VCM:CC - Vecima Reports Q3 Fiscal 2024 Results
Achieves All-time Best Quarterly Performance with Revenue of $80.1M, Adjusted EBITDA of $17.2M, and Adjusted EBITDA margin of 21.5%
- Video and Broadband Solutions sales grow 39% QoQ to $68.2 million, with Entra DAA sales climbing 39% QoQ to $60.9 million
- Gross profit: $37.6M, Gross margin: 46.9%
- Earnings per share grow to $0.24; Adjusted EPS climbs to $0.31
Vecima Networks Inc. (TSX: VCM) today reported financial results for the three months ended March 31, 2024.
FINANCIAL HIGHLIGHTS
| (Canadian dollars in millions except percentages, employees, and per share data) |
| Q3FY24 |
| Q2FY24 |
| Q3FY23 |
| Revenue |
| $80.1 |
| $62.0 |
| $78.3 |
| Gross Margin |
| 46.9% |
| 47.8% |
| 43.5% |
| Net Income |
| $5.8 |
| $3.6 |
| $4.5 |
| Earnings Per Share 1,4,5 |
| $0.24 |
| $0.15 |
| $0.18 |
| Adjusted Earnings Per Share 1,2,3,4,5 |
| $0.31 |
| $0.15 |
| $0.18 |
| Adjusted EBITDA 2 |
| $17.2 |
| $12.5 |
| $11.7 |
| Employees |
| 591 |
| 585 |
| 642 |
| 1 Based on weighted average number of shares outstanding. 2 Adjusted Earnings Per Share and Adjusted EBITDA do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures provided by other issuers. See "Adjusted EBITDA and Adjusted Earnings Per Share" below. 3 Starting in Q4 fiscal 2019, we have changed our definition and calculation of Adjusted Earnings Per Share. For a reconciliation of Adjusted Earnings Per Share, investors should refer to Vecima's Management's Discussion and Analysis for the third quarter of fiscal 2024. 4 Earnings Per Share and Adjusted Earnings Per Share includes non-cash share-based compensation of $0.3 million or $0.01 per share for the three months ended March 31, 2024, and $0.3 million or $0.01 per share for the three months ended March 31, 2023. The non-cash share-based compensation primarily reflects certain performance-based vesting thresholds achieved under the Company's Performance Share Unit Plan. 5 Earnings Per Share and Adjusted Earnings Per Share includes foreign exchange gain (loss) of $(1.2) million or $(0.05) per share for the three months ended March 31, 2024, and a gain (loss) of $0.2 million or $0.01 per share for the three months ended March 31, 2023. |
"We produced excellent performance in the third quarter as Vecima's next wave of growth set off, delivering all-time quarterly records for revenue and Adjusted EBITDA," said Sumit Kumar, Vecima's President and Chief Executive Officer.
"On the top line, record consolidated sales of $80.1 million were up 29% quarter-over-quarter, reflecting a break-out quarter for our VBS segment. Driven by powerful 39% quarter-over-quarter growth in Entra family cable and fiber access sales, the VBS segment achieved Q3 sales of $68.2 million, including $60.9 million of contribution from Entra. As expected, Entra results benefited from the ramp-up of volume deliveries of our ERM3 Remote-PHY devices to support Charter's network-wide upgrade, as well as strong and growing demand for our Entra Optical fiber access products."
"Content Delivery and Storage sales of $10.2 million and Telematics segment revenues of $1.7 million further augmented our Q3 top line results," added Mr. Kumar.
"Importantly, we paired our record revenues with a strong gross margin performance of 46.9%, which carried our top-line growth through to the bottom line. Adjusted EBITDA of $17.2 million and an Adjusted EBITDA margin of 21.5% represent the best performance in Vecima's 36-year history."
