Ideal Power Announces $3.5 Million Private Placement

AUSTIN, Texas, Nov. 08, 2019 (GLOBE NEWSWIRE) — Ideal Power Inc. (“Ideal Power”) (Nasdaq: IPWR), which is pioneering the development and commercialization of highly efficient and broadly patented B-TRAN™ bi-directional power switches, today announced that it has entered into definitive agreements with certain institutional and accredited investors, including Dr. Lon E. Bell, Chief Executive Officer and Chairman of the Board of Ideal Power, for a private placement of Ideal Power’s common stock (or common stock equivalents) and warrants to purchase common stock for aggregate gross proceeds of $3.5 million (the “Offering”). The Offering is expected to close on or about November 13, 2019, subject to the satisfaction of customary closing conditions.

In the Offering, Ideal Power has agreed to sell an aggregate of approximately 1,413,400 shares of common stock (or common stock equivalents) at a price of $2.4763 per share (or common stock equivalent). Ideal Power will also issue to the investors warrants to purchase up to an aggregate of approximately 1,766,750 shares of common stock at an exercise price of $2.32 per share that are immediately exercisable and will expire five years from the issuance date. Ideal Power intends to use the net proceeds from this Offering for working capital and general corporate purposes.

Craig-Hallum Capital Group is acting as exclusive placement agent in connection with the Offering.

The shares of common stock and warrants (and shares of common stock underlying the warrants) issued in the Offering have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from such registration requirements. Pursuant to a registration rights agreement, Ideal Power has agreed to file a registration statement with the SEC to register the resale of the shares of common stock and the shares of common stock issuable upon exercise of the warrants issued in the Offering within 30 days of the closing of the Offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.

About Ideal Power Inc.

Ideal Power (Nasdaq: IPWR) is pioneering the development of its broadly patented bi-directional power switches, creating highly efficient and ecofriendly energy control solutions for industrial, alternative energy, military and automotive applications. The company is focused on its patented Bi-directional, Bi-polar Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is a unique double-sided bi-directional AC switch able to deliver substantial performance improvements over today’s conventional power semiconductors. Ideal Power believes B-TRAN modules will reduce conduction and switching losses, complexity of thermal management and operating cost in medium voltage AC power switching and control circuitry. For more information, visit www.IdealPower.com.

Safe Harbor Statement

All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. While Ideal Power’s management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the expected gross proceeds from the Offering, the intended use of net proceeds from the Offering, the risks and uncertainties associated with market conditions, the satisfaction of customary closing conditions related to the Offering, the success of our B-TRAN™ technology, whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents, our inability to predict with precision or certainty the pace of development and commercialization of our B-TRAN™ technology, whether we can continue as a going concern and uncertainties set forth in our quarterly, annual and other reports filed with the SEC. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements.

Ideal Power Investor Relations Contact:

MZ North America
Chris Tyson
949-491-8235
IPWR@mzgroup.us
www.mzgroup.us

Nathan’s Famous, Inc. Reports Second Quarter Results and Declares Quarterly Cash Dividend of $.35 Per Share

JERICHO, N.Y., Nov. 08, 2019 (GLOBE NEWSWIRE) — Nathan’s Famous, Inc. (NASDAQ:NATH) today reported results for the second quarter of its 2020 fiscal year that ended September 29, 2019.

For the fiscal quarter ended September 29, 2019:

  • Revenues were $29,726,000, as compared to $29,330,000 during the thirteen weeks ended September 23, 2018;
  • Income from operations was $7,366,000, as compared to $8,480,000 during the thirteen weeks ended September 23, 2018;
  • Adjusted EBITDA1, a non-GAAP financial measure, was $8,123,000, as compared to $9,153,000 for the thirteen weeks ended September 23, 2018;
  • Income before provision for income taxes was $5,103,000, as compared to $6,463,000 for the thirteen weeks ended September 23, 2018;
  • Net income was $3,658,000, as compared to $4,484,000 for the thirteen weeks ended September 23, 2018; and
  • Earnings per diluted share was $0.87 per share, as compared to $1.06 per share for the thirteen weeks ended September 23, 2018.

For the twenty-six weeks ended September 29, 2019:

  • Revenues were $60,244,000, as compared to $59,498,000 during the twenty-six weeks ended September 23, 2018;
  • Income from operations was $16,814,000, as compared to $17,567,000 during the twenty-six weeks ended September 23, 2018;
  • Adjusted EBITDA1, a non-GAAP financial measure, was $18,296,000, as compared to $18,748,000 for the twenty-six weeks ended September 23, 2018;
  • Income before provision for income taxes was $12,288,000, as compared to $12,982,000 for the twenty-six weeks ended September 23, 2018;
  • Net income was $9,027,000, as compared to $9,279,000 for the twenty-six weeks ended September 23, 2018; and
  • Earnings per diluted share was $2.14 per share, as compared to $2.19 per share for the twenty-six weeks ended September 23, 2018.

_______________
1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please see the definitions of EBITDA and Adjusted EBITDA on pages 2 and 3 of this release and the reconciliation of EBITDA and Adjusted EBITDA to net income in the table at the end of this release.

The Company also reported the following:

  • License royalties increased to $14,147,000 during the twenty-six weeks ended September 29, 2019, (“fiscal 2020 period”), as compared to $13,844,000 during the twenty-six weeks ended September 23, 2018.  During the fiscal 2020 period, royalties earned under the retail agreement, including the foodservice program, from John Morrell & Co., increased 2.3% to $13,092,000, as compared to $12,795,000 of royalties earned during the twenty-six weeks ended September 23, 2018.
  • In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, income from operations declined by approximately $934,000 to $4,327,000 during the fiscal 2020 period, as compared to $5,261,000 for the twenty-six weeks ended September 23, 2018.  Sales were $32,295,000 during the fiscal 2020 period, compared to sales of $31,855,000 during the twenty-six weeks ended September 23, 2018, while the volume of hot dogs sold by the Company increased 2.2%.  However, the sales and volume results were partially related to winding down the new re-distributor’s temporary service to certain of our regular distributor customers. Our average selling price, which is partially correlated to the beef markets, decreased by approximately 0.4% during the fiscal 2020 period compared to the twenty-six weeks ended September 23, 2018.
  • Sales from Company-operated restaurants were $10,048,000 during the fiscal 2020 period compared to $10,189,000 during the twenty-six weeks ended September 23, 2018. Sales at the four comparable Company-owned restaurants increased by $633,000 or 6.7% during the fiscal 2020 period. Sales were positively affected, especially at our two Coney Island locations, by favorable weather conditions during the fiscal 2020 period in addition to higher sales at our other traditional Company-owned restaurants.
  • Revenues from franchise operations were $2,575,000 during the fiscal 2020 period, compared to $2,343,000 during the twenty-six weeks ended September 23, 2018. Total royalties were $2,027,000 during the fiscal 2020 period as compared to $2,101,000 during the twenty-six weeks ended September 23, 2018. Total franchise fee income was $548,000 during the fiscal 2020 period compared to $242,000 during the twenty-six weeks ended September 23, 2018. Thirteen new franchised outlets opened during the fiscal 2020 period.
  • During the fiscal 2020 period, we recorded Advertising Fund revenue of $1,179,000 and expense of $1,549,000.
  • During the fiscal 2020 period, the Board of Directors declared two quarterly cash dividends of $0.35 per share totaling $2,958,000.
  • Effective November 8, 2019, the Board of Directors declared its quarterly cash dividend of $0.35 per share payable on December 6, 2019 to shareholders of record at the close of business on November 25, 2019.

Certain Non-GAAP Financial Information:

In addition to disclosing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (“US GAAP”), the Company is disclosing EBITDA, a non-GAAP financial measure which is defined as net income, excluding (i) interest expense; (ii) provision for income taxes and (iii) depreciation and amortization expense. The Company is also disclosing Adjusted EBITDA, a non-GAAP financial measure which is defined as EBITDA, excluding (i) share-based compensation and (ii) (gain) loss on disposal of property and equipment that the Company believes will impact the comparability of its results of operations.

The Company believes that EBITDA and Adjusted EBITDA are useful to investors to assist in assessing and understanding the Company’s operating performance and underlying trends in the Company’s business because EBITDA and Adjusted EBITDA are (i) among the measures used by management in evaluating performance and (ii) are frequently used by securities analysts, investors and other interested parties as a common performance measure.

