Mr. Mike Seckler reports

SALONA GLOBAL COMPLETES TURN AROUND PLAN WITH PROFITABLE THIRD QUARTER, POSTING RECORD RESULTS WITH 18.5% QUARTERLY ORGANIC REVENUE GROWTH AND 29% QUARTERLY GROSS PROFIT GROWTH; GENERATES $749,425 IN ADJUSTED EBITDA FOR THE QUARTER

Salona Global Medical Device Corp., soon to be renamed Evome Medical Technologies Inc., has released financial highlights for its third quarter, ending Sept. 30, 2023.

Financial headlines

Revenues:

• Generated $19,647,489 in revenue for the quarter ending Sept. 30, 2023;
  • 18.5-per-cent increase from the previous quarter;
  • 78.3-per-cent increase from the same period in the prior year.

Profits:

• Generated $7,268,163 in gross profit for the quarter ending Sept. 30, 2023;
  • 29-per-cent increase from the previous quarter;
  • 128.4-per-cent increase from the same period in the prior year.
• Improved gross profit margins to 37 per cent from 34 per cent in the previous quarter;
• Generated $749,425 in positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter ending Sept. 30, 2023, as compared with negative adjusted EBTIDA of $819,394 in the previous quarter, a difference of $1,568,819 for the quarter;
• Generated $2,988,468 in net income for the quarter ending Sept. 30, 2023, as compared with a net loss of $1,115,843 in the previous quarter, a difference of $4,114,311 for the quarter.

Acquisition debt reduction

The company reduced acquisition debt by $428,237.45 (U.S.) in the third quarter pursuant to the previously announced forbearance agreement. On Oct. 31, 2023, the company further reduced its acquisition debt by making a scheduled payment.

"We have succeeded in implementing our turnaround plan very quickly this quarter with fantastic results," said chief executive officer Mike Seckler. "We had record revenue with solid organic revenue and gross profit growth. With this sales momentum I now want to focus on getting our gross profit figures up above 40 per cent. I am also optimistic our operational challenges will be overcome and we are now assessing a pathway to eliminate our going concern issues.

"Most importantly, we can now look to the future and focus on revenue growth. We have some very exciting product launches and international partnerships that look to fuel growth in 2024. I look forward to announcing our new product tomorrow and soon we will debut our entire next generation line of products."

Earnings call

On Wednesday, Nov. 15, 2023, at 4 p.m. (Eastern Time), CEO Mr. Seckler and chief financial officer Natalia Vakhitova will hold an earnings call (see details below) to discuss the third quarter financial results. The call-in numbers for participants are:

Toll-free dial-in: 1-800-245-3047

Direct dial: 1-203-518-9765

Conference ID: SALONA

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