"While our third quarter results are deeply satisfying, I want to emphasize our belief that they represent just the beginning of the momentum we see ahead. In addition to the significant volume already building for our portfolio of next-generation cable and fiber access products, the third quarter brought major new developments including certification of our EN9000 Generic Access Platform, completion of lab trials with our new EXS1610 All-PON Shelf, entry into the virtual cable modem termination system (vCMTS) market, and a U.S. manufacturing arrangement that positions us to benefit from the US$42.5 billion BEAD broadband infrastructure funding program."
"This is a tremendously exciting time for Vecima, with multiple growth engines now starting to converge just as demand for our next-generation DAA and IPTV solutions is accelerating worldwide. As we move into the fourth quarter, we expect to continue building on the strong run rate established in Q3, while setting the stage for continued momentum in fiscal 2025. We are executing successfully and profitably on our growth strategy, and moving into a new era of growth," said Mr. Kumar.
BUSINESS HIGHLIGHTS
Financial and Corporate
- Generated record quarterly revenue of $80.1 million, up 2% from $78.3 million in Q3 fiscal 2023 and 29% from $62.0 million in Q2 fiscal 2024.
- Gross profit increased by 10% to $37.6 million from $34.1 million in Q3 fiscal 2023, and was up 27% from $29.6 million in Q2 fiscal 2024.
- Gross margin of 46.9% increased 340 basis points from 43.5% in Q3 fiscal 2023, and decreased 90 basis points from 47.8% in Q2 fiscal 2024.
- Adjusted EBITDA climbed 47.2% to a record $17.2 million from $11.7 million in Q3 fiscal 2023, and was up 38.1% from $12.5 million in Q2 fiscal 2024.
- Earnings per share increased to $0.24, from $0.18 in Q3 fiscal 2023 and $0.15 in Q2 fiscal 2024. Adjusted EPS increased to $0.31, from $0.18 and $0.15, respectively, in Q3 fiscal 2023 and Q2 fiscal 2024.
- Ended the third quarter in a solid financial position with working capital of $82.1 million at March 31, 2024, compared to $83.7 million at June 30, 2023.
Video and Broadband Solutions (VBS)
The Video and Broadband Solutions segment achieved third quarter sales of $68.2 million, an increase of 5% from $64.8 million in Q3 fiscal 2023 and 39% higher than the $49.1 million generated in Q2 fiscal 2024.
DAA (Entra Family)
- Achieved robust next-generation Entra product sales of $60.9 million, including 39% quarter-over-quarter growth (Q3 fiscal 2023: $62.7 million; Q2 fiscal 2024: $43.8 million).
- Increased total customer engagements to 113 MSOs worldwide, from 106 a year earlier. Fifty-eight of these customers are ordering Entra products, with order sizes increasing as broader DAA deployment continues.
- Customers engaged for cable access now number 66
- Customers engaged for fiber access or both access technologies number 47
- Secured three new regional customer wins during the quarter, including Elsat and two additional customers.
- Ramped up volume deliveries of the new Entra ERM3 Remote PHY device (RPD). The award-winning ERM3 RPD helps operators upgrade legacy HFC nodes to DAA quickly and cost-effectively, while dramatically increasing broadband capacity.
- Achieved certification of the EN9000 GAP (Generic Access Platform) node with a leading Tier 1 customer. The modular EN9000 GAP Node provides customers with a future-proof path to 10G, protecting today's network investments by ensuring operators can easily transition to future technologies, including DOCSIS 4.0 and 10G FTTH.
- Unveiled the Entra Virtualized Cable Modem Termination System (vCMTS), part of the Entra Cloud platform of open interoperable, cloud-native applications that help cable operators transform their networks for next-generation broadband access. Lab trials of the Entra vCMTS were initiated with a leading Tier 1 operator in North America in Q3FY24, with field trials expected to begin in the fourth quarter of calendar 2024.