EBITDA and Adjusted EBITDA are not recognized terms under US GAAP and should not be viewed as alternatives to net income or other measures of financial performance or liquidity in conformity with US GAAP. Additionally, our definitions of EBITDA and Adjusted EBITDA may differ from other companies. Analysis of results and outlook on a non-US GAAP basis should be used as a complement to, and in conjunction with, data presented in accordance with US GAAP.  Please see the table at the end of this press release for a reconciliation of EBITDA and Adjusted EBITDA to net income.

About Nathan’s Famous
Nathan’s is a Russell 2000 Company that currently distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and fourteen foreign countries through its restaurant system, foodservice sales programs and product licensing activities. Last year, over 700 million Nathan’s Famous hot dogs were sold. Nathan’s was ranked #22 on the Forbes 2014 list of the Best Small Companies in America and was listed as the Best Small Company in New York State in October 2013. For additional information about Nathan’s, please visit our website at www.nathansfamous.com.

Except for
historical information contained in this news release, the matters discussed are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that involve risks and uncertainties.  Words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, and similar expressions identify forward-looking statements, which are based on the current belief of the Company’s management, as well as assumptions made by and information currently available to the Company’s management.  Among the factors that could cause actual results to differ materially include but are not limited to: the status of our licensing and supply agreements, including the impact of our supply agreement for hot dogs with John Morrell & Co.; the impact of our indebtedness, including the effect on our ability to fund working capital, operations and make new investments; economic; weather (including the impact on the supply of cattle and the impact on sales at our restaurants particularly during the summer months), and change in the price of beef trimmings; our ability to pass on the cost of any price increases in beef and beef trimmings; legislative and business conditions; the collectability of receivables; changes in consumer tastes; the ability to attract franchisees; the impact of the minimum wage legislation on labor costs in New York State or other changes in labor laws, including regulations which could render a franchisor as a “joint employee” or the impact of our new union contracts; our ability to attract competent restaurant and managerial personnel; the enforceability of international franchising agreements; the future effects of any food borne illness, such as bovine spongiform encephalopathy, BSE and e coli; and the risk factors reported from time to time in the Company’s SEC reports. The Company does not undertake any obligation to update such forward-looking statements.

Nathan’s Famous, Inc.

(unaudited)

  Thirteen weeks ended   Twenty-six weeks ended
  Sept. 29, 2019   Sept. 23, 2018   Sept. 29, 2019   Sept. 23, 2018

Financial Highlights
             
               
Total revenues $ 29,726,000     $ 29,330,000     $ 60,244,000     $ 59,498,000  
                               
Income from operations (a) $ 7,366,000     $ 8,480,000     $ 16,814,000     $ 17,567,000  
                               
Net income $ 3,658,000     $ 4,484,000     $ 9,027,000     $ 9,279,000  
                   
Income per share:              
Basic $ 0.87     $ 1.07     $ 2.14     $ 2.22  
Diluted $ 0.87     $ 1.06     $ 2.14     $ 2.19  
               
Weighted-average shares used in computing income per share:              
Basic   4,227,000       4,188,000       4,216,000       4,187,000  
Diluted   4,227,000       4,231,000       4,216,000       4,229,000  
               

Select Segment Information
             
               
Revenues              
Branded product program $ 16,182,000     $ 15,410,000     $ 32,295,000     $ 31,855,000  
Product licensing   5,425,000       5,746,000       14,147,000       13,844,000  
Restaurant operations   7,422,000       7,402,000       12,623,000       12,532,000  
Corporate (b)   697,000       772,000       1,179,000       1,267,000  
Total Revenues $ 29,726,000     $ 29,330,000     $ 60,244,000     $ 59,498,000  
                               
Income from operations (c)                              
Branded product program $ 2,124,000     $ 2,730,000     $ 4,327,000     $ 5,261,000  
Product licensing   5,380,000       5,700,000       14,056,000       13,753,000  
Restaurant operations   2,103,000       2,095,000       2,853,000       2,845,000  
Corporate (d)   (2,241,000 )     (2,045,000 )     (4,422,000 )     (4,292,000 )
Income from operations (c) $ 7,366,000     $ 8,480,000     $ 16,814,000     $ 17,567,000  
                       
  1. Excludes interest expense, interest income, gain (loss) on disposal of property and equipment and other income, net.
  2. Represents Advertising Fund revenue.
  3. Excludes interest expense, interest income, gain (loss) on disposal of property and equipment and other income, net which are managed centrally at the corporate level, and, accordingly, such items are not presented by segment since they are excluded from the measure of profitability reviewed by the Chief Operating Decision Maker.
  4. Consists principally of administrative expenses not allocated to the operating segments such as executive management, finance, information technology, legal, insurance, corporate office costs, incentive compensation, compliance costs, and the operating results of the advertising fund.

Nathan’s Famous, Inc. and Subsidiaries

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

  Thirteen weeks ended   Twenty-six weeks ended
  Sept. 29, 2019   Sept. 23, 2018   Sept. 29, 2019   Sept. 23, 2018
  (unaudited)   (unaudited)
EBITDA              
Net Income $ 3,658,000   $ 4,484,000     $ 9,027,000   $ 9,279,000  
               
Interest Expense   2,651,000     2,651,000       5,301,000     5,301,000  
               
Provision for income taxes   1,445,000     1,979,000       3,261,000     3,703,000  
               
Depreciation and amortization      337,000        339,000          647,000        684,000  
               
EBITDA $   8,091,000   $   9,453,000     $   18,236,000   $   18,967,000  
               
               
Adjusted EBITDA              
EBITDA $ 8,091,000   $ 9,453,000     $ 18,236,000   $ 18,967,000  
               
Loss (gain) on disposal of property & equipment   2,000     (323,000 )     2,000     (323,000 )
               
Share-based compensation      30,000        23,000          58,000        104,000  
               
Adjusted EBITDA $   8,123,000   $   9,153,000     $   18,296,000   $   18,748,000  
               

COMPANY
CONTACT:
    Ronald G. DeVos, Vice President – Finance and CFO
(516) 338-8500 ext. 229
     

Ultragenyx to Present at Upcoming Investor Conferences

NOVATO, Calif., Nov. 08, 2019 (GLOBE NEWSWIRE) — Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE), a biopharmaceutical company focused on the development of novel products for serious rare and ultra-rare genetic diseases, today announced upcoming presentations at the following conferences:

  • Emil D. Kakkis, M.D., Ph.D., the company’s Chief Executive Officer and President, will present at the Credit Suisse 28th Annual Healthcare Conference on Tuesday, November 12, 2019 at 11:30 AM MT in Scottsdale, Arizona.
     
  • Tom Kassberg, the company’s Chief Business Officer, will present at the Stifel Healthcare Conference on Wednesday, November 20, 2019 at 1:50 PM ET in New York, NY.

The live and archived webcast of the company presentations will be accessible from the company’s website at http://ir.ultragenyx.com/events.cfm. The replay of the webcast will be available for 90 days.

About Ultragenyx Pharmaceutical Inc.

Ultragenyx is a biopharmaceutical company committed to bringing patients novel products for the treatment of serious rare and ultra-rare genetic diseases. The company has built a diverse portfolio of approved therapies and product candidates aimed at addressing diseases with high unmet medical need and clear biology for treatment, for which there are typically no approved therapies treating the underlying disease.

The company is led by a management team experienced in the development and commercialization of rare disease therapeutics. Ultragenyx’s strategy is predicated upon time and cost-efficient drug development, with the goal of delivering safe and effective therapies to patients with the utmost urgency.

For more information on Ultragenyx, please visit the Company’s website at:  www.ultragenyx.com.

Contact Ultragenyx Pharmaceutical Inc.
Investors & Media
Danielle Keatley              
415-475-6876

ReWalk Robotics to Report Third Quarter 2019 Financial Results on November 13, 2019

MARLBOROUGH, Mass. and YOKNEAM ILIT, Israel, Nov. 08, 2019 (GLOBE NEWSWIRE) — ReWalk Robotics Ltd. (Nasdaq: RWLK) (“ReWalk” or the “Company”) today announced that the Company will release its third quarter 2019 financial results on Wednesday, November 13, 2019, before the U.S. financial markets open.

Larry Jasinski, Chief Executive Officer, and Ori Gon, Chief Financial Officer, will host a conference call to discuss the results as follows:

Time 8:30 A.M EST
Toll free (U.S.) (844) 423-9889
International (U.S) (716) 247-5804
Israel 18 09 31 53 62
Access Code 4399133
Webcast (live and replay)
https://edge.media-server.com/mmc/p/d8necn8c
 
under the ‘Investors’ section’.
   

The archived webcast will be available via the following URL https://edge.media-server.com/mmc/p/d8necn8c or through the ‘Investors’ section’ on www.rewalk.com

About ReWalk Robotics Ltd.

