Highly Impactful First Contribution from Acquired US Assets Drives 4QFY22 Results



KEY POINTS
  • 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.

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