Highlights:
- Total revenue of $9.9 million for Q1 2025, reflecting YoY growth of 31% from the comparative quarter
- 40% gross profit margin for Q1 2025
- Positive Adjusted EBITDA of $105,366 for Q1 2025
- Segmented Revenue for Q1 2025:
- Vape - B2C: $7.8 million, B2B: $1.2 million
- Cannabis - B2C: $0.8 million
- Expanded 180 Smoke Vape Store's brick-and-mortar retail presence to 30 locations solidifying its position as the largest omni-channel specialty vape retailer in Ontario1
- Increased system-wide loyalty accounts to over 235,000 members across Canada
Vaughan, Ontario--(Newsfile Corp. - July 3, 2024) - Delota Corp. (CSE: NIC) (FSE: S62) ("Delota" or the "Company"), a leading Canadian omni-channel retailer of nicotine vape and alternative tobacco products, is pleased to report it has filed its quarterly financial statements, management discussion and analysis, and associated certifications (collectively, the "Quarterly Filings") for the three months ended April 30, 2024. The Quarterly Filings may be accessed under the Company's SEDAR+ profile at www.sedarplus.ca.
Cameron Wickham, CEO of Delota, commented, "I am very pleased with our first quarter financial results which demonstrate strong momentum and growth. Our focus remains on driving revenue growth, positive adjusted EBITDA and improved margins. Our run-rate revenue is healthy and consistent at approximately $40 million annually and our efforts to optimize and scale the business have been successful in creating a cash flow positive business with the infrastructure to support future growth and expansion. Looking ahead, we are committed to expanding our footprint across Ontario both organically, through the opening of new stores, and strategically through M&A opportunities. Our proven approach in leveraging our existing infrastructure and templated store designs has consistently delivered optimized returns on investment and accelerated revenue growth. This is an exciting phase for Delota as we advance towards becoming the largest national specialty retailer of nicotine vape and alternative tobacco products."
Financial Highlights:
- Total revenue of $9,883,883 for the three months ended April 30, 2024 ("Q1 2025"), reflecting YoY growth of 31% as compared to the three months ended April 30, 2023 ("Q1 2024")
- 40% gross profit margin for Q1 2025
- Positive Adjusted EBITDA of $105,366 for Q1 2025
- Segmented Revenue for Q1 2025:
- Vape - B2C: $7,819,519, B2B: $1,220,412
- Cannabis - B2C: $843,952
Other Highlights:
- On June 20, 2024, the Company opened a 180 Smoke Vape Store located at 70 Joseph Street, Parry Sound, Ontario expanding 180 Smoke's brick-and-mortar presence to 30 locations.
- On April 29, 2024, the Company announced the expansion of its product portfolio with the addition of nicotine-based Siberia White Snus pouches through a partnership with GN Canada, the exclusive Canadian distributor and partner with global snus leader GN Tobacco.
- On April 11, 2024, the Company provided a corporate update on its significant growth and progress.
- On April 2, 2024, the Company changed its stock symbol from "LOTA" to "NIC" on the Canadian Securities Exchange. The new stock symbol is intended to better align with its mission of becoming the largest national specialty retailer of nicotine vape and alternative tobacco products.
- On February 5, 2024, the Company completed debt settlements in the amount of $215,000 with certain creditors of the Company to preserve cash for working capital through the issuance of 1,535,715 units of the Company at a price of $0.14 per unit.
Select Financial Information
The following selected financial information as at and for the three months ended April 30, 2024 and the year ended January 31, 2024 are derived from the Company's consolidated financial statements.