ReWalk Robotics Ltd. develops, manufactures and markets wearable robotic exoskeletons for individuals with lower limb disabilities as a result of spinal cord injury or stroke. ReWalk’s mission is to fundamentally change the quality of life for individuals with lower limb disability through the creation and development of market leading robotic technologies. Founded in 2001, ReWalk has headquarters in the U.S., Israel and Germany. For more information on the ReWalk systems, please visit www.rewalk.com.

ReWalk® is a registered trademark of ReWalk Robotics Ltd. in Israel and the Unites States. 

Investor Contact:

Ori Gon
Chief Financial Officer 
ReWalk Robotics Ltd.
T: +972-4-9590123 
E: investorrelations@rewalk.com

Shockwave Medical to Participate in the 13th Annual Canaccord Genuity Medical Technologies & Diagnostics Forum

SANTA CLARA, Calif., Nov. 08, 2019 (GLOBE NEWSWIRE) — Shockwave Medical, Inc. (Nasdaq: SWAV), a pioneer in the development and commercialization of Intravascular Lithotripsy (IVL) to treat complex calcified cardiovascular disease, today announced the company will participate in a fireside chat with analysts and investors at the upcoming 13th Annual Canaccord Genuity Medical Technologies & Diagnostics Forum being held Thursday, November 21, 2019 in New York, NY.

The Shockwave session is scheduled to take place Thursday, November 21, 2019 at 11:00 a.m. Eastern Time. Investors and the general public are invited to listen to a live webcast of the presentation at https://ir.shockwavemedical.com/. An archived edition of the presentation will be available later that day.

About Shockwave Medical, Inc.

Shockwave Medical is focused on developing and commercializing products intended to transform the treatment of calcified vascular disease by establishing a new standard of care with Intravascular Lithotripsy (IVL). IVL seeks to minimize trauma within the artery by delivering pulsatile sonic pressure waves locally to fracture both intimal and medial calcium in the artery wall, but pass through surrounding soft vascular tissue in a safe manner. To view an animation of the IVL procedure and for more information, visit www.shockwavemedical.com.

Media Contact:
Scott Shadiow
+1.317.432.9210
sshadiow@shockwavemedical.com

Investor Contact:
Debbie Kaster, Gilmartin Group
investors@shockwavemedical.com

 

Crednology Holding Corp. Files Financial Statements for the Nine Months ended September 30, 2019


Revenues Grow Amidst Challenges in The Recycling and E waste Industry

Northridge, CA, Nov. 08, 2019 (GLOBE NEWSWIRE) — Crednology Holding Corp. (OTC Pink: “COHO”; “Crednology” or the “Company”) is pleased to announce that it has filed its financial statements for the nine months ended September 30, 2019. The results reflect increased revenues compared to the same period last year with profit margins similar, however, the profit reflects one-time charges for all the work related to the Regulation A-1 filing.

Orie Rechtman, CEO commented: “These results, considering the current challenges in the E waste and recycling industry in general and after applying one-time charges for the Regulation A filing are better than expected. Our marketing program is just beginning to show positive results, gaining new customers during November. We expect much more new business from the marketing efforts in Q1 2020. Our cloud business is steady with a large IT project scheduled for January, 2020.”

Orie continued: “We are currently looking at fund raising opportunities in Europe to enhance our ability to take advantage of acquisition prospects. As always, our overriding interest is to build shareholder value.”

About Crednology Holding Corp.

Crednology Holding Corp, a Delaware corporation, is a public holding company that has been dedicated to enhancing shareholder value through a strategic combination of organic growth, mergers and profitable acquisitions.

The Company is engaged in the cloud computing segment of the technology sector as well as the Electronic Waste and Recycling business. The main products and services include cloud computing and virtual environment, disaster recovery and business continuity and managed services to corporate accounts as well as the recycling and disposal of E-Waste and other materials.

Essentially cloud computing is a way to save and/or access data from remote servers. The company’s Private Cloud solution provides fully working environment through our data centers located around the USA as well as real time redundancy and replication of the client’s data which will eliminate loss of data and minimize down time close to zero. Cloud computing is growing at a staggering pace. The industry is experiencing rapid growth with the cloud segment of business achieving a growth of over 20% per annum. E-Waste is going through changes as a result of the tariff struggles between China and the US. However, due to a shake-up in the industry with many recycling companies closing we believe we have the opportunity to fill the void and grow the business, however margins will be reduced.

Safe Harbor and Informational Statement

This press release may contain forward-looking information within the meaning of Section 21E of the Security Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statement of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company’s financing plans; (ii) trends affecting the company’s financial conditions or results of operations; (iii): the company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends.

The words “may”, “would”, “will”, “expect”, “estimate”, “anticipate”, “believe”, “intend”, and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statement are not a guarantee of future of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company’s statements and reports filed with the OTC Markets. The Company claims the safe harbor provided by Section 21E(c) of the Exchange Act for all forward-looking statements.

For more information contact

Oriel Rechtman
ir@credholdingcorp.com

RAMM Pharma Corp. Commences Trading on the Canadian Securities Exchange Under Ticker Symbol “RAMM” and Provides Corporate Update

TORONTO, Nov. 08, 2019 (GLOBE NEWSWIRE) — RAMM Pharma Corp. (including its wholly owned subsidiaries, the “Company” or “RAMM”) (CSE: RAMM), a leader in plant-derived cannabinoid pharmaceutical products, is pleased to announce that trading in its common shares on the Canadian Securities Exchange will commence today at 9:30 a.m. (EST) under the ticker symbol “RAMM”.

RAMM is one of the leaders in the field of cannabinoid pharmacology and product formulation for cannabis-derived prescription drugs and registered products. Founded in 1988 in Montevideo, Uruguay, RAMM is an established pharmaceutical and medical product business. In 2017 the Company received approval for its first plant-derived cannabinoid pharmaceutical drug from Uruguay’s Ministry of Health and now has a variety of approved and registered products that have been authorized for sale in Uruguay and on a compassionate use basis in several other Latin American countries, as well as a pipeline of new products in various stages of approval and development. RAMM’s formulation and manufacturing is conducted at its state-of-the-art Good Manufacturing Practices (GMP) certified cannabis formulation facility ideally situated within close proximity to an international airport and other export hubs. The facility totals approximately 36,600 sq.ft. and features dedicated cannabis and medical product laboratories along with packaging capabilities and storage/distribution facilities

The Company is also in the process of establishing vertically integrated operations through the development of its large-scale cultivation facility. In addition to RAMM’s industry leading activities in the field of cannabinoid pharmaceuticals, RAMM also operates a successful pharmaceutical, cosmetic and nutraceutical product development and medical services business which has been in operations for 30 years.

“Our public listing marks a significant milestone as RAMM continues to establish itself as a leader in the development and commercialization of cannabis-derived prescription drugs and registered products to meet the growing demand in Latin America and other jurisdictions globally,” stated Jack Burnett, Chief Executive Officer. “We are very pleased with the interest in our suite of products and look forward to increasing access to their therapeutic benefits as we continue to expand our product offerings, awareness and availability.”

RAMM currently sells five cannabis based registered products commercially in Uruguay under two brands – Epifractán™ and CannabiPiel™. RAMM’s products have also been approved for use on a compassionate basis in 3 other Latin American countries and are in the application process at various stages of approval in several other countries. Uruguay’s stable economy, currency, political climate and strong pharmaceutical research sector make it an ideal base for product research and development and to service the Latin American population of approximately 640 million people.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b3bfe1a9-da40-4a92-b20a-0458f66eb414

About Epifractán™

In 2017, Epifractán™ became the first plant-derived cannabinoid pharmaceutical drug to be approved by a Latin American federal health authority. The drug is currently sold commercially in 2% and 5% cannabidiol (CBD) concentrations. A 10% CBD concentration is in the process of being approved by the Ministry of Health (MSP). Epifractán™ is an approved treatment for refractory epilepsy with a clinical trial about to commence examining its efficacy for the treatment of chronic pain.

About CannabiPiel™

CannabiPiel™ is a cosmeceutical cream with active ingredient 1% CBD. It is available over the counter and is used for the treatment of joint pain and inflammation, as well as a variety of skin disorders and conditions. Its unique Nioskin structure makes for optimal delivery of CBD properties.

Medical Supplies/Device Business

RAMM has an existing medical supplies and device business that currently generates sufficient revenue to cover the burn rate associated with this segment of RAMM’s business. Furthermore, these operations provide access and have developed critical relationships within the medical professional, regulator and hospital communities in Uruguay.

