HIT Technologies Reports on First Quarter and YTD-FY 2019 Results
30 Maio 2019 - 11:00PM
HIT Technologies Inc. (TSXV: HIT) ("HIT" or the “Company”), which
designs, develops, manufactures and distributes the world's most
advanced adventure products for iPhone, today reported its third
quarter (Q1-F2019) financial and operating results for the quarter
ended March 31, 2019 prepared in accordance with International
Financial Reporting Standards (IFRS). All results are reported in
Canadian dollars unless otherwise stated.
Selected Quarter and Annual Information
|
Q3-Fiscal2019 |
Q3-Fiscal2018 |
YTD-Fiscal2019 |
YTD-Fiscal2019 |
Revenue |
$597,165 |
$89,500 |
$1,886,828 |
$484,693 |
+ % Increase over Prior Year |
567% |
|
289% |
|
Gross Margin |
$339,731 |
($15,108) |
$983,289 |
$101,852 |
Gross Margin % |
57% |
-17% |
48% |
21% |
Operating Expenses (excluding non-cash and cost of sales) |
$378,746 |
$304,980 |
$1,396,740 |
$1,023,969 |
% change over Prior Year |
24% |
|
36% |
|
Adjusted EBITDA (Loss) |
($40,312) |
($274,143) |
($332,740) |
($680,079) |
% change over Prior Year |
-85% |
|
-51% |
|
Net (Loss) |
|
|
|
|
Per share, Basic |
$0.00 |
$0.00 |
($0.01) |
($0.01) |
|
|
|
March 31, 2019 |
June 30, 2018 |
Cash and Cash Equivalents |
|
|
$50,172 |
$286,106 |
Inventory |
|
|
$384,219 |
$219,699 |
Net Working Capital (Deficiency) |
|
|
($953,042) |
($474,404) |
Total Assets |
|
|
$933,904 |
$1,036,610 |
Accounts payable and accrued liabilities |
|
|
$624,156 |
$1,199,915 |
Total liabilities |
|
|
$2,247,096 |
$1,985,555 |
“We are very proud to announce our strongest Q3
in company history with 567% revenue growth YoY. We continue
to execute against our turnaround plan and direct to consumer sales
stayed strong despite typically slower seasonal effects. Our
continued focus on our DTC channel (Direct to Consumer) reflects
consumer demand for our product lineup and execution of our
marketing plan. Higher margins reflect a greater portion of
sales mix coming from our DTC channel and less seasonal
discounting. We will look to continue to grow this channel in
the quarters to come,” says Brooks Bergreen, CEO HIT
Technologies Inc.
Operational Summary for Q3 Fiscal 2019
include:
- Generated sales of $597,165 in
Q3-F2019, compared to $89,500 in Q3 Fiscal 2018, an increase of
567%, and compared to $989,052 in Q2-F2019, a decrease of 40%. YTD
2019 sales are $1,886,828, compared to $484,693 YTD 2018.
This is an increase of 289%. This is mainly due to the
benefits of improved sales channels, such as Best Buy USA, and
increases in direct sales from its new product-line.
- Gross Margin was recorded at
$339,731, or 57%, in Q3-F2019, compared to ($15,108), or (17%) in
Q3 of last year, and $536,638, or 54% in Q2-F2019. YTD 2019
Gross Margin is $983,289 vs YTD 2018 of $101,852, an increase of
865%. The increase of the Gross Margin %, year over year, is
due to a higher proportion of direct sales, which have a higher
margin profile. It also benefited from the introduction of
higher margin products.
- Increased its operating
expenditures (excluding non-cash items and cost of sales) to
$378,746, a 24% increase from Q2-F2018 and a decrease of 21%
Q2-F2019. YTD 2019 operating expenses is $1,396,740, an
increase from YTD 2018 of $1,023,969. This is mainly due to the
increase in administrative and marketing variable expenses
necessary to support and drive continued growth.
