Highly Impactful First Contribution from Acquired US Assets Drives 4QFY22 Results
|52 Week Range||$0.23-$0.76|
|Avg. Daily Vol. (30 day)||260,401|
|Shares Out (MM)||262.7|
|Market Cap (MM)||$65.7|
|Enterprise Value ($MM)||$32.7|
|Revenue TTM (MM)||$16.7|
** In Canadian dollars
- 4QFY22 results highlight Novamind’s impact. For the fiscal fourth quarter ended August 31, 2022, Numinus delivered a 464% Y/Y increase in revenue to C$4.2 million and gross profit of C$1.3 million, up from a year-ago loss of C$89.7K and a 628% increase from the preceding fiscal quarter’s C$181K. 4QFY22 gross margin expanded to 31.5% versus 24.4% in the preceding quarter and a 12.7% average over the preceding three fiscal quarters. Run-rate revenues are C$16.7 million with gross profit at ~C$5.2 million.
- US clinics bolster margins. Numinus’ wellness clinics on both sides of the border contributed ~88% of the company’s total revenues or ~C$3.7 million at an average gross margin of 27%. The US clinics generated 82.5% of these revenues. Revenues from the Canadian clinics grew by 61% Y/Y, driven by network expansion and increased patient traffic.
- Clinic network revenues up 404% sequentially. More than 17K appointments were completed during 4QFY22 versus 5,600 in 3QFY22, mostly due to the Novamind acquisition at the beginning of the quarter. About 13.5% of the appointments were ketamine-related and another 9% were for TMS therapy, both value-added series that helped drive up margin. About 12.5% of the total completed appointments reflected new clients.
- High-margin CRO business has room to expand. Numinus generated revenues of ~C$0.5 million from management of third-party clinical trials that are conducted in the two clinical research sites that came with the US acquisition. These generated a gross margin of ~65%. While this margin might fluctuate depending on the number of trials conducted per quarter, the company identifies this business as a significant growth opportunity.
- Normalized net losses within expectations. Excluding non-recurring items comprising impairment/asset write-offs and transaction costs, Numinus generated a net loss of C$9.3 million for the quarter. A C$13.3 million non-cash impairment charge was made against the Novamind acquisition to reflect Canadian standards with respect to certain future revenues from yet-to-be-announced changes and government regulations.
- Solid balance sheet and liquidity. Numinus ended the quarter with C$33 million in cash on the balance sheet. On an operating basis, Numinus used C$6.7 million in cash. However, given the company’s growing revenue streams and margins, we believe Numinus remains on track to achieve operating profitability by FY25.
- We will be hosting Numinus for a fireside chat on December 8, 2022, at 11:00 am ET. Click here to register.
4QFY22 results highlight Novamind’s impact. For the fiscal fourth quarter ended August 31, 2022, Numinus delivered a 464% Y/Y increase in revenue to C$4.2 million and gross profit of C$1.3 million, up from a year-ago loss of C$89.7K and a 628% increase from the preceding fiscal quarter’s C$181K. 4QFY22 gross margin expanded to 31.5% versus 24.4% in the preceding quarter and a 12.7% average over the preceding three fiscal quarters. Run-rate revenues are C$16.7 million with gross profit at ~C$5.2 million.
Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.
WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information p...