Lifeist Announces Investing.com First Quarter 2024 Financial Results



Toronto, April 29, 2024 (GLOBE NEWSWIRE) — Lifeist Wellness Inc. (Lifeist or the Company) (TSXV: LFST) (Frankfurt: M5B) (OTCMKTS: LFSWF)A health technology company that leverages advances in science and technology to build breakthrough companies and transform human health today announced financial results for the three months ended February 29, 2024 (first quarter 2024), compared with the same period last year (first quarter 2023). quarter) compared to). Unless otherwise stated, all financial data are in Canadian dollars.

Season 1 Highlights

  • Net income from continuing operations was $4.9 million in the first quarter of 2024, compared to $5.9 million in the first quarter of 2023.
  • Gross profit before inventory adjustments in the first quarter of 2024 was $1.4 million, with a gross profit margin of 27%, compared with $1.5 million in the first quarter of 2023, with a gross profit margin of 25%.
  • Operating costs and professional fees decreased to $3.4 million in the first quarter of 2024, compared to $4.4 million in the first quarter of 2023.
  • Adjusted EBITDA loss increased from $3.0 million in the first quarter of 2023 to $2.1 million in the first quarter of 2024.

“Our first quarter 2024 results reflect the challenges of operating in the current regulatory and economic environment,” said Lifeist CEO Meni Morim. While our efforts to focus on high-quality, high-margin products and continued operating efficiencies resulted in improved margins, revenue for the quarter declined from the prior-year period. We are taking steps to address structural issues in our operations and will seize opportunities to grow revenue and drive profitability. The teams at CannMart, Vapes and Mikra are working tirelessly to achieve the goal of transforming Lifeist into a sustainable, diversified wellness company.

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financial summary

Net revenues for the first quarter of 2024 were $4.9 million, compared with net revenues of $5.9 million for the first quarter of 2023.

Gross profit before inventory adjustments was $1.4 million in the first quarter of 2024, compared with $1.5 million in the same period last year, and margins in the first quarter of 2024 were 27%, compared with 25% in the first quarter of 2023.

Adjusted EBITDA loss improved to $2.1 million in the first quarter of 2024 from $3.0 million in the first quarter of 2023, and net loss from continuing operations improved to $2.5 million in the first quarter of 2024, or diluted earnings per share ( ($0.004)), compared with a loss of $3.3 million, or ($0.007) per diluted share, in the first quarter of 2023. And the resulting operating costs in the first quarter of 2024 will be $1.1 million lower than in 2023.

Balance Sheet and Cash Flow

Cash and cash equivalents were $1.6 million as of February 29, 2024, compared to $1.5 million as of November 30, 2023.

Inventory as of February 29, 2024 was $3.3 million, compared with $4.5 million at November 30, 2023.

As of February 29, 2024, the working capital position was negative $2.4 million.

Net cash provided by operations was $0.4 million in the first quarter of 2024, compared to net cash provided by operations of $2.2 million in the first quarter of 2023.

Appoint new financial officer

Lifeist also announced the appointment of Mr. Joshua Hone as Chief Financial Officer (CFO), effective April 30, 2024. Interim Treasurer.

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Mr. Hone is a Chartered Professional Accountant with over 14 years of advanced financial leadership experience and extensive experience working with multi-entity organizations across a variety of industries. Mr. Hone has extensive qualifications in financial planning, modeling and analysis, operations, reporting and regulatory compliance, and change management. Mr. Horn will focus on accelerating growth and building a path to sustainable profitability to create shareholder value.

The Board of Directors would like to thank Mr. Sinclair for his financial leadership and contributions as Lifeist's Interim Treasurer. Mr. Sinclair will continue to serve as a member of the Board of Directors and as Chairman of the Audit Committee.

Additional information

The Company's complete financial statements and Management's Discussion and Analysis (MD&A) for the three months ended February 29, 2024 are available on the Lifeist website (www.lifeist.com) and SEDAR+ (www.sedarplus.ca).

About Lifeist Health, Inc.

