zenvesting
4 years ago
Covalon has something to add in the battle against COVID-19. As a long-term owner with a high level of confidence in the company's technical capabilities, I can't wait to see what it is....and may add back some shares I had peeled off my position the last time it was over $5.
COVALON ANNOUNCES FIRST QUARTER FISCAL 2020 RESULTS
MISSISSAUGA, Ontario--(BUSINESS WIRE)-- Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV; OTCQX: CVALF), an advanced medical technologies company, today announces its first quarter fiscal 2020 results.
Brian Pedlar, Covalon’s President and CEO, said, “I am pleased that Covalon’s first quarter performance is very much on track in executing on our fiscal 2020 plan. The entire Covalon team is working diligently to achieve increased sales, operational efficiencies, and technological advances in response to changes that occurred to our Middle East business in 2019. We are adapting as quickly as possible and are making progress. Our lifesaving products continue to be well received by medical practitioners and patients alike. At the same time, we continue to advance our technology portfolio. I plan to make our shareholders more aware of these achievements during 2020.
“This quarter’s revenue was heavily influenced by our success in the United States, which accounted for 81% of our revenue in the first quarter of 2020, compared to 76% last year in the same quarter. Our revenue in the United States was up 17% compared to last year and represents growth in both our sales to hospitals and our advanced wound care distribution channel. We are continuing to build awareness of our infection prevention products in our new 1,900 United States hospital and medical centre customer base.
“Our Middle East business, at $0.9 million, was down in the first quarter by $0.7 million compared to last year. It is still very difficult to predict the volume and timing of business in Saudi Arabia, particularly in light of the current regional uncertainty. We continue to plan as if all shipments to Saudi Arabia are upsides and not part of our base operating plan. We are taking steps to strengthen our business in the region and I look forward to providing further updates as they occur.
“Many companies have recently announced that they have been, or expect to be, negatively impacted by the effects of coronavirus COVID19 on their supply chain, workforce, and customers. Fortunately, the majority of our infection prevention products, including IV Clear, AquaGuard, and our ColActive Plus family of advanced wound care products, are manufactured in the United States, and the supply chains for these products are not anticipated to be adversely affected by COVID-19. Some of our CovaWound line of advanced wound care products are manufactured in China, and we have experienced some delays in shipments. In fiscal 2019, approximately 8% of our revenue was derived from products manufactured in China. Covalon continues to assess the impact that a prolonged pandemic outbreak may have on our business.”
Mr. Pedlar continued, “COVID-19 also provides Covalon with an opportunity to help protect healthcare workers and the public from contracting COVID-19 and other viral and bacterial infections. We are actively working on a technology to help reduce the spread of COVID-19 and other viruses. Our technology has been shown to be highly effective at killing and deactivating similar viruses to COVID-19, as well as antibiotic resistant bacteria and other pathogens. I look forward to discussing this technology further in the next several weeks.”
Q1 Fiscal 2020 Financial Results
Revenue for the three months ended December 31, 2019 was $7.9 million, 9% or $687,073 more than the prior year. Gross profit was 61% in Q1 fiscal 2020, compared to 63% in Q1 fiscal 2019. Net loss was $1.2 million or $0.05 per share (diluted), compared to a loss of $1.9 million or $0.09 per share (diluted) in Q1 fiscal 2019.
Revenue in the United States for the quarter was up 17% year-over-year in Q1 to $6.4 million, which included increases in product revenue, including AquaGuard product sales and development services, licenses, and royalties.
Middle East first quarter revenue of $0.9 million was down by $0.7 million compared to last year.
Latin American, European, and other international regions revenue was $0.6 million compared to $0.2 million last year.
Product revenue increased $.8 million or 13% while services revenue was down slightly to $ .8 million from $0.9 million last year as a result of the timing of revenue recorded under our development contracts.
Operating expenses were down by $390,550 or 6% compared to last year in the first quarter.
Conference Call Scheduled
A conference call to discuss Covalon’s Fiscal 2020 Q1 Financial Results will be held Tuesday March 3rd 2020 at 9:00am EST. To participate in the call, please dial:
Toll-Free: 833.299.8117
International: 647.689.4535
Conference ID Code: 1181198
A recording of the call will be available from March 3rd, 2020, at 12:00pm EST until March 17th, 2020, at 11:59pm EST by calling 855.859.2056 or 404.537.3406 and entering the conference ID code 1181198.