- Announced intent to acquire the assets of Casa System's cable business, via an asset purchase agreement, as a "stalking horse" bidder in a voluntary bankruptcy case filed by Casa and its affiliates in the U.S. Bankruptcy Court for the District of Delaware (Bankruptcy Court). The transaction is subject to Bankruptcy Court approval and other bids, if any, for these assets at an auction coordinated through the Bankruptcy Court. If successful, closing of the transaction is expected to occur at the beginning of June 2024.
- Completed lab trials and initiated field trials with a Tier 1 North American operator for the Entra EXS1610 All-PON shelf. A key component of Vecima's industry-leading fiber access product portfolio, the EXS1610 ALL-PON Shelf enables customers to cost effectively deploy fiber to the premises (FTTP) services in any market or hub deployment, providing maximum flexibility for customers.
- Entered an agreement for U.S. manufacturing for certain Entra fiber access equipment to meet Buy America requirements under the U.S. Broadband Equity, Access, and Deployment (BEAD) program.
- For the third consecutive year, Dell'Oro Group, a respected industry market research firm, named Vecima the global market share leader in two DAA segments: Remote Optical Line Terminal (R-OLT) fiber access and Remote MACPHY cable access.
Commercial Video (Terrace Family)
- Commercial Video product sales increased to $7.2 million, up 244% from $2.1 million in Q3 fiscal 2023 and 37% from $5.3 million in Q2 fiscal 2024.
Content Delivery and Storage (CDS)
The Content Delivery and Storage segment generated sales of $10.2 million (Q3 fiscal 2023: $11.8 million; Q2 fiscal 2024: $11.3 million).
- Achieved a strong CDS gross margin of 59.8% (Q3 fiscal 2023: 53.3%; Q2 fiscal 2024: 54.5%).
- Increased service revenue by 10% year-over-year as the base of deployed MediaScale platforms continues to grow.
- Continued IPTV expansion at multiple customers throughout North America.
- Continued to grow live linear IPTV traffic with customers regularly exceeding prior all-time high throughputs.
Telematics
Telematics segment sales grew approximately 3% year-over-year to a record $1.7 million (Q3 fiscal 2023: $1.65 million; Q2 fiscal 2024: $1.63 million).
- Generated additional deployments in high-value verticals, including municipal government and moveable asset customers in restoration and emergency medical services.
- Added 10 new customers for the NERO asset tracking platform and significantly increased the number of moveable assets being monitored to over 64,000 units.
- Received an order for approximately 300 additional subscriptions from an existing customer in the municipal government market.
- Achieved strong gross margin percentage of 67.8%.
As previously reported, Vecima's Board of Directors declared a quarterly dividend of $0.055 per share for the period. The dividend will be payable on June 17, 2024 to shareholders of record as at May 24, 2024.
CONFERENCE CALL
A conference call and live audio webcast will be held today, May 15, 2024 at 1 p.m. ET to discuss the Company's third quarter results. Vecima's unaudited interim condensed consolidated financial statements and management's discussion and analysis for the three and nine months ended March 31, 2024 are available under the Company's profile at www.sedarplus.ca, and at https://vecima.com/investor-relations/financial-reports/ .
To participate in the Q3FY24 teleconference, dial 1-844-763-8274 or 1-647-484-8814. The webcast will be available in real time at https://services.choruscall.ca/links/vecima2024q3.html and will be archived on the Vecima website at https://vecima.com/investor-relations/earnings-call-archive/ .
About Vecima Networks
Vecima Networks Inc. (TSX: VCM) is leading the global evolution to the multi-gigabit, content-rich networks of the future. Our talented people deliver future-ready software, services, and integrated platforms that power broadband and video streaming networks, monitor and manage transportation, and transform experiences in homes, businesses, and everywhere people connect. We help our customers evolve their networks with cloud-based solutions that deliver ground-breaking speed, superior video quality, and exciting new services to their subscribers. There is power in connectivity - it enables people, businesses, and communities to grow and thrive. Learn more at www.vecima.com.
