Velan Inc. reports strong fourth quarter and fiscal year 2021/22 financial results and reinstates dividend
Velan Inc. (TSX: VLN) (the “Company”), a world-leading manufacturer of industrial valves, announced today its financial results for its fiscal year and fourth quarter ended February 28, 2022.
- Sales for the quarter amounted to $124.8 million, an increase of 39.3 million or 46.0% compared to last year.
- Gross profit for the quarter of $47.7 million, an increase of $24.7 million or 106.8% from the previous year. The gross profit percentage for the quarter increased by 1,120 basis points from 27.0% to 38.2%. The gross profit increase is first and foremost driven by the significantly increased sales volume.
- The Company declared an eligible quarterly dividend of CA$0.03 per share based on its strong cash position at the end of the quarter.
- EBITDA of $16.6 million for the quarter, an increase of $14.9 million or 906.8%. The improved results were achieved despite receiving $2.3 million less Canada Emergency Wage Subsidies («CEWS»).
- Net loss of $25.6 million for the quarter compared to a net income of $0.3 million last year. Adjusted net income of $7.0 million before a $32.6 million non-cash tax adjustment to derecognize a portion of the Company’s deferred tax asset.
- Net new orders (“bookings”) of $77.1 million for the quarter, a decrease of $3.8 million or 4.7% compared to the previous fiscal quarter.
- Order backlog of $501.2 million at the end of the fiscal year, of which 64.2% of orders are deliverable within the next 12 months. Prior year order backlog totaled $562.5 million and included 60.2% of orders deliverable in the next 12 months.
- During the fiscal year, the Company used its net cash to reduce its debt load, consisting of bank indebtedness and long-term debt, by more than half from $69.8 million to $31.6 million. The Company’s net cash amounted to $53.5 million at the end of the quarter, a decrease of $9.5 million or 15.1% compared to the previous fiscal year.