Subscription Receipt Financing

In connection with its public listing RAMM has recently completed a non-brokered private placement for aggregate gross proceeds of approximately C$35.3 million at a price of $1.35 per subscription receipt. Upon the completion of the listing transactions, the subscription receipts were converted on a one-for-one basis into a total of 26,165,109 RAMM Shares on October 28, 2019.

Directors, Officers & Management

Jack Burnett (Chairman, Chief Executive Officer and Director)

Mr. Burnett is a successful entrepreneur with over 40 years’ experience in the capital markets and international corporate leadership roles. Mr. Burnett has led companies from inception to acquisition in multiple industries including real estate, insurance and telecom. His deep global business relationships span both private and public markets where he has been a director, officer and majority shareholder of successful multinational companies.

Guillermo Delmonte (Chief Operating Officer)

Mr. Delmonte is a Certified Public Accountant from the ORT University of Uruguay and holds a Financial Advisor certificate from the Institut d’Estudis Financers Barcelona, Spain. Mr. Delmonte has over five years of experience in management and business development of cannabis in the international markets. Prior to joining RAMM, Mr. Delmonte was the President of the International Division of Organigram Inc. (TSX.V: OGI), a major Canadian licensed producer of cannabis, where he successfully oversaw Organigram’s first international expansion. Prior to its acquisition by Aurora Cannabis Inc. (NYSE: ACB), Mr. Delmonte served as Director and Chief Executive Officer at ICC Labs, the first South American cannabis company to go public. Mr. Delmonte has also held financial and business development leadership roles at companies including BBVA Bank, Technit Group, Credit Agricole Bank, United Nations Uruguay and Bank ITAU.

Matias Piñeiro (Chief Financial Officer)

Mr. Piñeiro is a public accountant and experienced finance professional with a demonstrated history of directing comprehensive finance and accounting operations and providing leadership. Skilled in technology, financial reporting, budgeting and financial statements auditing, with a focus on driving operational performance, profitability, controls and continuous improvement. From 2017 to 2019, Mr. Piñeiro served as the accounting and reporting line manager for Syngenta AG, a global company that produces agrochemicals and seeds and is based in Basel, Switzerland, from 2016 to 2017 served as corporate financial controller for a subsidiary of UG International Holdings operating in the agriculture, renewable energy, real estate and cannabis markets in South America. From 2012 to 2016, Mr. Piñeiro was an audit manager with KPMG, and is currently an assistant professor of FS Audit and Professional Reports of Public Accountants at the Faculty of Economics Sciences and Administration at Universidad de la República Oriental del Uruguay (UDELAR).

Dr. Armando Blankleider (Director)

Dr. Blankleider is a Medical Doctor and the founder and President of Medic Plast. Dr. Blankleider has directly led Medic Plast’s initiatives for the design and introduction of new products, as well as in the design and monitoring of teams for the development of production processes and the general management of Medic Plast. Dr. Blankleider also has a depth of experience in Quality Management ISO Standards, has acted as a delegate to develop the Rules of Good Manufacturing Practices for medical products for the private sector within the MERCOSUR and is an active participant in international conferences for the medical and pharmaceutical products industry globally.

Dr. Leticia Cuñetti (Chief Medical Officer)

Dr. Cuñetti is a Medical Doctor, nephrologist and pharmacologist. She holds a Masters degree in Donation and transplantation of organs and tissues from the Universidad de Barcelona, Spain, and is a fellow of the International Society of Nephrology. She served as nephrology assistant from 2006 to 2012 and as Associate professor of Pharmacology in the Medical School of the Universidad de la Republica, Uruguay, from 2000 to 2017. Currently Dr. Cuñetti is the Vice-President of the Uruguayan Endocannabinoid Society (SUEN).

Edelma Ros (Chief Technical Director)

Ms. Ros is a Pharmaceutical Chemist specializing in Pharmaceutical Care at the Universidad de la Republica, Uruguay. Ms. Ros is a proven specialist in the pharmaceutical and cosmetic formulation industry, leading Medic Plast’s technical direction for more than 15 years and has created more than a hundred registered pharmaceutical products.

Daniel Augereau (Director)

Mr. Augereau is a seasoned executive who has held senior leadership and board-level positions at companies spanning a diverse mix of industries over a 50+ year career. Since 2005, Mr. Augereau has served as the Chairman and Chief Executive Officer of Synergie SA (Euronext: SDG), the French leader of temporary work and human resources management services for the industry, tertiary, logistics, medical, building and public works sectors.

Eric Klein (Director)

Mr. Klein focuses on complex mergers, acquisitions, divestitures, financings as well as joint ventures and business valuations of mid-sized Canadian corporations. With more than 30 years of experience, he focuses on providing results-driven corporate finance services for mid-market Canadian companies. Recently, Mr. Klein was a senior executive with Dundee Corporation. Prior to that Mr. Klein was the founder and Managing Director of the Corporate Finance, Valuations & Transaction practice of Farber Financial Group, a consulting company. Mr. Klein is a graduate of McGill University with a B.Comm and a graduate Diploma in Public accounting, and holds designations as a Chartered Public Accountant and Chartered Business Valuator.

Matthew Bajurny (Director)

Mr. Bajurny is a CPA with a Bachelor of Commerce in Accounting from the University of Guelph and brings to the board strong financial literacy skills further developed through over his years of professional experience in financial statement audit at public accounting firms PwC LLP and Crowe Mackay LLP and as the CFO of a publicly listed Canadian corporation and other directorship positions.

About RAMM Pharma Corp.

Lead by renowned cannabis industry experts and backed by successful pioneers in the cannabis sector, RAMM is a leader in the field of cannabinoid pharmacology and product formulation for cannabis-based pharmaceuticals and other cannabis-based products. Founded in 1988 in Montevideo, Uruguay, the Company is a well established pharmaceutical and medical product business that has developed medically registered and approved plant-derived cannabinoid pharmaceutical products. The Company currently has multiple approved and registered products that have been authorized for sale in Uruguay and compassionate use in several Latin American countries, as well as a pipeline of new products in various stages of approval and development produced in the Company’s state of the art Good Manufacturing Practice (GMP) certified cannabis formulation facility. With its large-scale cultivation facility, the combined operations are expected to provide for complete vertical integration. Further to its industry leading activities in the cannabis sector, the Company operates a successful pharmaceutical, cosmetic and nutraceutical product development and medical services business which has been servicing the local market for 30 years.

RAMM Pharma Corp. includes wholly owned subsidiaries Medic Plast SA, Yurelan SA and Ramm Pharma Holdings Corp.

Additional information about the Company is available at www.rammpharma.com.

For further information, please contact:

Guillermo Delmonte
Chief Operating Officer
(484)-474-0932
info@rammpharma.com

Cautionary Note Regarding Forward-Looking Information

This news release contains

forward-looking information

and

forward-looking statements

(collectively,


forward looking statements


) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward looking statements relate, among other things, the Company’s strategies and objectives, and future expansion plans.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the commencement of trading of the common shares of RAMM on the Canadian Securities Exchange; fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the Uruguayan, Latin American, and international medical and recreational cannabis markets and changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution and sale of cannabis and cannabis related products in Uruguay or internationally; and employee relations. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Dorel Reports Third Quarter Results

  • Dorel Sports total revenue up 14.2%, adjusted organic revenue
    1
    up 15.7%
  • Dorel Juvenile wins innovation award at world’s largest juvenile product exhibition

MONTRÉAL, Nov. 08, 2019 (GLOBE NEWSWIRE) — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter and nine months ended September 30, 2019. Third quarter revenue was US$685.7 million, up 2.3% from US$670.4 million. Reported net loss was US$4.3 million or US$0.13 per diluted share, compared to net income of US$9.6 million or US$0.29 per diluted share last year. Adjusted net income1 was US$2.4 million or US$0.07 per diluted share, compared to US$11.0 million or US$0.34 per diluted share a year ago.

Nine-month revenue was US$1.98 billion, an increase of 2.3% compared to US$1.94 billion last year. Reported net loss year-to-date was US$9.8 million or US$0.30 per diluted share, compared to US$0.4 million or US$0.01 per diluted share in 2018. Year-to-date adjusted net income was US$14.5 million or US$0.44 per diluted share, compared to US$29.2 million or US$0.89 per diluted share a year ago.

“As expected and previously communicated, the third quarter was a difficult one primarily due to various issues related to U.S. imposed tariffs. We raised prices in the quarter and this has had several negative consequences. Retailers altered their purchasing decisions, which resulted in a considerable product mix imbalance. In addition, some of our large U.S. customers delayed holiday orders from September to October. 