About Covalon
Covalon Technologies Ltd. researches, develops, and commercializes new healthcare technologies that help save lives around the world. Covalon's patented technologies, products, and services address the advanced healthcare needs of medical device companies, healthcare providers, and individual consumers. Covalon's technologies are used to prevent, detect, and manage medical conditions in specialty areas such as infection control, vascular access, surgical procedures, advanced wound care, and medical device coatings. To learn more about Covalon, visit our website at www.covalon.com
zenvesting
4 years ago
Covalon Announces Fiscal 2019 Year-End Results and Plans for Fiscal 2020
• Fiscal 2019 revenue growth of 27% to $34 million of revenue.
• Fiscal 2019 United States revenue of $24 million, double the Company’s fiscal 2018 United States revenue.
• Fiscal 2019 Middle East revenue of $8.8 million impacted by delayed shipments and regional uncertainty.
• Latin America and Europe to provide some additional revenue upside in fiscal 2020 and beyond.
MISSISSAUGA, Ontario – January 28, 2020 – /Business Wire/ - Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV; OTCQX: CVALF), an advanced medical technologies company, today announces
its fiscal 2019 year-end results and plans for fiscal 2020.
Brian Pedlar, Covalon’s President and CEO, said, “Fiscal 2019 saw Covalon undergo significant changes as an organization, which have strengthened our business model and provided us with a very strong platform for future growth. Our major achievements during fiscal 2019 included:
• Completing the acquisition of U.S.-based AquaGuard, which provides Covalon with almost 2,000 new hospital and medical institutions as customers in the United States and a talented and experienced sales force selling infection prevention products directly into hospitals;
• Strong growth in our development and consulting services revenue following the signing of the previously announced major contract with one of the world’s largest medical device companies that licensed Covalon’s proprietary medical coating technologies; and
• Completion of product registration for Covalon’s flagship products in most Latin American countries, including Mexico, Argentina and Chile, enabling Covalon to compete for business in these markets in fiscal 2020 and beyond.”
Mr. Pedlar continued, “Over the past two years, Covalon has become a significantly stronger and more diverse company:
• We added 35 people to our sales and marketing teams, which means more people selling our products;
• We now have nearly 2,000 new hospital, clinic, group purchasing organizations, and integrated delivery network customers in the United States that provide a new customer base for our existing products;
• We have begun to distribute our products in 16 new countries that will begin to materially contribute to revenue;
• We now have four product families that each account for 20% or more of our annual revenue, which provides stability and diversification for our business;
• We have four new products that we have yet to launch in our key markets;
• We have exciting new products in our pipeline that we intend to launch this year, including a significantly improved version of our flagship IV Clear product; and
• We engaged in over 60 customer development projects of various sizes with approximately 22 medical product companies this past year in our OEM business, which includes the various projects underway associated with the previously announced major contract with one of the world’s largest medical device companies that licensed Covalon’s proprietary medical coating technologies.
“We are just at the beginning of our growth as a result of these key changes to Covalon and are at the early stages of introducing our expanded product portfolio to our new hospital customers in the United States.
Our Middle East business declined in fiscal 2019 compared to 2018 as a result of significant delays in shipments under the contracts we secured in Saudi Arabia. Though it is still very difficult to predict the
volume and timing of business in Saudi Arabia, particularly in light of the current regional uncertainty, our business in the region has continued, and we are working to grow it further. We have made changes to our operations during the second half of fiscal 2019 and first quarter 2020 that I believe will see Covalon reduce its operating expenses by up to $7 million in fiscal 2020 compared to fiscal 2019. We are also well-positioned for growth in the United States, Latin America, and Europe, and we are optimistic about our potential for significant growth in fiscal 2020 and 2021.
