading-edge products needed in our current and new markets and to
capitalize on market opportunities which will be created over the
next couple of years by the roll-out of 5G and ATSC 3.0 services.
We offer our customers products, services and expertise that enable
them to enthusiastically embrace the opportunities new technologies
create!" stated Harris Liontas,
President and CEO.
A copy of the MD&A and Consolidated Financial Statements for
the quarter ended September 30, 2019,
are available on SEDAR (www.sedar.com). See these for details of
Novra's results and outlook.
About Novra Technologies Inc.:
Novra (TSX-V: NVI) is an international technology provider of
products, systems and services for the distribution of multimedia
broadband content. The Novra Group of companies includes
Novra, International Datacasting Corporation, and Wegener
Corporation. The companies in the group are known for a strong
focus on applications including: broadcast video and radio, digital
cinema, digital signage, and highly reliable data
communications.
For more information visit: www.novragroup.com
Forward-Looking Statements:
This press release contains "forward-looking
statements" within the meaning of applicable Canadian securities
laws, concerning but not limited to: our profitability outlook, the
pending acquisition of Wegener, and anticipated developments in our
operations in future periods. Forward-looking
statements are generally identifiable by words such as "expect",
"anticipate", "believe", "intend", "estimate", "predict",
"outlook", "opportunity", "momentum", "potential", "targeted",
"plans" "possible", "poised for", and similar expressions, or
statements that events, conditions or results "will", "may",
"could" or "should" occur or be achieved. As
such, forward-looking statements are not historical facts but
reflect our current assumptions and expectations regarding future
events. These are subject to a number of risk and uncertainties
that could cause actual results or events to differ materially from
current expectations and assumptions. Some of these risks and
uncertainties are described herein under the "Risks and
Uncertainties" section of the MD&A.
For the above reasons, readers are cautioned not to place
undue reliance on forward-looking statements.
Neither 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 release.
SOURCE Novra Technologies Inc.