Adjusted EBITDA and Adjusted Earnings Per Share
Adjusted EBITDA and Adjusted Earnings Per Share do not have a standardized meaning under IFRS and therefore may not be comparable to similar measures provided by other issuers. Accordingly, investors are cautioned that Adjusted EBITDA or Adjusted Earnings Per Share should not be construed as an alternative to net income, determined in accordance with IFRS, as an indicator of the Company's financial performance or as a measure of its liquidity and cash flows. For a reconciliation of Adjusted EBITDA or Adjusted Earnings Per Share, investors should refer to Vecima's Management's Discussion and Analysis for the third quarter of fiscal 2024.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes the following statements: we produced excellent performance in the third quarter as Vecima's next wave of growth set off; while our third quarter results are deeply satisfying, we believe they represent just the beginning of the momentum we see ahead; this is a tremendously exciting time for Vecima, with multiple growth engines now starting to converge just as demand for our next-generation DAA and IPTV solutions is accelerating worldwide; as we move into the fourth quarter, we expect to continue building on the strong run rate established in Q3, while setting the stage for continued momentum in fiscal 2025; we are executing successfully and profitably on our growth strategy, and moving into a new era of growth; lab trials of the Entra vCMTS were initiated with a leading Tier 1 operator in North America in Q3FY24, with field trials expected to begin in the fourth quarter of calendar 2024; our U.S. manufacturing agreement positions us to benefit from the US$42.5 billion BEAD broadband infrastructure funding program and to meet its Buy America requirements; if Vecima is the successful bidder for Casa's cable business, closing of the transaction is expected to occur at the beginning of June 2024.
A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated September 21, 2023, as well as the Company's continuous disclosure filings with Canadian securities regulatory authorities available at www.sedarplus.ca. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
| VECIMA NETWORKS INC. |
| Interim Condensed Consolidated Statements of Financial Position |
| (unaudited - in thousands of Canadian dollars) |
| As at |
| March 31, 2024 |
| June 30, 2023 |
| Assets |
|
|
|
|
| Current assets |
|
|
|
|
| Cash and cash equivalents |
| $ |
| 3,281 |
| $ |
| 2,278 |
|
|
| Accounts receivable |
|
|
| 88,700 |
|
|
| 57,662 |
|
|
| Income tax receivable |
|
|
| 1,874 |
|
|
| 530 |
|
|