All Dorel segments have done an excellent job of holding the line on most expenses and creative product development has resulted in many new exciting introductions. Cannondale’s new line-up is driving Cycling Sports Group success. The new product development process at Dorel Juvenile is delivering significantly improved time-to-market, though increased earnings are yet to materialize. Inventory reduction across all segments is a strong focus and is on track, and new sourcing strategies are being implemented where appropriate,” stated Dorel President & CEO, Martin Schwartz.

“Dorel Sports’ sales were very strong despite some orders being pushed back to the fourth quarter. Margins in mass were affected by tariffs, but revenue grew double digits for the first time in five years. Our bikes are selling well across all channels.  Adjusted operating profit1 at Dorel Juvenile was up overall, but challenges remain in Europe. Issues related to tariffs have delayed Dorel Home’s improvement. Margin and profitability are not yet where we want them to be, but the signs are positive and progress is being made,” concluded Mr. Schwartz.


1 This is a non-GAAP financial measure. Please refer to the “Non-GAAP financial measures” section at the end of this press release.

           
  Summary of Financial Information (unaudited)  
  Third Quarters Ended September 30,  
  All figures in thousands of US $, except per share amounts  
    2019 2018 * Change  
    $ $ %  
  Total revenue 685,669   670,437   2.3%  
           
  Net income (loss) (4,337 ) 9,594   (145.2%)  
  Per share – Basic (0.13 ) 0.30   (143.3%)  
  Per share – Diluted (0.13 ) 0.29   (144.8%)  
           
  Adjusted net income 2,355   10,988   (78.6%)  
  Per share – Basic 0.07   0.34   (79.4%)  
  Per share – Diluted 0.07   0.34   (79.4%)  
  Number of shares outstanding –        
  Basic weighted average 32,444,656   32,438,503    
  Diluted weighted average 32,444,656   32,738,830    
           
  Summary of Financial Information (unaudited)  
  Nine Months Ended September 30,  
  All figures in thousands of US $, except per share amounts  
    2019 2018 * Change  
    $ $ %  
  Total revenue 1,981,211   1,935,967   2.3%  
           
  Net loss (9,814 ) (445 ) (2,105.4%)  
  Per share – Basic (0.30 ) (0.01 ) (2,900.0%)  
  Per share – Diluted (0.30 ) (0.01 ) (2,900.0%)  
           
  Adjusted net income 14,463   29,186   (50.4%)  
  Per share – Basic 0.45   0.90   (50.0%)  
  Per share – Diluted 0.44   0.89   (50.6%)  
  Number of shares outstanding –        
  Basic weighted average 32,442,592   32,438,465    
  Diluted weighted average 32,442,592   32,438,465    
           
  * The Company has initially applied IFRS 16 as at December 31, 2018. Under the transition method chosen, comparative information is not restated.  
           

Dorel Sports

               
  All figures in thousands of US $            
  Third Quarters Ended September 30 (unaudited)  
    2019 2018 * Change  
    $ % of rev. $ % of rev. %  
  Total revenue 250,277   219,120   14.2%  
               
  Gross profit 46,895 18.7% 46,144 21.1% 1.6%  
  Operating profit 5,957 2.4% 6,993 3.2% (14.8%)  
               
  Adjusted gross profit 46,769 18.7% 46,244 21.1% 1.1%  
  Adjusted operating profit 5,601 2.2% 7,549 3.4% (25.8%)  
               
  All figures in thousands of US $            
  Nine Months Ended September 30 (unaudited)  
    2019 2018 * Change  
    $ % of rev. $ % of rev. %  
  Total revenue 675,850   650,320   3.9%  
               
  Gross profit 135,925 20.1% 139,621 21.5% (2.6%)  
  Operating profit 20,553 3.0% 2,937 0.5% 599.8%  
               
  Adjusted gross profit 135,799 20.1% 141,305 21.7% (3.9%)  
  Adjusted operating profit 20,197 3.0% 14,730 2.3% 37.1%  
               
   * The Company has initially applied IFRS 16 as at December 31, 2018. Under the transition method chosen, comparative information is not restated.  
     

Third quarter revenue increased US$31.2 million, or 14.2%, to US$250.3 million, with revenue growth across all three divisions, driven by strong performances at the Cycling Sports Group (CSG). Excluding foreign exchange rate fluctuations year-over-year and the impact of the divestment of the performance apparel line of business (SUGOI), adjusted organic revenue increased 15.7%. Nine-month revenue increased US$25.5 million, or 3.9%, to US$675.9 million.

CSG’s third quarter growth was driven by continued excitement and increased sales of the model year ’20 lineup. CSG margins remained strong as a result of increased in-line, full margin sales and solid retail POS levels continue to trend upwards. Year-to-date CSG’s independent bike dealer (IBD) business continued to outpace the rest of the industry. Growth in Europe was primarily driven by the e-bike category which doubled sales with e-mountain bike launches such as the Moterra and Habit Neo. Caloi delivered strong double-digit revenue growth with increased volume due to success with Brazil’s Yellow Bike Sharing program and a better mix. Caloi is also experiencing improved results from increased Cannondale brand marketing efforts. POS levels were solid at Pacific Cycle, however the division was negatively impacted by margin compression. In addition, key retailers delayed holiday pipeline shipments to the current fourth quarter.

Operating profit for the quarter was US$6.0 million compared to US$7.0 million a year ago. Adjusted operating profit was US$5.6 million compared US$7.5 million last year. The Pacific Cycle issues described above plus related additional warehouse storage were solely responsible for the decreased operating profit. Nine-month operating profit was US$20.6 million compared to US$2.9 million in 2018. Adjusted operating profit was US$20.2 million versus US$14.7 million.

Dorel Juvenile

               
  All figures in thousands of US $            
  Third Quarters Ended September 30 (unaudited)  
    2019 2018 * Change  
    $ % of rev. $ % of rev. %  
  Total revenue 222,925     229,690     (2.9%)  
               
  Gross profit 56,219   25.2% 57,846   25.2% (2.8%)  
  Operating profit (loss) (4,563 ) (2.0%) 1,038   0.5% (539.6%)  
               
  Adjusted operating profit 2,592   1.2% 1,675   0.7% 54.7%  
               
  All figures in thousands of US $            
  Nine Months Ended September 30 (unaudited)  
    2019 2018 * Change  
    $ % of rev. $ % of rev. %  
  Total revenue 674,682     690,462     (2.3%)  
               
  Gross profit 175,438   26.0% 182,735   26.5% (4.0%)  
  Operating loss (9,321 ) (1.4%) (18,754 ) (2.7%) 50.3%  
               
  Adjusted gross profit 176,826   26.2% 182,822   26.5% (3.3%)  
  Adjusted operating profit 16,477   2.4% 9,010   1.3% 82.9%  
               
  * The Company has initially applied IFRS 16 as at December 31, 2018. Under the transition method chosen, comparative information is not restated.  
               

Third quarter revenue declined by US$6.8 million, or 2.9%, to US$222.9 million, with organic revenue1 decreasing by 0.5%. Dorel Juvenile USA sales at retail increased over prior year at most customers, capturing market share from competitors. Sales at Dorel Juvenile Brazil continued to grow double digits with Chile retail same store sales also increasing substantially over prior year. Nine-month organic revenue increased by 1.3%, but reported revenue decreased US$15.8 million, or 2.3%, to US$674.7 million.

New product introductions in Europe are gaining traction with additional new products being introduced in the fourth quarter and early 2020 which is expected to accelerate revenue improvement. At the world’s largest juvenile products exhibition in Cologne this September, Dorel Juvenile won the coveted innovation award for the introduction of the Maxi-Cosi CORAL. This revolutionary infant carrier baby car seat solves the inconvenience of managing bulky seats, with its detachable soft carrier weighing only 1.7kg, setting a new standard for lightness and convenience.

Operating loss was US$4.6 million compared to an operating profit of US$1.0 million last year. Included in 2019 results is an impairment loss on trade receivables of US$1.6 million due to a significant retail chain in the U.K. entering administration. Excluding restructuring and other costs, adjusted operating profit increased US$0.9 million to US$2.6 million compared to US$1.7 million in 2018. Nine-month operating loss was US$9.3 million versus US$18.8 million a year ago. Excluding impairment loss on intangible assets, restructuring and other costs, adjusted operating profit rose 82.9% to US$16.5 million from US$9.0 million in 2018.

