Records Best Quarterly Performance in Two Years
TORONTO, Nov. 7, 2022 /CNW/ - Mimi's Rock Corp. (TSXV: MIMI) (OTCQB: MIMNF) (the "Company"), an online dietary supplement and wellness company, announces its third quarter results for the three months ended September 30, 2022.
David Kohler, CEO, commented: "We are pleased the strategies undertaken continue to drive such strong results. Q3 was 19% better in Y-O-Y revenue and we achieved over a 500% lift in adjusted EBITDA over 2021." In addition, "Margins are up, SG&A has declined, which combined with our revenue growth, are all great trends. We are excited to have stacked our third consecutive quarter of growth and positive earnings."
The third quarter of 2022 reflected the continued uptrend, with both revenue and Adjusted EBITDA at levels not recorded since the first half of 2020.
Revenues in Q3 of 2022 were $10.2 million, compared to $8.6 million in Q3 2021, an increase of 18.6% over the prior year period.
EBITDA for Q3 2022 was $0.7 million, compared to $0.1 million in Q3 2021. As foreign exchange movements late in the quarter had an impact, Adjusted EBITDA, which adds back foreign exchange losses and non-cash stock-based compensation, was $1.2 million for Q3 of 2022, compared to just $0.2 million in the same period last year.
Third quarter 2022 performance also improved over the second quarter, resulting in the Company's best quarterly performance in the last two years and second-best quarterly earnings since inception.
Revenues were similarly strong over the last two quarters for the Company's DTI business, as price increases and lower overall discounting resulted in considerable increases in the top line figure. Revenues in the 2022 period were also achieved with higher overall average prices, thus gross margin was higher as the Company focused on increasing average revenue per unit by limiting the amount of promotional discounting.
The Company's skin care businesses saw considerable improvement in top line sales during Q3 2022. Revenues from the skincare business in the current period were much improved over same period last year due to a strong Prime Day sales event in July.
Gross margin for Q3 of 2022 was significantly improved at $7.8 million (76.0%) compared to $5.9 million (68.1%) for Q3 of 2021.
Online advertising in the period remained higher than historical levels mainly as a function of ongoing campaigns which have shown to drive higher volumes. Advertising spend in the third quarter of 2022 was focused on key promotional days, including Amazon Prime Day in July, as well as towards driving efficiency and spend on top products. Short term promotions and a focus on variations of core products have enabled the business to maintain momentum.
General and administrative expenses were slightly higher in the current period compared to the same period last year due to approximately $0.2 million in one-time non-recurring costs in Q3 2022. Excluding these one-time costs, Adjusted EBITDA for Q3 2022 would have otherwise been $1.4 million. Despite the higher expenses in the current quarter, general and administrative expenses are lower for the year-to-date 2022 period when compared to the same period in 2021.
Unusually high foreign exchange losses, mostly unrealized at period end, contributed to a net loss of $0.1 million for Q3 of 2022 compared to a net loss of $0.3 million, compared to a net loss of $0.3 million for Q3 of 2021.
(in 000's) |
Q3 2022 |
Q2 2022 |
Q1 2022 |
Q4 2021 |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Revenue |
10,224 |
10,032 |
9,541 |
8,550 |
8,614 |
9,744 |
9,758 |
9,134 |
EBITDA1 |
667 |
1,092 |
550 |
(4,782) |
59 |
1,101 |
149 |
756 |
Adjusted EBITDA |
1,166 |
1,146 |
541 |
(462) |
218 |
1,126 |
212 |
603 |
Net Income |
(56) |
340 |
161 |
(5,027) |
(259) |
502 |
(233) |
523 |
EBITDA1 – Non-IFRS Financial Measures - see definition under "Overall Performance"
A conference call to discuss the financial results of the Company will be held on Tuesday, November 8 at 11:00 a.m. To participate in the conference call, please dial the number below and request to join the Mimi's Rock Corp. financial results call:
Canada/USA TF: 1-800-319-4610
International Toll: +1-604-638-5340
Copies of the Company's financial statements and management's discussion and analysis can be obtained under the Company's disclosure page on SEDAR at www.sedar.com.
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.
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.
This news release contains forward-looking statements and forward looking information (collectively "Forward-Looking Statements") 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 2021 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.
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 Statements contained in this press release are given as of the date hereof and are 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
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