| Inventories |
|
|
| 144,157 |
|
|
| 101,601 |
|
|
| Prepaid expenses and other current assets |
|
|
| 7,944 |
|
|
| 13,695 |
|
|
| Contract assets |
|
|
| 2,597 |
|
|
| 2,707 |
|
|
| Assets held for sale |
|
|
| 1,405 |
|
|
| Total current assets |
|
|
| 249,958 |
|
|
| 178,473 |
|
|
| Non-current assets Property, plant and equipment |
|
|
|
13,025 |
|
|
|
15,683 |
|
|
| Right-of-use assets |
|
|
| 1,800 |
|
|
| 2,364 |
|
|
| Goodwill |
|
|
| 15,217 |
|
|
| 15,049 |
|
|
| Intangible assets |
|
|
| 89,947 |
|
|
| 82,991 |
|
|
| Investment tax credits |
|
|
| 25,326 |
|
|
| 24,252 |
|
|
| Deferred tax assets |
|
|
| 15,739 |
|
|
| 11,576 |
|
|
| Other long-term assets |
|
|
| 1,343 |
|
|
| 1,298 |
|
|
| Total assets |
| $ |
| 412,355 |
| $ |
| 331,686 |
|
|
| Liabilities and shareholders' equity |
|
|
|
|
| Current liabilities Revolving line of credit |
|
$ |
|
81,712 |
|
$ |
|
20,513 |
|
|
| Accounts payable and accrued liabilities |
|
|
| 58,808 |
|
|
| 47,162 |
|
|
| Provisions |
|
|
| 555 |
|
|
| 1,978 |
|
|
| Income tax payable |
|
|
| 3,908 |
|
|
| 7,808 |
|
|
| Deferred revenue |
|
|
| 18,824 |
|
|
| 15,086 |
|
|
| Current portion of financial liability |
|
|
| 1,558 |
|
|
| Current portion of long-term debt |
|
|
| 2,504 |
|
|
| 2,260 |
|
|
| Total current liabilities |
|
|
| 167,869 |
|
|
| 94,807 |
|
|
| Non-current liabilities Provisions |
|
|
|
383 |
|
|
|
387 |
|
|
| Deferred revenue |
|
|
| 3,491 |
|
|
| 4,716 |
|
|
| Long-term portion of financial liability |
|
|
| 792 |
|
|
| Long-term debt |
|
|
| 12,985 |
|
|
| 14,123 |
|
|
| Total liabilities |
|
|
| 185,520 |
|
|
| 114,033 |
|
|
| Shareholders' equity Share capital |
|
|
|
24,117 |
|
|
|
23,997 |
|
|
| Reserves |
|
|
| 3,872 |
|
|
| 3,111 |
|
|
| Retained earnings |
|
|
| 198,050 |
|
|
| 190,926 |
|
|
| Accumulated other comprehensive income (loss) |
|
|
| 796 |
|
|
| (381 |
| ) |
| Total shareholders' equity |
|
|
| 226,835 |
|
|
| 217,653 |
|
|
| Total liabilities and shareholders' equity |
| $ |
| 412,355 |
| $ |
| 331,686 |
| VECIMA NETWORKS INC. |
| Interim Condensed Consolidated Statements of Comprehensive Income |
| (unaudited - in thousands of Canadian dollars, except per share amounts) |
| Three months |
| Nine months |
| Periods ended December 31, |
|
|
|
|
| 2024 |
|
|
|
|
|
|
| 2023 |
|
|
|
|
|
|
| 2024 |
|
|
|
|
|
|
| 2023 |
|
|
| Sales |
| $ |
| 80,139 |
|
|
| $ |
| 78,256 |
|
|
| $ |
| 203,571 |
|
|
| $ |
| 227,915 |
|
|
| Cost of sales |
|
|
| 42,543 |
|
|
|
|
| 44,183 |
|
|
|
|
| 107,562 |
|
|
|
|
| 124,056 |
|
|
| Gross profit |
|
|
| 37,596 |
|
|
|
|
| 34,073 |
|
|
|
|
| 96,009 |
|
|
|
|
| 103,859 |
|
|