The restructuring program in Europe is being implemented and the program is running as planned. Savings of US$5.0 million are being realized as budgeted for this year. Overall annualized cost savings of US$12.0 million to US$15.0 million are anticipated once the program is fully implemented.

Dorel Home

               
  All figures in thousands of US $            
  Third Quarters Ended September 30 (unaudited)  
    2019 2018 * Change  
    $ % of rev. $ % of rev. %  
  Total revenue 212,467   221,627   (4.1%)  
               
  Gross profit 32,376 15.2% 34,844 15.7% (7.1%)  
  Operating profit 15,665 7.4% 19,504 8.8% (19.7%)  
               
  All figures in thousands of US $            
  Nine Months Ended September 30 (unaudited)  
    2019 2018 * Change  
    $ % of rev. $ % of rev. %  
  Total revenue 630,679   595,185   6.0%  
               
  Gross profit 91,569 14.5% 99,389 16.7% (7.9%)  
  Operating profit 44,189 7.0% 52,677 8.9% (16.1%)  
               
  * The Company has initially applied IFRS 16 as at December 31, 2018. Under the transition method chosen, comparative information is not restated.  
               

Dorel Home’s third quarter revenue decreased US$9.2 million, or 4.1%, to US$212.5 million. Prices were raised midway through the quarter to reflect the increased tariffs, which had a negative impact on retailers’ purchasing decisions. Despite the challenges in the market conditions, e-commerce sales increased to 61% of total segment gross sales, compared to 58% last year. CosmoLiving and Novogratz branded sales beat prior quarter numbers substantially. Nine-month revenue was up by US$35.5 million, or 6.0%, to US$630.7 million.

Gross profit for the third quarter was 15.2%, down 50 basis points from prior year, but an improvement of 100 basis points from second quarter gross profit. Tariff-related issues affecting the segment during the first half, including elevated inventory levels and warehousing costs and a less profitable product mix, continued into the third quarter but are being mitigated through stringent operational improvements. Sales and operating profit both increased over the second quarter. Year-over-year, operating profit declined US$3.8 million, or 19.7%, to US$15.7 million. Nine-month operating profit decreased US$8.5 million, or 16.1%, to US$44.2 million.

Other

During the third quarter and nine months ended September 30, 2019, the Company’s reported effective tax rates were (130.4)% and 1,640.7% respectively compared to 28.2% and 90.4% for the same periods in the prior year. Excluding income taxes on restructuring and other costs, the Company’s third quarter adjusted tax rate1 was 52.1% in 2019 compared with 24.5% in 2018. Excluding income taxes on impairment loss on intangible assets, restructuring and other costs, the Company’s adjusted tax rate for the nine months was 44.5% in 2019 compared with 16.5% in 2018. Considering the significant impairment losses recorded during the fourth quarter of 2018, the Company was unable to recognize certain tax benefits related to tax losses and temporary differences. This resulted in an increase in the reported effective tax rates for both periods compared to prior year. The balance of the increase in the reported effective tax rate and in the adjusted effective tax rate is due to changes in the jurisdictions in which the Company generated its income. The Company expects that for the full year its annual adjusted tax rate to be between 35% and 40%.

Finance expenses increased by US$4.5 million to US$12.8 million during the third quarter and by US$11.8 million to US$35.9 million year-to-date. The increases are due mainly to interest expense on lease liabilities from the adoption of IFRS 16, for which the prior year figures were not restated. In addition, the 2019 increase includes higher average borrowings and higher average market interest rates.

Outlook

“At Dorel Sports, the positive momentum in Cycling Sports Group’s IBD business is expected to continue. This, coupled with the shift of orders at Pacific Cycle from the third to the fourth quarter, provides the confidence that the segment will deliver a solid fourth quarter in both sales and adjusted operating profit,” commented Dorel President & CEO, Martin Schwartz.

“At Dorel Home, we are expecting similar earnings for the fourth quarter as throughout 2019. We are now seeing an easing of the pressure created by tariffs imposed in the U.S. Demand is growing again, our warehouse service levels are improving, and our inventory is being re-balanced to the right levels. We expect adjusted operating profit to improve early in 2020.

“At Dorel Juvenile, new product introductions are beginning to have a positive impact and there are several key launches scheduled for the fourth quarter and early next year. From an earnings perspective, Europe is still transforming itself. The restructuring program in Europe is proceeding with most of the savings to come in 2020. Fourth quarter adjusted operating profit is at risk due to continuing civil unrest in Chile, which began in October and which is having a negative effect on all retail, including Dorel Juvenile’s numerous stores. This could lower earnings in the quarter and impact the critical Christmas season in that country,” concluded Mr. Schwartz.

Conference Call
Dorel Industries Inc. will hold a conference call to discuss these results today, November 8, 2019 at 1:00 P.M. Eastern Time. Interested parties can join the call by dialing 1-877-223-4471. The conference call can also be accessed via live webcast at http://www.dorel.com. If you are unable to call in at this time, you may access a recording of the meeting by calling 1-800-585-8367 and entering the passcode 1156908 on your phone. This recording will be available on Friday, November 8, 2019 as of 4:00 P.M. until 11:59 P.M. on Friday, November 15, 2019.

Complete condensed consolidated interim financial statements as at September 30, 2019 will be available on the Company’s website,


www.dorel.com


, and will be available through the SEDAR website.

Profile

Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating three distinct businesses in juvenile products, bicycles and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Quinny and Tiny Love, complemented by regional brands such as Safety 1st, Bébé Confort, Cosco and Infanti. Dorel Sports brands include Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$2.6 billion and employs approximately 9,200 people in facilities located in twenty-five countries worldwide.

Non-GAAP Financial Measures

The Company is presenting in this press release certain non-GAAP financial measures, as described below. These non-GAAP financial measures do not have a standardized meaning prescribed by International Financial Reporting Standards (IFRS) and therefore are unlikely to be comparable to similar measures presented by other issuers. These non-GAAP financial measures should not be considered in isolation or as a substitute for a measure prepared in accordance with IFRS.

Contained within this press release are reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with IFRS.

The terms and the definitions of the non-GAAP financial measures contained in this press release are as follows:

Organic revenue and adjusted organic revenue

Organic revenue: Total revenue growth compared to the previous period, excluding the impact of varying foreign exchange rates
Adjusted organic revenue: Total revenue growth compared to the previous period, excluding the impact of varying foreign exchange rates and the impact of the divestment of the performance apparel line of business (Sugoi)

The Company believes that these measures provide investors with a better comparability of the Company’s total revenue trends by providing total revenue growth on a consistent basis between the periods presented.

Other financial information prepared under IFRS adjusted to exclude impairment loss on intangible assets, restructuring and other costs

Adjusted cost of sales: Cost of sales excluding restructuring and other costs
Adjusted gross profit: Gross profit excluding restructuring and other costs
Adjusted operating profit: Operating profit excluding impairment loss on intangible assets, restructuring and other costs
Adjusted income before income taxes: Income before income taxes excluding impairment loss on intangible assets, restructuring and other costs
Adjusted income taxes expense: Income taxes expense excluding the tax impact relating to impairment loss on intangible assets, restructuring and other costs
Adjusted tax rate: Tax rate excluding the tax impact relating to impairment loss on intangible assets, restructuring and other costs
Adjusted net income: Net income excluding impairment loss on intangible assets, restructuring and other costs, net of taxes
Adjusted earnings per basic and diluted share: Earnings per basic and diluted share calculated on the basis of adjusted net income

The Company believes that the adjusted financial information provides investors with additional information to measure the Company’s financial performance by excluding certain items that the Company believes do not reflect its core business performance and provides better comparability between the periods presented. Accordingly, the Company believes that the adjusted financial information will assist investors in analyzing the Company’s financial results and performance. The adjusted financial information is also used by management to assess the Company’s financial performance and to make operating and strategic decisions.

Caution Regarding Forward-Looking Statements
Certain statements included in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, Dorel does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties and are based on several assumptions which give rise to the possibility that actual results could differ materially from Dorel’s expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, Dorel cannot guarantee that any forward-looking statement will materialize, or if any of them do, what benefits Dorel will derive from them. Forward-looking statements are provided in this press release for the purpose of giving information about Management’s current expectations and plans and allowing investors and others to get a better understanding of Dorel’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose. 

