Skip to main content
Canada’s most-awarded newsroom for a reason
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
Canada’s most-awarded newsroom for a reason
$1.99
per week
for 24 weeks
// //

Haivision Systems Inc TSX: HAI-T

Today's Change
Volume
Real-Time Last Update TSX Last Sale

More stories below advertisement

Haivision Announces Fiscal 2021 Third Quarter Financial Results

CNW Group - Tue Sep 14, 4:42PM CDT

Haivision Announces Fiscal 2021 Third Quarter Financial Results

Canada NewsWire

Company Achieves Record YTD Revenue and Adjusted EBITDA

MONTREAL , Sept. 14, 2021 /CNW/ -  Haivision Systems Inc.  (" Haivision " or the " Company ") (TSX: HAI), a leading global provider of mission critical, real-time IP video solutions, today announced its third quarter fiscal financial results for the three months and nine months ended July 31, 2021 .

Third Quarter Fiscal 2021 Financial Results, Company Highlights and Subsequent Events

  • Revenue for the period ended July 31 , was $20.7 million , a record for third quarter performance
  • YTD Revenue in functional currency exceeds 15% YoY growth
  • Operating profit for the quarter was $3.9 million
  • Adjusted EBITDA* for the quarter was $3.4 million representing an Adjusted EBITDA Margin*
    of 16.3%
  • Cash at quarter end was $51.6 million
  • Our SRT open-source initiative celebrated its 4th anniversary and welcomed its 500 th member
  • Closed on the acquisitions of CineMassive Displays, LLC a leader in visual collaboration solutions for mission critical environments
  • Closed on a $35 million revolving credit facility with Bank of Montreal which includes an accordion feature to expand the line to $60 million
  • The PPP loan granted under the CARES Act was forgiven by the Small Business Administration
  • Since going public we have added three outside Board members including our most recent addition, Major General Lee K. Levy II , USAF (ret).

Mirko Wicha , Chairman and CEO of Haivision, said "I want to welcome CineMassive to the Haivision family.  Their products aggregate content from multiple real-time sources for display and interaction within mission critical operations centers that support defense command, cybersecurity threat response, and public safety.  Their exceptional installed base is a testament to the quality of their products."  Mirko added, "Our ability to generate Adjusted EBITDA and net income has exceeded our expectations for the year thus far, as we continue to focus on operational efficiency." 

The Company generated record third quarter revenues of $20,7 million exceeding the exceptional performance of last year, and revenues for the first nine months ended July 31, 2021 were
$65.5 million , an increase of $4.5 million or 7% when compared to the same period in fiscal 2020.  After an impressive first half of the year, there continued to be strong overall demand for our products and services. 

Adjusted EBITDA * for the nine months ended July 31, 2021 was $10.6 million an increase of 31% compared to the same period in the prior year.  Dan Rabinowitz, Chief Financial Officer and EVP Operations, stated, "As we begin the process of integrating CineMassive, we intend to exploit the synergistic opportunities to introduce their product sets to our customer base, expand their base of business internationally, and take advantage or our combined scale in reducing cost and expanding our operating margins."

The Company recorded net income of $1.9 million in the third quarter of fiscal 2021, compared to net income of $2.1 million for the same period in fiscal 2020.  Net income in the third quarter was positively impacted by the forgiveness of the PPP loan, but was negatively impacted by share-based payments and the additional costs of being a public issuer.

Mirko Wicha added, "With the addition of CineMassive to the Haivision family, an enhanced line of credit, and significant cash on hand, we intend to continue to focus on the organic growth opportunities that present themselves while pursuing our acquisition strategy".

Conference Call Notification

Haivision will hold a conference call to discuss its third quarter financial results on Tuesday,
September 14, 2021 at 5:30 pm (ET) .

To register for the call, please use this link http://www.directeventreg.com/registration/event/4638827 . After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry.