| Operating expenses Research and development |
|
|
|
11,281 |
|
|
|
|
|
12,053 |
|
|
|
|
|
33,128 |
|
|
|
|
|
33,099 |
|
|
| Sales and marketing |
|
|
| 6,741 |
|
|
|
|
| 6,929 |
|
|
|
|
| 20,775 |
|
|
|
|
| 19,852 |
|
|
| General and administrative |
|
|
| 7,872 |
|
|
|
|
| 8,389 |
|
|
|
|
| 22,276 |
|
|
|
|
| 21,505 |
|
|
| Share-based compensation |
|
|
| 272 |
|
|
|
|
| 289 |
|
|
|
|
| 785 |
|
|
|
|
| 1,202 |
|
|
| Other expense |
|
|
| 1,349 |
|
|
|
|
| 275 |
|
|
|
|
| 1,616 |
|
|
|
|
| 318 |
|
|
| Total operating expenses |
|
|
| 27,515 |
|
|
|
|
| 27,935 |
|
|
|
|
| 78,580 |
|
|
|
|
| 75,976 |
|
|
| Operating income |
|
|
| 10,081 |
|
|
|
|
| 6,138 |
|
|
|
|
| 17,429 |
|
|
|
|
| 27,883 |
|
|
| Finance expense |
|
|
| (1,580 |
| ) |
|
|
| (738 |
| ) |
|
|
| (3,940 |
| ) |
|
|
| (1,493 |
| ) |
| Foreign exchange gain (loss) |
|
|
| (1,159 |
| ) |
|
|
| 198 |
|
|
|
|
| 94 |
|
|
|
|
| 1,362 |
|
|
| Income before income taxes |
|
|
| 7,342 |
|
|
|
|
| 5,598 |
|
|
|
|
| 13,583 |
|
|
|
|
| 27,752 |
|
|
| Income tax expense |
|
|
| 1,542 |
|
|
|
|
| 1,147 |
|
|
|
|
| 2,449 |
|
|
|
|
| 5,650 |
|
|
| Net income |
| $ |
| 5,800 |
|
|
| $ |
| 4,451 |
|
|
| $ |
| 11,134 |
|
|
| $ |
| 22,102 |
|
|
| Other comprehensive income: |
|
|
|
|
|
|
|
|
| Item that may be subsequently reclassified to net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Exchange differences on translation of foreign operations |
| $ |
| 1,361 |
|
|
| $ |
| (105 |
| ) |
| $ |
| 1,177 |
|
|
| $ |
| 1,782 |
|
|
| Comprehensive income |
| $ |
| 7,161 |
|
|
| $ |
| 4,346 |
|
|
| $ |
| 12,311 |
|
|
| $ |
| 23,884 |
|
|
| Net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
| $ |
| 0.24 |
|
|
| $ |
| 0.18 |
|
|
| $ |
| 0.46 |
|
|
| $ |
| 0.94 |
|
|
| Diluted |
| $ |
| 0.24 |
|
|
| $ |
| 0.18 |
|
|
| $ |
| 0.46 |
|
|
| $ |
| 0.94 |
|
|
| Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares outstanding - basic |
|
|
| 24,311,594 |
|
|
|
|
| 24,201,616 |
|
|
|
|
| 24,306,028 |
|
|
|
|
| 23,545,483 |
|
|
| Shares outstanding - diluted |
| 24,324,516 |
|
|
|
|
| 24,226,939 |
|
|
|
|
| 24,314,830 |
| 23,573,305 |
| VECIMA NETWORKS INC. |
| Interim Condensed Consolidated Statements of Equity |
| (unaudited - in thousands of Canadian dollars) |
|
|
|
|
| Share capital |
|
|
| Reserves |
|
|
| Retained earnings |
|
|
| Accumulated other comprehensive (loss) income |
|
|
| Total |
| Balance as at June 30, 2022 |
| $ |
| 7,935 |
|
|
| $ |
| 3,141 |
|
|
| $ |
| 168,923 |
|
|
| $ |
| (267 |
| ) |
| $ |
| 179,732 |
|
|
| Net income |
|
|
|
|
|
|
| 22,102 |
|
|
|
|
| 22,102 |
|
|
| Other comprehensive income |
|
|
|
|
|
|
|
|
| 1,782 |
|
|
|
|