“I am extremely confident in Covalon’s present commercialization position and its upside potential. Our unique suite of life-saving products and our dedicated and driven staff have always set us apart from the competition, and we continue to leverage those strengths as we grow our business. Our share price declined this past year due to uncertainty in our Middle East business. Many shareholders, who saw the
challenges we experienced in the Middle East as temporary headwinds, took the opportunity to invest more in Covalon either in the public markets or by participating in the private placement we closed in
September 2019. I am confident that they will be rewarded when Covalon’s underlying value gets reflected in its share price.”
Fiscal 2019 Financial Results
Revenue for the year ended September 30, 2019 was $34 million, 27% or $7,281,280 more than the prior year. Gross profit was $21.8 million in fiscal 2019, compared to $19.7 million in fiscal 2018. Net loss was
$9.1 million or $0.41 per share (diluted), compared to a net income of $1.6 million or $0.07 per share (diluted) in fiscal 2018.
Product revenue for fiscal 2019 increased to $30 million, compared to $19.9 million in the previous year.
This increase relates to the inclusion of revenue from the acquisition of AquaGuard and the timing of major shipments.
Gross margin was 64% for fiscal 2019, compared to 74% for the prior year. Gross margin is highly influenced by the mix of collagen-based dressings, silicone-based dressings, medical coated devices, passive dressings, moisture barriers, and related service revenues generated in the periods. Gross margin fluctuates as a result of the mix of products sold in any given quarter, or year, by product type or geography.
Operating expenses increased $12 million to $30 million, compared to $18 million for the prior year. The increase in operating expenses is primarily related to increases in sales and marketing costs and general
and administrative expenses as a result of acquiring AquaGuard on October 1, 2018. The Company also increased headcount in operations, sales and marketing, and administration as a result of the Company’s
efforts to expand its penetration of new markets, including Europe and the United States.
Fiscal 2019 saw the Company end the year with a strengthened and more diversified revenue base. In fiscal 2019, approximately 71% of revenue was from sales in the United States and 26% of revenue was
from sales in the Middle East. Last year was 48% in the United States and 49% in the Middle East.
Conference Call Scheduled
A conference call to discuss Covalon’s Fiscal 2019 Year-End Financial Results will be held Wednesday, January 29th, 2020 at 9:00am EST. To participate in the call, please dial:
Toll-Free: 833.299.8117
Canada: 647.689.4535
Conference ID Code: 5092807
A recording of the call will be available by calling 855.859.2056 or 404.537.3406 and entering the
conference ID code 5092807 from January 29th, 2020, at 12:00pm EST to February 12th, 2020, at 11:59pm EST.
To learn more about Covalon, please contact:
Brian Pedlar, CEO, Covalon Technologies Ltd.
Email: bpedlar@covalon.com
Phone: 905.568.8400 x 233
Toll free: 1.877.711.6055
Web site: www.covalon.com
Twitter: @covalon
About Covalon
Covalon Technologies Ltd. researches, develops, and commercializes new healthcare technologies that help save lives around the world. Covalon's patented technologies, products, and services address the
advanced healthcare needs of medical device companies, healthcare providers, and individual consumers. Covalon's technologies are used to prevent, detect, and manage medical conditions in specialty areas such as infection control, vascular access, surgical procedures, advanced wound care, and medical device coatings. To learn more about Covalon, visit our website at www.covalon.com
zenvesting
5 years ago
Covalon Announces Second Quarter Fiscal 2019 Results
Business Wire Business Wire•May 28, 2019
MISSISSAUGA, Ontario--(BUSINESS WIRE)--
Revenue for the three months ended March 31st, 2019, was $13.3 million, up 132%
Gross margin for the quarter ended March 31st, 2019, was 69%
Net loss for the quarter was $0.2 million or $0.01 per share, compared to a loss of $0.4 million or $0.02 per share last year
Conference call scheduled for Wednesday May 29th, 2019
Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV:COV; OTCQX:CVALF), an advanced medical technologies company, today announced its second quarter fiscal 2019 results.
Brian Pedlar, Covalon’s President and CEO, said, “Our second quarter financial performance is on track in executing on our fiscal 2019 plan. Revenue is more than double last year’s second quarter, with growth of 132% and business in the United States accounting for 60% of our revenue in the first half of the year. I am very pleased that Covalon is achieving its strategic objective of increasing our North American business and diversifying away from the Middle East. Combined revenue in the United States is on track to exceed $25 million in fiscal 2019. Sales of the recently acquired AquaGuard product line are growing according to plan and our United States sales force has been engaged in the process of educating our new customer base of 1,500 hospitals on Covalon’s infection prevention products. During the quarter, there were several unplanned items that impacted our overall profitability and a main focus going forward is growing profits in line with our revenue growth.