* Represents a non-IFRS measure. For the relevant definition, see "Non-IFRS Measures" below. As applicable, a reconciliation of this non-IFRS measure to the most directly comparable IFRS financial measure is included in the tables at the end of this press release and in the Company's management's discussion and analysis for the three months and nine months ended July 31, 2021 .

Financial Statements, Management's Discussion and Analysis and Additional Information

Haivision's consolidated unaudited financial statements for the three months and nine months ended July 31, 2021 (the " Q3 Financial Statements "), the management's discussion and analysis thereon and additional information relating to Haivision and its business can be found under Haivision's profile on SEDAR at www.sedar.com . The financial information presented in this release was derived from the Q3 Financial Statements.

Forward-Looking Statements

This release includes "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities laws, including, without limitation, statements regarding the Company's growth opportunities and its ability to execute on its growth strategy. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance.

Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by Haivision as of the date of this release, are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, the risk factors identified under "Risk Factors" in the Company's latest annual information form, and in other periodic filings that the Company has made and may make in the future with the securities commissions or similar regulatory authorities in Canada , all of which are available under the Company's SEDAR profile at www.sedar.com . These factors are not intended to represent a complete list of the factors that could affect Haivision. However, such risk factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. Haivision undertakes no obligation to publicly update any forward-looking statement, except as required by applicable securities laws.

In addition, Haivision's guidance on revenue is considered forward-looking information. The foregoing demonstrates Haivision's objectives, which are not forecasts or estimates of its financial position, but are based on the implementation of its strategic goals, growth prospects and growth initiatives. Management's assessments of, and outlook for, revenue set out herein are generally based on the following assumptions: (a) Haivision's results of operations will continue as expected, (b) Haivision will continue to effectively execute against its key strategic growth priorities, (c) Haivision will continue to retain and grow its existing customer base and market share, (d) Haivision will be able to take advantage of future prospects and opportunities, and realize on related synergies, including in respect of acquisitions, (e) there will be no changes in legislative or regulatory matters that negatively impact Haivision's business, (f) current tax laws will remain in effect and will not be materially changed,
(g) economic conditions will remain relatively stable throughout the period, and (h) the industries Haivision operates in will continue to grow consistent with past experience. Haivision considers these assumptions to be reasonable in the circumstances, given the time period for such projections and targets. The achievement of target revenue set out above is subject to significant risks including:
(a) that Haivision will be unable to effectively execute against its key strategic growth priorities, and (b) Haivision will be unable to continue to retain and grow its existing customer base and market share. These estimates have been prepared by and are the responsibility of management. Haivision's independent auditor has not conducted a review of, and does not express an opinion or any other form of assurance with respect to, these estimates.

Non-IFRS Measures

Haivision's consolidated financial statements for the third quarter ended July 31, 2021 are prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board. This press release makes reference to certain non-IFRS measures, including "EBITDA", "Gross Margin", "Adjusted EBITDA" and "Adjusted EBITDA Margin". These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. Rather, these non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

Adjusted EBITDA is a supplemental measure used by management to assess the financial performance of our business. Adjusted EBITDA is also a key metric that management uses prior to execution of any strategic investing or financing opportunity. "EBITDA" is defined as earnings (loss) before income taxes, depreciation, amortization and financial expenses and "Adjusted EBITDA" is defined as EBITDA, as adjusted for stock-based compensation and certain non-recurring expense items. Adjusted EBITDA Margin represents Adjusted EBITDA divided by revenue. "Gross Margin" represents gross profit divided by revenue.

About Haivision

Haivision is a leading global provider of mission-critical, real-time video streaming and networking solutions. Our connected cloud and intelligent edge technologies enable global organizations to engage audiences, enhance collaboration, and support decision making. We provide high quality, low latency, secure, and reliable live video at a global scale. Haivision open sourced its award-winning SRT low latency video streaming protocol and founded the SRT Alliance to support its adoption. Awarded an Emmy® for Technology and Engineering from the National Academy of Television Arts and Sciences, Haivision continues to fuel the future of IP video transformation. Founded in 2004, Haivision is headquartered in Montreal and Chicago with offices, sales, and support located throughout the Americas, Europe , and Asia . Learn more at haivision.com. 