| 1,782 |
|
|
| Dividends |
|
|
|
|
|
|
| (3,873 |
| ) |
|
|
| (3,873 |
| ) |
| Common share issuance |
|
|
| 15,926 |
|
|
|
|
|
|
|
|
| 15,926 |
|
|
| Shares issued by exercising options |
|
|
| 502 |
|
|
|
|
| (106 |
| ) |
|
|
|
|
| 396 |
|
|
| PSUs settled in common shares |
|
|
| 1,039 |
|
|
|
|
| (1,039 |
| ) |
|
|
|
|
| Withholding taxes on PSUs |
|
|
| (1,506 |
| ) |
|
|
|
|
|
|
| (1,506 |
| ) |
| Share-based payment expense |
|
|
|
|
| 1,202 |
|
|
|
|
|
|
| 1,202 |
|
|
| Balance as at March 31, 2023 |
| $ |
| 23,896 |
|
|
| $ |
| 3,198 |
|
|
| $ |
| 187,152 |
|
|
| $ |
| 1,515 |
|
|
| $ |
| 215,761 |
|
|
| Balance as at June 30, 2023 |
| $ |
| 23,997 |
|
|
| $ |
| 3,111 |
|
|
| $ |
| 190,926 |
|
|
| $ |
| (381 |
| ) |
| $ |
| 217,653 |
|
|
| Net income |
|
|
|
|
|
|
| 11,134 |
|
|
|
|
| 11,134 |
|
|
| Other comprehensive income |
|
|
| 1,177 |
|
|
|
|
| 1,177 |
|
|
| Dividends |
|
|
|
|
|
|
| (4,010 |
| ) |
|
|
| (4,010 |
| ) |
| Shares issued by exercising options |
|
|
| 120 |
|
|
|
|
| (24 |
| ) |
|
|
|
|
| 96 |
|
|
| Share-based payment expense |
|
|
|
|
| 785 |
|
|
|
|
|
|
| 785 |
|
|
| Balance as at March 31, 2024 |
| $ |
| 24,117 |
|
|
| $ |
| 3,872 |
|
|
| $ |
| 198,050 |
|
|
| $ |
| 796 |
|
|
| $ |
| 226,835 |
|
|
| VECIMA NETWORKS INC. |
| Interim Condensed Consolidated Statements of Cash Flows |
| (unaudited - in thousands of Canadian dollars) |
| Three months |
| Nine months |
| Periods ended December 31, |
|
|
|
|
| 2024 |
|
|
|
|
|
|
| 2023 |
|
|
|
|
|
|
| 2024 |
|
|
|
|
|
|
| 2023 |
|
|
| OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
| $ |
| 5,800 |
|
|
| $ |
| 4,451 |
|
|
| $ |
| 11,134 |
|
|
| $ |
| 22,102 |
|
|
| Adjustments for non-cash items: |
|
|
|
|
|
|
|
|
| Loss on sale of property, plant and equipment |
|
|
|
|
| 13 |
|
|
|
|
| 19 |
|
|
|
|
| 40 |
|
|
| Depreciation and amortization |
|
|
| 5,953 |
|
|
|
|
| 5,060 |
|
|
|
|
| 16,556 |
|
|
|
|
| 14,226 |
|
|
| Share-based compensation |
|
|
| 272 |
|
|
|
|
| 289 |
|
|
|
|
| 785 |
|
|
|
|
| 1,202 |
|
|
| Warrant expense |
|
|
| 710 |
|
|
|
|
|
|
| 1,565 |
|
|
|
|
| Income tax expense |
|
|
| 2,088 |
|
|
|
|
| 53 |
|
|
|
|
| 6,069 |
|
|
|
|
| 2,701 |
|
|
| Deferred income tax expense (recovery) |
|
|
| (546 |
| ) |
|
|
| 1,094 |
|
|
|
|
| (3,620 |
| ) |
|
|
| 2,949 |
|
|
| Interest expense |
|
|
| 1,584 |
|
|
|
|
| 740 |
|
|
|
|
| 3,946 |
|
|
|
|
| 1,509 |
|
|
| Interest income |
|
|
|
|
| (5 |
| ) |
|
|
| (4 |
| ) |
|
|
| (17 |
| ) |
| Net change in working capital |
|
|
| (42,588 |
| ) |
|
|
| (6,980 |
| ) |
|
|
| (52,957 |
| ) |
|
|
| (57,981 |
| ) |
| Increase (decrease) in other long-term assets |
|
|
