While revenue declined in Q3 due to impact of COVID-19 on customer orders, the Company's 2020 year-to-date results continue to be well ahead of 2019. Pioneering believes that the impact of the pandemic will be short-lived and that revenues will resume their upward trajectory as businesses activity in
Financial Highlights:
- Revenue in Q3 was
$822,321 (down 19%) vs.$1,013,362 during the same period last year. - Revenue for the first nine months of fiscal 2020 is
$5,538,263 – a 73% increase over the$3,201,780 in revenue during the same period last year and 41% higher than 2019 full year revenue of$3,941,621 . - Balance sheet remains strong with
$3.8M in cash and over$2.4M in accounts receivable and inventory as ofJune 30, 2020 . - Gross margins declined due to US tariffs, special incentives for select customers, inventory accounting consequences of supplier price increases.
Selected Financial Results for the
Three Months | Three Months | Nine Months | Nine Months | ||
Revenue | 822,321 | 1,013,362 | 5,538,263 | 3,201,780 | |
Gross Profit | 300,638 | 545,700 | 2,316,436 | 1,785,213 | |
Expenses | 853,315 | 1,294,059 | 2,696,680 | 3,760,062 | |
Net Income (Loss) | (602,939) | (747,328) | (538,220) | (1,974,472) | |
EPS Basic (Loss) | ( | ( | ( | ( | |
Adjusted EBITDA¹ | (457,131) | (354,195) | 2,252 | (1,202,757) | |
Tariff Adjusted EBITDA¹ | (410,818) | (354,195) | 420,280 | (1,202,757) |
(1) Adjusted EBITDA and Tariff Adjusted EBITDA are non-IFRS measures. Please refer to "Non-IFRS Measures" at the end of this press release. |
Pioneering CEO
Revenue during the quarter decreased approximately 19% to
While revenue, gross profits and Adjusted EBITDA have all significantly increased in fiscal 2020 relative to the comparable period in fiscal 2019, gross profit margin during the third quarter of fiscal 2020 declined versus the same quarter in fiscal 2019. This was due to the impact of tariffs imposed by
The COVID-19 pandemic and
Although Pioneering currently expects that its strong sales performance will continue into the fourth quarter of fiscal 2020, it did see a decline in product shipments in Q3 2020 due to COVID-19. It is not possible to reliably estimate the impact of the pandemic on the Company's financial results or operations in future periods, although distributors and end customers have reiterated their commitment to complete the projects previously identified for completion in fiscal 2020 that were interrupted in Q3 due to COVID-19.
The pandemic has triggered a number of economic and social responses aimed at reducing the spread of COVID-19, including the closure of restaurants and self-isolation and "work from home" measures. These changes have significantly increased the amount of home cooking and, as a consequence, cooking related fires. This has increased awareness of the problem and the need for solutions to reduce the risk of cooking fires. Pioneering believes that these circumstances provide an opportunity for it to strengthen the profile of its products and to attract new customers.
In Q3 the pandemic continued to affect the Company's supply chain temporarily interrupting its supply of product. However, the Company believes it has now resolved these temporary issues and currently expects that its product supply will be sufficient to satisfy the anticipated demand for the remainder of fiscal 2020 and into 2021. Any future supplier disruptions could create delays in the Company's ability to fulfill customer orders on a timely basis.
About
Forward Looking Statements
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in Pioneering's target markets, the demand for Pioneering's products, the availability of funding and the efficacy of Pioneering's technology, governmental regulation and the impact of the COVID-19 pandemic. These forward- looking statements are made as of the date hereof an, except as required by applicable law, Pioneering does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from Pioneering's expectations and projections.
Non-IFRS Measures
Adjusted EBITDA is a measure not recognized under International Financial Reporting Standards ("IFRS"). However, management of Pioneering believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, impairment losses, stock-based compensation, restructuring costs included in general and administration expense, fair value movement – derivative liability and other non-recurring gains or losses including transaction costs related to acquisition. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons. Adjusted EBITDA does not have any standard meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Pioneering's Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Pioneering posted on SEDAR (www.sedar.com). For a reconciliation of Adjusted EBITDA as presented by Pioneering to net income, please refer to Pioneering's management's discussion and analysis.
Tariff Adjusted EBITDA, defined as Adjusted EBITDA adjusted for tariff and tariff related costs, is used by management to measure operating performance of the Company and is a supplement to our unaudited condensed interim financial statements presented in accordance with IFRS. Tariff Adjusted EBITDA is a helpful measure of operating performance, similar to Adjusted EBITDA, enabling management and investors to gain a clearer understanding of the underlying financial performance of the Company without the impact of
Neither the TSXV nor its Regulation Services Provider (as that term is defined under the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE
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