|
|
|
Three Months Ended
April 30, 2024 |
|
|
Year Ended
January 31, 2024 |
|
|
|
|
$ |
|
|
$ |
|
|
Revenue |
|
9,883,883 |
|
|
34,069,680 |
|
|
Net income (loss) |
|
(508,188 |
) |
|
(1,992,576 |
) |
|
Net earnings (loss) per share - basic and diluted |
|
(0.02 |
) |
|
(0.07 |
) |
|
Working capital (deficit) |
|
(604,863 |
) |
|
(771,198 |
) |
|
Total assets |
|
14,018,560 |
|
|
13,735,729 |
|
|
Total non-current liabilities |
|
6,899,362 |
|
|
6,565,672 |
|
|
Total liabilities |
|
13,924,196 |
|
|
13,351,331 |
|
|
Capital stock |
|
7,807,481 |
|
|
7,592,481 |
|
|
Warrant reserve |
|
99,398 |
|
|
99,398 |
|
|
Contributed surplus |
|
510,159 |
|
|
507,005 |
|
|
Accumulated deficit |
|
(8,322,674 |
) |
|
(7,814,486 |
) |
|
Shareholders' equity (deficiency) |
|
94,364 |
|
|
384,398 |
|
Adjusted EBITDA
The Company's "Adjusted EBITDA" is a non-IFRS metric used by management that does not have any standardized meaning prescribed by IFRS and may not be fully comparable to similar measures presented by other companies. Management defines Adjusted EBITDA as the net income (loss) reported, before income taxes and other expense (income) items such as finance costs, finance income, gains and losses related to derivative liability valuations, and adjusted for share-based compensation, depreciation and amortization expenses, gains and losses related to the revaluations of its right-of-use assets and lease liabilities and foreign exchange differences.
The reconciliation of net income (loss) to Adjusted EBITDA is presented below.
|
For the Three Months Ended April 30, |
|
2024 |
|
|
2023 |
|
|
|
|
$ |
|
|
$ |
|
|
Net loss for the period - as reported |
|
(508,188 |
) |
|
(324,624 |
) |
|
Depreciation and amortization |
|
132,610 |
|
|
145,759 |
|
|
Interest and accretion expenses |
|
203,918 |
|
|
29,736 |
|
|
Stock-based compensation |
|
3,154 |
|
|
- |
|
|
Fair value adjustment of derivative liabilities |
|
293,831 |
|
|
- |
|
|
Deferred tax recovery |
|
(15,944 |
) |
|
(15,944 |
) |
|
Lease adjustments |
|
(13,341 |
) |
|
(84,751 |
) |
|
Foreign exchange loss |
|
9,326 |
|
|
6,367 |
|
|
Adjusted EBITDA |
|
105,366 |
|
|
(243,457 |
) |
About Delota Corp.
Delota is the largest omni-channel specialty vape retailer in Ontario with a mission of becoming the largest national specialty retailer of nicotine vape and alternative tobacco products. The Company's growth strategy includes aggressively growing its flagship brand, 180 Smoke Vape Store, by expanding its retail footprint organically in Ontario and select provinces across Canada, strengthening its national e-commerce platform, and through strategic M&A to accelerate growth and market consolidation. The Company is committed to expanding its nicotine product assortment, enhancing customer experience, and growing its loyalty accounts, which now exceeds 235,000 members.
Investors interested in learning more about Delota can visit www.delota.com.
For further information, please contact:
Delota Corp.
Julia Becker
Capital Markets
T: (604) 785-0850
E: ir@delota.com
Cameron Wickham
Executive Vice Chair and CEO
T: (905) 330-1602
E: info@delota.com
Cautionary Statements
This press release contains "forward-looking statements or information". Forward-looking statements can be identified by words such as: anticipate, intend, plan, goal, seek, believe, project, estimate, expect, strategy, future, likely, may, should, will and similar references to future periods. Examples of forward-looking statements in this press release include statements made regarding information about future plans, expectations and objectives of the Company overall.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The Company may not actually achieve its plans, projections, or expectations. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the adequacy of our cash flow and earnings, the availability of future financing and/or credit, developments and changes in laws and regulations, consumer sentiment towards the Company's products, failure of counterparties to perform their contractual obligations, government regulations, competition, loss of key employees and consultants, and general economic, market or business conditions, the impact of technology and social changes on the products and industry, as well as those risk factors discussed or referred to in disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
1Based on number of retail stores in Ontario.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/215276