| (158 |
| ) |
|
|
| 123 |
|
|
|
|
| 153 |
|
|
|
|
| 269 |
|
|
| Decrease in provisions |
|
|
| (158 |
| ) |
|
|
| (121 |
| ) |
|
|
| (1,423 |
| ) |
|
|
| (181 |
| ) |
| Decrease in investment tax credits |
|
|
| (28 |
| ) |
|
|
| (25 |
| ) |
|
|
| (96 |
| ) |
|
|
| (97 |
| ) |
| Income tax paid |
|
|
| (153 |
| ) |
|
|
| (152 |
| ) |
|
|
| (11,750 |
| ) |
|
|
| (928 |
| ) |
| Interest received |
|
|
| 2 |
|
|
|
|
| 3 |
|
|
|
|
| 6 |
|
|
|
|
| 18 |
|
|
| Interest paid |
|
|
| (1,406 |
| ) |
|
|
| (707 |
| ) |
|
|
| (3,766 |
| ) |
|
|
| (1,406 |
| ) |
| Cash provided by (used in) operating activities |
|
|
| (28,628 |
| ) |
|
|
| 3,836 |
|
|
|
|
| (33,383 |
| ) |
|
|
| (15,594 |
| ) |
| INVESTING ACTIVITIES Capital expenditures, net |
|
|
|
(724 |
|
) |
|
|
|
(1,060 |
|
) |
|
|
|
(2,118 |
|
) |
|
|
|
(2,311 |
|
) |
| Deferred development costs |
|
|
| (6,524 |
| ) |
|
|
| (6,387 |
| ) |
|
|
| (19,834 |
| ) |
|
|
| (17,194 |
| ) |
| Cash used in investing activities |
|
|
| (7,248 |
| ) |
|
|
| (7,447 |
| ) |
|
|
| (21,952 |
| ) |
|
|
| (19,505 |
| ) |
| FINANCING ACTIVITIES Net draws of the revolving line of credit |
|
|
|
37,646 |
|
|
|
|
|
4,873 |
|
|
|
|
|
61,199 |
|
|
|
|
|
16,264 |
|
|
| Principal repayments of lease liabilities |
|
|
| (367 |
| ) |
|
|
| (489 |
| ) |
|
|
| (1,275 |
| ) |
|
|
| (1,311 |
| ) |
| Principal repayments of long-term debt |
|
|
| (521 |
| ) |
|
|
| (281 |
| ) |
|
|
| (1,121 |
| ) |
|
|
| (448 |
| ) |
| Proceeds from short-term debt |
|
|
| 919 |
|
|
|
|
| 585 |
|
|
|
|
| 919 |
|
|
|
|
| 585 |
|
|
| Dividends paid |
|
|
| (1,337 |
| ) |
|
|
| (1,331 |
| ) |
|
|
| (4,010 |
| ) |
|
|
| (3,873 |
| ) |
| Proceeds from common share issuance |
|
|
|
|
|
|
|
|
| 15,926 |
|
|
| Issuance of shares through exercised options |
|
|
| 9 |
|
|
|
|
| 453 |
|
|
|
|
| 96 |
|
|
|
|
| 502 |
|
|
| Withholding taxes on PSUs |
|
|
|
|
| (53 |
| ) |
|
|
|
|
| (1,506 |
| ) |
| Cash provided by financing activities |
|
|
| 36,349 |
|
|
|
|
| 3,757 |
|
|
|
|
| 55,808 |
|
|
|
|
| 26,139 |
|
|
| Net increase (decrease) in cash and cash equivalents |
|
|
| 473 |
|
|
|
|
| 146 |
|
|
|
|
| 473 |
|
|
|
|
| (8,960 |
| ) |
| Effect of change in exchange rates on cash |
|
|
| 222 |
|
|
|
|
| 506 |
|
|
|
|
| 530 |
|
|
|
|
| (23 |
| ) |
| Cash and cash equivalents, beginning of period |
|
|
| 2,586 |
|
|
|
|
| 3,267 |
|
|
|
|
| 2,278 |
|
|
|
|
| 12,902 |
|
|
| Cash and cash equivalents, end of period |
| $ |
| 3,281 |
|
|
| $ |
| 3,919 |
|
|
| $ |
| 3,281 |
|
|
| $ |
| 3,919 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515586385/en/
Vecima Networks
Investor Relations - 250-881-1982 invest@vecima.com