Lifeist is at the forefront of the post-pandemic health revolution, leveraging advances in science and technology to build breakthrough companies that transform human health. Portfolio business segments include: Mikra, a bioscience and consumer health company that develops and markets innovative cellular health products; CannMart, which operates a B2B wholesale distribution business that facilitates the sale of recreational cannabis to Canadian provincial government control boards, including CannMart Labs, which is a BHO extraction facility producing high-margin cannabis 2.0 products; and Australian Vapes, one of Australia's largest online retailers of vaporizers and accessories.

Information about Lifeist and its business can be accessed through the following link:

www.lifeist.com www.wearemikra.com www.cannmart.com www.australianvaporizers.com.au

contact methodMeni Morim, CEO, Lifeist Wellness Inc. Phone: 647-362-0390 Email: ir@lifeist.com

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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 release and has not approved or disapproved in any way the contents of this release.

Non-IFRS financial measures

Management uses a variety of metrics to evaluate the company's performance, including net loss before income taxes, depreciation and amortization, and adjusted EBITDA. The non-IFRS measures discussed below should not be considered alternatives to, or more meaningful than, income or net loss. These measures do not have the standardized significance required by IFRS and therefore they may not be comparable to similarly titled measures presented by other listed companies and should not be construed as alternatives to other financial measures determined under IFRS.

The Company believes that these non-IFRS financial measures provide management and investors with useful information in measuring the Company's financial performance and financial condition.

Management uses these and other non-IFRS financial measures to exclude the impact of certain expenses and revenues that must be recognized in accordance with IFRS when analyzing consolidated underlying operating results because the excluded items do not necessarily reflect the Company's underlying operating results. And comparing underlying financial performance between different periods is difficult. The Company may from time to time exclude other items if it believes doing so will more effectively analyze underlying operating results. The exclusion of certain items does not mean that they are non-recurring.

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  1. Current and deferred income taxes, depreciation and amortization, and equity-based compensation are excluded from the calculation of Adjusted EBITDA because they do not represent cash expenses.
  2. Other income includes gains on disposals of subsidiaries, interest income, realized gains on disposals of AFS investments, unrealized gains on derivatives and other miscellaneous non-recurring income, which are not included in the calculation of Adjusted EBITDA.
  3. Non-recurring costs related to restructuring and legacy issues are excluded from the calculation of Adjusted EBITDA.
  4. Impairment losses related to goodwill, customer lists, domain names and brand names are excluded from the calculation of Adjusted EBITDA.
  5. Impairment losses related to accounts receivable are provided for expected credit losses on associates and are not included in the Adjusted EBITDA calculation.
  6. The share of associates' losses after tax is excluded due to lack of control.

forward-looking information

This press release contains forward-looking information within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as may, expect, might, should, will, plan, anticipate, intend, potential, propose, estimate, believe or the negative of these terms, or other similar words, expressions and A grammatical variation thereof, or a statement that certain events or conditions may or will occur.

This article contains forward-looking information, including, but not limited to, statements regarding the Company's actions to address operating structure issues and seize future opportunities to increase revenue and achieve profitability, and its expectations that such actions will increase revenue growth and achieve profitability. . , including, including additional cost reduction measures, the Company's ability to respond quickly to future revenue opportunities, and other considerations deemed appropriate under the current circumstances. Although we believe these assumptions are reasonable based on information currently available to management, there can be no assurance that such expectations will prove to be correct. By its nature, forward-looking information is subject to inherent risks and uncertainties, which may be general or specific, giving rise to expectations, projections, forecasts, projections or conclusions that may be justified. Inaccuracies and the possibility that assumptions may be inaccurate. Various factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information contained in this release. These factors include, but are not limited to, the Company's failure to implement meaningful structural operating changes to grow its business and increase revenue and/or margins on such revenue as anticipated, unexpected changes in existing regulations that may adversely affect the Company's business, Increased regulatory costs associated with the Company's cannabis business, competition from other companies, risks associated with the expected slowdown in demand for cannabis and nutraceuticals in general, and CannMart and Mikra in particular, regulatory risks, risks associated with the Company's ability to execute its business strategy and the benefits realized thereby and the risks specifically related to the company's operations. Additional risk factors can also be found in the Company's current MD&A, which is filed under the Company's SEDAR+ profile at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

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Source: Lifeist Wellness Inc.





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