Forward-looking statements made in this press release are based on a number of assumptions that Dorel believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from Dorel’s expectations expressed in or implied by the forward-looking statements include: general economic conditions; changes in product costs and supply channels; foreign currency fluctuations; customer and credit risk, including the concentration of revenues with small number of customers; costs associated with product liability; changes in income tax legislation or the interpretation or application of those rules; the continued ability to develop products and support brand names; changes in the regulatory environment; continued access to capital resources, including compliance with covenants, and the related costs of borrowing; failure related to information technology systems; changes in assumptions in the valuation of goodwill and other intangible assets and future decline in market capitalization; and there being no certainty that Dorel’s current dividend policy will be maintained. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in Dorel’s annual Management Discussion and Analysis and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors outlined in the previously-mentioned documents are specifically incorporated herein by reference.

Forward-looking statements made in this press release related to the expected financial information for 2019 do not take into consideration the impact of adopting IFRS 16, Leases, on December 31, 2018.

Dorel cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to Dorel or that Dorel currently deems to be immaterial may also have a material adverse effect on Dorel’s business, financial condition or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

All figures in the tables below are in thousands of US $, except per share amounts

 
Reconciliation of non-GAAP financial measures
                 
Organic revenue and adjusted organic revenue:
  Third Quarters Ended September 30,
  Total Dorel Home Dorel Juvenile Dorel Sports
  2019 2018 2019 2018 2019 2018 2019 2018
  % % % % % % % %
Total revenue growth (decline) 2.3 4.3 (4.1 ) 10.0 (2.9 ) (2.5 ) 14.2 6.6
Impact of varying foreign exchange rates 1.3 1.8   0.2 2.4   2.1   1.4 3.0
Organic revenue growth (decline) 3.6 6.1 (4.1 ) 10.2 (0.5 ) (0.4 ) 15.6 9.6
Impact of the divestment of the performance apparel line of business (SUGOI) 0.7       0.1 2.2
Adjusted organic revenue growth (decline) 3.6 6.8 (4.1 ) 10.2 (0.5 ) (0.4 ) 15.7 11.8

  Nine Months Ended September 30,
  Total Dorel Home Dorel Juvenile Dorel Sports
  2019 2018 2019 2018 2019 2018 2019 2018
  % % % % % % % %
Total revenue growth (decline) 2.3 1.9   6.0 0.9 (2.3 ) 1.2   3.9 3.5  
Impact of varying foreign exchange rates 2.1 (0.9 ) 0.1 3.6   (2.2 ) 2.3 (0.3 )
Organic revenue growth (decline) 4.4 1.0   6.1 0.9 1.3   (1.0 ) 6.2 3.2  
Impact of the divestment of the performance apparel line of business(SUGOI) 0.5 0.2       1.5 0.7  
Adjusted organic revenue growth (decline) 4.9 1.2   6.1 0.9 1.3   (1.0 ) 7.7 3.9  
                 

Other financial information prepared under IFRS adjusted to exclude impairment loss on intangible assets, restructuring and other costs:

                       

Dorel Consolidated
             
  Third Quarters ended September 30,
  2019   2018 *
    % of Restructuring   % of     % of Restructuring   % of
  Reported revenue and other costs Adjusted revenue   Reported revenue and other costs Adjusted revenue
  $ % $ $ %   $ % $ $ %
TOTAL REVENUE 685,669 100.0 685,669 100.0   670,437 100.0 670,437 100.0
Cost of sales 550,179 80.2 126 550,305 80.3   531,603 79.3 (100) 531,503 79.3
GROSS PROFIT 135,490 19.8 (126) 135,364 19.7   138,834 20.7 100 138,934 20.7
Selling expenses 57,203 8.3 57,203 8.3   59,177 8.8 59,177 8.8
General and administrative expenses 47,326 6.9 47,326 6.9   47,431 7.1 47,431 7.1
Research and development expenses 9,672 1.4 9,672 1.4   9,276 1.4 9,276 1.4
Impairment loss on trade and other receivables 3,449 0.5 3,449 0.5   246 246
Restructuring and other costs 6,925 1.1 (6,925)   1,093 0.2 (1,093)
OPERATING PROFIT 10,915 1.6 6,799 17,714 2.6   21,611 3.2 1,193 22,804 3.4
Finance expenses 12,797 1.8 12,797 1.8   8,254 1.2 8,254 1.2
INCOME (LOSS) BEFORE INCOME TAXES (1,882
)
(0.2) 6,799 4,917 0.8   13,357 2.0 1,193 14,550 2.2
Income taxes expense 2,455 0.4 107 2,562 0.5   3,763 0.6 (201) 3,562 0.6
Tax rate
(130.4


)%
   
52.1


%
   
28.2


%
   
24.5


%
 
NET INCOME (LOSS) (4,337
)
(0.6) 6,692 2,355 0.3   9,594 1.4 1,394 10,988 1.6
EARNINGS (LOSS) PER SHARE                    
Basic (0.13
)
  0.20 0.07     0.30   0.04 0.34  
Diluted (0.13
)
  0.20 0.07     0.29   0.05 0.34  
SHARES OUTSTANDING                      
Basic – weighted average 32,444,656     32,444,656     32,438,503     32,438,503  
Diluted – weighted average 32,444,656     32,838,148     32,738,830     32,738,830  
 
* The Company has initially applied IFRS 16 as at December 31, 2018. Under the transition method chosen, comparative information is not restated.
 

                       
  Nine Months Ended September 30,
  2019   2018 *
                  Impairment loss on    
                  intangible assets,    
    % of Restructuring   % of     % of restructuring   % of
  Reported revenue and other costs Adjusted revenue   Reported revenue and other costs Adjusted revenue
  $ % $ $ %   $ % $ $ %
TOTAL REVENUE 1,981,211 100.0 1,981,211 100.0   1,935,967 100.0 1,935,967 100.0
Cost of sales 1,578,279 79.7 (1,262) 1,577,017 79.6   1,514,222 78.2 (1,771) 1,512,451 78.1
GROSS PROFIT 402,932 20.3 1,262 404,194 20.4   421,745 21.8 1,771 423,516 21.9
Selling expenses 166,114 8.4 166,114 8.4   176,965 9.1 176,965 9.1
General and administrative expenses 143,414 7.2 143,414 7.2   146,841 7.7 146,841 7.7
Research and development expenses 28,821 1.5 28,821 1.5   27,337 1.4 27,337 1.4
Impairment loss on trade and other receivables 3,901 0.2 3,901 0.2   13,407 0.7 13,407 0.7
Restructuring and other costs 24,180 1.2 (24,180)   13,593 0.7 (13,593)
Impairment loss on intangible assets   24,193 1.2 (24,193)
OPERATING PROFIT 36,502 1.8 25,442 61,944 3.1   19,409 1.0 39,557 58,966 3.0
Finance expenses 35,865 1.8 35,865 1.8   24,024 1.2 24,024 1.2
INCOME (LOSS) BEFORE INCOME TAXES 637 25,442 26,079 1.3   (4,615
)
(0.2) 39,557 34,942 1.8
Income taxes expense (recovery) 10,451 0.5 1,165 11,616 0.6   (4,170
)
(0.2) 9,926 5,756 0.3
Tax rate
1,640.7


%
   
44.5


%
   
90.4


%
   
16.5


%
 
NET INCOME (LOSS) (9,814
)
(0.5) 24,277 14,463 0.7   (445
)
29,631 29,186 1.5
EARNINGS (LOSS) PER SHARE                    
Basic (0.30
)
  0.75 0.45     (0.01
)
  0.91 0.90  
Diluted (0.30
)
  0.74 0.44     (0.01
)
  0.90 0.89  
SHARES OUTSTANDING                      
Basic – weighted average 32,442,592     32,442,592     32,438,465     32,438,465  
Diluted – weighted average 32,442,592     32,797,585     32,438,465     32,722,433  
 
* The Company has initially applied IFRS 16 as at December 31, 2018. Under the transition method chosen, comparative information is not restated.
 