“During Q2, we continued our deliveries to schedule on the Middle East competitive contracts that we previously announced. We expect deliveries to be more heavily weighted to our fourth quarter ending September 30, 2019, for the remainder of this fiscal year.”
Q2 Fiscal 2019 Financial Results
Revenue for the three months ended March 31, 2019, increased 132% to $13,312,543 compared to $5,727,275 for the same period of the prior year. Gross margin for the three-month period ended March 31, 2019, was 69% compared to 76% for the same period of the prior year. Net loss for the three months ended March 31, 2019, was $232,227 or $0.01 per share, compared to a net loss of $479,082 or $0.02 per share for the three months ended March 31, 2018.
Revenue for the six months ended March 31, 2019, increased 70% to $20,574,029, compared to $12,131,980 for the same period of the prior year. Gross margin for the six-month period ended March 31, 2019, was 67%, compared to 73% for the same period of the prior year. Net loss for the six months ended March 31, 2019, was $2,141,638 or $0.10 per share, compared to a net income of $44,263 or $0.00 per share for the six months ended March 31, 2018.
Conference Call Scheduled
A conference call to discuss Covalon’s Q2 Fiscal 2019 Financial Results will be held Wednesday May 29th, 2019, at 9:00am EDT. To participate in the call, please dial:
Toll-Free: 833.299.8117
International: 647.689.4535
Conference ID Code: 1599884
A recording of the call will be available by calling 855.859.2056 or 404.537.3406 and entering the conference ID code 1599884 from May 29th, 2019, at 12:00pm EDT to June 12th, 2019, at 11:59pm EDT.
Copies of Covalon’s financial statements and MD&A can be obtained on SEDAR at www.sedar.com, as well as the Investor Relations tab of the Company’s website at www.covalon.com.
About Covalon
Covalon Technologies Ltd. researches, develops, and commercializes new healthcare technologies that help save lives around the world. Covalon's patented technologies, products, and services address the advanced healthcare needs of medical device companies, healthcare providers, and individual consumers. Covalon's technologies are used to prevent, detect, and manage medical conditions in specialty areas such as infection control, vascular access, surgical procedures, advanced wound care, and medical device coatings. To learn more about Covalon, visit our website at www.covalon.com.
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.
This news release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including completion of integration of the AquaGuard acquisition, the difficulty in predicting product approvals, acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, the regulatory environment, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors should consult the Company's ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. The Company assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
zenvesting
5 years ago
Comments in today's earnings PR about the new middle east contracts delivery schedule being weighted toward the second half of 2019 isn't exactly the affirmation the market was looking for either IMO.
Covalon Announces Fiscal 2018 Year-End Results and Plans for Fiscal 2019
Business Wire
December 17, 2018
MISSISSAUGA, Ontario--(BUSINESS WIRE)--
- Fiscal 2018 profitable with $0.07 EPS on $26.7 million of revenue.
- Fiscal 2019 contracted Middle East revenue expected to be approximately $30 million, more than double the contracted revenue of fiscal 2018.
- Fiscal 2019 acquisition of AquaGuard more than doubles United States revenue to approximately $25 million before internal growth.
- Europe and Latin America has the potential to provide some additional revenue upside in fiscal 2019 and beyond.
Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV; OTCQX: CVALF), an advanced medical technologies company, today announces its fiscal 2018 year-end results and plans for fiscal 2019.
Brian Pedlar, Covalon’s President and CEO, said, “I am so incredibly pleased with our major achievements during fiscal 2018, which included:
Winning competitive contracts worth $100 million dollars to provide Covalon products over a three-year period;
Working on and completing the acquisition of U.S.-based AquaGuard, with its complementary products and experienced sales force capable of selling Covalon’s products directly into their network of hospitals;
Signing a major contract with one of the world’s largest medical device companies to license Covalon’s proprietary medical coating technologies, which resulted in a $4.5 million upfront license payment followed by the additional payment of many millions more for product development fees, milestone payments, and royalties; and
Entering new banking and credit facilities in the amount of $17 million with HSBC Bank Canada, which are anticipated to allow the Company to achieve its near-term acquisition and growth strategies.”
