MONTREAL, QUEBEC--(Marketwired - June 19, 2014) - Lumenpulse Inc. (TSX:LMP)
- Total revenues of $62.2 million for Fiscal 2014; up 47.0% over 2013
- Solid Q4 Adjusted Gross Margin on Lumenpulse Products of 46.3% compared with 34.3% in Q4 2013
- International revenues represented 12% of Fiscal 2014 Lumenpulse Products revenues with a strong Q4 at $3.0 million
- Break-even Q4 Adjusted EBITDA(1) representing an improvement of $1.8 million from Q4 2013
- Successfully completed IPO, raising $104.0 million in net proceeds
- Following IPO, strong balance sheet with no debt(2) and cash balance of $87.1 million
Lumenpulse Inc. (TSX:LMP), a leading manufacturer of high performance, specification-grade LED lighting solutions, released today its fourth quarter and full year results for the period ended April 30, 2014.
"Following our successful IPO, we are pleased to report solid fourth quarter and year-end results reflecting impressive momentum in our Lumenpulse Products revenues, increased penetration within our existing sales channels and the rapidly growing contribution of international markets," said François-Xavier Souvay, the Company's founder and CEO.
"We continue to execute on our commitment to add new products with enhanced features and new technologies to our rapidly expanding portfolio. Recently, we launched 15 new products which include two innovative families of products, Lumencove™ Nano and Lumenfacade™ Inground, which will contribute to expand our addressable market of lighting applications. The Lumencove Nano is powered by the Lumendrive™ technology that dispenses with the need for a power supply, resulting in high quality performance and longevity. We expect to integrate this technology in numerous other products going-forward. In the case of Lumenfacade Inground, the luminaires are designed to simplify ground-recessed lighting applications, providing exceptional performance and versatility," concluded Mr. Souvay.
| (1) Actual Adjusted EBITDA at $0.053 million |
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| (2) Except for financial lease obligations. |
"For the full year, Adjusted EBITDA reached 0.7%, passing break-even point for the first time. This milestone was driven by revenue growth of 47.0% in Fiscal 2014, as well as a strong increase in our Adjusted Gross Margin reaching 42.0%, up from 36.3% a year earlier. These positive results, combined to our solid balance sheet post-IPO, confirm we are in strong position to execute our strategic plan" stated Robert Comeau, Chief Financial Officer.
"The results for the year and the current momentum in all aspects of our business clearly support our goal of becoming a world leader in high-performance and sustainable specification-grade LED lighting solutions. Management's objectives are to continue growing Lumenpulse's business at a growth rate exceeding the growth rate in the general lighting market for LED products and, over time, converging towards market growth," concluded Mr. Souvay.
| Financial Highlights |
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| (Unaudited, in millions of Canadian dollars, except per share amounts) |
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| | Q4 2014 | | Q4 2013 | | Change | FY 2014 | | FY 2013 | | Change |
| Revenues - Consolidated | 17.0 | | 11.3 | | 5.7 | 62.2 | | 42.3 | | 19.9 |
| | Growth | 51 | % | | | | 47 | % | | | |
| Revenues - Lumenpulse products | 14.8 | | 7.7 | | 7.1 | 48.5 | | 30.2 | | 18.3 |
| | Growth | 92 | % | | | | 60 | % | | | |
| Adjusted Gross Margin % - Consolidated(1) | 45 | % | 36 | % | 9 pts | 42 | % | 36 | % | 6 pts |
| Adjusted Gross Margin % - Lumenpulse Products(1) | 46 | % | 34 | % | 12 pts | 44 | % | 36 | % | 8 pts |
| Adjusted EBITDA(1) | 0.1 | | (1.7 | ) | 1.8 | 0.4 | | (6.0 | ) | 6.4 |
| Adjusted Net earnings (loss)(1) | (1.3 | ) | (3.0 | ) | 1.7 | (4.5 | ) | (9.4 | ) | 4.9 |
| Ajusted EPS (loss per share) - Basic(1) | ($0.10 | ) | ($0.27 | ) | $0.17 | ($0.38 | ) | ($0.81 | ) | $0.43 |
| (1) See the Non-IFRS financial measures section |
Revenues
For its fourth quarter of Fiscal 2014 ended April 30 2014, Lumenpulse recorded revenues of $17.0 million. This represents a 50.9% increase compared to revenues of $11.3 million for the same period last year, primarily due to the increase of the Lumenpulse Products segment which achieved a significant year-over-year growth of 92.5%. For the year ended April 30, 2014, Lumenpulse recorded revenues of $62.2 million, representing an increase of 47.0% compared to revenues of $42.3 million in Fiscal 2013.
For both periods, the increase was mainly attributable to the solid growth of the Lumenpulse Products segment which was fueled by the introduction of new products complementing the existing product portfolio, and by further penetration of the North America and international network of agents and VARs. International revenues represented 12% of Fiscal 2014 Lumenpulse Products revenues, and 20% in the fourth quarter.