Dorel Juvenile
             
      Third Quarters Ended September 30,
      2019   2018 *
        % of Restructuring   % of     % of Restructuring   % of
      Reported revenue and other costs Adjusted revenue   Reported revenue and other costs Adjusted revenue
      $ % $ $ %   $ % $ $ %
TOTAL REVENUE 222,925 100.0 222,925 100.0   229,690 100.0 229,690 100.0
Cost of sales 166,706 74.8 166,706 74.8   171,844 74.8 171,844 74.8
GROSS PROFIT 56,219 25.2 56,219 25.2   57,846 25.2 57,846 25.2
                       
Selling expenses 26,789 12.0 26,789 12.0   29,726 12.9 29,726 12.9
General and administrative expenses 18,079 8.1 18,079 8.1   19,055 8.4 19,055 8.4
Research and development expenses 7,137 3.2 7,137 3.2   6,987 3.0 6,987 3.0
Impairment loss on trade and other receivables 1,622 0.7 1,622 0.7   403 0.2 403 0.2
Restructuring and other costs 7,155 3.2 (7,155)   637 0.2 (637)
OPERATING PROFIT (LOSS) (4,563
)
(2.0) 7,155 2,592 1.2   1,038 0.5 637 1,675 0.7

  Nine Months Ended September 30,
  2019   2018 *
                  Impairment loss on    
                  intangible assets,    
    % of Restructuring   % of     % of restructuring   % of
  Reported revenue and other costs Adjusted revenue   Reported revenue and other costs Adjusted revenue
  $ % $ $ %   $ % $ $ %
TOTAL REVENUE 674,682 100.0 674,682 100.0   690,462 100.0 690,462 100.0
Cost of sales 499,244 74.0 (1,388) 497,856 73.8   507,727 73.5 (87) 507,640 73.5
GROSS PROFIT 175,438 26.0 1,388 176,826 26.2   182,735 26.5 87 182,822 26.5
                       
Selling expenses 81,076 12.0 81,076 12.0   89,106 12.9 89,106 12.9
General and administrative expenses 56,083 8.4 56,083 8.4   60,412 8.8 60,412 8.8
Research and development expenses 21,145 3.1 21,145 3.1   20,108 2.9 20,108 2.9
Impairment loss on trade and other receivables 2,045 0.3 2,045 0.3   4,186 0.6 4,186 0.6
Restructuring and other costs 24,410 3.6 (24,410)   3,484 0.5 (3,484)
Impairment loss on intangible assets   24,193 3.5 (24,193)
OPERATING PROFIT (LOSS) (9,321
)
(1.4) 25,798 16,477 2.4   (18,754
)
(2.7) 27,764 9,010 1.3
                       
* The Company has initially applied IFRS 16 as at December 31, 2018. Under the transition method chosen, comparative information is not restated.
 


Dorel Sports
             
  Third Quarters Ended September 30,
  2019   2018 *
    % of Restructuring   % of     % of Restructuring   % of
  Reported revenue and other costs Adjusted revenue   Reported revenue and other costs Adjusted revenue
  $ % $ $ %   $ % $ $ %
TOTAL REVENUE 250,277 100.0 250,277 100.0   219,120 100.0 219,120 100.0
Cost of sales 203,382 81.3 126 203,508 81.3   172,976 78.9 (100) 172,876 78.9
GROSS PROFIT 46,895 18.7 (126) 46,769 18.7   46,144 21.1 100 46,244 21.1
                       
Selling expenses 23,571 9.4 23,571 9.4   22,834 10.4 22,834 10.4
General and administrative expenses 15,691 6.4 15,691 6.4   14,846 6.9 14,846 6.9
Research and development expenses 1,351 0.5 1,351 0.5   1,174 0.5 1,174 0.5
Impairment loss (reversal) on trade and other receivables 555 0.2 555 0.2   (159
)
(0.1) (159
)
(0.1)
Restructuring and other costs (230
)
(0.2) 230   456 0.2 (456)
OPERATING PROFIT 5,957 2.4 (356) 5,601 2.2   6,993 3.2 556 7,549 3.4

  Nine Months Ended September 30,
  2019   2018 *
    % of Restructuring   % of     % of Restructuring   % of
  Reported revenue and other costs Adjusted revenue   Reported revenue and other costs Adjusted revenue
  $ % $ $ %   $ % $ $ %
TOTAL REVENUE 675,850 100.0 675,850 100.0   650,320 100.0 650,320 100.0
Cost of sales 539,925 79.9 126 540,051 79.9   510,699 78.5 (1,684) 509,015 78.3
GROSS PROFIT 135,925 20.1 (126) 135,799 20.1   139,621 21.5 1,684 141,305 21.7
                       
Selling expenses 64,758 9.6 64,758 9.6   67,920 10.4 67,920 10.4
General and administrative expenses 46,361 6.8 46,361 6.8   47,507 7.3 47,507 7.3
Research and development expenses 4,050 0.6 4,050 0.6   3,981 0.6 3,981 0.6
Impairment loss on trade and other receivables 433 0.1 433 0.1   7,167 1.1 7,167 1.1
Restructuring and other costs (230
)
230   10,109 1.6 (10,109)
OPERATING PROFIT 20,553 3.0 (356) 20,197 3.0   2,937 0.5 11,793 14,730 2.3
 
* The Company has initially applied IFRS 16 as at December 31, 2018. Under the transition method chosen, comparative information is not restated.

CONTACTS:
MaisonBrison Communications
Rick Leckner
(514) 731-0000

Dorel Industries Inc.
Jeffrey Schwartz
(514) 934-3034

IIROC Trading Halt – ORV

Canada NewsWire

TORONTO, Nov. 8, 2019 /CNW/ – The following issues have been halted by IIROC:

Company: Orvana Minerals Corp.

TSX Symbol: ORV (All Issues)

Reason: Pending News

Halt Time (ET): 8:16 AM

IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) – Halts/Resumptions

Moro Corporation Reports Nine Month Results

PR Newswire

WAYNE, Pa., Nov. 8, 2019 /PRNewswire/ — Moro Corporation (OTC: MRCR), a multi-subsidiary construction products and services company, announced that revenues for the three quarters ending September 30, 2019 were $40.9 million, compared to $41.6 million in the comparable period in 2018, a decrease of 1.77%.

Net income  for the three quarters ending September 30, 2019 was $186,632, or $0.03 per share, compared to $782,325, or $.013 per share, in the comparable period of 2018.

Adjusted net income (non-GAAP) for the three quarters ending September 30, 2019 was $500,821 or $0.08 per share.  This compares to $0.13 per share for the comparable period in 2018, a 36% decrease in earnings per share.  Adjusted net income for the nine month period excludes one-time charges related to the retirement of Moro’s former President.

“Profits for our first nine months this year are down primarily due to several unusual circumstances, including the non-recurring expenses related to the retirement of our former President,” said Moro Corporation President, Ehud Israel.  He added, “Net Income was also negatively affected by significantly inclement weather faced by Appolo Heating, a subsidiary of Moro Corporation. Reports of over a foot of rain in Upstate New York placed a hold on or slowed the progress of residential construction projects in spring 2019.”

Mr. Israel continued, “As a result of the fundamental strength of our operations, we have returned to profitability for our first nine months this year.  Based on this, we look forward to a strong performance in 2020.”

The Company believes that our presentation of non-GAAP financial measures, when presented together with the corresponding GAAP financial measures, provides a more complete understanding to investors of the Company’s results of operations.  Our adjusted financial measures provide greater transparency to investors of supplemental period-to-period information used by management in its financial and operational decision making.  However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, the corresponding measures calculated in accordance with GAAP.

About Moro Corporation
Moro Corporation is a multi-subsidiary construction products and services company. Moro’s contracting subsidiaries provide electrical, structural steel, sheet metal ductwork and HVAC products and services to a variety of commercial and residential customers located in Pennsylvania, New Jersey, New York, Connecticut, Rhode Island and Massachusetts. Moro Corporation is comprised of six operating units: J&J Sheet Metal, Appolo Heating & Cooling, Rondout Electric, Titchener Iron Works, J.M. Ahle Co and Whaling City Iron. Each of these companies established their reputations and established a loyal customer base prior to being acquired. For additional information, visit www.morocorp.com.

Media Contact:

April White

President, Trust Relations
april@trustrelations.agency
323-216-8589

MORO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

NINE MONTHS ENDED SEPTEMBER 30, 2019 (unaudited) AND SEPTEMBER 30, 2018 (unaudited)

(All numbers in thousands, except per share numbers.)


2019


2018

EARNED REVENUES

$40,868

$41,602

TOTAL EXPENSES *

$40,681

$40,819

NET INCOME

$187

$782

NET GAIN PER SHARE, BASIC & DILUTED

$0.03

$0.13

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

GAAP NET INCOME

$187

$782

ADJUSTMENT FOR ONE-TIME CHARGE

$449

LESS PROVISION FOR TAXES

($135)

NON-GAAP NET INCOME   

$501

NET GAIN PER SHARE, BASIC & DILUTED – NON GAAP

$0.08

$0.13

* TOTAL EXPENSES includes Cost of Revenues, General and Administrative Expenses, Other Income and/or Expenses, Provision for Income Taxes and Expenses related to Discontinued Operations.

 

Cision View original content:http://www.prnewswire.com/news-releases/moro-corporation-reports-nine-month-results-300954529.html

SOURCE Moro Corporation