- Reported an Adjusted EBITDA of
($40,312) for Q3-F2019, compared to an Adjusted EBITDA of
($274,143) in Q3-F2018 and of $55,425 in Q2-F2019. YTD
Adjusted EBITDA is ($332,740) vs an Adjusted EBITDA for YTD 2018 of
($680,079), and improvement of 51%. Q3 closed with a working
capital deficiency of $953,042 including cash and cash equivalents
of $50,172 and inventory of $384,219, at March 31, 2019.
Non-IFRS MeasuresAdjusted
EBITDA is a non-IFRS measure and management defines this metric as
the loss and comprehensive loss under IFRS, adjusted by adding back
interest, taxes, amortization, and other non-cash expenses. Please
review the reconciliation of Adjusted EBITDA to net income (loss)
in the Company’s MD&A for the corresponding period.
This press release should be read in conjunction
with our interim unaudited Consolidated Financial Statements for
the quarter ended March 31, 2019 and the accompanying Management
Discussion and Analysis, which can be found on SEDAR at
www.sedar.com and on the Company’s website
http://www.hitcase.com/invest.
About HIT Technologies Inc.HIT
Technologies Inc. (TSXV: HIT) develops and markets a portfolio of
products that transform Apple iPhones into high-performing,
weather- and shock-resistant smartphone accessories. Both its,
flagship product, HITCASE PRO and its new Shield LINK and CRIO
products, allows users to easily capture photo and video content
hands-free, using a variety of HIT Technologies’ patented
Railslide® and LINK mounts that attach to virtually any surface.
Swappable lenses and accessories provide a variety of perspectives,
otherwise unattainable while participating in adventure sports. HIT
Technologies is headquartered in Vancouver, British Columbia,
Canada and trades on the TSX Venture Exchange. For more information
about HITCASE, visit www.HITCASE.com. Search #hitcase on Instagram
to see some of the amazing images created by HITCASE customers.
Forward-Looking StatementsThis
news release contains certain "forward-looking information" within
the meaning of applicable Canadian securities laws that are based
on expectations, estimates and projections as at the date of this
news release. The information in this release about the Company's
anticipated use of available funds, and the future plans and
objectives of the Company are forward-looking information.
Any statements that involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions, future events or performance (often but
not always using phrases such as "expects", or "does not expect",
"is expected", "anticipates" or "does not anticipate", "plans",
"budget", "scheduled", "forecasts", "estimates", "believes" or
"intends" or variations of such words and phrases or stating that
certain actions, events or results "may" or "could", "would",
"might" or "will" be taken to occur or be achieved) are not
statements of historical fact and may be forward-looking
information and are intended to identify forward-looking
information.
This forward-looking information is based on
reasonable assumptions and estimates of management of the Company
at the time it was made, and involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking information. Such
factors include, among others, global economic climate; dilution;
the Company's limited operating history; future capital needs and
uncertainty of additional financing; the competitive nature of the
industry; currency exchange risks; the need for the Company to
manage its planned growth and expansion; the effects of product
development and need for continued technology change; protection of
proprietary rights; the effect of government regulation and
compliance on the Company and the industry; network security risks;
the ability of the Company to maintain properly working systems;
theft and risk of physical harm to personnel; reliance on key
personnel; global economic and financial market deterioration
impeding access to capital or increasing the cost of capital; and
volatile securities markets impacting security pricing unrelated to
operating performance. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no
assurance that such 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 information. The Company
undertakes no obligation to revise or update any forward-looking
information other than as required by law.
Cautionary StatementNo stock
exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein. Neither
the TSX-V nor its Regulation Services Provider (as that term is
defined in the policies of the TSX-V) accepts responsibility for
the adequacy of this release.
For additional investor information,
contact:Brooks Bergreen, CEO HIT Technologies
Inc.invest@hitcase.com +1 416 815 0700www.hitcase.com/invest
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