Adjusted Gross Margin
Consolidated Adjusted Gross Margin increased by over 9 percentage points from 35.5% to 45.3%, and by approximately 6 percentage points from 36.3% to 42.0%, respectively for the quarter and the full year ended April 30, 2014. For both periods, these increases were primarily driven by margin improvements mainly within the Lumenpulse Products segment, as well as the larger proportion of revenues derived from this segment. The Adjusted Gross Margin on Lumenpulse Products increased 12 percentage points from 34.3% to 46.3% and over 8 percentage points from 35.8% to 44.0%, respectively, for the quarter and the full year ended April 30, 2014. The Lumenpulse Products margin improvement reflects a higher manufacturing utilization capacity, the impact of cost reduction initiatives, efficiency improvement programs and, during the fourth quarter, a favorable product mix. Going-forward, our Adjusted Lumenpulse Products Gross Margin may show quarterly volatility but our Q4 performance was a stepping stone towards achieving our long term Adjusted Lumenpulse Products Gross Margin objective.
Adjusted EBITDA
Adjusted EBITDA increased to $0.1 million for the quarter ended April 30, 2014 from a $1.7 million Adjusted EBITDA loss for the same period in 2013. Adjusted EBITDA increased to $0.4 million in Fiscal 2014 from a $6.0 million EBITDA loss in Fiscal 2013. The increases in Adjusted EBITDA for the quarter and full year ended April 30, 2014 are mainly attributable to a larger revenue base as well as the progress achieved on the gross margins partially offset by increasing operating expenses, attributable in part to headcount additions to the head office to support growth and requirements of a public company.
Conference Call
Lumenpulse has scheduled a conference call to discuss these results on Thursday, June 19, 2014, beginning at 11:00 A.M. (ET). This conference call will be broadcast live on the Internet at the following link: Q4 2014 Earnings Conference Call. A slideshow presentation intended for real-time viewing with the conference call will also be available. Alternatively, investors may join by dialing in North America: 1-844-825-4409 (conference ID: 57230077). The webcast will be archived at www.lumenpulse.com/en/investors/quarterly-results.
Non-IFRS Measures
This press release makes reference to certain non-IFRS measures. These non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including EBITDA, Adjusted EBITDA, Adjusted Net Loss, Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted Selling and Marketing Expenses, Adjusted Research and Development Expenses and Adjusted General and Administrative Expenses. EBITDA, Adjusted EBITDA, Adjusted Net Loss, Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted Selling and Marketing Expenses, Adjusted Research and Development Expenses and Adjusted General and Administrative Expenses are non-IFRS measures that the Company uses to assess its operating performance. EBITDA is defined as earnings before interest and other financing costs, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA less non-recurring items and non-cash share-based compensation. Non-recurring items is defined as expenses incurred for the initial public offering ("IPO"). Adjusted Net Loss is defined as net loss before net change in carrying value of the redeemable shares at the option of the holders and related financial derivative liability, early repayment fee on long-term debt, non-recurring items, non-cash share-based compensation, as well as deferred tax expenses that were previously recognized in Fiscal 2012 as deferred tax assets and reversed during Fiscal 2013 based on historical losses. Adjusted Gross Profit is defined as gross profit before non-cash share-based compensation and depreciation and amortization.
Adjusted Operating Expenses is defined as operating expenses less non-cash share-based compensation, depreciation and amortization and non-recurring items. Adjusted Selling and Marketing Expenses is defined as selling and marketing expenses less non-cash share-based compensation, depreciation and amortization. Adjusted Research and Development Expenses is defined as research and development expenses less non-cash share-based compensation, depreciation and amortization. Adjusted General and Administrative Expenses is defined as general and administrative expenses less non-cash share-based compensation, depreciation and amortization and non-recurring items. For a reconciliation of net loss to EBITDA, Adjusted EBITDA and Adjusted Net Loss, a reconciliation of gross profit to Adjusted Gross Profit, a reconciliation of operating expenses to Adjusted Operating Expenses, a reconciliation of selling and marketing expenses to Adjusted Selling and Marketing Expenses, a reconciliation of research and development expenses to Adjusted Research and Development Expenses and a reconciliation of general and administrative expenses to Adjusted General and Administrative Expenses, please refer to "Reconciliation of Non-IFRS Measures" in the Company's Management's Discussion & Analysis for Fiscal 2014 filed with the Canadian securities regulatory authorities, which is available on the SEDAR website at www.sedar.com.
Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information includes, but is not limited to, information with respect to our objectives and the strategies to achieve these objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. This forward-looking information is identified by the use of terms and phrases such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", or "continue", the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in the Company's annual information form filed with the Canadian securities regulatory authorities, which is available on the SEDAR website at www.sedar.com. There can be no assurance that such information will prove to be accurate, and readers are cautioned not to place undue reliance on this forward-looking information. Forward-Looking statements are provided for the purposes of assisting the reader in understanding the Company's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to help investors measure progress towards management's objectives and the reader is cautioned that such statements may not be appropriate for other purposes.
Additional information about the Company, including our 2014 Annual Information Form, is available on our website at www.lumenpulse.com and on the SEDAR website at www.sedar.com.
About Lumenpulse Inc.
Founded in 2006, Lumenpulse designs, develops, manufactures and sells a wide range of high-performance and sustainable specification-grade LED lighting solutions for commercial, institutional and urban environments. Lumenpulse is the leading pure-play specification-grade LED lighting solutions provider and has earned many awards and recognitions, including several Product Innovation Awards (PIA), three Next Generation Luminaires Design Awards, a Red Dot Product Design Award and a Lightfair Innovation Award. Lumenpulse has more than 225 employees worldwide, with corporate headquarters in Montreal, Canada, and offices in Boston, Massachusetts and London, UK. Lumenpulse is listed on the Toronto Stock Exchange under the symbol LMP.