Mr. Pedlar continued, “Covalon today is a significantly improved company compared to one short year ago. The milestones we achieved this year will ensure our accelerated success not just for fiscal 2019, but for many years to come. Our unique suite of life-saving products is beginning to demonstrate real commercialization success, in large part due to the efforts of our dedicated and driven staff.”
Fiscal 2018 Financial Results
Revenue for the year ended September 30, 2018 was $26.7 million, 2% or $586,415 less than the prior year. Gross profit was 74% in fiscal 2018, compared to 77% in fiscal 2017. Net income was $1.6 million or $0.07 per share (diluted), compared to $1.8 million or $0.09 per share (diluted) in fiscal 2017. However, net income for fiscal 2018 included approximately $1.1 million of one-time costs for the acquisition of AquaGuard that were expensed as incurred during the year. No similar costs were incurred in fiscal 2017.
Contracted revenue in the Middle East is derived from bulk purchases throughout the year which are not equally recognized in each of the Company’s quarterly results. The decline in revenue from the Middle East in fiscal 2018 was simply due to the timing of the shipments under contracts. Revenue from the $100 million series of Middle East contracts will begin to materially impact revenue in fiscal 2019 and beyond.
Fiscal 2018 saw the Company end the year with a strengthened and more diversified revenue base. In fiscal 2018, approximately 49% of revenue was from the Middle East, compared to 80% in fiscal 2017. By comparison, revenue in the United States for the year was up 175% year-over-year to $12.8 million, which included increases in product revenue and development services, licenses, and royalties.
Product revenue in the United States was up over 80% in fiscal 2018, compared to the previous year. This increase mostly offset the lumpy year-to-year shipment fluctuations from the Middle East contracts. No revenue from the acquisition of AquaGuard was recognized in fiscal 2018.
Fiscal 2019 Plans
Middle East contracted revenue in fiscal 2019 is expected to be $30 million, more than double the contracted Middle East revenue in fiscal 2018. Covalon has received the delivery schedule for the Middle East contracts; under this schedule, Management anticipates that the majority of contracted deliveries will be recognized in revenue in the last six months of the fiscal year ended September 30, 2019. These contract awards in the Middle East have resulted in additional potentially accretive opportunities for consideration by the Company, and Management is pursuing these additional revenue opportunities.
Fiscal 2019’s acquisition of AquaGuard more than doubles United States revenue to approximately $25 million before internal growth. AquaGuard specializes in infection protection products that protect surgical incisions, intravenous (IV) sites, catheters, PICC lines, and other dressings from water and other moisture while a patient showers. The acquisition transforms Covalon’s United States market access by adding a United States-based sales force with the capability to sell many of Covalon’s products into over 1,500 hospitals and clinics in the United States.
Covalon’s efforts to enter the European and Latin American markets are expected to begin to contribute to the Company’s revenue in fiscal 2019. The Company has a small direct sales team in the United Kingdom that has begun to convert acute care facilities and primary care Clinical Commissioning Groups (“CCGs”) to using Covalon’s advanced wound care products. As well, Covalon’s European team is entering selected other countries in Europe and beginning to compete for advanced wound care business. Covalon is currently selling into seven countries in Latin America and anticipates that key markets like Mexico, Chile, and Argentina will grow as the Company’s products begin to compete and win business in these regions.
Conference Call Scheduled
A conference call to discuss Covalon’s Fiscal 2018 Year-End Financial Results will be held Tuesday December 18, 2018 at 9:00am EST. To participate in the call, please dial:
Toll-Free: 833.299.8117
International: 647.689.4535
Conference ID Code: 4481616
A recording of the call will be available by calling 855.859.2056 or 404.537.3406 and entering the conference ID code 4481616 from December 18,2018 at 12:00pm EST to December 25, 2018 at 11:59pm EST.
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TheMonolith
5 years ago
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