Mimi's Rock reports financial results for fourth quarter and full year 2020 and provides details on upcoming conference call
Q4 revenues increased 18%; Full year EBITDA up 91%
TORONTO, April 28, 2021 /CNW/ - Mimi's Rock Corp. (TSXV: MIMI) (OTCQB: MIMNF) (the "Company"), an online dietary supplement and wellness company, today announced its financial results for the fourth quarter and year ending on December 31, 2020.
"2020 was a year like no other," commented CEO, David Kohler. "Despite unique challenges brought on by the global pandemic, we were fortunate to be able to capitalize on two tailwinds: peoples' rising focus on their health and wellness, and growth in online commerce. We seized the opportunity to leverage these market trends. The strong financial results are the product of this strategy."
Fourth Quarter Highlights
Revenue increased to $9.1 million, up 18.3% from $7.7 million in the prior year quarter.
Gross margin increased to $6.2 million, up 16.9% from $5.3 million in the prior year quarter. Gross margin remained steady at a healthy 68%.
Sales and marketing expenses declined 11% to $4.4 million (48.1% of revenue) in the fourth quarter of 2020 compared to $4.9 million (63.1% of total revenues) in the fourth quarter of 2019. Advertising spend in the Q4 2019 had been abnormally high as the Company engaged in a tactical marketing offensive to maintain customer levels in the face of changes in the way Amazon displays products. Management believes the 4Q20 quarter level of spending represents a reasonable benchmark, going forward.
Q4 2020 EBITDA was $0.8 million compared to negative EBITDA of $1.4 million in Q4 2019. The significant improvement was due to materially improved revenue as well as lower marketing spend as noted above.
Adjusted EBITDA, which adds back (deducts) non-cash stock-based compensation, investment income, acquisition costs and listing expenses was $0.6 million for Q4 2020, compared to negative Adjusted EBITDA of $1.2 million for Q4 2019.
Net income was $0.5 million ($0.01 per share) for Q4 2020, compared to a net loss of $2.5 million (negative $0.05 per share) for Q4 2019
Year ended December 31, 2020 |
Year ended December 31, 2019 |
|||||||
(in 000's) |
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
Revenue |
9,134 |
9,774 |
10,943 |
10,435 |
7,717 |
8,755 |
8,771 |
10,166 |
EBITDA |
756 |
1,243 |
1,584 |
1,099 |
(1,356) |
627 |
460 |
1,098 |
Adjusted EBITDA |
603 |
1,166 |
1,573 |
1,228 |
(1,220) |
903 |
1,382 |
1,318 |
Net Income |
523 |
546 |
928 |
282 |
(2,460) |
(243) |
(1,240) |
392 |
Full-year Highlights
Total revenues increased to $40.3 million, up 14% from $35.4 million in the prior fiscal year.
Gross margin increased to $28.0 million for the year ended 2020, up 13% from $24.8 million in the 2019 year. Gross margin remained stable at 69% in both years.
Selling and marketing expenses were $18.4 million (46% of revenue) in the 2020 year, as compared to $16.9 million (48% of revenues) in the 2019 year.
Full year EBITDA was $4.7 million in 2020 compared to $0.8 million in the prior fiscal year. Adjusted EBITDA was $4.6 million for the year ended December 31, 2020, compared to $2.4 million for the year ended December 31, 2019.
Conference Call
Management will host a conference call tomorrow to discuss these results and take questions from investors. Details are as follows:
Date: |
Thursday, April 29, 2021 |
Time: |
11:00am Eastern Time |
Dial-in: |
1-800 319 4610 or |
1-604 638 5357 |
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
About Mimi's Rock Corp.:
Mimi's Rock Corp. is an online dietary supplement and wellness company which market and sells its products under the Dr. Tobias, All Natural Advice and Maritime Naturals brand names. The Dr. Tobias brand features over 30 products, including the top-selling Colon 14-Day Cleanse and the #1 selling Omega 3 Fish Oil on Amazon.com. All Natural Advice and Maritime Naturals products focus on skin and beauty care. Products sold under the All Natural and Maritime Naturals brand names are made in Canada and registered with Health Canada and under the EU Cosmetics Act. All Natural Advice has been featured on BNN as a top selling skincare brand in Canada, and has been rated the #1 Beauty Brand on Amazon Canada for the past four years.
Forward-Looking Information
This news release contains forward-looking statements and forward looking information within the meaning of applicable securities laws. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Please refer to the 2020 Annual Financial Statements for more details on the Company's calculation of EBITDA and adjusted EBITDA.
All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although the Company believes that these assumptions are reasonable, this list is not exhaustive of factors that may affect any of the forward-looking statements.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements, including risks relating to: the Company's reliance on strength of reputation and brands, third-party manufacturing, transportation and distribution, the Company's ability to protect its intellectual property, the Company's reliance on e-commerce sites, disruption or breaches in information technology systems, the successful integration subsequent to acquisitions, litigation, volatility in the market price, the inability to successfully implement growth strategy on a timely basis, difficulty expanding sales in targeted international markets, changes in general economic conditions, the Company's ability to service its debt obligations, management of growth, reliance on management, conflicts of interest, local and foreign tax matters, liquidity, currency and other financial risks, potential product liability or other regulatory claims, product recalls, the need to develop and innovate products, changes in legal and regulatory standards, competition, operating risk and insurance coverage, natural disasters, unusual weather and geo-political events, the effect of COVID-19 on operations and other risks relating to the business and industry of the Company that are detailed from time to time in the Company's filings with the Canadian provincial securities regulators.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.
Please visit www.mimisrock.com or www.sedar.com for the Company's recent filings.
SOURCE Mimi's Rock Corp.
David Kohler, CEO, 905-330-5081, [email protected]
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