 

Thousands of Canadian dollars





Three months ended
July 31,


Nine months ended
July 31,


2021


2020


2021


2020


($)


($)


($)


($)

Revenue

20,695


20,346


65,531


60,988

Cost of sales

5,152


4,710


15,373


14,152

Gross profit

15,543


15,636


50,158


46,836

















Expenses








Sales and marketing

4,036


4,679


13,988


14,604

Operations and support

846


1,162


3,334


3,807

Research and development

3,638


4,479


12,877


14,856

General and administrative

2,313


2,185


8,934


6,823

Share-based payment

821



16,015



11,654


12,505


55,148


40,091









Operating Profit (loss)

3,888


3,132


(4,991)


6,745

Financial expenses

60


77


248


267

Income (loss) before income taxes

3,829


3,055


(5,239)


6,478









Income taxes








Current

1,934


780


3,715


1,697

Deferred


216



471


1,934


996


3,715


2,168









Net income (loss)

1,894


2,059


(8,954)


4,310









Other comprehensive income (loss)








Foreign currency translation adjustment

161


(460)


(778)


222

Comprehensive income (loss)

1,733


1,599


(9,733)


4,533

















Net income per share








   Net income (loss) per share (basic and diluted)

$0.07


$0.13


$(0.36)


$0.28

   Weighted average number of shares outstanding








       Basic

26,634,916


15,340,749


24,754,126


15,385,827

       Diluted

27,316,136


15,340,749


24,754,126


15,385,827












 

Thousands of Canadian dollars



As at


July 31,
2021


October 31,
2020


$


$





Assets




Current assets




             Cash

51,590


15,715

             Trade and other receivables

14,981


12,763

             Investment tax credits receivable

937


2,275

             Inventories

5,216


5,988

             Prepaid expenses

2,058


908


74,782


37,649





Property and equipment

946


898

Right-of-use assets

3,396


3,184

Intangible assets

1,869


2,283

Goodwill

13,966


14,745

Non-refundable investment tax credits receivable

2,795


3,861

Deferred income taxes

1,606


147


24,579


25,118


99,361


62,767





Liabilities




Current liabilities




            Trade and other payables

9,322


12,892

            Income taxes payable

3,207


2,484

            Current portion of lease liabilities

507


570

            Deferred revenue

8,156


8,102

            Current portion of term loans

467


1,180


21,659


25,228





Lease liabilities

3,479


3,075

Deferred revenue

1,960


1,641

Term loans

1,402


2,749

Deferred income taxes


Deferred lease inducement



28,500


32,693





Equity




Share capital

71,096


20,934

Stock Option

1,890


Retained earnings

(3,173)


7,313

Cumulative translation adjustment

1,048


1,827


70,861


30,074


94,361


62,767


 

Thousands of Canadian dollars





Three months ended
July 31,


Nine months ended
July 31,


2021


2020


2021


2020


($)


($)


($)


($)

Net Income

1,894


2,059


(8,954)


4,310

Income Taxes

1,934


996


3,715


2,168

Income before income taxes

3,828


3,055


(5,239)


6,478









Depreciation

298


140


885


459

Amortization

138


288


414


842

Share-based payments

821




16,015


Financial expenses

60


77


248


267

Non -recurring expenses:








   PPP loan forgiveness

(1,772)




(1,772)



Adjusted EBITDA (1)

3,374


3,560


10,552


8,046









Adjusted EBITDA Margin (1)

16.3%


17.5 %


16.1%


13.2 %




























___________________

Note:

(1)    Non-IFRS measure. See "Non-IFRS Measures".

 

comtex tracking

COMTEX_393340292/2669/2021-09-14T17:42:22

More stories below advertisement

All market data (will open in new tab) is provided by Barchart Solutions. Copyright © 2021.

Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. For exchange delays and terms of use, please read disclaimer (will open in new tab).

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies